Financial literacy and formal credit accessibility: Evidence from informal businesses in China

Xu, Nana; Shi, Jingye; Rong, Zhao; Yuan, Ying

doi:10.1016/j.frl.2019.101327

Cited by 46 publications

(45 citation statements)

References 12 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Our results also confirmed that FL significantly contributes to NPD and SCP in SMEs sector. Our findings match several studies which have scrutinized a significant positive association between FL and sustainable competitive performance [51,56] and innovative performance [122]. Consistent with Memon, Yong and Memon [123] who revealed that financial literature managers have high capabilities of exploiting new opportunities and generating new ideas that are very helpful for high performance.…”

Section: Discussionsupporting

confidence: 91%

“…In emerging economies, SMEs sector get sufficient benefits of financial literate managers as they can effectively manage resources for high performance [55]. For instance, Xu, Shi, Rong and Yuan [56] claimed that financial literate managers can easily access credit in emerging economy China. Hence, it can be argued that marketing managers with financial education will easily acquire external knowledge related to market, customers and products that in turn will spur business performance.…”

Section: Financial Literacy and Sustainable Competitive Performancementioning

confidence: 99%

See 1 more Smart Citation

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

Section: Discussionsupporting

confidence: 91%

Section: Financial Literacy and Sustainable Competitive Performancementioning

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

show abstract

“…These steps inevitably involve financial issues. Therefore, entrepreneurs need to be financially literate, and financial literacy has a positive effect on business development (Garg and Singh, 2018;Abad-Segura and González-Zamar, 2019;Xu et al, 2020;Burchi et al, 2021). Improving rural households' financial literacy is an effective way to promote entrepreneurship.…”

Section: Introductionmentioning

confidence: 99%

Social Capital, Financial Literacy, and Rural Household Entrepreneurship: A Mediating Effect Analysis

Zhao

Tian-cheng

2021

Front. Psychol.

View full text Add to dashboard Cite

In rural areas, entrepreneurship helps lift households out of poverty by alleviating unemployment and increasing income, and financial literacy plays an important role in promoting entrepreneurship. Social capital is a resource embedded in social relationships, the boundaries of which have been expanded by the development of information communications technologies (ICTs). This article aims to link social capital, financial literacy, and rural entrepreneurship through a partial mediating effect analysis. Using data from the 2015 China Household Finance Survey (CHFS), we analyze how social capital affects rural entrepreneurship and the role of local ICTs development in this effect while also accounting for reverse causality. We construct a social capital indicator, mainly referring to bridging social capital, and two financial literacy indicators to make the conclusions robust. The empirical results show that social capital promotes rural entrepreneurship by sharing financial literacy. Furthermore, the spread of ICTs enhances this mediating effect. Our study provides empirical evidence for encouraging entrepreneurship and promoting knowledge sharing and implies the importance of ICTs in promoting entrepreneurship in rural areas.

show abstract

“…One of the characteristics of emerging economies is their sizable informal economy (Omri, 2020;Xu et al, 2020). The informal economy is defined by Roberts (1989, p. 41) as "the set of economic activities, often, but not exclusively, carried out in small firms or by the self-employed, which elude government requirements such as registration, tax and social security obligations, and health and safety rules."…”

Section: Informal Actorsmentioning

confidence: 99%

Effect of a perceived threat of informal actors on the business performance of formal actors: inbound tour operators’ perspective

Mwesiumo

Abdalla

Öztüren

et al. 2021

Journal of Travel & Tourism Marketing

View full text Add to dashboard Cite

This paper develops and tests a conceptual model to examine the effect of a perceived threat of informal actors on the business performance of formal actors. Drawing on a sample of 130 inbound tour operators, structural path analysis shows that the perceived threat of informal actors is positively associated with the formal actors' service quality and customer acquisition efforts, which subsequently are positively associated with an increase in business performance. The perceived threat of informal actors appears to increase business performance only through its influence on service quality and customer acquisition efforts. Based on the findings, actionable recommendations are provided.

show abstract

Financial literacy and formal credit accessibility: Evidence from informal businesses in China

Cited by 46 publications

References 12 publications

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

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

Social Capital, Financial Literacy, and Rural Household Entrepreneurship: A Mediating Effect Analysis

Effect of a perceived threat of informal actors on the business performance of formal actors: inbound tour operators’ perspective

Contact Info

Product

Resources

About