Impact of Financial Support on Financial Performance with the Moderating Role of Financial Management Practices
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Abstract
Financial performance is a fundamental aspect determining the success and sustainability of a business, including student enterprises receiving BizNest grant funding at Universitas Pendidikan Indonesia. Although most recipients rate the financial support they receive as high, the financial performance of their enterprises varies considerably and is dominated by the low category, indicating that financial support does not automatically translate into uniform performance outcomes. This study analyzes the effect of financial support on financial performance and examines the moderating role of financial management practices from a Resource-Based View perspective. A quantitative, descriptive-verificative approach was applied to 40 student enterprises receiving BizNest funding, selected through a saturated sampling technique. Data were collected using a numerical-scale questionnaire and analyzed with Moderated Regression Analysis (MRA). The results show that financial support has a positive and significant effect on financial performance, and that financial management practices significantly moderate this relationship, acting as a quasi-moderator that strengthens the effect of financial support on financial performance. The three variables jointly explain a substantial share of the variance in financial performance. These findings confirm that the effectiveness of financial support depends on recipients' financial management capability, so that student entrepreneurship funding programs should be accompanied by strengthened financial management capacity, particularly in using financial information as a basis for decision-making.
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