Research Article
BibTex RIS Cite

HOW DOES THE IMPACT OF FINANCIAL PERFORMANCE ON BANK CREDIT ACCESS OF SMEs DIFFER DEPENDING ON EXECUTIVE-LEVEL CHARACTERISTICS?

Year 2024, , 237 - 249, 28.06.2024
https://doi.org/10.17130/ijmeb.1430919

Abstract

The financial performance of SMEs (small and medium-sized enterprises) plays a crucial role in
bank credit access of these enterprises and the economies of countries where they operate. However, firm’
executives’ Resource-based View (RBV) characteristics can differently affect the financial performance
of SMEs that they manage, therefore, credit access of SMEs can differ. In this regard, this paper aims
to analyze whether the impact of financial performance on bank access to finance differs depending on
executives’ educational status, gender, and sectoral experience or not. In line with this aim, this research
collects data from 479 randomly selected respondents by directing an online questionnaire. After that, the
research data is analyzed by employing a Binary Logistic Regression Test. According to the results, the
impact of financial performance on credit access differs depending on the gender and sectoral experience
of firms’ executives. However, the educational status of firm executives does not play any role in the
impact of financial performance on access to finance.

References

  • Ahmad, S., Tayachi, T., Haq, S. G., Wang’ombe, W., & Ahmad, F. (2022). Entrepreneurial-specific characteristics and access to finance of SMEs in Khyber Pakhtunkhwa, Pakistan. Sustainability, 14(16), 1-14.
  • Akçiğit, U., Seven, Ü., Yarba, İ., & Yilmaz, F. (2021). Firm-level impact of credit guarantees: Evidence from Turkish credit guarantee fund. TCMB Working Paper, 21(10), 1-84.
  • Akkaya, B., & Qaisar, I. (2021). Linking dynamic capabilities and market performance of SMEs: The moderating role of organizational agility. Istanbul Business Research, 50(2), 197-214.
  • Aras, G., Aybars, A., & Kutlu, O. (2010). Managing corporate performance: Investigating the relationship between corporate social responsibility and financial performance in emerging markets. International Journal of productivity and Performance management, 59(3), 229-254.
  • Baysak, B., Bozkurt, S., & Günsel, A. (2023). Do leaders have an influence on strengthening entrepreneurial orientation? Empirical evidence from SMEs of Turkish techno-parks. Kybernetes, 52(6), 2118-2144.
  • Belluchi, A., Borisov, A., & Zazzaro, A. (2010). Does gender matter in bank-firm relationships? Evidence from small business lending. Journal of Banking and Finance, 34(1), 2968-2984.
  • Berrone, P., Gertel, H., Giuliodori, R., Bernard, L., & Meiners, E. (2014). Determinants of performance in microenterprises: Preliminary evidence from Argentina. Journal of Small Business Management, 52(3), 477-500.
  • Chandrayanti, T., Nidar, S. R., Mulyana, A., & Anwar, M. (2020). Impact of entrepreneurial characteristics on credit accessibility: Case study of small businesses in West Sumatera - Indonesia. Entrepreneurship and Sustainability Issues, 7(3), 1760-1777.
  • Chaudhuri, K., Sasidharan, S., & Raj, R.S.N. (2020). Gender, small firm ownership, and credit access: Some insights from India. Small Business Economics, 54(4), 1165-1181.
  • Çalıyurt, T. K. (2011). Importance of financial management knowledge in small and medium enterprises (SMEs) managing by women. Trakya Üniversitesi Sosyal Bilimler Dergisi, 13(2), 327-354.
