From Connectivity to Continuity: The Power of Cashless Mobile Access and Experience in Micro and Small Businesses in Fragile Contexts

Abstract

This study investigates the influence of access to mobile cashless technology on enterprise continuity intention and cash flow management skills. It also explores the influence of cashless technology, knowledge, and experience on enterprise continuity intention and cash flow management skills, and examines the direct relationship between cash flow management skills and enterprise continuity intention among micro and small enterprises during crises and in an unstable context. The 259 responses collected from micro and small entrepreneurs were analyzed by Partial Least Squares Structural Equation Modeling. The hypotheses tested reported a positive and significant relationship between access to mobile cashless technology and enterprise continuity intention and cash flow management skills. Furthermore, it was found that cashless technology knowledge and experience have a positive and significant relationship with enterprise continuity intention, as well as cash flow management skills. Finally, cash flow management skills were found to positively influence enterprise continuity intention. The study offers theoretical and practical implications for policymakers and other stakeholders to improve cashless transactions in the context of the study.

1. Introduction

Most of the extant literature acknowledges the role of Micro and Small Enterprises (MSEs) in poverty alleviation, the mitigation of unemployment, economic advancement, and the creation of novel ideas [1,2,3,4,5]. Yet, MSEs continue to encounter significant obstacles that restrict their effectiveness. In spite of all their advantages, these enterprises struggle with poor resilience, improper crisis planning, limited financial resources, high levels of uncertainty, high failure rate, low productivity, and weak performance [4,6,7,8]. The challenges facing MSEs are exacerbated during crises such as pandemics or internal conflicts, particularly in developing countries. According to Ref. [9], about 60% of medium and small enterprises, including the micro ones, operate in the informal sector and require urgent attention for social protection and better work conditions. Ref. [9] further emphasized that there is limited understanding and a notable ignorance of the key strategies and essential actions that should be exclusively followed by policymakers to support small enterprises during crises [10]. These observations highlight the need to explore the strategies that enable enterprises in general, and MSEs with limited capabilities in particular, to overcome challenges and thrive [3].

MSEs need to ensure resilience and continuity even during unstable conditions. In this pursuit, applying certain strategies is important. Entrepreneurs can mitigate the negative effects of crises, uncertainties, and other challenges. Specifically, they can use digital technologies and improve their level of financial literacy, both of which contribute to business continuity, survival, competitiveness, profitability, and liquidity, leading to better financial inclusion [9,10,11,12,13,14,15,16]. Digital financial skills and financial literacy are useful here. Both of them assist in improving the financial practices of entrepreneurs. The enhanced practices include the behavior related to cash flow that enables entrepreneurs to more likely continue their business [17].

Although electronic systems and technology are believed to improve the performance of enterprises, there is still a limited understanding of the way they operate during crises and conflicts [18,19]. The study of Ref. [14] emphasized a lack of empirical evidence on the economic impact of digital technology, such as mobile technology, especially in developing countries [15]. This gap is particularly obvious in conflict contexts like Yemen, an emerging country surrounded by many economic and political challenges. Technologies such as e-wallets enable hygienic transactions and streamline transactions in compliance with physical distance norms [19,20]. They help in receiving remittance more cheaply and easily during difficult times. These technologies also assist in reducing risks and costs associated with traditional cash transfer, allowing owners to save money and invest more effectively [21].

Mobile access technology, such as mobile money payment systems, improves various aspects of business operations. For example, it offers entrepreneurs easy access to track business transactions. Moreover, it minimizes dependence on physical cash and allows better record-keeping and financial planning. Additionally, mobile technology contributes positively to reducing operational costs by automating processes, streamlining communication, and enabling online transactions [16]. With this technology, small entrepreneurs can easily monitor their expenses and income more effectively, resulting in better financial management and reduced cash theft [22]. Nevertheless, access alone is insufficient. Using cashless or mobile technology effectively requires a minimum level of cashless knowledge and experience in handling such technologies to ensure optimal results and maximum benefits [23]. Those individuals with information technology knowledge, including familiarity with technologies like e-mail, Internet, and software applications, contribute greatly to process performance in small firms [17,24]. Such technologies are considered key resources that must be maintained to ensure business continuity and the ability of a business to develop a competitive advantage, especially during crises and unstable contexts [23,25,26,27].

