Integrating Financial and Organizational Drivers in SME Debt Dynamics: Insights from Radial Basis Function Analysis

This study applies Radial Basis Function (RBF) models to examine the determinants of debt structures among small and medium-sized enterprises (SMEs), integrating financial and organizational variables across a sample of 132 firms. The findings indicate that both financial performance and organizational behavior significantly affect leverage and access to debt. Non-performing firms exhibit higher leverage and lower operational efficiency, while performing firms demonstrate stronger liquidity positions and asset utilization. Ownership structure and gender-based management differences further influence debt behavior, with domestic firms preferring long-term local debt and female or mixed ownership firms maintaining higher security margins. RBF models identify key predictors of short-term and long-term debt, highlighting the complex, multidimensional interaction between firm characteristics and financing patterns. The results provide actionable insights for financial governance, risk management, and policy design.