THE ROLE OF KNOWLEDGE TRANSFER IN DETERMINING DEBT LITERACY TOWARD MICRO ENTERPRISES’ ABILITY TO REPAY DEBT IN MALAYSIA

Abstract

Knowledge transfer is considered crucial to a firm’s growth and transformation. In contrast, micro enterprises play a crucial role in the socio-economic development in a country through business possibilities, job creation, and poverty reduction. However, various factors influence the ability of micro enterprises to repay their debt. One of the most important components of enhancing the capacity of micro enterprises’ to repay debt is literacy and the transfer of knowledge. To bridge this gap, this study examined the elements that affect the capacity of Malaysian micro enterprises to repay their debt, including debt literature, by utilising knowledge transfer as a medium. The main data from the study were collected through questionnaires from 127 Malaysian micro enterprises. The PLS-SEM approach was used to evaluate the data and subsequently to solve hypotheses and achieve the research goals. This article comprises some recommendations on the development of the micro enterprises sector in Malaysia and for relevant future research in this field.