  • Çetin, A. İ., Çetin, A. E., & Ahmed, S. E. (2023). The impact of non-financial and financial variables on credit decisions for service companies in Turkey. Journal of Risk and Financial Management, 16(11), 487.
  • Do, P.C., Phong, V.T., Van Thuong, P., Tien, N.H. & Van Dung, H. (2019). Factors affecting access to finance by small and medium enterprises in Vietnam. American International Journal of Business Management, 2(10), 69-79
  • Drakos, K., & Giannakopolous, N. (2011). On the determinants of credit rationing: Firm level evidence from transition countries. Journal of International Money and Finance, 30(8), 1773-1790.
  • Erdoğan, A. İ. (2019). Determinants of perceived bank financing accessibility for SMEs: Evidence from an emerging market. Economic research-Ekonomska istraživanja, 32(1), 690-716.
  • European Commission, (2020). User guide to the SME definition. Retrieved from https://ec.europa.eu/ docsroom/documents/42921. Accessed 01.09.2023
  • Fatoki, O. & Odeyemi, A. (2010). The determinants of trade credit by new SMEs in South Africa. African Journal of Business Management, 4(13), 2763-2773.
  • Field, A. (2009). Discovering statistics using SPSS. Los Angeles: SAGE.
  • Filser, M., & Eggers, F. (2014). EO and firm performance: A comparative study of Austria, Liechtenstein and Switzerland. South African Journal of Business Management ,45(1), 55-65.
  • Gambini, A., & Zazzaro, A. (2013). Long-lasting bank relationships and growth of firms. Small Business Economics, 40, 977-1007.
  • Garwe, D. K. & Fatoki, O. (2012). The impact of gender on sme characteristics and access to debt finance in South Africa. Development Southern Africa, 29(3), 448-461.
  • Harash, E., Al-Timimi, S., & Alsaadi, J. (2014). The influence of finance on performance of small and medium enterprises (SMEs). Technology, 4(3), 161-167.
  • Hyder, S. & Lussier, R. N. (2016). Why businesses succeed or fail: A study on small businesses in Pakistan. J. Entrep. Emerg. Econ, 8(1), 82-100.
  • Irwin, D., & Scott J.M. (2010). Barriers faced by smes in raising bank finance. International Journal of Entrepreneurial Behavior and Research. 16(9), 245–259.
  • Jabbouri, I., & Farooq, O. (2021). Inadequately educated workforce and financing obstacles: International evidence from SMEs in developing countries. International Journal of Managerial Finance, 17(1), 118-137.
  • Kahraman, M., Tektas, A., & Coskun, A. (2019). The access to finance by Smes in Turkey and the EU: A comparative study. PressAcademia Procedia, 10(1), 1-6.
  • Karadağ, H. (2017). The impact of industry, firm age and education level on financial management performance in small and medium-sized enterprises (SMEs) evidence from Turkey. Journal of Entrepreneurship in emerging economies, 9(3), 300-314.
  • Kira, A. R. (2013). The evaluation of the factors influence the access to debt financing by Tanzanian SMEs. Eur. J. Bus. Manag, 5(7), 1-24.
  • Le, L. H., & Stefańczyk, J. K. (2018). Gender discrimination in access to credit: Are women-led SMEs rejected more than men-led? Gender, Technology and Development, 22(2), 145-163.
  • Lim, S., & Envick, E. R. (2011). Gender and entrepreneurial orientation: A multi country study. International Entrepreneurship and Management Journal, 9, 465-482.
  • Makler, H., Ness, W. L., & Tschoegl, A. E. (2013). Inequalities in firms’ access to credit in Latin America. Global Economy Journal, 13(3), 283-318.
