The Conceptual Framework of SMEs Financial Success in Sultanate of Oman

  • Basat Hilal Faculty of International Business Administration, Nizwa College of Applied Sciences
  • Noor Fareen Abdul Rahim Graduate School of Business, Universiti Sains Malaysia
  • Mohammad Iranmanesh Faculty of Business and Law, Edith Cowan University
Keywords: Small Medium Enterprises, Entrepreneur competencies, Financial literacy, Resource-based view (RBV), Omanization

Abstract

SMEs financial success contributes to the nation`s GDP and helps in jobs creation, while SMEs financial failure will lead to issues, such as low job creation and Non-Performing Loans. From the perspective of the Sultanate of Oman, the SMEs financial performance is one of the government major concerns due to its significance and implications on the future of the national economy. Thus, it is worthwhile to assess the SMEs financial literacy and entrepreneurs' competencies (EC) as enablers of SMEs financial performance betterment. However, review of the literature and the practical evidence available give the impression that each sub-dimensions of entrepreneur competencies (EC) does not affect identically on SMEs financial performance. Therefore, it has become important to understand the financial literacy and entrepreneur competencies (EC) sub-dimensions effect on SMEs financial performance so that their significance and importance can be identified. This study aims to provide empirical evidence about the effect of financial literacy and each sub-dimensions of entrepreneur competencies (EC) on SMEs financial performance in the Sultanate of Oman. Besides, this research tends to examine the role of firm resources availability and government support as moderators. Resource-Based View Theory (RBV) will be adopted to extend the existing literature on SMEs financial performance determinants from SMEs entrepreneurial perspective. As research novelty and theoretical contribution, this research study's the interactions of financial literacy and each sub-dimensions of entrepreneur competencies (EC) with firm resources availability and government support, as moderators. The convenience sampling method will be used with SMEs sample size of 200 and 300 questionnaires will be distributed to SMEs founders/owners in Sultanate of Oman. The structural equation modelling (SEM) through partial least square (PLS) approach will be used to test the study hypotheses. The present research findings are expected to broader the picture of entrepreneur competencies (EC) and SMEs performance researches by revealing the financial literacy and each sub-dimensions of entrepreneur competencies (EC) effect on SMEs financial performance. Further, it may confirm the moderating role of firm resources availability and government support on SMEs financial performance.   

Author Biographies

Noor Fareen Abdul Rahim, Graduate School of Business, Universiti Sains Malaysia

Noor Fareen Abdul Rahim is a Senior Lecturer with Graduate School of Business, Universiti Sains Malaysia (USM) since 2017. Before her career in USM, she was a banker with RHB Bank Berhad for 16 years before joining Universiti Utara Malaysia from 2015 to 2016. She has published her work in various SCOPUS and ISI journals. Her area of interest includes Organisational Behavior, Human Resource Management, Occupational Safety and Health, Internal Control System, Enterprise Risk Management, Operational Risk Management, and Technology Management. She is also involved with Executive Development Programs as a facilitator for government and private institution.

Mohammad Iranmanesh, Faculty of Business and Law, Edith Cowan University

Mohammad Iranmanesh is Senior Lecturer in Edith Cowan University, Australia. He has conducted research in the fields of supply chain management, marketing, and tourism. He taught several courses, including International Marketing Fundamentals of Entrepreneurship Customer Relationship Management Research Methodology Statistics. To date, he has published in more than 30 ISI journals.

Published
2020-07-24
How to Cite
Hilal, B., Abdul Rahim, N. F., & Iranmanesh, M. (2020). The Conceptual Framework of SMEs Financial Success in Sultanate of Oman. Journal of Governance and Integrity, 3(2). https://doi.org/10.15282/jgi.3.2.2020.5307
Section
JGI Vol. 3, Issue 2, July 2020