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Article
Publication date: 28 November 2019

Shaista Wasiuzzaman, Nabila Nurdin, Aznur Hajar Abdullah and Gowrie Vinayan

The purpose of this study is to empirically assess the relationship between the dimensions of creditworthiness and access to finance of small and medium-sized enterprises…

Abstract

Purpose

The purpose of this study is to empirically assess the relationship between the dimensions of creditworthiness and access to finance of small and medium-sized enterprises (SMEs) in Malaysia, with creditworthiness as the mediating variable. The lack of empirical research on the relationship between creditworthiness and access to finance forms the motivation of this study.

Design/methodology/approach

Questionnaires covering various characteristics of the firms, their access to finance and creditworthiness were distributed to a total of 456 SMEs in the Kuala Lumpur and Selangor region for this purpose. A total of 158 responses were returned, of which 145 were usable responses and the relationships are tested using SEM-PLS.

Findings

This study finds that an SME and its owner’s character have significant influences on access to finance. An SME’s condition and its ability to provide high quality collateral are found to be highly significant in influencing its access to finance. Capacity is significant but its significance is low, while capital is insignificant. Creditworthiness has a significant positive influence on access to finance.

Originality/value

This study contributes to the important yet under-researched issue of access to finance for SMEs. It highlights the issue of character of applicant as an important dimension of creditworthiness that can significantly influence access to finance for SMEs.

Details

Management Research Review, vol. 43 no. 3
Type: Research Article
ISSN: 2040-8269

Keywords

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Article
Publication date: 6 March 2020

Shaista Wasiuzzaman, Nabila Nurdin, Aznur Hajar Abdullah and Gowrie Vinayan

This study investigates the influence of inter-firm linkages between small and medium enterprises (SMEs) and large firms on the relationship between an SME's…

Abstract

Purpose

This study investigates the influence of inter-firm linkages between small and medium enterprises (SMEs) and large firms on the relationship between an SME's creditworthiness and its access to finance.

Design/methodology/approach

Survey questionnaire was distributed to 456 SMEs in the manufacturing sector in the Selangor and Federal Territory of Kuala Lumpur regions and a total of 145 useable responses were gathered. Investigation into the possible differences in the effect of creditworthiness – and its dimensions – on access to finance for SMEs with and without linkages are examined using Partial Least Squares-Multi Group Analysis (PLS-MGA).

Findings

It is found that the relationship between creditworthiness and access to finance is significant for both SMEs with and without links to large firms. However, no significant difference is found in the effect of creditworthiness on access to finance for both types of SME. Further analysis on the five different dimensions of creditworthiness shows statistically significant differences between SMEs with links and those without for the dimensions of collateral and condition. This implies that alliances formed between SMEs and large firms do not have much of an influence on the overall creditworthiness but do influence the collateral and condition of the SME.

Originality/value

This study contributes to the understanding of the effects of interfirm linkages on SME creditworthiness and access to finance. To the authors' knowledge no such study has been conducted on links between SMEs and large firms, especially in a developing country such as Malaysia.

Details

Journal of Small Business and Enterprise Development, vol. 27 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

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Article
Publication date: 13 July 2015

Aznur Hajar Abdullah, Shaista Wasiuzzaman and Rosidah Musa

The purpose of this paper is to measure the influence of six university qualities, namely academic quality, academic staff quality, management quality, industrial linkage…

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Abstract

Purpose

The purpose of this paper is to measure the influence of six university qualities, namely academic quality, academic staff quality, management quality, industrial linkage quality and facilities’ quality, on students’ total experience (STE) and emotional attachment.

Design/methodology/approach

Judgmental sampling is used to collect data from a sample of 489 undergraduate students of a private higher academic institution. The data are then analyzed using structural equation modeling.

Findings

This study finds that only management quality forms a significant direct relationship with emotional attachment, whereas facility quality and industrial linkage form a significant relationship with emotional attachment only when mediated with STE.

Originality/value

The results provide important findings to researchers and management of higher education institutions for future research directions.

Details

International Journal of Social Economics, vol. 42 no. 7
Type: Research Article
ISSN: 0306-8293

Keywords

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