The Moderating Role of Culture in the Relationship Between Financial Inclusion and Financial Performance of Small and Medium-Sized Enterprises in Manyu Division, Cameroon

This study investigates the moderating role of local culture in the relationship between financial inclusion and the financial performance of Small and Medium-Sized Enterprises (SMEs) in Manyu Division, Cameroon. A survey was conducted on a sample of 330 SMEs in Manyu Division, Cameroon. Questionnaires were used to collect data, which were then analyzed using the SEM-PLS technique. The research findings show that, although financial services do not have a statistically significant effect, other results indicate a beneficial effect on financial performance. Additionally, local culture was found to strengthen this relationship. With the moderation of local culture, the path coefficient value is 0.319, and the significance value is 0.010. culture strengthens the interaction between financial service quality and the financial performance of SMEs in Manyu Division, with a significant value of 0.048, which is less than 0.05. Therefore, the test result shows that the nature of culture moderation is quasi-moderation, as both the direct effect coefficient (0.048) and the moderation effect coefficient (0.010) are less than 0.05. The study supports the Resource-Based Theory as a theoretical contribution, making it relevant in reducing barriers to the growth of SMEs. The relevance of this article lies in providing new insights from the perspective of users, namely SMEs, whose numbers are still relatively small, particularly in terms of utilizing unique local genius values to enhance the interaction between financial inclusion and SMEs’ financial performance. The study’s insights contribute to the financial inclusion literature by highlighting the critical role of culture in shaping the financial performance outcomes of SMEs. The findings have implications for policy makers, financial institutions, and SMEs seeking to enhance financial performance through inclusive financial services tailored to cultural context.