  • Mayr, S., Mitter, C., Kücher, A., & Duller, C. (2021). Entrepreneur characteristics and differences in reasons for business failure: Evidence from bankrupt Austrian SMEs. J. Small Bus. Entrep., 33(5), 539-558.
  • Millian, J. M., Congregado, E., Roman, C., Van Praag, M., & Van Stel, A. (2014). The value of an educated population for an ındividual’s entrepreneurship success. Journal of Business Venturing, 29(5), 312-332.
  • Nizaeva, M., & Coskun, A. (2019). Investigating the relationship between financial constraint and growth of SMEs in South Eastern Europe. Sage Open, 9(3), 1-15.
  • Nofsinger, J., & Wang, W. (2011). Determinants of start-up firm external financing worldwide. J. Bank. Financ., 35(9), 2282-2294.
  • North, D., Baldock, R. & Ekanem, I. (2010). Is there a debt finance gap relating to Scottish Smes? A demand side perspective. Venture Capital, 12(3), 173-192.
  • Özşuca, E. (2020). What explains firm’s access to finance in Turkey? Turkish Studies-Social Sciences, 15(2), 301-315.
  • Peng, M. W. (2022). Global Business. Cengage learning. Rahman, A., & Zbrankova, H. (2019). Female borrowers and credit constraints in sme loan market: An analyses from the Visegrad Countries. Polish Journal of Management Studies, 20(2), 426-440.
  • Rajamani, K., Jan, N. A., Subramani, A. K., & Raj, A. N. (2022). Access to finance: Challenges faced by micro, small, and medium enterprises in India. Engineering Economics, 33(1),73-85.
  • Rauch, A. & Rijsdijk, S. A. (2013). The effects of general and specific human capital on long-term growth and failure of newly founded businesses. Entrepreneurship Theory and Practice, 37(4), 923-941.
  • Saygılı, E., Saygılı, A. T., & Gökhan, I. S. I. K. (2019). An analysis of factors affecting credit scoring performance in SMEs. Ege Academic Review, 19(2), 159-171.
  • Stefani, M. L., & Vacca, V. (2015). Small firms’ credit access in the Euro Area: Does gender matter? Cesifo Economic Studies, 61(1), 165-201.
  • Singh, S., Amini, M., Jamshed, M., Sharma, H. P., & Khan, W. (2023). Understanding the perceived business obstacles and determinants of credit adoption by textile firms: Evidences from World Bank’s Enterprises Survey. Research Journal of Textile and Apparel, 12, 1-19.
  • Turkish Statistical Institute, (2021). SMEs statistics. Retrieved from https://data.tuik.gov.tr/Bulten/Index- ?p=Small-and-Medium-Sized-Enterprises-Statistics-2021-45685&dil=2 Accessed 09.09.2023
  • Uzkurt, C., Arslan, S., Ekmekcioglu, E. B., & Ceyhan, S. (2024). Green information systems efforts and SMEs’ environmental and financial performance: How do eco-management practices shape the story? Journal of Environmental Planning and Management, 2024, 1-21.
  • Van der Sluis, J. & Van Praag, M. (2008). Education and entrepreneurship selection and performance: A review of the empirical literature. Journal of Economic Surveys, 22(5), 795-841.
  • Wasiuzzaman, S., & Nurdin, N. (2019). Debt financing decisions of SMEs in emerging markets: Empirical evidence from Malaysia. International Journal of Bank Marketing, 37(1), 258-277.
  • Wetter, E., & Wennberg, K. (2009). Improving business failure prediction for new firms: benchmarking financial models with human and social capital. The Journal of Private Equity, 12(2), 30-37.
  • Yıldırım, H. S., Akci, Y., & Eksi, I. H. (2013). The effect of firm characteristics in accessing credit for SMEs. Journal of Financial Services Marketing, 18, 40-52