The extant literature has emphasized that cashless and digital technologies help in improving business transparency, efficiency, and resilience, particularly in crises. Most of the previous explorations, however, concentrated on stable contexts, leaving unstable contexts or fragile ones largely unexplored. For example, a study by Ref. [18] reported that digital payment and mobile money played a significant role in supporting businesses to continue operating and remain resilient during COVID-19. Other research also confirmed that digital adaptation led to better performance and survival of small enterprises during pandemics and other challenges [9,28]. Nevertheless, little is known about how these relationships function in contexts of extreme uncertainty and instability. More specifically, existing studies rarely explored the translation of access to mobile cashless technology and cashless technology knowledge and experience into enterprise continuity intention through financial management capabilities.

Yemen provides a compelling context to address this gap. In Yemen, MSEs play a key role in creating new job opportunities and reducing poverty because of their great contribution to the country’s economy [29]. Yemen, in addition to being politically unstable, continues to suffer from a fractured monetary system, non-uniform currency, and withdrawal limits [30]. These challenges have forced people in general and micro and small entrepreneurs in particular to deal with torn, old, and microbial-contaminated cash [31] resulting in higher health risks and more transaction costs. Currency in Yemen, both coins and notes, especially in the northern part of the country, is heavily contaminated with different types of pathogenic bacteria [31]. Thus, it is of utmost need to develop hygienic practices and conduct alternative remedies, such as electronic money, to reduce the negative effects and risks of pathogen transmission [31]. Under such conditions, Access to Mobile Cashless Technology (AMCT) and Cashless Technology Knowledge and Experience (CTKE) become particularly significant resources. They enable entrepreneurs to overcome such constraints and maintain transactional continuity.

The shift towards cashless business and transactions has become a global phenomenon in different parts of the world, including developing countries [12]. Furthermore, using mobile money technology or cashless systems helps in lowering the possibility of theft associated with carrying cash. It alleviates trade credit constraints and encourages entrepreneurial performance, confirming the role of mobile technology in entrepreneurship, especially during crises and unstable situations [32]. Additionally, mobile money technology helps micro and small entrepreneurs in a number of ways. It offers them financial services and reduces their challenges to enter the formal economy. It also improves business productivity and creates job opportunities. All of these contributions meet the United Nations Sustainable Development Goals (SDG8).

In spite of the relevance of these issues, most of the prior studies in Yemen have largely focused on different aspects related to small enterprises in general, such as adaptability, resilience, entrepreneurial orientation, challenges to micro and small enterprises, and other irrelevant issues [7,29,33]. Based on the existing literature and to the best of the researcher’s knowledge, no prior study has empirically examined the combined roles of AMCT, CTKE, and CFMS in shaping enterprise continuity intention in a fragile and conflict-affected context and during unstable times.

Accordingly, this study addresses this gap; it develops and tests a model that links AMCT, CTKE, CFMS, and Enterprise Continuity Intention (ECI) among micro and small enterprises operating in Yemen. The study draws on two main theories: Resource-Based View (RBV) and Dynamic Capability Theory. In this framework, AMCT and CTKE represent the critical digital resources. CFMS is the dynamic capability through which these resources are transformed into continuity intentions under instability. Specifically, this study seeks to answer the following research questions:

RQ1: How does AMCT affect CFMS and ECI among MSEs in Yemen?

RQ2: How does CTKE affect CFMS and ECI?

RQ3: Does CFMS mediate the relationships between AMCT and ECI, as well as between CTKE and ECI?

Finally, this research offers theoretical and practical implications to the Resource-Based View (RBV) theory as well as to the capability theory and confirms their applicability during crises and in unstable zones. It also offers recommendations to policymakers on how to enhance the benefits of AMCT and strengthen CTKE among micro and small entrepreneurs. The study’s structure is divided into different sections. It begins with an introduction, then theoretical background, literature review, hypothesis development, research methodology, analysis, and discussion follow. It ends with implications and a conclusion.

