IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i17p10689-d899421.html
   My bibliography  Save this article

Entrepreneurial Competency, Financial Literacy, and Sustainable Performance—Examining the Mediating Role of Entrepreneurial Resilience among Saudi Entrepreneurs

Author

Listed:
  • Abdullah Hamoud Ali Seraj

    (The Saudi Investment Bank Chair for Investment Awareness Studies, the Deanship of Scientific Research, the Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Al Ahsa 31982, Saudi Arabia
    College of Business Administration, King Faisal University, Al Ahsa 31982, Saudi Arabia)

  • Syed Ali Fazal

    (UKM-Graduate School of Business, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia)

  • Ali Saleh Alshebami

    (The Saudi Investment Bank Chair for Investment Awareness Studies, the Deanship of Scientific Research, the Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Al Ahsa 31982, Saudi Arabia
    Applied College in Abqaiq, King Faisal University, Al Ahsa 31982, Saudi Arabia)

Abstract

This paper investigated the influence of entrepreneurial competency and financial literacy on sustainable small enterprise performance. We simultaneously investigated the mediating role of entrepreneurial resilience on the association between competence and financial literacy with sustainable business performance. We used a quantitative method for collecting data from 220 small business entrepreneurs in Saudi Arabia using an online questionnaire. The collected data were analysed with the help of PLS-SEM. The results reveal that financial literacy significantly positively affects entrepreneurial competency and resilience. Entrepreneurial competency has a significant positive effect on Saudi SMEs’ entrepreneurial resilience and sustainable performance. Finally, entrepreneurial resilience was simultaneously found to have a considerable impact on sustainable performance while mediating the effect of financial literacy and competency on sustainable performance across Saudi SMEs. In line with Saudi Vision 2030, with its profound focus on entrepreneurship and developing a financially independent entrepreneurial community, this research contributes to creating economic opportunities for local entrepreneurs managing small enterprises. Apart from extending the body of knowledge, this research can support policymakers in formulating relevant strategies to encourage SMEs that have been worst hit by the COVID-19 pandemic to perform sustainably. Several other implications for financial institutions and entrepreneurs have also been drawn.

