Determinants of SMEs owner-manager behavioral intention towards usage of financial products

Evaluation of socio-psychological determinants of SMEs financial behavior have often been prescribed as an important research direction, particularly in developing economies. In accordance with the above, this study based in Pakistan investigated socio-psychological determinants of SMEs owner-managers' attitude, subjective norms and perceived behavioral control towards usage of financial products. The antecedents of these socio-psychological determinants are depicted as motivation, awareness, perceived usefulness, perceived ease of use, perceived risk; social beliefs and religious beliefs; and self-efficacy. Moderating influences of demographic characteristics of owner-managers have also been analyzed in order to explain the scenario with enhanced precision and possibilities. The study proposed an extended model by combining Theory of Planned Behavior (TPB) and Technology Acceptance Model towards understanding financial behavior of SME owner-managers. Relying on a survey research design, and following a stratified sampling method, 375 SMEs owner-managers were surveyed from Punjab province of Pakistan. Descriptive analysis was done using SPSS, and inferential analysis using Smart PLS 3.2.2. The findings revealed that awareness, perceived usefulness, perceived ease of use, social and religious beliefs possess significant positive relationships with owner-manager attitude and subjective norms which further significantly predicts behavioral intention. However, perceived risk was found to have a significant negative influence on the attitude of SMEs owner-manager. The results revealed that gender exerts no moderation effect on attitude, subjective norms and perceived behavioral control whereas age, education and experience moderate the relationship of attitude only. As SMEs owner-managers exhibit serious concern towards formal financial products usage, it is recommended to the financial institutes that they ensure fairness in their offerings, marketing communications and the way they make products available to SMEs owner-manager. It is also suggested that policy must focus to create awareness among SMEs regarding financial products availability and usefulness, in addition to instituting desirable regulations.