KOBİ’LERİN FİNANSAL PERFORMANSININ BANKA KREDİSİNE ERİŞİMDEKİ ETKİSİ ÜST DÜZEY YÖNETİCİLERİNİN ÖZELLİKLERİNE GÖRE NASIL DEĞİŞİR?

Year 2024, , 237 - 249, 28.06.2024
https://doi.org/10.17130/ijmeb.1430919

Abstract

KOBİ’lerin (Küçük ve Orta Büyüklükteki İşletmelerin) finansal performansları onların krediye
erişiminde ve faaliyet gösterdikleri ülkelerin ekonomisine yaptıkları katkıda büyük rol oynamaktadır. Fakat
KOBİ’lerin üst düzey yöneticilerinin kaynak temelli teoriye dayanan özellikleri onların yönettikleri firmaların
finansal performansına farklı şekilde etki ederek, firmaların banka kredisine erişiminde farklılıklara sebep
olabilir. Bu bağlamda, bu çalışma KOBİ’lerin finansal performanslarının banka kredisine erişim üzerindeki
etkisinin yöneticilerinin eğitim seviyesine, cinsiyetlerine ve deneyimlerine göre farklılık gösterebilmesi
durumunu analiz etmeyi amaçlamaktadır. Bu amaç doğrultusunda, bu çalışma tesadüfü örnekleme yöntemi
ile seçilen 479 firmadan anket yolu ile veri toplamıştır. Daha sonra toplanan bu veriler çalışmanın amacı
doğrultusunda İkili Lojistik Regresyon yöntemi ile analiz edilmiştir. Analiz sonuçlarına göre, finansal performansın krediye erişim üzerindeki etkisi yöneticinin cinsiyeti ve sektör deneyimine göre farklılık
göstermektedir. Fakat yöneticilerin eğitim seviyesinin finansal performansın krediye erişim üzerindeki etkisi üzerinde herhangi bir rolü bulunmamaktadır.

