Financial Decision-Making and SME Growth in China: The Mediating Role of Corporate Culture
Author (s)
Junliang Guan
Abstract
This study delves into the intricate relationship between financial decision-making and the growth of small and medium-sized private enterprises (SMEs) in China, emphasizing the mediating role of corporate culture. Through a comprehensive analysis of data collected from 405 SMEs via a questionnaire survey, this research employ multiple regression analysis to test the hypotheses. The findings underscore the significant influence of corporate culture, which categorize into four dimensions: values, relationship culture, innovative culture, and risk culture. These cultural aspects shape financial decision-making processes, subsequently impacting SME growth as measured by profitability, development scale, and growth stage. Notably, financial stability emerges as a pivotal factor; more aggressive financial strategies are associated with higher profitability but may result in a smaller development scale and lower growth stage. This research not only contributes to the existing literature by elucidating the complex interplay between corporate culture, financial decision-making, and SME growth within the Chinese context but also offers practical insights and strategies for SME managers seeking to optimize their financial decisions and foster sustainable growth.
Keywords: Financial Decision-Making, Small and Medium-Sized Private Enterprises, Corporate Culture; Growth Potential, Mediating Role & China.
| Title: | Financial Decision-Making and SME Growth in China: The Mediating Role of Corporate Culture |
|---|---|
| Author: | Junliang Guan |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.58970/IJSB.2511 |
| Media: | Online |
| Volume: | 43 |
| Issue: | 1 |
| Issue publication (Year): | 2025 |
| Acceptance Date: | 4/12/2024 |
| Date of Publication: | 5/12/2024 |
| PDF URL: | https://ijsab.com/wp-content/uploads/2511.pdf |
| Free download: | Available |
| Page: | 1-10 |
| First Page: | 1 |
| Last Page: | 10 |
| Paper Type: | Research paper |
| Current Status: | Published |
Cite This Article:
Guan, J. (2025). Financial Decision-Making and SME Growth in China: The Mediating Role of Corporate Culture, International Journal of Science and Business, 43(1), 1-10. DOI: https://doi.org/10.58970/IJSB.2511
Retrieved from https://ijsab.com/wp-content/uploads/2511.pdf
About Author (s)
Junliang Guan, Centre of Postgraduate Studies, Asia Metropolitan University (AMU), Johor Bahru, Malaysia.
DOI: https://doi.org/10.58970/IJSB.2511