2. Theoretical Background

This research relies on two theories for building its grounding. These are the Resource-Based View (RBV) theory introduced by Ref. [25] and the Dynamic Capability Theory (DCT) developed by Refs. [26,27]. According to RBV, for an enterprise to survive, it needs to hold valuable, rare, and inimitable resources. DCT, in contrast, claims that the survival of a business in a conflict zone or in an unstable context requires some actions: sensing changes and seizing opportunities to reconfigure its available resources. In this study, RBV and DCT play complementary roles. They collectively explain how micro and small enterprises can achieve business continuity in fragile and conflict-affected contexts such as Yemen. The RBV identifies the digital resources required for survival. DCT explains the process of transforming these resources into capabilities that drive the intention to continue the enterprise.

From the perspective of RBV theory, AMCT and CTKE represent valuable and context-specific resources [23,25,28]. These resources cannot be easily substituted in fragile monetary environments. Hence, in a crisis-affected environment, such digital resources enable firms to continue operating even during disruptions in physical cash circulation and banking infrastructure.

More specifically, in this research and in the context of Yemen, considered a disturbed context, AMCT and CTKE act as significant strategic resources. They help micro and small enterprises continue operating efficiently during crises by depending less on an unstable cash-based system. It should be noted, however, that the strategic value of these resources in Yemen is shaped by specific factors. These include the country’s fractured monetary system, political instability, and the risks associated with physical cash.

Furthermore, consistent with DCT, CFMS functions as a main capability. Through CFMS, micro and small entrepreneurs sense financial risks, seize digital transaction opportunities, and reconfigure financial practices in response to instability [26,27]. ECI represents the outcome of successfully deploying these dynamic capabilities under conditions of uncertainty.

In addition, according to DCT, entrepreneurs need to sense changes and crises. These include conflict, cash shortage, or unstable currency [26,27]. Entrepreneurs must then seize opportunities [23,34] by adopting digital payment systems. Reconfiguration of resources involves managing cash flow and depending less on physical cash systems. In the current study, this distinction serves an important purpose. It highlights why RBV alone is insufficient in conflict-affected environments like Yemen. That is to say, merely possessing access to digital technology does not necessarily guarantee survival if entrepreneurs lack the capability to manage cash flow under extreme uncertainty and instability. The challenges in the country under study include damaged currency notes, banking fragmentation, withdrawal limits, and security risks associated with physical cash handling [30,31]. The opposite is also true: dynamic capabilities cannot exist without the underlying digital resources identified by RBV.

Still, resources are important for the survival and continuity of a business. However, in most cases, they are not enough on their own. Entrepreneurs also need to transfer these resources into actionable capabilities and enhance their internal capabilities. Thus, in this research, CFMS can act here as a dynamic capability that allows entrepreneurs to monitor, plan, and control their financial transactions and activities, resulting finally in the reduction of liquidity risks and strengthening the resilience of the business. When entrepreneurs benefit from technological and financial capabilities, their confidence and intention to continue operating their business during crises increase.

Accordingly, CFMS, in this study, is the mechanism that mediates the relationship between digital resources and continuity intention. In other words, CFMS converts the resources of AMCT and CTKE into ECI. This integrated framework is suitable for fragile and conflict-affected settings such as Yemen. In these contexts, the need for adaptive financial capabilities is high.

3. Hypotheses Development

3.1. AMCT, CFMS, and ECI

Financial and digital technologies, such as contactless payment systems, have become an important aspect of business operations and performance. The uptake of these systems is more prevalent during adversities and pandemics such as COVID-19 [18]. Within the RBV framework, access to such technologies constitutes a critical strategic resource. DCT, in turn, explains how these resources are transformed into operational capabilities during times of instability.

In the context of MSEs, AMCT is defined as the degree to which micro and small entrepreneurs have access to internet connectivity, mobile devices, and other essential technological tools. These tools assist them in using cashless payment systems when operating their business transactions [35]. Theoretically, AMCT provides the infrastructural basis upon which entrepreneurs can build effective financial management capabilities. Technologies such as mobile money systems can improve the cash management skills of small entrepreneurs. They offer them an easy way to trace their business transactions and reduce dependence on physical cash. All of this would result in better record keeping, instant payments, and reduced risks related to cash handling, such as theft, ultimately improving financial planning and performance [12,22]. Such technologies help micro entrepreneurs easily monitor their expenses and income effectively, and they achieve better financial management [22]. Still, financial literacy is an important requirement for entrepreneurs as it boosts their ability to use digital technologies [36].

