The study’s main aim is to figure out what function financial goods and services play in mediating the link between financial access and micro, small and medium enterprises (MSMEs)’ growth in developing markets. Consequently, this article aims to see whether the usage of monetary goods and services in a developing nation like India mediates the connection between financial access and MSMEs’ growth. The data were collected from 392 MSMEs in the Jammu region using a cross-sectional research method. The partial least squares structural equation modelling (PLS-SEM) technique was used to see whether the use of financial goods and services in developing nations had a mediating consequence on the link between financial access and MSMEs’ growth. The study exclusively collected data from MSMEs in India’s Jammu region. There is still the possibility of confirming this result in other emerging economies. MSMEs may participate in financial access initiatives provided by organisations to use financial services better.
AltD., & Boniel-NissimM. (2018, May). Links between adolescents’ deep and surface learning approaches, problematic internet use, and fear of missing out (FoMO). Internet Interventions, 13, 30–39. https://doi.org/10.1016/j.invent.2018.05.002
2.
ArdicO., HeimannM., & MylenkoN. (2011). Access to financial services and the financial inclusion agenda around the world: A cross-country analysis with a new data set (World Bank Policy Research Working Paper No. 5537). World Bank Policy.
3.
BakhadirovM., PashayevZ., & FarooqO. (2020). Effect of location on access to finance: International evidence on the moderating role of employee training. Review of Behavioral Finance. https://doi.org/10.1108/RBF-07-2020-0166
4.
BeckT., & Demirguc-KuntA. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking and Finance, 30(11), 2931–2943. https://doi.org/10.1016/j.jbankfin.2006.05.009
5.
BeckT., Demirgüç-KuntA., & MaksimovicV. (2008). Financing patterns around the world: Are small firms different?Journal of Financial Economics, 89(3), 467–487. https://doi.org/10.1016/j.jfineco.2007.10.005
6.
BelloO. F., & MustaphaY. I. (2021). Determinants of access to finance among manufacturing micro, small and medium enterprises in Nigeria. Kelaniya Journal of Management, 10(1), 65. https://doi.org/10.4038/kjm.v10i1.7627
7.
CainM. K., ZhangZ., & YuanK. H. (2017). Univariate and multivariate skewness and kurtosis for measuring nonnormality: Prevalence, influence and estimation. Behavior Research Methods, 49(5), 1716–1735. https://doi.org/10.3758/s13428-016-0814-1
8.
CandraningratI. R., AbundantiN., MujiatiN. W., ErlanggaR., & JhuniantaraI. M. G. (2021). The role of financial technology on development of MSMEs. Accounting, 7(1), 225–230. https://doi.org/10.5267/j.ac.2020.9.014
9.
CasselC., HacklP., & WestlundA. H. (1999). Robustness of partial least-squares method for estimating latent variable quality structures. Journal of Applied Statistics, 26(4), 435–446. https://doi.org/10.1080/02664769922322
10.
ClaessensS. (2006). Access to financial services: A review of the issues and public policy objectives. World Bank Research Observer, 21(2), 207–240. https://doi.org/10.1093/wbro/lkl004
11.
DavidssonP., AchtenhagenL., & NaldiL. (2010). Small firm growth. In AlbertN., & AudretschD. B. (Eds.), Foundations and trends in entrepreneurship (Vol. 6, Issue 2). Now Publishers. https://doi.org/10.1561/0300000029
12.
DeanP. K., & MKM. (2021). Impact of MGNREGA on employment generation in Haryana. SSRN Electronic Journal, 17(6), 7–21. https://doi.org/10.2139/ssrn.3863950
13.
DelmarF., DavidssonP., & GartnerW. B. (2003). Arriving at the high-growth firm. Journal of Business Venturing, 18(2), 189–216. https://doi.org/10.1016/S0883-9026(02)00080-0
14.
DiamantopoulosA. (2008). Formative indicators: Introduction to the special issue. Journal of Business Research, 61(12), 1201–1202. https://doi.org/10.1016/j.jbusres.2008.01.008
15.