Suggested Citation

  • Abdullah Hamoud Ali Seraj & Syed Ali Fazal & Ali Saleh Alshebami, 2022. "Entrepreneurial Competency, Financial Literacy, and Sustainable Performance—Examining the Mediating Role of Entrepreneurial Resilience among Saudi Entrepreneurs," Sustainability, MDPI, vol. 14(17), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:17:p:10689-:d:899421
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/17/10689/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/17/10689/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Olawale Fatoki, 2018. "The Impact of Entrepreneurial Resilience on the Success of Small and Medium Enterprises in South Africa," Sustainability, MDPI, vol. 10(7), pages 1-12, July.
    2. Samsidine Aidara & Abdullah Al Mamun & Noorul Azwin Md Nasir & Muhammad Mohiuddin & Noorshella Che Nawi & Noor Raihani Zainol, 2021. "Competitive Advantages of the Relationship between Entrepreneurial Competencies and Economic Sustainability Performance," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    3. Stewart Thornhill & Raphael Amit, 2003. "Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View," Organization Science, INFORMS, vol. 14(5), pages 497-509, October.
    4. Abdullah Al Mamun & Mohamed Dahlan Ibrahim & Mohd Nor Hakimin Bin Yusoff & Syed Ali Fazal, 2018. "Entrepreneurial Leadership, Performance, and Sustainability of Micro-Enterprises in Malaysia," Sustainability, MDPI, vol. 10(5), pages 1-23, May.
    5. Musrrat Parveen, 2020. "Challenges Faced by Pandemic Covid 19 Crisis: A Case Study in Saudi Arabia," Challenge, Taylor & Francis Journals, vol. 63(6), pages 349-364, November.
    6. Jianmu Ye & KMMCB Kulathunga, 2019. "How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    7. Perrings, Charles, 1998. "Introduction: Resilience and sustainability," Environment and Development Economics, Cambridge University Press, vol. 3(2), pages 221-262, May.
    8. Musrrat Parveen, 2020. "Challenges Faced by Pandemic Covid 19 Crisis: A Case Study in Saudi Arabia," Challenge, Taylor & Francis Journals, vol. 63(6), pages 349-364, November.
    9. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    10. Gaoyan Xu & Wenhao Dong & Shiliang Hu, 2022. "Is political connection a panacea for corporate turnaround?—An analysis based on the resource-based view during the global financial crisis," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 29(3), pages 743-760, May.
    11. Syed Ali Fazal & Abdullah Al Mamun & Ghazali Bin Ahmad & Sayed Samer Ali Al-Shami, 2022. "Entrepreneurial Competencies and Microenterprises Sustainability," Vision, , vol. 26(1), pages 39-47, March.
    12. Reinartz, Werner & Haenlein, Michael & Henseler, Jörg, 2009. "An empirical comparison of the efficacy of covariance-based and variance-based SEM," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 332-344.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abigail Padi & Alhassan Musah & Marshall Wellington Blay & Daniel Odei Okyere, 2025. "Small and Medium Scale Enterprise (SME) Owner financial literacy, entrepreneurial competencies and financial performance: the role of corporate governance," Future Business Journal, Springer, vol. 11(1), pages 1-18, December.
    2. Ali Saleh Alshebami, 2025. "Purpose-Driven Resilience: A Blueprint for Sustainable Growth in Micro- and Small Enterprises in Turbulent Contexts," Sustainability, MDPI, vol. 17(5), pages 1-19, March.
    3. Nargis Mohapatra & Mousumi Das & Sameer Shekhar & Rubee Singh & Shahbaz Khan & Lalit Mohan Tewari & Maria João Félix & Gilberto Santos, 2025. "Assessing the Role of Financial Literacy in FinTech Adoption by MSEs: Ensuring Sustainability Through a Fuzzy AHP Approach," Sustainability, MDPI, vol. 17(10), pages 1-28, May.
    4. Nurul Izzati Ahmad Hisni & Nurul Nadia Abd Aziz & Noor Affeeda Ramli & Muhammad Zahran Abd Rahman, 2025. "Impact of Digital Leadership and Resilience on Women’s Business Success," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(1), pages 2626-2631, January.
    5. Li, Xiaolin & Zhang, Mengjie & Liu, Weiwei & Wang, Ziyue, 2024. "The impact of entrepreneurial co-founders' support on founders' entrepreneurial resilience in the high-tech industry: The roles of perceived digital technology and perceived failure-tolerant climate," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    6. Claude Bernard Lontchi & Baochen Yang & Kabir Musa Shuaib, 2023. "Effect of Financial Technology on SMEs Performance in Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    7. Mina Nikolaeva Angelova & Daniela Dobreva Pastarmadzhieva & Aleksandar Tsvetanov Naydenov, 2022. "Determinants of the Entrepreneurial Initiative during a Pandemic: The Case of Plovdiv," Sustainability, MDPI, vol. 14(21), pages 1-28, October.
    8. Ali Saleh Alshebami & Abdullah Hamoud Ali Seraj & Ibrahim A. Elshaer & Abdullah Sultan Al Shammre & Salem Handhal Al Marri & Abdalwali Lutfi & Mostafa Aboulnour Salem & Ashraf Mahrous Nour Zaher, 2023. "Improving Social Performance through Innovative Small Green Businesses: Knowledge Sharing and Green Entrepreneurial Intention as Antecedents," Sustainability, MDPI, vol. 15(10), pages 1-18, May.
    9. Jasna Gačić & Stefan Milojević & Snežana Knežević & Miljan Adamović, 2023. "Financial Literacy of Managers in Serbian Health Care Organizations as a Path to Sustainability," Sustainability, MDPI, vol. 15(7), pages 1-26, April.
    10. Khuong Ngoc Mai & Quoc Hoang Thai, 2025. "Entrepreneurial competencies – A systematic literature review," Journal of International Entrepreneurship, Springer, vol. 23(1), pages 54-130, March.
    11. Syed Ali Fazal & Abdullah Al Mamun & Ali Saleh Alshebami & Rajennd Muniady & Mohd Helmi Ali & Sayed Samer Ali Al Shami & Salem Handhal Al Marri & Abdullah Hamoud Ali Seraj & Murad Thomran & Faiz Algob, 2022. "Entrepreneurial Motivation, Competency and Micro-Enterprise Sustainability Performance: Evidence from an Emerging Economy," Sustainability, MDPI, vol. 14(19), pages 1-20, October.
    12. Yue Liu & Bity Salwana Alias & Aida Hanim A. Hamid, 2025. "Student Entrepreneurship Competence and Its Contribution to Sustainable Development: A Systematic Review in the Context of Chinese Higher Education," Sustainability, MDPI, vol. 17(7), pages 1-20, April.
    13. Matloob, Sheema & Raza, Ali & Waqas, Ali & Khan, Mohammad Jamal & Nisar, Nabeel, 2025. "Does resource orchestration theory ensure the better SME performance: A three-wave time lag investigation among manufacturing SMEs of the developing economies," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    14. Yuanyuan Guo & Can Liu & Hao Liu & Ke Chen & Dan He, 2023. "Financial Literacy, Borrowing Behavior and Rural Households’ Income: Evidence from the Collective Forest Area, China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    15. Gangaram Biswakarma & Baburam Bohora, 2025. "Dynamic capabilities and organizational performance: the mediating role of organizational resilience in IT sector," Future Business Journal, Springer, vol. 11(1), pages 1-19, December.
    16. Ali Saleh Alshebami, 2025. "Crisis Management and Customer Adaptation: Pathways to Adaptive Capacity and Resilience in Micro- and Small-Sized Enterprises," Sustainability, MDPI, vol. 17(9), pages 1-19, April.
    17. Happiness Ozioma Obi-Anike & Ogohi Cross Daniel & Ifeoma Joanes Onodugo & Ikechukwu Joseph Attamah & Benedict Ogbemudia Imhanrenialena, 2023. "The Role of Financial Information Literacy in Strategic Decision-Making Effectiveness and Sustainable Performance among Agribusiness Entrepreneurs in Nigeria," Sustainability, MDPI, vol. 15(13), pages 1-17, July.