Empirical studies have emphasized the important role financial and digital technologies play in supporting businesses and entrepreneurs. For example, the study by Ref. [13] empirically discussed the concept of access to mobile among a sample of 400 micro and small entrepreneurs. Its findings revealed that ease of access to mobile credit can positively influence the financial prosperity of these entrepreneurs. This highlights the significant role AMCT can play in improving cash management skills. Employing mobile money and other technologies can also benefit entrepreneurs. It allows them to buy on credit from suppliers and to also offer selling on credit to customers [37]. The study by Ref. [38] also confirmed that micro entrepreneurs with access to mobile phones and internet services can better manage their enterprises more effectively. They can also develop new skills, receive and send money using their phones. Such services allow entrepreneurs to remain connected with their clients. This results ultimately in better sustainability and growth of their enterprises. The research of Refs. [15,21] also reported that those rural households that have better mobile money services can overcome financial access constraints. This facility leads to better credit levels, higher savings, and more remittances. Mobile financial services, in this way, result in better financial management and business stability. Furthermore, the research of Refs. [14,39] also highlighted that mobile technologies and banking, such as mobile money, facilitate the sharing of informal risks. They also reduce the cost of financial transactions and reduce the risk of theft.

These mechanisms become more important in crisis and conflict settings. The study of Ref. [18] concluded that contactless payment technology plays a key role during crises. It attracts new clients and allows businesses to withstand economic shocks, leading eventually to better resilience and continuity. According to Ref. [40], micro and small entrepreneurs may need to use mobile money or plastic money as they help them deal with cash shortage. If they do not use them, they may lose customers and reduce their revenue. This confirms the role that cashless technology plays in the sustainability and development of small businesses [32].

Accordingly, and based on the above discussion, it may be argued that when micro and small entrepreneurs in Yemen obtain better AMCT, they can develop better capability and skills for managing and monitoring their business transactions. This, in turn, leads to minimizing risks associated with carrying cash. It also helps them avoid using damaged or contaminated cash and improves the speed and accuracy of payments in their business. This, in turn, leads to better cash handling, more confidence in handling the business, and a stronger intention to continue it. In this regard, in the Yemen context, access to cashless technology becomes more important. This is because it assists in reducing dependence on physical money and ensures smoother financial flow and better business continuity. Therefore, we propose the following hypotheses:

H1: 

AMCT positively influences CFMS.

H2: 

AMCT positively influences ECI.

H3: 

CFMS mediates the relationship between AMCT and ECI.

3.2. CTKE, CFMS, and ECI

Having adequate knowledge and experience of financial technological tools and platforms, in general, is important for ensuring efficient handling of the business operations. They ensure better performance, help develop competitive advantage, reduce business risks, and contribute to business survival, especially during adversities and crises [9,18]. Within RBV, CTKE represents an intangible, inimitable resource. DCT explains the process through which this knowledge is mobilized into effective financial practices.

More specifically, CTKE refers to the degree of familiarity and the practical knowledge a person has in using cashless technologies. E-wallets, mobile money, and digital payment platforms are examples of such technologies used to carry out business transactions and deal effectively with financial activities [41]. The use of all of these technologies leads to better financial resilience [14]. Empirically, a study by Ref. [42] confirmed that digital readiness is driven by factors such as resource availability, financial flexibility, and agility. These authors defined digital readiness as an organization’s ability to benefit from digital technologies effectively. In this regard, cashless knowledge and experience can be considered part of digital readiness. They enable businesses to adapt quickly to financial disruptions, manage cash flow efficiently, and ensure the continuity of business. Based on data collected from 698 small entrepreneurs, another study by Ref. [24] revealed that those individuals who have knowledge of IT tools can improve internal process performance. This improvement eventually results in greater efficiency within the business. Furthermore, using electronic communication can enhance both the satisfaction of the clients and the business’s financial performance. Digital technologies positively influence small business resilience during COVID-19 and other uncertainties. These technologies prepare individuals for hazards, and they facilitate recovery and adaptation in their stressful surroundings [4,9,28].

