Artistic orientation, financial literacy and entrepreneurial performance

Purnomo, Boyke Rudy

doi:10.1108/jec-09-2018-0065

Cited by 29 publications

(53 citation statements)

References 95 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The positive influence of financial literacy on sustainability is consistent with the results of Eniola and Entebang [20], who found that financial literacy had a direct, positive impact on the performance of Nigerian SMEs, and Purnomo [109], who also found that financial literacy had a direct impact on SMEs' performance. We identified financial literacy as an important component of organisations' intellectual capital and thus our findings are consistent with those of Carmeli and Tishler [31], who found that intellectual capital had a positive effect on SMEs' sustainability.…”

Section: Discussion Of the Findingssupporting

confidence: 87%

How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

2019

View full text Add to dashboard Cite

Role of the knowledge-based resources in promoting sustainability in small and medium enterprises (SMEs) is currently a topic of debate. Financial literacy has been identified as a vital knowledge resource for financial decision making, but insufficient attention has been given to how SMEs’ financial literacy affects their sustainability. Drawing upon a knowledge-based perspective, peaking order theory and dual process theory, we constructed an integrated model to examine the impact of financial literacy, access to finance and financial risk attitude on SMEs’ sustainability. The sample included 291 chief financial officers (CFOs) of SMEs in Sri Lanka. The output of structural equation modelling revealed direct positive effects of financial literacy, access to finance and financial risk attitude on sustainability. Financial literacy also emerged as a predictor of access to finance and financial risk attitude. Moreover, access to finance and financial risk attitude were found to be partial mediators of the relationship between financial literacy and SMEs’ sustainability. Theoretical implications and practical implications for policymakers, industry practitioners and academics interested in promoting sustainability amongst SMEs are discussed.

show abstract

Section: Discussion Of the Findingssupporting

confidence: 87%

How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

2019

View full text Add to dashboard Cite

show abstract

“…For instance, we found that financial literacy significantly influences SMEs' performance in emerging economies. The findings relate to Purnomo, who pointed out that financially literate managers are capable of organizing resources that spur SMEs' performance. Moreover, Yang et al () also argued that financial literacy augments top managers understanding about markets and customers' demand that facilitate their performance and competitive advantage.…”

Section: Discussionmentioning

confidence: 63%

“…Particularly, in a creative and competitive atmosphere, top managers need to have adequate knowledge and skills of financial measures and financial concepts. Because financial knowledge enables managers to gain a favorable financial position in the markets (Purnomo, ). Education is very prominent for the searching and identification of new opportunities (Davidsson & Honig, ) because managers with sufficient knowledge management can make rational decisions and strategic planning during operational activities that improve the social performance of their ventures (Iqbal & Malik, ).…”

Section: Literature Reviewmentioning

confidence: 99%

Business experience or Financial Literacy? Which one is better for opportunity recognition and superior performance?

Anwar

Ullah

2020

Bus Strat Dev

View full text Add to dashboard Cite

Recognition of useful opportunities is very crucial for small and medium‐sized enterprises' (SMEs') survival and growth in the competitive environment. However, the majority of SMEs cannot easily recognize new opportunities in the turbulent markets due to a lack of managerial competencies and knowledge. Several studies have been carried out to unleash the determinants of opportunity recognition that configure SMEs' success, but the results are disjointed. In particular, the mediating role of opportunity recognition between business experience, financial literacy, and SME performance has been missed. This study aims to test if either financially literate or experienced managers can recognize new opportunities that result in high performance. For testing the hypotheses, we surveyed 232 Pakistani SMEs from the manufacturing, trading, and service sectors. After performing the structural equation modeling, we found that financial literacy and business experience are the substantial prognosticators of opportunity recognition and SMEs' performance. Opportunity recognition shows a partial mediating role between financial literacy and SMEs performance as well as between business experience and SMEs performance. However, this research endorses that business experience is more vital for high performance as compared to financial literacy whereas in terms of opportunity recognition financial literacy is more crucial as compared to experience. This study recommends the enterprises to hire the financially literate and experienced managers as both display a prominent role in the identification of opportunities and high performance. Further implications are discussed.

show abstract

“…Financial literacy is very important particularly in small firms because the decision-making process of small firms is directly influenced owners and managers [ 50 ]. It significantly affects overall performance of creative ventures [ 51 ]. In SMEs sector, the role of financial literate managers is prominent for understanding customers’ needs and their necessities.…”

Section: Theory and Literature Reviewmentioning

confidence: 99%

Unpacking the importance of intangible skills in new product development and sustainable business performance; strategies for marketing managers

Ali¹,

Li²,

Yang³

et al. 2020

PLoS ONE

View full text Add to dashboard Cite

Firms need sufficient resources (tangible and intangible) and capabilities to build unique products due to customers' demands and choices, market competition and globalization. Despite sufficient resources, many firms cannot build new products according to the customers' preferences and market trends due to lack of marketing capabilities, lack of skilled marketing staff and lack of experienced managers. However, studies have not yet examined what types of intangible skills of marketing managers are prominent for building new products. This study examines the importance of the intangible skills; intellectual captial, financial literacy and business experience in new product development that results in sustainable competitive performance. We used a mixed-method approach; questionnaire (283) and interviews (16) for data collection and then applied structural equation modelling for testing the hypotheses. The results revealed that all the three intangible skills; intellectual captial, financial literacy and business experience significant influence new product development and sustainable competitive performance. However, considering the relative importance, financial literacy and intellectual capital are the most significant predictors of sustainable competitive performance and new product development respectively. Moreover, new product development fully mediates the path between intellectual capital and sustainable competitive performance while it partially mediates the link between financial literacy, business experience and sustainable competitive performance. Considering the importance of tangible resources, our study scrutinized that financial resources have a significant influence on new product development and sustainable competitive performance while technological resources do not play a significant role. This research recommends firms to emphasize on the improvement of intangible skills of the managers in order to build new products that result in sustainable competitive position. This study also recommends marketing managers to improve their financial skills and experience by participating in various seminars and workshops that can spur their new idea generation and new product development capabilities.

show abstract

Artistic orientation, financial literacy and entrepreneurial performance

Cited by 29 publications

References 95 publications

How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

Business experience or Financial Literacy? Which one is better for opportunity recognition and superior performance?

Unpacking the importance of intangible skills in new product development and sustainable business performance; strategies for marketing managers

Contact Info

Product

Resources

About