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Financial management practices and Agri-SME performance: does subjective financial literacy hold the key?

Kulwa Mwita Mang’ana

Cogent Business & Management2026https://doi.org/10.1080/23311975.2026.2612787article
AJG 1ABDC C
Weight
0.37

What the paper says

This study investigates how four key financial management practices (FMPs), namely the working capital, capital budgeting, financial reporting, and financing affect Agri-SME performance in Tanzania, focusing on the mediating role of the manager’s subjective financial literacy (self-perceived competence). Using a cross-sectional survey of 385 Tanzanian Agri-SME managers, data were analyzed via PLS-SEM with 5,000 bootstraps. Anchored in the Resource Based View and behavioral finance, results show that financing practices (β ≈ 0.17) and subjective literacy (β ≈ 0.13) significantly enhance performance (p < 0.05). Furthermore, working capital management and capital budgeting significantly boosted subjective literacy (p < 0.05). Importantly, financial reporting significantly reduced perceived competence (β≈−0.23, p < 0.05), suggesting potential cognitive misalignment. Indirect paths via literacy were positive but not statistically significant (p > 0.05). The study recommended that support programs must pair access to finance with capability building that bolsters perceived financial competence, and reporting tools must be simplified.

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https://doi.org/https://doi.org/10.1080/23311975.2026.2612787

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@article{kulwa2026,
  title        = {{Financial management practices and Agri-SME performance: does subjective financial literacy hold the key?}},
  author       = {Kulwa Mwita Mang’ana},
  journal      = {Cogent Business & Management},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1080/23311975.2026.2612787},
}

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Financial management practices and Agri-SME performance: does subjective financial literacy hold the key?

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.