More specifically, literature related to the period of COVID-19 and financial shocks in developing countries confirms that entrepreneurs who employ cashless and digital systems develop better resilience. Such resilience encourages them to continue operating their business even with external shocks and in an unstable context [18,43]. Digital or cashless technologies are useful. They supply entrepreneurs with different solutions and channels for their financial transactions. They also maximize the flexibility and reduce the operation interruption [9,28]. Understanding how to use mobile money platforms, e-wallets, and the systems of digital payment has many advantages. Business owners with this understanding are able to record business transactions immediately. They can monitor cash flow and outflow and minimize any possible errors related to transaction calculations. Additionally, the study by Ref. [24] revealed that having digital knowledge and using both traditional and electronic communication methods may significantly result in better internal process performance for small firms.

In other words, micro and small entrepreneurs who have a high level of experience, better knowledge, and confidence in using cashless systems develop a better ability to adapt, survive, and continue a successful business. Being able to handle cash using cashless digital technologies enables micro and small entrepreneurs to track receivables, manage liquidity, and plan any potential cash shortages in the business [44,45,46]. This capability results in confidence and a better intention to continue their businesses during crises. Having better knowledge and experience of using mobile money and e-wallets allows micro and small entrepreneurs to continue receiving payments, buy necessary materials and goods, and communicate with customers. This access is possible even when there is limited access to physical cash or when cash is damaged or unsafe to handle.

In conflict-affected contexts like Yemen, CTKE is indispensable. Liquidity shortage, damaged notes, and banking fragmentation create major financial barriers for MSEs. Hence, cashless technology knowledge and experience can act as a remedy for sustaining business. It will also enhance entrepreneurs’ intentions and determination to continue operating in challenging regions. Based on this theoretical background, empirical evidence, and contextual relevance, we assume the following hypotheses:

H4: 

CTKE positively influences CFMS.

H5: 

CTKE positively influences ECI.

H6: 

CFMS mediates the relationship between CTKE and ECI.

3.3. CFMS and ECI

CFMS is an important capability an entrepreneur needs to have. It ensures better handling of cash and liquidity, better business survival, development, and financial stability [47], especially in times of crises and instability. CFMS refers to the ability of an entrepreneur to plan, monitor, and control both the inflow and outflow of cash in their enterprise. It places emphasis on the effective management of liquidity to achieve stable business finance and the smooth operation of the business [48,49]. According to DCT, CFMS is an essential capability that entrepreneurs employ to identify financial risks and adjust their financial procedures amid instability. Financial challenges, particularly those involving cash flow, contribute greatly to the failure of businesses. Therefore, entrepreneurs should understand that cash management is an essential activity for sustaining business operations, meeting the expenses of business, and ensuring the long-term survival of the business. They should also manage cash effectively by balancing profitability and liquidity to ensure business persistence [49,50,51].

Empirical evidence emphasizes the importance of CFMS for the survival of a business. Previous studies have discussed the concept of cash flow management and its connection to other business issues. For example, a study by Ref. [52], conducted among a sample of 31 micro and small entrepreneurs in South Africa, revealed that poor cash flow management leads to business failure. This emphasizes the need for strong cash flow management skills to ensure greater stability and survival during crises.

The study by Ref. [53] also highlighted the significance of cash flow management and viewed the disregard of it as a source of small business failure alongside other issues such as insufficient working capital and liquidity problems. Hence, small entrepreneurs need to be educated and advised on this matter. In other empirical studies, it was revealed that cash flow management practices significantly influence small enterprise sustainability, the fulfillment of financial obligations, performance, and profitability [54,55]. The authors further emphasized that avoiding these practices may lead to business failure. This confirms the role these practices play in encouraging entrepreneurs to continue operating their businesses.