References

  • Ahmad, S., Tayachi, T., Haq, S. G., Wang’ombe, W., & Ahmad, F. (2022). Entrepreneurial-specific characteristics and access to finance of SMEs in Khyber Pakhtunkhwa, Pakistan. Sustainability, 14(16), 1-14.
  • Akçiğit, U., Seven, Ü., Yarba, İ., & Yilmaz, F. (2021). Firm-level impact of credit guarantees: Evidence from Turkish credit guarantee fund. TCMB Working Paper, 21(10), 1-84.
  • Akkaya, B., & Qaisar, I. (2021). Linking dynamic capabilities and market performance of SMEs: The moderating role of organizational agility. Istanbul Business Research, 50(2), 197-214.
  • Aras, G., Aybars, A., & Kutlu, O. (2010). Managing corporate performance: Investigating the relationship between corporate social responsibility and financial performance in emerging markets. International Journal of productivity and Performance management, 59(3), 229-254.
  • Baysak, B., Bozkurt, S., & Günsel, A. (2023). Do leaders have an influence on strengthening entrepreneurial orientation? Empirical evidence from SMEs of Turkish techno-parks. Kybernetes, 52(6), 2118-2144.
  • Belluchi, A., Borisov, A., & Zazzaro, A. (2010). Does gender matter in bank-firm relationships? Evidence from small business lending. Journal of Banking and Finance, 34(1), 2968-2984.
  • Berrone, P., Gertel, H., Giuliodori, R., Bernard, L., & Meiners, E. (2014). Determinants of performance in microenterprises: Preliminary evidence from Argentina. Journal of Small Business Management, 52(3), 477-500.
  • Chandrayanti, T., Nidar, S. R., Mulyana, A., & Anwar, M. (2020). Impact of entrepreneurial characteristics on credit accessibility: Case study of small businesses in West Sumatera - Indonesia. Entrepreneurship and Sustainability Issues, 7(3), 1760-1777.
  • Chaudhuri, K., Sasidharan, S., & Raj, R.S.N. (2020). Gender, small firm ownership, and credit access: Some insights from India. Small Business Economics, 54(4), 1165-1181.
  • Çalıyurt, T. K. (2011). Importance of financial management knowledge in small and medium enterprises (SMEs) managing by women. Trakya Üniversitesi Sosyal Bilimler Dergisi, 13(2), 327-354.
  • Çetin, A. İ., Çetin, A. E., & Ahmed, S. E. (2023). The impact of non-financial and financial variables on credit decisions for service companies in Turkey. Journal of Risk and Financial Management, 16(11), 487.
  • Do, P.C., Phong, V.T., Van Thuong, P., Tien, N.H. & Van Dung, H. (2019). Factors affecting access to finance by small and medium enterprises in Vietnam. American International Journal of Business Management, 2(10), 69-79
  • Drakos, K., & Giannakopolous, N. (2011). On the determinants of credit rationing: Firm level evidence from transition countries. Journal of International Money and Finance, 30(8), 1773-1790.
  • Erdoğan, A. İ. (2019). Determinants of perceived bank financing accessibility for SMEs: Evidence from an emerging market. Economic research-Ekonomska istraživanja, 32(1), 690-716.
  • European Commission, (2020). User guide to the SME definition. Retrieved from https://ec.europa.eu/ docsroom/documents/42921. Accessed 01.09.2023
  • Fatoki, O. & Odeyemi, A. (2010). The determinants of trade credit by new SMEs in South Africa. African Journal of Business Management, 4(13), 2763-2773.
  • Field, A. (2009). Discovering statistics using SPSS. Los Angeles: SAGE.
  • Filser, M., & Eggers, F. (2014). EO and firm performance: A comparative study of Austria, Liechtenstein and Switzerland. South African Journal of Business Management ,45(1), 55-65.
  • Gambini, A., & Zazzaro, A. (2013). Long-lasting bank relationships and growth of firms. Small Business Economics, 40, 977-1007.
  • Garwe, D. K. & Fatoki, O. (2012). The impact of gender on sme characteristics and access to debt finance in South Africa. Development Southern Africa, 29(3), 448-461.
  • Harash, E., Al-Timimi, S., & Alsaadi, J. (2014). The influence of finance on performance of small and medium enterprises (SMEs). Technology, 4(3), 161-167.
  • Hyder, S. & Lussier, R. N. (2016). Why businesses succeed or fail: A study on small businesses in Pakistan. J. Entrep. Emerg. Econ, 8(1), 82-100.
  • Irwin, D., & Scott J.M. (2010). Barriers faced by smes in raising bank finance. International Journal of Entrepreneurial Behavior and Research. 16(9), 245–259.
  • Jabbouri, I., & Farooq, O. (2021). Inadequately educated workforce and financing obstacles: International evidence from SMEs in developing countries. International Journal of Managerial Finance, 17(1), 118-137.
  • Kahraman, M., Tektas, A., & Coskun, A. (2019). The access to finance by Smes in Turkey and the EU: A comparative study. PressAcademia Procedia, 10(1), 1-6.
  • Karadağ, H. (2017). The impact of industry, firm age and education level on financial management performance in small and medium-sized enterprises (SMEs) evidence from Turkey. Journal of Entrepreneurship in emerging economies, 9(3), 300-314.
