Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: evidence from Qatari MSME importers
Abstract This study investigates the role of financial literacy (FL), perceived access to finance (PAF), information communication technology (ICT) usage, and digitization in alleviating the level of credit constraint that micro, small, and medium enterprises (MSMEs) face in an emerging market. We d...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
SpringerOpen
2024-01-01
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| Series: | Financial Innovation |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40854-023-00557-4 |
| _version_ | 1827381987735764992 |
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| author | Lanouar Charfeddine Mohamed Ismail Umlai Mazen El-Masri |
| author_facet | Lanouar Charfeddine Mohamed Ismail Umlai Mazen El-Masri |
| author_sort | Lanouar Charfeddine |
| collection | DOAJ |
| description | Abstract This study investigates the role of financial literacy (FL), perceived access to finance (PAF), information communication technology (ICT) usage, and digitization in alleviating the level of credit constraint that micro, small, and medium enterprises (MSMEs) face in an emerging market. We draw on the economic research theories of human capital, knowledge-based view, and lifecycle hypothesis to explain the relationship between the variables. Using survey data collected from 333 MSME importers in Qatar—a country with heavy reliance on foreign goods—we find strong evidence that FL, PAF, ICT usage, and digitization are key determinants of Qatari MSME access to credit. In particular, PAF and FL are significant and have their expected signs in almost all the Probit regressions. For ICT usage and digitization, although they are key determinants of credit constraints, the findings are more sensitive and dependent on the type of financing and the resulting type of credit constraint. |
| first_indexed | 2024-03-08T14:12:57Z |
| format | Article |
| id | doaj.art-2f2e045dfed84871b978eb37569436ea |
| institution | Directory Open Access Journal |
| issn | 2199-4730 |
| language | English |
| last_indexed | 2024-03-08T14:12:57Z |
| publishDate | 2024-01-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj.art-2f2e045dfed84871b978eb37569436ea2024-01-14T12:33:31ZengSpringerOpenFinancial Innovation2199-47302024-01-0110113710.1186/s40854-023-00557-4Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: evidence from Qatari MSME importersLanouar Charfeddine0Mohamed Ismail Umlai1Mazen El-Masri2Center for Entrepreneurship and Organizational Excellence, College of Business and Economics, Qatar UniversityDepartment of Finance and Economics, College of Business and Economics, Qatar UniversityDepartment of Accounting and Information Systems, College of Business and Economics, Qatar UniversityAbstract This study investigates the role of financial literacy (FL), perceived access to finance (PAF), information communication technology (ICT) usage, and digitization in alleviating the level of credit constraint that micro, small, and medium enterprises (MSMEs) face in an emerging market. We draw on the economic research theories of human capital, knowledge-based view, and lifecycle hypothesis to explain the relationship between the variables. Using survey data collected from 333 MSME importers in Qatar—a country with heavy reliance on foreign goods—we find strong evidence that FL, PAF, ICT usage, and digitization are key determinants of Qatari MSME access to credit. In particular, PAF and FL are significant and have their expected signs in almost all the Probit regressions. For ICT usage and digitization, although they are key determinants of credit constraints, the findings are more sensitive and dependent on the type of financing and the resulting type of credit constraint.https://doi.org/10.1186/s40854-023-00557-4Credit constraintsFinancial literacyPerceived access to financeICT usageDigitizationQatari MSMEs |
| spellingShingle | Lanouar Charfeddine Mohamed Ismail Umlai Mazen El-Masri Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: evidence from Qatari MSME importers Financial Innovation Credit constraints Financial literacy Perceived access to finance ICT usage Digitization Qatari MSMEs |
| title | Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: evidence from Qatari MSME importers |
| title_full | Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: evidence from Qatari MSME importers |
| title_fullStr | Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: evidence from Qatari MSME importers |
| title_full_unstemmed | Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: evidence from Qatari MSME importers |
| title_short | Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: evidence from Qatari MSME importers |
| title_sort | impact of financial literacy perceived access to finance ict use and digitization on credit constraints evidence from qatari msme importers |
| topic | Credit constraints Financial literacy Perceived access to finance ICT usage Digitization Qatari MSMEs |
| url | https://doi.org/10.1186/s40854-023-00557-4 |
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