A recent study has suggested that access to Islamic finance could strongly influence the financial satisfaction of micro, small, and medium enterprises (MSMEs).
The study, which has AUN's Assistant Professor of Entrepreneurship, Dr. Mahmoud Ahmed Mahmoud, as lead author, was published by Management Research Review (MRR), Emerald Publishers and indexed in Scopus Q1.
The purpose of the quantitative study was to extend the extant literature on the relationship between financial risk tolerance (FRT), awareness of Islamic financial principles (AWIF), and positive financial behavior (FB) on financial satisfaction (FS) of micro, small and medium enterprise (MSME) owners by principally investigating the mediating effect of access to Islamic financing (AIF) on these relationships.
In terms of practical implications, the result of the study implies that access to Islamic finance could strongly influence the financial satisfaction of MSME owners. In contrast, the relationship between awareness of Islamic finance principles and financial satisfaction is better explained with sufficient access to Islamic financing.
"This study pioneers examining the mediating influence of AIF on FRT, AWIF, FB, and FS of MSME owners in a single framework. Despite the importance of MSME owners on economic sustainability, literature on MSME owners' FS is lacking expressly among developing countries, particularly in Nigeria, according to the information released by the authors. Their study, they further stated, also “revealed new theoretical and practical knowledge by illuminating the mediating effect of AIF on the AWIF–FS relationship”.
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