The moderation effect of entrepreneurial resilience on the relationship between financial literacy and sustainable performance

Ali Saleh Alshebami; Majid Murad

doi:10.3389/fpsyg.2022.954841

The moderation effect of entrepreneurial resilience on the relationship between financial literacy and sustainable performance

Front Psychol. 2022 Aug 15:13:954841. doi: 10.3389/fpsyg.2022.954841. eCollection 2022.

Authors

Ali Saleh Alshebami^{1

2}, Majid Murad³

Affiliations

¹ The Saudi Investment Bank Chair for Investment Awareness Studies, The Deanship of Scientific Research, The Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Al-Ahsa, Saudi Arabia.
² Applied College in Abqaiq, King Faisal University, Al-Ahsa, Saudi Arabia.
³ Department of Management Sciences, Muhammad Nawaz Sharif University of Engineering and Technology, Multan, Pakistan.

Abstract

The study intends to examine the role of financial literacy in sustainable performance of SME's in Saudi Arabia, with the moderating effect of entrepreneurial resilience. The data for this study were gathered from 203 different SME's sector entrepreneurs in Saudi Arabia using a convenience sampling technique. The hypothesis was tested through Smart-PLS software 3.3.9 version and structural equation modeling technique was used to verify the hypothesis relationships. The findings show that financial literacy has a significant and positive impact on sustainable performance. Moreover, results indicate that entrepreneurial resilience has a significant and positive effect on sustainable performance. Furthermore, the findings show that entrepreneurial resilience moderates the relationship between financial literacy and sustainable performance in Saudi Arabia. Lastly, this research article addressed the discussion and practical implications of the study.

Keywords: PLS-SEM; SME sectors; Saudi Arabia; entrepreneurial resilience; financial literacy; sustainable performance.