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

The business world metaphorically has turned flat for the onslaught of globalization. The ultimate purpose of 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 resear...

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Main Authors:	Abdullah, Moha Asri, Azam, Ferdous
Format:	Article
Language:	English
Published:	The Sudanese Historian 2015
Subjects:	HF Commerce HF5001 Business. Business Administration
Online Access:	http://irep.iium.edu.my/47858/ http://irep.iium.edu.my/47858/ http://irep.iium.edu.my/47858/1/Moha_and_Ferdous_%282015%29_AABER.pdf

id	iium-47858
recordtype	eprints
spelling	iium-478582016-07-19T02:45:06Z http://irep.iium.edu.my/47858/ Mediating relationship of financial practice between financial knowledge and business success: an empirical study on malaysian small enterprises Abdullah, Moha Asri Azam, Ferdous HF Commerce HF5001 Business. Business Administration The business world metaphorically has turned flat for the onslaught of globalization. The ultimate purpose of 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. An extensive review of extant literature is conducted to show the research gap. 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, the mediating relationship is performed using SEM to indicate the appropriateness of the measurement instruments. The results indicate that, although Financial Knowledge (FK) is positively related to the Financial Practice (FP) in Malaysian small business, 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. The current study adds value to the current level of knowledge in the existing literature. This research conveys an understanding of 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. 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. The Sudanese Historian 2015-07 Article PeerReviewed application/pdf en http://irep.iium.edu.my/47858/1/Moha_and_Ferdous_%282015%29_AABER.pdf Abdullah, Moha Asri and Azam, Ferdous (2015) Mediating relationship of financial practice between financial knowledge and business success: an empirical study on malaysian small enterprises. Australian Academy of Business Leadership, 1 (1). pp. 1-23. ISSN 5752-1858 http://www.aabl.com.au/aaber, www.aaber.com.au
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF Commerce HF5001 Business. Business Administration
spellingShingle	HF Commerce HF5001 Business. Business Administration Abdullah, Moha Asri Azam, Ferdous Mediating relationship of financial practice between financial knowledge and business success: an empirical study on malaysian small enterprises
description	The business world metaphorically has turned flat for the onslaught of globalization. The ultimate purpose of 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. An extensive review of extant literature is conducted to show the research gap. 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, the mediating relationship is performed using SEM to indicate the appropriateness of the measurement instruments. The results indicate that, although Financial Knowledge (FK) is positively related to the Financial Practice (FP) in Malaysian small business, 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. The current study adds value to the current level of knowledge in the existing literature. This research conveys an understanding of 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. 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	Article
author	Abdullah, Moha Asri Azam, Ferdous
author_facet	Abdullah, Moha Asri Azam, Ferdous
author_sort	Abdullah, Moha Asri
title	Mediating relationship of financial practice between financial knowledge and business success: an empirical study on malaysian small enterprises
title_short	Mediating relationship of financial practice between financial knowledge and business success: an empirical study on malaysian small enterprises
title_full	Mediating relationship of financial practice between financial knowledge and business success: an empirical study on malaysian small enterprises
title_fullStr	Mediating relationship of financial practice between financial knowledge and business success: an empirical study on malaysian small enterprises
title_full_unstemmed	Mediating relationship of financial practice between financial knowledge and business success: an empirical study on malaysian small enterprises
title_sort	mediating relationship of financial practice between financial knowledge and business success: an empirical study on malaysian small enterprises
publisher	The Sudanese Historian
publishDate	2015
url	http://irep.iium.edu.my/47858/ http://irep.iium.edu.my/47858/ http://irep.iium.edu.my/47858/1/Moha_and_Ferdous_%282015%29_AABER.pdf
first_indexed	2023-09-18T21:08:03Z
last_indexed	2023-09-18T21:08:03Z
_version_	1777411066533249024

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

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