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Mediating Relationship of Financial Practice between Financial Knowledge and Business Success: An Empirical Study on Malaysian Small Enterprises | Australian Academy of Business and Economics Review
<!DOCTYPE html> <html lang="en-US" xml:lang="en-US"> <head> <meta charset="utf-8"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title> Mediating Relationship of Financial Practice between Financial Knowledge and Business Success: An Empirical Study on Malaysian Small Enterprises | Australian Academy of Business and Economics Review </title> <meta name="generator" content="Open Journal Systems 3.3.0.13"> <link rel="schema.DC" href="http://purl.org/dc/elements/1.1/" /> <meta name="DC.Creator.PersonalName" content="Moha Asri Abdullah"/> <meta name="DC.Creator.PersonalName" content="S. M. Ferdous Azam"/> <meta name="DC.Date.created" scheme="ISO8601" content="2015-08-27"/> <meta name="DC.Date.dateSubmitted" scheme="ISO8601" content="2023-01-21"/> <meta name="DC.Date.issued" scheme="ISO8601" content="2023-01-21"/> <meta name="DC.Date.modified" scheme="ISO8601" content="2023-01-21"/> <meta name="DC.Description" xml:lang="en" content="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 of 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鈥檚 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. Keywords Mediating relationship, financial practice, financial knowledge, Business success, Malaysian small business Australian Academy of Business and Economics Review, vol 1, issue 1, July 2015, pp 1-23"/> <meta name="DC.Format" scheme="IMT" content="application/pdf"/> <meta name="DC.Identifier" content="92"/> <meta name="DC.Identifier.pageNumber" content="1-23"/> <meta name="DC.Identifier.URI" content="https://journalshosting.com/aabljournals/index.php/aaber/article/view/92"/> <meta name="DC.Language" scheme="ISO639-1" content="en"/> <meta name="DC.Rights" content="Copyright (c) 2023 Moha Asri Abdullah, S. M. Ferdous Azam"/> <meta name="DC.Rights" content="https://creativecommons.org/licenses/by/4.0"/> <meta name="DC.Source" content="Australian Academy of Business and Economics Review"/> <meta name="DC.Source.ISSN" content="2205-6726"/> <meta name="DC.Source.Issue" content="1"/> <meta name="DC.Source.Volume" content="1"/> <meta name="DC.Source.URI" content="https://journalshosting.com/aabljournals/index.php/aaber"/> <meta name="DC.Subject" xml:lang="en" content="Mediating relationship"/> <meta name="DC.Subject" xml:lang="en" content="financial practice"/> <meta name="DC.Subject" xml:lang="en" content="financial knowledge"/> <meta name="DC.Subject" xml:lang="en" content="Business success"/> <meta name="DC.Subject" xml:lang="en" content="Malaysian small business"/> <meta name="DC.Title" content="Mediating Relationship of Financial Practice between Financial Knowledge and Business Success: An Empirical Study on Malaysian Small Enterprises"/> <meta name="DC.Type" content="Text.Serial.Journal"/> <meta name="DC.Type.articleType" content="Articles"/> <meta name="gs_meta_revision" content="1.1"/> <meta name="citation_journal_title" content="Australian Academy of Business and Economics Review"/> <meta name="citation_journal_abbrev" content="AABER"/> <meta name="citation_issn" content="2205-6726"/> <meta name="citation_author" content="Moha Asri Abdullah"/> <meta name="citation_author" content="S. 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Ferdous Azam"/> <meta name="citation_title" content="Mediating Relationship of Financial Practice between Financial Knowledge and Business Success: An Empirical Study on Malaysian Small Enterprises"/> <meta name="citation_language" content="en"/> <meta name="citation_date" content="2015/08/27"/> <meta name="citation_volume" content="1"/> <meta name="citation_issue" content="1"/> <meta name="citation_firstpage" content="1"/> <meta name="citation_lastpage" content="23"/> <meta name="citation_abstract_html_url" content="https://journalshosting.com/aabljournals/index.php/aaber/article/view/92"/> <meta name="citation_keywords" xml:lang="en" content="Mediating relationship"/> <meta name="citation_keywords" xml:lang="en" content="financial practice"/> <meta name="citation_keywords" xml:lang="en" content="financial knowledge"/> <meta name="citation_keywords" xml:lang="en" content="Business success"/> <meta name="citation_keywords" xml:lang="en" content="Malaysian small business"/> <meta 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<article class="article-details"> <header> <h1 class="page-header"> Mediating Relationship of Financial Practice between Financial Knowledge and Business Success: An Empirical Study on Malaysian Small Enterprises </h1> </header> <div class="row"> <section class="article-sidebar col-md-4"> <h2 class="sr-only">Article Sidebar</h2> <div class="download"> <a class="galley-link btn btn-primary pdf" role="button" href="https://journalshosting.com/aabljournals/index.php/aaber/article/view/92/93"> PDF </a> </div> <div class="list-group"> <div class="list-group-item date-published"> <strong>Published:</strong> Aug 27, 2015 </div> <div class="list-group-item keywords"> <strong> Keywords:</strong> <div class=""> <span class="value"> Mediating relationship financial practice financial knowledge Business success Malaysian small business </span> </div> </div> </div> </section><!-- .article-sidebar --> <div class="col-md-8"> <section class="article-main"> <h2 class="sr-only">Main Article Content</h2> <div class="authors"> <div class="author"> <strong>Moha Asri Abdullah</strong> </div> <div class="author"> <strong>S. M. Ferdous Azam</strong> </div> </div> <div class="article-summary" id="summary"> <h2>Abstract</h2> <div class="article-abstract"> <p>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 of 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鈥檚 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.</p><br /> <p><strong>Keywords </strong>Mediating relationship, financial practice, financial knowledge, Business success, Malaysian small business</p><br /> <p><strong>Australian Academy of Business and Economics Review, vol 1, issue 1, July 2015, pp 1-23</strong></p> </div> </div> </section><!-- .article-main --> <section class="article-more-details"> <h2 class="sr-only">Article Details</h2> <div class="panel panel-default issue"> <div class="panel-heading"> Issue </div> <div class="panel-body"> <a class="title" href="https://journalshosting.com/aabljournals/index.php/aaber/issue/view/16"> Vol. 1 No. 1 (2015) </a> </div> </div> <div class="panel panel-default section"> <div class="panel-heading"> Section </div> <div class="panel-body"> Articles </div> </div> <div class="panel panel-default copyright"> <div class="panel-body"> <a rel="license" href="https://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" src="//i.creativecommons.org/l/by/4.0/88x31.png" /></a><p>This work is licensed under a <a rel="license" href="https://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> </div> </div> </section><!-- .article-details --> </div><!-- .col-md-8 --> </div><!-- .row --> </article> </div><!-- .page --> </main> <aside id="sidebar" class="pkp_structure_sidebar left col-xs-12 col-sm-2 col-md-4" role="complementary" aria-label="Sidebar"> <div class="pkp_block block_custom" id="customblock-aaber-submission-site"> <h2 class="title">AABER Submission Site</h2> <div class="content"> <p>Please make a submission by using the "<strong>MAKE A SUBMISSION</strong>" link below. <u>You may not receive any notification of your submission in your email</u>. 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