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<p>This study assesses the role played by access to finance as an indirect stimulant of business development and economic growth. The ‘access to technology is considered as a mediator in analyzing growth. A dataset that spans five years was gathered from small to medium-sized enterprises (SMEs) in different sectors, was analyzed as panel data through fixed and random effect regression estimation models. The results showed that access to technology playing marked role in mediating the relationship between access to finance and the adopted process sophistication. The results further showed that while access to finance is crucial driver for development in emerging economies, the access to technology seem to play more active role through stimulated growth owing to incremental improvements in business process sophistication. This study finds that multiple factors stemming from a firm’s access and use of newer forms of technology can play an essential role in generating these results, in particular the more straightforward access to finance. These findings were analyzed and interpreted under conditions that control for standard macroeconomic economic growth factors. The conclusions support policy decisions of governmental agencies that aim to improve financial support services and facilitate ease of access to cutting edge technologies.</p>
</abstract>

This study assesses the role played by access to finance as an indirect stimulant of business development and economic growth. The ‘access to technology is considered as a mediator in analyzing growth. A dataset that spans five years was gathered from small to medium-sized enterprises (SMEs) in different sectors, was analyzed as panel data through fixed and random effect regression estimation models. The results showed that access to technology playing marked role in mediating the relationship between access to finance and the adopted process sophistication. The results further showed that while access to finance is crucial driver for development in emerging economies, the access to technology seem to play more active role through stimulated growth owing to incremental improvements in business process sophistication. This study finds that multiple factors stemming from a firm’s access and use of newer forms of technology can play an essential role in generating these results, in particular the more straightforward access to finance. These findings were analyzed and interpreted under conditions that control for standard macroeconomic economic growth factors. The conclusions support policy decisions of governmental agencies that aim to improve financial support services and facilitate ease of access to cutting edge technologies.

Access of Technology as a Mediator on Access to Finance to Drive Business Innovation in Small to Medium-Sized Enterprises

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This study assesses the role played by access to finance as an indirect stimulant of business development and economic growth. The ‘access to technology is...

Access of Technology as a Mediator on Access to Finance to Drive Business Innovation in Small to Medium-Sized Enterprises

Published Online: May 31, 2022

Page range: 91 - 111

DOI: https://doi.org/10.2478/sbe-2022-0007

Keywords
Access to finance, Process sophistication, Access to technology, Panel data analysis, Mediation

© 2022 Kafaji Mohammed, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Access of Technology as a Mediator on Access to Finance to Drive Business Innovation in Small to Medium-Sized Enterprises

Published Online: May 31, 2022

Page range: 91 - 111

DOI: https://doi.org/10.2478/sbe-2022-0007

KeywordsAccess to finance, Process sophistication, Access to technology, Panel data analysis, Mediation

© 2022 Kafaji Mohammed, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Access to finance, Process sophistication, Access to technology, Panel data analysis, Mediation