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- W4220753173 abstract "Purpose This paper investigates the effect of entrepreneurial orientation (EO) on small- and medium-sized enterprises' (SMEs) access to credit. Starting with the idea that SMEs' strategy-making process, structures and behaviour can favour credit access, the authors also explore the moderating role of bank lending technologies in shaping this relationship. Design/methodology/approach This study relies on a unique survey of Austrian and Italian SMEs which contains detailed information on access to credit, EO dimensions, relationship lending and firm-level characteristics. The authors perform stepwise logistic regressions to assess whether EO interacts with SME's access to finance, and how relationship lending enhances this relationship. Findings Proactiveness, autonomy and competitive aggressiveness are important constructs for improving access to bank financing. Those dimensions became more important when a relationship bank is involved, suggesting a role for relationship lending in overcoming SMEs' opaqueness. In addition, relationship lending is crucial for innovative SMEs in overcoming credit denial rates. Research limitations/implications The small sample did not allow to analyse the effect of EO on discouraged borrowers. Furthermore, alternative measures of relationship lending (such as geographical proximity or the length of the relationship) and the share of credit granted by the relationship bank would have been interesting to further validate our results. Practical implications This study shows that EO dimensions and the type of lending technology are relevant for the financial success of SMEs. More precisely, the authors show that diversity within the banking system helps innovative, autonomous, proactive and competitive SMEs. These important pieces of soft information are injected into the final lending decision when a relationship bank is involved. The evidence suggests the need for SMEs to interact with local banks to fully exploit their EO posture. Originality/value To the authors' knowledge, this paper is the first attempt to analyse whether relationship lending can affect the EO–credit access relation." @default.
- W4220753173 created "2022-04-03" @default.
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- W4220753173 date "2022-03-14" @default.
- W4220753173 modified "2023-09-25" @default.
- W4220753173 title "Relationship lending, access to credit and entrepreneurial orientation as cornerstones of venture financing" @default.
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- W4220753173 doi "https://doi.org/10.1108/jsbed-07-2021-0281" @default.
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