    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. Petschnig, Martin & Heidenreich, Sven & Spieth, Patrick, 2014. "Innovative alternatives take action – Investigating determinants of alternative fuel vehicle adoption," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 68-83.
    2. Abdul Alem Mohammed & Basri B. Rashid & Shaharuddin B. Tahir, 2017. "Customer relationship management and hotel performance: the mediating influence of marketing capabilities—evidence from the Malaysian hotel industry," Information Technology & Tourism, Springer, vol. 17(3), pages 335-361, September.
    3. Christian Nitzl & Wynne W. Chin, 2017. "The case of partial least squares (PLS) path modeling in managerial accounting research," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(2), pages 137-156, May.
    4. Suning Zhu & Ashish Gupta & David Paradice & Casey Cegielski, 2019. "Understanding the Impact of Immersion and Authenticity on Satisfaction Behavior in Learning Analytics Tasks," Information Systems Frontiers, Springer, vol. 21(4), pages 791-814, August.
    5. Andreas Strobl & Jessica Niedermair & Kurt Matzler & Tobias Mussner, 2019. "Triggering Subordinate Innovation Behavior: The Influence Of Leaders’ Dark Personality Traits And Level 5 Leadership Behavior," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-37, June.
    6. Waseem Ul Hameed & Muhammad Haseeb & Jawad Iqbal & Leonardus W. W. Mihardjo & Kittisak Jermsittiparsert, 2022. "Environmental disaster and women self‐sustainability—A survey study on microfinance female clientele in Pakistan," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3599-3622, July.
    7. Jinhwan Kim & Hyeob Kim & HyukJun Kwon, 2020. "The Impact of Employees’ Perceptions of Strategic Alignment on Sustainability: An Empirical Investigation of Korean Firms," Sustainability, MDPI, vol. 12(10), pages 1-23, May.
    8. Tobias Roeth & Patrick Spieth & Verena Joachim, 2019. "The Interaction Of Intuition And Rationality During Escalated Npd Decisions: An Investigation Of Decision-Makers’ Affective States," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-31, June.
    9. Nitzl, Christian, 2016. "The use of partial least squares structural equation modelling (PLS-SEM) in management accounting research: Directions for future theory development," Journal of Accounting Literature, Elsevier, vol. 37(C), pages 19-35.
    10. Linder, Christian, 2019. "Customer orientation and operations: The role of manufacturing capabilities in small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 216(C), pages 105-117.
    11. Han, Jeong Hugh & Wang, Yingli & Naim, Mohamed, 2017. "Reconceptualization of information technology flexibility for supply chain management: An empirical study," International Journal of Production Economics, Elsevier, vol. 187(C), pages 196-215.
    12. Daan Kabel & Mattias Elg & Erik Sundin, 2021. "Factors Influencing Sustainable Purchasing Behaviour of Remanufactured Robotic Lawn Mowers," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    13. Jaafar, Mastura & Noor, Shuhaida Md & Rasoolimanesh, S. Mostafa, 2015. "Perception of young local residents toward sustainable conservation programmes: A case study of the Lenggong World Cultural Heritage Site," Tourism Management, Elsevier, vol. 48(C), pages 154-163.
    14. Hemmert, Martin & Kim, DaeSoo & Kim, Jisun & Cho, BooYun, 2016. "Building the supplier's trust: Role of institutional forces and buyer firm practices," International Journal of Production Economics, Elsevier, vol. 180(C), pages 25-37.
    15. Jeong Hugh Han & Hyun-Yong Park, 2019. "Sustaining Small Exporters’ Performance: Capturing Heterogeneous Effects of Government Export Assistance Programs on Global Value Chain Informedness," Sustainability, MDPI, vol. 11(8), pages 1-24, April.
    16. Koo, Jakeun & Lee, Younghan, 2019. "Sponsor-event congruence effects: The moderating role of sport involvement and mediating role of sponsor attitudes," Sport Management Review, Elsevier, vol. 22(2), pages 222-234.
    17. Gaucher, Benoît & Chebat, Jean-Charles, 2019. "How uncivil customers corrode the relationship between frontline employees and retailers," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 1-10.
    18. Calabrò, Andrea & Campopiano, Giovanna & Basco, Rodrigo & Pukall, Thilo, 2017. "Governance structure and internationalization of family-controlled firms: The mediating role of international entrepreneurial orientation," European Management Journal, Elsevier, vol. 35(2), pages 238-248.
    19. Kusi, Samuel Yaw & Gabrielsson, Peter & Baumgarth, Carsten, 2022. "How classical and entrepreneurial brand management increases the performance of internationalising SMEs?," Journal of World Business, Elsevier, vol. 57(5).
    20. Shamim Akhtar & Yi Cui & Stephanie Efua Frimpong & Nosheen Rafi, 2024. "Unlocking sustainable competitive performance in agro-based small and medium enterprises in South Asian Association for Regional Cooperation countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(6), pages 309-319.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:jsusta:v:14:y:2022:i:17:p:10689-:d:899421. 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.