El-SaidH., Al-SaidM., & ZakiC. (2015). Trade and access to finance of SMEs: Is there a nexus?Applied Economics, 47(39), 4184–4199. https://doi.org/10.1080/00036846.2015.1026583
16.
ErdfelderE. (2007). G*Power 3: A flexible statistical power analysis program for the social. Behavioral, and Biomedical Sciences, 39(2), 175–191.
17.
FaulF., ErdfelderE., BuchnerA., & LangA. -G. (2009). Statistical power analyses using G*Power 3.1: Tests for correlation and regression analyses. Behaviour Research Methods, 41(4), 1149–1160. https://doi.org/10.3758/BRM.41.4.1149
18.
García-SantillánA., Moreno-GarcíaE., & MolchanovaV. S. (2017). Education and knowledge in the use of financial products and services in bachelor’s degree students. European Journal of Contemporary Education, 6(3), 530–541. https://doi.org/10.13187/ejced.2017.3.530
19.
GeisserS. (1974). A predictive approach to the random effect model. Biometrika, 61(1), 101–107. http://www.jstor.org/stable/2334290
20.
GuptaS., & SinghV. (2021). Determinants influencing the growth of MSMEs women entrepreneurs in India. Gorteria Journal, 34(5), 198–205.
21.
HairJ. F., RingleC. M., & SarstedtM. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202
22.
HairJ. F., HowardM. C., & NitzlC. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109, 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069
23.
HenselerJ., RingleC. M., & SinkovicsR. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, 20, 277–319. https://doi.org/10.1108/S1474-7979(2009)0000020014
24.
HenselerJ., RingleC. M., & SarstedtM. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
25.
HenselerJ., HubonaG., & RayP. A. (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management and Data Systems, 116(1), 2–20. https://doi.org/10.1108/IMDS-09-2015-0382
26.
HocL., FongN., & LawR. (2014). InHairJ. F.Jr., HultG. T. M., RingleC. M., SarstedtM. (Eds.), A primer on partial least squares structural equation modeling (PLS-SEM) (pp. 211–213). SAGE Publications.
27.
InfeliseF. (2014). Supporting access to finance by SMEs: Mapping the initiatives in five EU countries (ECMI Research Report, Issue 9). CEPS.
28.
IsmailY. Y. S. (2016). Review of international business and strategy. Review of International Business and Strategy, 26(1). file:///F:/ARTICULOS/wang2018 (2).pdf
29.
KuntchevV. (2012, May). What have we learned from the enterprise surveys regarding access to finance by SMEs? (pp. 1–33). Enterprise Analysis. https://www.enterprisesurveys.org/∼/media/FPDKM/EnterpriseSurveys/Documents/ResearchPapers/Enterprise-Surveys-access-to-finance-and-SME.pdf
30.
LeeN., SameenH., & CowlingM. (2015). Access to finance for innovative SMEs since the financial crisis Article (Accepted version) (Refereed) Access to finance for innovative SMEs since the financial crisis. Crisis. Research Policy, 2, 370–380. http://eprints.lse.ac.uk
31.
LuS. (2020). The influence of allocating the residual value of MSMEs’ cluster on the growth of MSMEs and the cluster based on the theory of structural hole. International Business Research, 13(11), 54. https://doi.org/10.5539/ibr.v13n11p54
32.
MabulaJ. B., & PingH. D. (2018). Financial literacy of SME managers’ on access to finance and performance: The mediating role of financial service utilisation. International Journal of Advanced Computer Science and Applications, 9(9), 32–41. https://doi.org/10.14569/ijacsa.2018.090905
33.
MadanchianM., HusseinN., NoordinF., & TaherdoostH. (2015). The role of SMEs in economic development; Case study of Malaysia. International Journal of Academic Research in Management (IJARM), 4(3), 77–84.
34.
MardiaK. V. (1970). Measures of multivariate skewness and kurtosis with applications. Biometrika, 57(3), 519–530. https://doi.org/10.1093/biomet/57.3.519
35.
MashizhaM., & SibandaM. (2017). The link between financial knowledge, financial product awareness and utilisation: A study among small and medium enterprises in Zimbabwe. International Journal of Economics and Financial Issues, 7(6), 97–103. http:www.econjournals.com
36.
