The usage of financial services among Malaysian SMEs: an exploratory study

The present qualitative investigation explores in depth the way in which financial services are utilized by SMEs in Malaysia. Financial services are economic packages utilized by SMEs in their routine financial operation. While prior research has reasonably documented the types of financial services...

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Main Authors: Humberto Ramirez, Thien Sang Lim
Format: Article
Language:English
Published: Elsevier 2025-01-01
Series:Social Sciences and Humanities Open
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2590291125004516
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author Humberto Ramirez
Thien Sang Lim
author_facet Humberto Ramirez
Thien Sang Lim
author_sort Humberto Ramirez
collection DOAJ
description The present qualitative investigation explores in depth the way in which financial services are utilized by SMEs in Malaysia. Financial services are economic packages utilized by SMEs in their routine financial operation. While prior research has reasonably documented the types of financial services used by SMEs, little is known about the precise mechanisms and decision-making processes of how those services are employed. An exploratory qualitative study was conducted to interview 13 SMEs owners in Sabah, Malaysia. Through connectivity and categorical analysis, the results derived 134 different codes and nine categorized themes, which reveal in detail managerial practices of how precisely financial services are put into the financial administration of SMEs. The findings have theoretical implications for the field of financial management. They constitute conceptual grounded insights that expand our understanding of how SMEs behave financially, and how those practices can directly improve their efficiency and performance. The results have also relevant implications for practice. SMEs managers can replicate the qualitative insights to improve their financial operation. Banks and policy makers can use the feedback from SMEs to improve the development of financial services. The categorized qualitative themes represent a starting point for future qualitative and quantitative research as potential constructs to amplify them and test their impact on SMEs performance.
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spelling doaj-art-5badddc2c90c467ea2b1de3f8cde1a622025-08-20T02:38:41ZengElsevierSocial Sciences and Humanities Open2590-29112025-01-011210172310.1016/j.ssaho.2025.101723The usage of financial services among Malaysian SMEs: an exploratory studyHumberto Ramirez0Thien Sang Lim1Corresponding author. House 3, Lorong Pokok Merbau 2, Kota Kinabalu, Sabah, 88300, Malaysia.; Universiti Malaysia Sabah, Jalan UMS, 88400, Kota Kinabalu, Sabah, MalaysiaUniversiti Malaysia Sabah, Jalan UMS, 88400, Kota Kinabalu, Sabah, MalaysiaThe present qualitative investigation explores in depth the way in which financial services are utilized by SMEs in Malaysia. Financial services are economic packages utilized by SMEs in their routine financial operation. While prior research has reasonably documented the types of financial services used by SMEs, little is known about the precise mechanisms and decision-making processes of how those services are employed. An exploratory qualitative study was conducted to interview 13 SMEs owners in Sabah, Malaysia. Through connectivity and categorical analysis, the results derived 134 different codes and nine categorized themes, which reveal in detail managerial practices of how precisely financial services are put into the financial administration of SMEs. The findings have theoretical implications for the field of financial management. They constitute conceptual grounded insights that expand our understanding of how SMEs behave financially, and how those practices can directly improve their efficiency and performance. The results have also relevant implications for practice. SMEs managers can replicate the qualitative insights to improve their financial operation. Banks and policy makers can use the feedback from SMEs to improve the development of financial services. The categorized qualitative themes represent a starting point for future qualitative and quantitative research as potential constructs to amplify them and test their impact on SMEs performance.http://www.sciencedirect.com/science/article/pii/S2590291125004516Financial servicesSMEs financeSMEs performanceLending to SMEsFinancial managementUsage of financial services
spellingShingle Humberto Ramirez
Thien Sang Lim
The usage of financial services among Malaysian SMEs: an exploratory study
Social Sciences and Humanities Open
Financial services
SMEs finance
SMEs performance
Lending to SMEs
Financial management
Usage of financial services
title The usage of financial services among Malaysian SMEs: an exploratory study
title_full The usage of financial services among Malaysian SMEs: an exploratory study
title_fullStr The usage of financial services among Malaysian SMEs: an exploratory study
title_full_unstemmed The usage of financial services among Malaysian SMEs: an exploratory study
title_short The usage of financial services among Malaysian SMEs: an exploratory study
title_sort usage of financial services among malaysian smes an exploratory study
topic Financial services
SMEs finance
SMEs performance
Lending to SMEs
Financial management
Usage of financial services
url http://www.sciencedirect.com/science/article/pii/S2590291125004516
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