Mediating relationship of financial practice between financial knowledge and business success: an empirical study on Malaysian small business

Mediating relationship of financial practice between financial knowledge and business success: an empirical study on Malaysian small business

Purpose – The business world metaphorically has turned flat for the onslaught of globalization. The ultimate purpose for achieving business success is a common anticipation for all types of businesses, particularly small businesses that are thought as a nucleus of the business world. The purpose of...

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Main Authors: Abdullah, Moha Asri, Azam, S. M. Ferdous
Format: Conference or Workshop Item
Language:English
Published: 2015
Subjects:
HF5001 Business. Business Administration
Online Access:http://irep.iium.edu.my/42782/
http://irep.iium.edu.my/42782/
http://irep.iium.edu.my/42782/1/42782.pdf
id iium-42782
recordtype eprints
spelling iium-427822016-05-24T00:34:03Z http://irep.iium.edu.my/42782/ Mediating relationship of financial practice between financial knowledge and business success: an empirical study on Malaysian small business Abdullah, Moha Asri Azam, S. M. Ferdous HF5001 Business. Business Administration Purpose – The business world metaphorically has turned flat for the onslaught of globalization. The ultimate purpose for achieving business success is a common anticipation for all types of businesses, particularly small businesses that are thought as a nucleus of the business world. The purpose of this research is to assess the mediating relationship of financial practice between financial knowledge and business success of small business in Malaysia. Design/methodology/approach – The research method of this study is survey method, where the unit of analysis is the individual respondent consisting business owners and managers. A sample of 302 data is considered as the final sample size for the current study. Prior to conducting Structural Equation Modelling (SEM), Exploratory Factor Analysis (EFA) is performed to scrutinize the underlying dimensions of Financial Knowledge (FK), Financial Practice (FP) and Business Success (BS). The reliability analysis is checked via Cronbach’s alpha coefficient of the three extracted factors for the purpose of ensuring the internal consistency. Next, mediating relationship is performed using SEM to indicate the appropriateness of the measurement instruments. Findings – The results indicate that, although Financial Knowledge (FK) is positively related to the Financial Practice (FP) in Malaysian small business, but it is not directly related to the Business Success (BS). Apart from this, the Financial Practice (FP) is found assertively allied to the Business Success (BS) while Financial Practice (FP) plays the mediating roles in the Financial Knowledge (FK) towards Business Success (BS) in Malaysia. Practical implications – The current study adds value to the current level of knowledge in the existing literature. This research conveys an understanding to the entrepreneurs regarding the financial knowledge items those are more essential and play as the remedy to get the business success swiftly. Furthermore, the current study brings some implications to the policy makers and regulators as well. Originality/value – The research creates the value in Malaysian small business milieu since there is a dearth of empirical studies previously conducted highlighting the mediating relationship of financial practice between financial knowledge and business success of small business in Malaysia. 2015 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/42782/1/42782.pdf Abdullah, Moha Asri and Azam, S. M. Ferdous (2015) Mediating relationship of financial practice between financial knowledge and business success: an empirical study on Malaysian small business. In: Sydney International Business Research Conference 2015, 17th-19th April 2015, University of Western Sydney Campbelltown, Australia. http://www.aabl.com.au/wp-content/uploads/proceedings/sydney/P197-R14.pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HF5001 Business. Business Administration
spellingShingle HF5001 Business. Business Administration
Abdullah, Moha Asri
Azam, S. M. Ferdous
Mediating relationship of financial practice between financial knowledge and business success: an empirical study on Malaysian small business
description Purpose – The business world metaphorically has turned flat for the onslaught of globalization. The ultimate purpose for achieving business success is a common anticipation for all types of businesses, particularly small businesses that are thought as a nucleus of the business world. The purpose of this research is to assess the mediating relationship of financial practice between financial knowledge and business success of small business in Malaysia. Design/methodology/approach – The research method of this study is survey method, where the unit of analysis is the individual respondent consisting business owners and managers. A sample of 302 data is considered as the final sample size for the current study. Prior to conducting Structural Equation Modelling (SEM), Exploratory Factor Analysis (EFA) is performed to scrutinize the underlying dimensions of Financial Knowledge (FK), Financial Practice (FP) and Business Success (BS). The reliability analysis is checked via Cronbach’s alpha coefficient of the three extracted factors for the purpose of ensuring the internal consistency. Next, mediating relationship is performed using SEM to indicate the appropriateness of the measurement instruments. Findings – The results indicate that, although Financial Knowledge (FK) is positively related to the Financial Practice (FP) in Malaysian small business, but it is not directly related to the Business Success (BS). Apart from this, the Financial Practice (FP) is found assertively allied to the Business Success (BS) while Financial Practice (FP) plays the mediating roles in the Financial Knowledge (FK) towards Business Success (BS) in Malaysia. Practical implications – The current study adds value to the current level of knowledge in the existing literature. This research conveys an understanding to the entrepreneurs regarding the financial knowledge items those are more essential and play as the remedy to get the business success swiftly. Furthermore, the current study brings some implications to the policy makers and regulators as well. Originality/value – The research creates the value in Malaysian small business milieu since there is a dearth of empirical studies previously conducted highlighting the mediating relationship of financial practice between financial knowledge and business success of small business in Malaysia.
format Conference or Workshop Item
author Abdullah, Moha Asri
Azam, S. M. Ferdous
author_facet Abdullah, Moha Asri
Azam, S. M. Ferdous
author_sort Abdullah, Moha Asri
title Mediating relationship of financial practice between financial knowledge and business success: an empirical study on Malaysian small business
title_short Mediating relationship of financial practice between financial knowledge and business success: an empirical study on Malaysian small business
title_full Mediating relationship of financial practice between financial knowledge and business success: an empirical study on Malaysian small business
title_fullStr Mediating relationship of financial practice between financial knowledge and business success: an empirical study on Malaysian small business
title_full_unstemmed Mediating relationship of financial practice between financial knowledge and business success: an empirical study on Malaysian small business
title_sort mediating relationship of financial practice between financial knowledge and business success: an empirical study on malaysian small business
publishDate 2015
url http://irep.iium.edu.my/42782/
http://irep.iium.edu.my/42782/
http://irep.iium.edu.my/42782/1/42782.pdf
first_indexed 2023-09-18T21:00:58Z
last_indexed 2023-09-18T21:00:58Z
_version_ 1777410620797222912

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