Relative financial deprivation, financial anxiety and financial satisfaction: the role of access to Islamic financing among MSME owners amidst COVID-19

Purpose The purpose of this paper is to augment the present literature on the relationship between relative financial deprivation (RFD), financial anxiety (FA), access to Islamic financing (AIF) and financial satisfaction (FS) of micro, small and medium enterprise (MSME) owners. Principally, the study examines the moderating role of AIF on the RFD-FS and FA-FS relationships. Design/methodology/approach Quantitative survey approach was used to collect data through self-administered questionnaires from MSME owners. Partial least square (PLS) structural equation modelling (SEM) version 3.2.7 was used to analyse 208 retrieved questionnaires. Findings The results confirm that the RFD-FS relationship is negatively significant, but the FA-FS relationship is not significant. However, the direct relationship between AIF and FS is positively significant. Conversely, AIF failed to moderate the RFD-FS and FA-FS relationships. Practical implications The study specifies that the existence of RFD will decrease the FS of MSME owners, and therefore, RFD should be eliminated at all costs. However, the greater the AIF, the stronger will be the FS of MSME owners. Thus, policymakers and owners of MSMEs should emphasize on AIF to foster FS. Nevertheless, AIF could not redirect the negative impact of RFD and FA on MSME owners' FS. Originality/value This study, to the best of the authors' knowledge, is the first to examine the moderating role of AIF on the RFD-FS and FA-FS relationships among MSME owners. Notwithstanding the importance of small business owners for economic development, the literature on MSME entrepreneurs FS has been neglected. This study also uncovers new theoretical knowledge by revealing the inability of AIF to alter the RFD-FS and FA-FS relationships.