IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v16y2023i5p261-d1138399.html
   My bibliography  Save this article

The Role of Loan-Related Risk Appetite in the Relationship between Financial Risk Considerations and MSME Growth Decision: A Mediation Analysis

Author

Listed:
  • Ralph Stephen Leyeza

    (E.T. Yuchengco College of Business, Mapúa Malayan Colleges Laguna, Cabuyao, Laguna 4025, Philippines)

  • Mikka Marielle Boado

    (E.T. Yuchengco College of Business, Mapúa Malayan Colleges Laguna, Cabuyao, Laguna 4025, Philippines)

  • Obed Butacan

    (E.T. Yuchengco College of Business, Mapúa Malayan Colleges Laguna, Cabuyao, Laguna 4025, Philippines)

  • Donn Enrique Moreno

    (E.T. Yuchengco College of Business, Mapúa Malayan Colleges Laguna, Cabuyao, Laguna 4025, Philippines)

  • Lourdes Deocariza

    (E.T. Yuchengco College of Business, Mapúa Malayan Colleges Laguna, Cabuyao, Laguna 4025, Philippines)

Abstract

While many studies have focused on assessing performance, studies that pivot on growth itself are limited. To contribute in this area, this study used the Stimulus-Organism-Response (SOR) Model as its foundation in order to explore how inflation and access to finance affected loan-related risk appetite, also known as their willingness to bear either debt-related or opportunity-related risks arising from loan acceptance or avoidance, respectively. Subsequently, the mediating effect of loan-related risk appetite between inflation and access to finance and growth decision was also investigated. The analysis of links between variables under scrutiny was premised on the utilization of partial least squares-structural equation modeling (PLS-SEM), with the data resulting from a purposive sampling method comprising 80 respondents who are owners and/or managers of their MSME business operating for at least two (2) years. The findings present that access to finance, as well as loan-related risk appetite, has direct links to growth decision. Access to finance was also found to have direct effects to loan-related risk appetite. On the other hand, it was found that loan-related risk appetite functions as a partial mediator between access to finance and growth decision. Contrarily, the aforementioned circumstances cannot be observed for inflation.