Matchaba-HoveT., AntoniX., & GiweM. B. (2019). The use of banking products and services by low-income and under-banked consumers in the Nelson Mandela Bay. Academy of Accounting and Financial Studies Journal, 23(2). https://www.abacademies.org/abstract/the-use-of-banking-products-and-services-by-lowincome-and-underbanked-consumers-in-the-nelson-mandela-bay-8119.html
37.
MuhnotS. (2021, June). Role of MSME sector in India. MSME.
38.
MuliadiM., DarmaD. C., & KasumaJ. (2020). MSMEs as mediation in the effects of investment credit, interest rates, and labor on economic growth. International Journal of Finance and Banking Studies (2147–4486), 9(2), 01–12. https://doi.org/10.20525/ijfbs.v9i2.702
39.
NumanovichA. I., & AbbosxonovichM. A. (2020). The analysis of lands in security zones of high-voltage power lines (power line) on the example of the Fergana region. EPRA International Journal of Multidisciplinary Research (IJMR), 2, 25–30. https://doi.org/10.36713/epra2013
40.
NunooJ., & AndohF. K. (2012, August). Sustaining small and medium enterprises through financial services utilization: Does financial literacy matter?2012 Annual Meeting, August 12–14, 2012, Seattle, Washington 123418, Agricultural and Applied Economics Association.
41.
Okello Candiya BongominG., NtayiJ. M., MuneneJ. C., & Nkote NabetaI. (2016). Social capital: Mediator of financial literacy and financial inclusion in rural Uganda. Review of International Business and Strategy, 26(2), 291–312. https://doi.org/10.1108/RIBS-06-2014-0072
42.
PatelJ., & ShahN. (2021). A study on startup and its impact on MSME in India. International Journal of Research in Engineering, Science and Management, 4(6), 63–66. https://www.icsi.edu/media/portals/86/manorama/
43.
PodsakoffP. M., MacKenzieS. B., LeeJ. Y., & PodsakoffN. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879
44.
RatnawatiK. (2020). The influence of financial inclusion on MSMEs’ performance through financial intermediation and access to capital. Journal of Asian Finance, Economics and Business, 7(11), 205–218. https://doi.org/10.13106/jafeb.2020.vol7.no11.205
45.
ShellyR., SharmaT., & BawaS. S. (2020). Role of micro, small and medium enterprises in Indian economy. International Journal of Economics and Financial Issues, 10(5), 84–91. https://doi.org/10.32479/ijefi.10459
46.
TalledoJ., PorA., & LuyM. (2015). Access to and use of financial services: Evidence from Peru. https://www.sbs.gob.pe/Portals/0/jer/ddt_ano2015/20151230_SBS-DT-003-2015_JTalledo.pdf
47.
TambunanT., SantosoW., BusnetiI., & BatunanggarS. (2021). The development of MSMEs and the growth of peer-to-peer (P2P) lending in Indonesia. International Journal of Innovation, Creativity and Change, 15(2). https://www.ijicc.net
48.
WasiuzzamanS. (2019). Resource sharing in interfirm alliances between SMEs and large firms and SME access to finance: A study of Malaysian SMEs. Management Research Review, 42(12), 1375–1399. https://doi.org/10.1108/MRR-10-2018-0369
49.
WasiuzzamanS., NurdinN., AbdullahA. H., & VinayanG. (2020). Creditworthiness and access to finance: A study of SMEs in the Malaysian manufacturing industry. Management Research Review, 43(3), 293–310. https://doi.org/10.1108/MRR-05-2019-0221
50.
YadavS. S., & SutharM. (2021, April). Employment and productivity: The role of labor market flexibility in the Indian micro small and medium enterprises (MSMEs). MSME.
51.
YeJ., & KulathungaK. M. M. C. B. (2019). How does financial literacy promote sustainability in SMEs? A developing country perspective. Sustainability, 11(10), 1–21. https://doi.org/10.3390/su11102990
52.
ZhaoX., LynchJ. G., & ChenQ. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197–206. https://doi.org/10.1086/651257
