Agric. Econ. - Czech, 2024, 70(6):309-319 | DOI: 10.17221/264/2023-AGRICECON

Unlocking sustainable competitive performance in agro-based small and medium enterprises in South Asian Association for Regional Cooperation countriesOriginal Paper

Shamim Akhtar1, Yi Cui2, Stephanie Efua Frimpong3, Nosheen Rafi1
1 Department of Business Administration, Faculty of Management and Administrative Sciences, University of Sialkot, Pakistan
2 School of Economic and Management, Communication University of China, Beijing, P. R. China
3 Department of Finance, School of Business, University of Cape Coast, Ghana

Agro-based small and medium enterprises (SMEs) are currently receiving top priority among policymakers of the South Asian Association for Regional Cooperation (SAARC) nations  due to their great contribution to employment and GDP growth. This study examines the impact of financial literacy on the sustainable competitive performance of agro-based SMEs, with a focus on the mediating role of access to digital finance and the moderating role of business experience. Using Partial Least Squares Structural Equation Modelling (PLS-SEM), we analysed data from 345 SME owner-managers. The results indicate that financial literacy positively affects sustainable competitive performance, with access to digital finance serving as a significant mediator. However, business experience does not moderate the relationship between financial literacy and access to digital finance. These findings suggest that improving financial literacy and enhancing digital finance access are critical for the sustainable development of agro-based SMEs in the SAARC region.

Keywords: access to digital finance; agricultural businesses; business experience; financial literacy; sustainable performance

Received: August 9, 2023; Revised: March 8, 2024; Accepted: May 21, 2024; Published: June 20, 2024  Show citation

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Akhtar S, Cui Y, Frimpong SE, Rafi N. Unlocking sustainable competitive performance in agro-based small and medium enterprises in South Asian Association for Regional Cooperation countries. Agric. Econ. - Czech. 2024;70(6):309-319. doi: 10.17221/264/2023-AGRICECON.
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