Suggested Citation

  • Ralph Stephen Leyeza & Mikka Marielle Boado & Obed Butacan & Donn Enrique Moreno & Lourdes Deocariza, 2023. "The Role of Loan-Related Risk Appetite in the Relationship between Financial Risk Considerations and MSME Growth Decision: A Mediation Analysis," JRFM, MDPI, vol. 16(5), pages 1-20, May.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:5:p:261-:d:1138399
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/16/5/261/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/16/5/261/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Heena Thanki & Narayan Baser, 2019. "Interactive Impact of Demographic Variables and Personality Type on Risk Tolerance," Emerging Economy Studies, International Management Institute, vol. 5(1), pages 42-54, May.
    2. Mkedder Nadjim & Bakir Mahmut & Lachachi Abdelheq, 2021. "Investigating the Antecedents of Purchase Intention Toward Local Dairy Products: An Empirical Study Based on the SOR Model," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 29(4), pages 124-148, December.
    3. Elston, Julie Ann & Audretsch, David B., 2010. "Risk attitudes, wealth and sources of entrepreneurial start-up capital," Journal of Economic Behavior & Organization, Elsevier, vol. 76(1), pages 82-89, October.
    4. Eroglu, Sevgin A. & Machleit, Karen A. & Davis, Lenita M., 2001. "Atmospheric qualities of online retailing: A conceptual model and implications," Journal of Business Research, Elsevier, vol. 54(2), pages 177-184, November.
    5. Su-Chang Chen & Kuo Cheng Chung & Ming Yueh Tsai, 2019. "How to Achieve Sustainable Development of Mobile Payment through Customer Satisfaction—The SOR Model," Sustainability, MDPI, vol. 11(22), pages 1-16, November.
    6. Ennouri Wissem, 2013. "Risks Management: New Literature Review," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 8(1), pages 288-297, December.
    7. Betgilu Oshora & Goshu Desalegn & Eva Gorgenyi-Hegyes & Maria Fekete-Farkas & Zoltan Zeman, 2021. "Determinants of Financial Inclusion in Small and Medium Enterprises: Evidence from Ethiopia," JRFM, MDPI, vol. 14(7), pages 1-19, June.
    8. Zhengyan Guo & Yao Yao & Yuan-Cheng Chang, 2022. "Research on Customer Behavioral Intention of Hot Spring Resorts Based on SOR Model: The Multiple Mediation Effects of Service Climate and Employee Engagement," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    9. Vieider, Ferdinand M. & Chmura, Thorsten & Martinsson, Peter, 2012. "Risk attitudes, development, and growth: Macroeconomic evidence from experiments in 30 countries," Discussion Papers, WZB Junior Research Group Risk and Development SP II 2012-401, WZB Berlin Social Science Center.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Collins Opoku Antwi & Jun Ren & Wenyu Zhang & Wilberforce Owusu-Ansah & Michael Osei Aboagye & Emmanuel Affum-Osei & Richard Adu Agyapong, 2022. "“I Am Here to Fly, but Better Get the Environment Right!” Passenger Response to Airport Servicescape," Sustainability, MDPI, vol. 14(16), pages 1-24, August.
    2. Francisco Liébana-Cabanillas & Nidhi Singh & Zoran Kalinic & Elena Carvajal-Trujillo, 2021. "Examining the determinants of continuance intention to use and the moderating effect of the gender and age of users of NFC mobile payments: a multi-analytical approach," Information Technology and Management, Springer, vol. 22(2), pages 133-161, June.
    3. Agus Sugiarto & Cheng-Wen Lee & Andrian Dolfriandra Huruta & Christine Dewi & Abbott Po Shun Chen, 2022. "Predictors of Pro-Environmental Intention and Behavior: A Perspective of Stimulus–Organism–Response Theory," Sustainability, MDPI, vol. 14(23), pages 1-17, December.
    4. S. Sinan Erzurumlu & Nitin Joglekar & Moren Lévesque & Fehmi Tanrisever, 2019. "How Angel Know-How Shapes Ownership Sharing in Stage-Based Contracts," Entrepreneurship Theory and Practice, , vol. 43(4), pages 773-801, July.
    5. repec:dgr:rugsom:04f04 is not listed on IDEAS
    6. Wei-Ching Wang & Chung-Hsien Lin, 2024. "Exploring the Importance of Destination Attributes of Sustainable Urban Waterfronts: Text and Data Mining of Tourists’ Online Reviews," Sustainability, MDPI, vol. 16(6), pages 1-17, March.
    7. Mansoora Ahmed & Sun Zehou & Syed Ali Raza & Muhammad Asif Qureshi & Sara Qamar Yousufi, 2020. "Impact of CSR and environmental triggers on employee green behavior: The mediating effect of employee well‐being," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2225-2239, September.
    8. Davis, Lenita & Wang, Sijun & Lindridge, Andrew, 2008. "Culture influences on emotional responses to on-line store atmospheric cues," Journal of Business Research, Elsevier, vol. 61(8), pages 806-812, August.
    9. Prarawan Senachai & Puthipong Julagasigorn, 2024. "Retail mix instruments influencing customer perceived value and customer engagement: a conceptual framework and research agenda," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    10. Ferdinand M. Vieider & Mathieu Lefebvre & Ranoua Bouchouicha & Thorsten Chmura & Rustamdjan Hakimov & Michal Krawczyk & Peter Martinsson, 2015. "Common Components Of Risk And Uncertainty Attitudes Across Contexts And Domains: Evidence From 30 Countries," Journal of the European Economic Association, European Economic Association, vol. 13(3), pages 421-452, June.
    11. Tibert Verhagen & Daniel Bloemers, 2018. "Exploring the cognitive and affective bases of online purchase intentions: a hierarchical test across product types," Electronic Commerce Research, Springer, vol. 18(3), pages 537-561, September.
    12. Yang Zhao & Yixuan Li & Ning Wang & Ruoxin Zhou & Xin (Robert) Luo, 2022. "A Meta-Analysis of Online Impulsive Buying and the Moderating Effect of Economic Development Level," Information Systems Frontiers, Springer, vol. 24(5), pages 1667-1688, October.
    13. Parker, Simon C., 2013. "Do serial entrepreneurs run successively better-performing businesses?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 652-666.
    14. Moradi, Masoud & Dass, Mayukh & Kumar, Piyush, 2023. "Differential effects of analytical versus emotional rhetorical style on review helpfulness," Journal of Business Research, Elsevier, vol. 154(C).
    15. Hongpeng Guo & Xiangnan Sun & Chulin Pan & Shuang Xu & Nan Yan, 2022. "The Sustainability of Fresh Agricultural Produce Live Broadcast Development: Influence on Consumer Purchase Intentions Based on Live Broadcast Characteristics," Sustainability, MDPI, vol. 14(12), pages 1-19, June.
    16. Shanika Thathsarani & Wei Jianguo & Mona Alariqi, 2023. "How Do Demand, Supply, and Institutional Factors Influence SME Financial Inclusion: A Developing Country Perspective," SAGE Open, , vol. 13(3), pages 21582440231, July.
    17. Collin Chikwira & Edson Vengesai & Petronella Mandude, 2022. "The Impact of Microfinance Institutions on Poverty Alleviation," JRFM, MDPI, vol. 15(9), pages 1-13, September.
    18. Ana Cláudia Amaro & Luisa M. Martinez & Filipe R. Ramos & Karla Menezes & Silvio Menezes, 2023. "An overstimulated consumer in a highly visual world: the moderating effect of the highly sensitive person trait on the attitude towards the ad," Electronic Commerce Research, Springer, vol. 23(3), pages 1429-1458, September.
    19. Jacob, Isaac & Khanna, Monica & Rai, Krupa A., 2020. "Attribution analysis of luxury brands: An investigation into consumer-brand congruence through conspicuous consumption," Journal of Business Research, Elsevier, vol. 116(C), pages 597-607.
    20. Han, Yoonju & Chandukala, Sandeep R. & Li, Shibo, 2022. "Impact of different types of in-store displays on consumer purchase behavior," Journal of Retailing, Elsevier, vol. 98(3), pages 432-452.
    21. Shobeiri, Saeed & Laroche, Michel & Mazaheri, Ebrahim, 2013. "Shaping e-retailer’s website personality: The importance of experiential marketing," Journal of Retailing and Consumer Services, Elsevier, vol. 20(1), pages 102-110.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:16:y:2023:i:5:p:261-:d:1138399. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.