Moderating role of financial intelligence in the relationship between a turbulent business environment and SMEs' resilience
DOI:
https://doi.org/10.33003/fujafr-2026.v4i3.418.389-411Keywords:
financial intelligence, business turbulence, SME resilience, adaptive capacity, recovery capacityAbstract
Purpose: This study examines whether financial intelligence changes the effects of competitive intensity, market turbulence and technological turbulence on the adaptive and recovery capacities of small and medium-sized enterprises (SMEs) in Southwestern Nigeria.
Methodology: A cross-sectional survey produced 326 usable responses from SME owners and senior managers across the six states of Southwestern Nigeria. Partial least-squares structural equation modelling (PLS-SEM) was used to assess the measurement and structural models, including the direct effects of turbulence, the direct effect of financial intelligence and six moderation effects.
Results and conclusion: In the full model, competitive intensity and market turbulence were positively associated with adaptive capacity, while competitive intensity and technological turbulence were positively associated with recovery capacity. Financial intelligence had strong positive direct relationships with adaptive capacity (β = .363, p
< .01) and recovery capacity (β = .540, p < .01). Of the six interaction effects, only financial intelligence × technological turbulence significantly predicted adaptive capacity (β = .134, p = .011). The full models explained 59.6% of the variance in adaptive capacity and 59.0% in recovery capacity. Financial intelligence is therefore an important resilience capability, although its moderating role is selective rather than universal.
Implication of findings: SME managers should strengthen budgeting, cash-flow forecasting, investment appraisal and technology-evaluation skills, while enterprise-support agencies should incorporate applied financial decision-making into resilience programmes.
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