A Mixed Methods Study on the Mediating Effect of Financial Access on the Relationship Between Managerial Practices and Business Performance of SMEs in Region XI

This study examined the mediating effect of financial access on the relationship between managerial practices and business performance among small and medium enterprises (SMEs) in Region XI, Philippines. Using an explanatory sequential mixed methods design, quantitative data were collected from 560 SME owners and managers, while qualitative data were obtained through in-depth interviews and focus group discussions with 17 participants. Quantitative findings revealed that managerial practices, business performance, and financial access were all rated high. Significant relationships were found among managerial practices, financial access, and business performance. Mediation analysis further showed that financial access partially mediated the relationship between managerial practices and business performance. Qualitative findings supported the statistical results, revealing that effective managerial practices improve organizational credibility, operational efficiency, and opportunities for financial support, which consequently enhance business performance. The study concludes that financial access serves as an important mechanism through which managerial practices contribute to SME growth and sustainability. The findings highlight the need for strengthened managerial competencies and improved financial inclusion programs to support SME competitiveness and long-term development.