Search results

1 – 2 of 2
Per page
102050
Citations:
Loading...
Available. Open Access. Open Access
Article
Publication date: 29 February 2024

Frank Nana Kweku Otoo

Optimal application and commitment toward financial management practices enhance organization performance. This study aims to assess the influence of financial management…

15686

Abstract

Purpose

Optimal application and commitment toward financial management practices enhance organization performance. This study aims to assess the influence of financial management practices on the organizational performance of small- and medium-scale enterprises.

Design/methodology/approach

Data were collected from 45 small-sized and 72 medium-sized firms. Data supported the hypothesized relationships. Construct reliability and validity were established through confirmatory factor analysis. The conceptual model and hypotheses were evaluated by using structural equation modeling.

Findings

The results indicate that working capital significantly influenced organizational performance. Capital budget management significantly influenced organizational performance. A non-significant influence of asset management on organizational performance was observed.

Research limitations/implications

The generalizability of the findings will be constrained due to the research’s SMEs focus and cross-sectional data.

Practical implications

The study’s findings will serve as valuable pointers for stakeholders and decision-makers of SMEs in developing well-articulated and proactive financial management systems to ensure competitiveness, sustainability, viability, and financial competencies.

Originality/value

The study adds to the corpus of literature by evidencing empirically that financial management practices significantly influenced SMEs’ performance.

Details

Vilakshan - XIMB Journal of Management, vol. 21 no. 2
Type: Research Article
ISSN: 0973-1954

Keywords

Available. Open Access. Open Access
Article
Publication date: 22 August 2024

Hojops J.P. Odoch, Rehema Namono and Gorden Wofuma

Scientific knowledge is rich with literature on the antecedent role of social capital on resilience. However, empirical evidence has overlooked the role of the individual…

590

Abstract

Purpose

Scientific knowledge is rich with literature on the antecedent role of social capital on resilience. However, empirical evidence has overlooked the role of the individual dimensions of bonding and bridging social capital on its outcomes. This study aims to extend empirical research on the influence of social capital facets of bonding social capital and bridging social capital on financial resilience and more specifically in the aftermath of the COVID-19 pandemic where women SMEs mostly need bonding.

Design/methodology/approach

The study uses an explanatory research design to determine the hypothesized effect of social capital on financial resilience. The authors used regression to test the hypothesized relationship using a sample of three hundred and eight four women-owned SMEs in Kampala registered with Kampala City Traders Association.

Findings

According to the findings, the social bonding provides female entrepreneurs with emotive encouragement and inspiration through personal connections and responsibility sharing. Furthermore, women entrepreneurs bridging, which consisted of business networks, made it easier for them to identify new financial opportunities, which ultimately led to an increase in their financial resilience. The findings placed an emphasis on the significance of fellow business owners as sources of knowledge and assets that are crucial to maintaining one's financial resilience.

Research limitations/implications

Data were collected from women owned SMEs, and the application of the findings may be limited to women SMEs in Kampala District. Therefore, future research should replicate the current study findings using a sample drawn from other SMEs owned by both male and female from outside Kampala because of changes in operating environment. The study was cross-sectional, and financial resilience of a firm changes was periodical. This study paves the way for future longitudinal research in the same topic area, which will allow for a more complete comprehension of the financial resiliency of SMEs throughout a range of different time periods.

Practical implications

Research findings shape trajectory for current practitioners of SMEs to establish relevant social bonding and bridging as social capital in preparation for financial resilience in case of any pandemic.

Originality/value

To the best of the authors' knowledge, this study is the first to establish the antecedent role of social capital on financial resilience during an economic crisis induced by the COVID-19 pandemic, using a sample of women-owned medium- and small-sized businesses in Kampala.

Details

Vilakshan - XIMB Journal of Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0973-1954

Keywords

Access

Only Open Access

Year

Content type

1 – 2 of 2
Per page
102050