  • Kira, A. R. (2013). The evaluation of the factors influence the access to debt financing by Tanzanian SMEs. Eur. J. Bus. Manag, 5(7), 1-24.
  • Le, L. H., & Stefańczyk, J. K. (2018). Gender discrimination in access to credit: Are women-led SMEs rejected more than men-led? Gender, Technology and Development, 22(2), 145-163.
  • Lim, S., & Envick, E. R. (2011). Gender and entrepreneurial orientation: A multi country study. International Entrepreneurship and Management Journal, 9, 465-482.
  • Makler, H., Ness, W. L., & Tschoegl, A. E. (2013). Inequalities in firms’ access to credit in Latin America. Global Economy Journal, 13(3), 283-318.
  • Mayr, S., Mitter, C., Kücher, A., & Duller, C. (2021). Entrepreneur characteristics and differences in reasons for business failure: Evidence from bankrupt Austrian SMEs. J. Small Bus. Entrep., 33(5), 539-558.
  • Millian, J. M., Congregado, E., Roman, C., Van Praag, M., & Van Stel, A. (2014). The value of an educated population for an ındividual’s entrepreneurship success. Journal of Business Venturing, 29(5), 312-332.
  • Nizaeva, M., & Coskun, A. (2019). Investigating the relationship between financial constraint and growth of SMEs in South Eastern Europe. Sage Open, 9(3), 1-15.
  • Nofsinger, J., & Wang, W. (2011). Determinants of start-up firm external financing worldwide. J. Bank. Financ., 35(9), 2282-2294.
  • North, D., Baldock, R. & Ekanem, I. (2010). Is there a debt finance gap relating to Scottish Smes? A demand side perspective. Venture Capital, 12(3), 173-192.
  • Özşuca, E. (2020). What explains firm’s access to finance in Turkey? Turkish Studies-Social Sciences, 15(2), 301-315.
  • Peng, M. W. (2022). Global Business. Cengage learning. Rahman, A., & Zbrankova, H. (2019). Female borrowers and credit constraints in sme loan market: An analyses from the Visegrad Countries. Polish Journal of Management Studies, 20(2), 426-440.
  • Rajamani, K., Jan, N. A., Subramani, A. K., & Raj, A. N. (2022). Access to finance: Challenges faced by micro, small, and medium enterprises in India. Engineering Economics, 33(1),73-85.
  • Rauch, A. & Rijsdijk, S. A. (2013). The effects of general and specific human capital on long-term growth and failure of newly founded businesses. Entrepreneurship Theory and Practice, 37(4), 923-941.
  • Saygılı, E., Saygılı, A. T., & Gökhan, I. S. I. K. (2019). An analysis of factors affecting credit scoring performance in SMEs. Ege Academic Review, 19(2), 159-171.
  • Stefani, M. L., & Vacca, V. (2015). Small firms’ credit access in the Euro Area: Does gender matter? Cesifo Economic Studies, 61(1), 165-201.
  • Singh, S., Amini, M., Jamshed, M., Sharma, H. P., & Khan, W. (2023). Understanding the perceived business obstacles and determinants of credit adoption by textile firms: Evidences from World Bank’s Enterprises Survey. Research Journal of Textile and Apparel, 12, 1-19.
  • Turkish Statistical Institute, (2021). SMEs statistics. Retrieved from https://data.tuik.gov.tr/Bulten/Index- ?p=Small-and-Medium-Sized-Enterprises-Statistics-2021-45685&dil=2 Accessed 09.09.2023
  • Uzkurt, C., Arslan, S., Ekmekcioglu, E. B., & Ceyhan, S. (2024). Green information systems efforts and SMEs’ environmental and financial performance: How do eco-management practices shape the story? Journal of Environmental Planning and Management, 2024, 1-21.
  • Van der Sluis, J. & Van Praag, M. (2008). Education and entrepreneurship selection and performance: A review of the empirical literature. Journal of Economic Surveys, 22(5), 795-841.
  • Wasiuzzaman, S., & Nurdin, N. (2019). Debt financing decisions of SMEs in emerging markets: Empirical evidence from Malaysia. International Journal of Bank Marketing, 37(1), 258-277.
  • Wetter, E., & Wennberg, K. (2009). Improving business failure prediction for new firms: benchmarking financial models with human and social capital. The Journal of Private Equity, 12(2), 30-37.
  • Yıldırım, H. S., Akci, Y., & Eksi, I. H. (2013). The effect of firm characteristics in accessing credit for SMEs. Journal of Financial Services Marketing, 18, 40-52
There are 48 citations in total.

Details

Primary Language English
Subjects Finance
Journal Section Research Articles
Authors

Mehmet Civelek 0000-0002-1247-5308

Early Pub Date June 26, 2024
Publication Date June 28, 2024
Submission Date February 3, 2024
Acceptance Date May 2, 2024
Published in Issue Year 2024

Cite

APA Civelek, M. (2024). HOW DOES THE IMPACT OF FINANCIAL PERFORMANCE ON BANK CREDIT ACCESS OF SMEs DIFFER DEPENDING ON EXECUTIVE-LEVEL CHARACTERISTICS?. Uluslararası Yönetim İktisat Ve İşletme Dergisi, 20(2), 237-249. https://doi.org/10.17130/ijmeb.1430919