In unstable and conflict-affected environments, CFMS becomes even more necessary. The study of Ref. [56] emphasized that a business with effective cash flow management achieves smoother operations, maximizes its value, and fulfills its business goals. He further reported that proper cash management strengthens an entrepreneur’s ability to face financial risks, make solid strategic decisions, and manage risk properly. This can ultimately result in stronger intentions to continue the business. Additionally, the study by Ref. [57] found out that certain factors, such as prior technology use and perceived competitive pressure related to customer services, play a key role in driving a small enterprise to engage with clients. In another interesting research on threats and emotional factors, Ref. [58] found that emotional factors and perceived threats influence trust and the intention to use mobile banking. This, in turn, affects users’ behavioral decisions under risk. This finding supports the argument that access to reliable cashless technologies assists in shaping enterprise-level continuity intentions during crises.

Based on the above discussion, one may argue that during crises, micro and small enterprises become more vulnerable to cash and liquidity issues, as well as to threats to their financial stability. In other words, when business owners practice effective strategies for managing cash inflow and outflow, such as tracking income and expenses, arranging financial priorities, controlling costs, and planning for future payments, they are better able to avoid sudden shocks. They also become able to reduce default risks and ensure the continuation of their business. The assurance provided by a continuous, stable cash flow increases entrepreneurs’ confidence in handling their business, leading to a stronger decision to continue operating even during crises [48,49,59].

Therefore, within Yemen’s uncertain and fragile context, the following assumption is proposed:

H7: 

CFMS positively influences ECI.

3.4. Proposed Model

Figure 1 presents the assumed model. It reveals that AMCT and CTKE are independent variables in this model. In contrast, CFMS acts as a mediator, and the ECI construct acts as a dependent variable. The model was developed based on a deep review of the extant literature.

4. Research Methodology

4.1. Research Design and Collection of Data

The nature of the research questions and the purpose of this research confirm the need to follow the guidelines of exploratory, quantitative, and deductive research design to ensure the fulfillment of its objectives. The study is theory-driven. It employed cross-sectional survey research grounded in the Resource-Based View and Dynamic Capability Theory and was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).

This research design required primary data collection and testing of the developed hypotheses. The researchers collected 259 responses from micro and small entrepreneurs operating in Yemen, specifically in Sana’a province, which is the capital of Yemen and hosts a large number of MSEs. Data were collected from respondents using convenience and snowball sampling techniques, which are non-probability sampling methods. Snowball sampling and convenience sampling are cost-effective, allow researchers to reach a large number of respondents, save time and effort, and can be used for both quantitative and qualitative research [60,61,62,63].

The key reason for applying convenience and snowball sampling is that MSEs in Yemen are spread across different areas and cannot be traced easily. MSEs in Yemen do not have a valid registry or record for contacting micro and small entrepreneurs to collect their opinions about their business operations. Furthermore, the ongoing internal conflict in Yemen exacerbated the situation for MSEs, causing many of them to either close or shift to other areas, which made chasing their locations a challenge for researchers. Hence, this type of sampling was adequate in such a situation. While applying the convenience and snowball sampling design was deemed appropriate for this research, its use may limit external validity and introduce potential selection bias. Accordingly, several steps were taken to mitigate network-based homogeneity. Initial respondents were recruited from different sectors and geographic areas. Also, multiple referral chains were used to reach heterogeneous types of MSEs.

The researchers collected the data from business owners, responsible individuals, and persons in charge of the business, who have good information about the business, to ensure correct responses. In this research, data were collected from micro and small entrepreneurs (micro and small business owners). This group is rarely targeted in the literature, as most previous studies focus on medium and large enterprises, leaving these entrepreneurs understudied. Therefore, targeting them is necessary to explore this new and untapped area.

The collected data were obtained by visiting the business owners’ locations and sending an online link of a Google form to those not physically reached. Furthermore, the respondents were also asked to invite their colleagues to respond to the questionnaire after they had carefully understood its contents. The original questionnaire was in English and was translated into Arabic to suit the context of the study. The questionnaire contents were checked and validated by a specialized translation agency to ensure respondents would have no difficulty in understanding its contents. Furthermore, to ensure greater conformity of the translated content and appropriate linguistic and conceptual equivalence, the translated version was reviewed and refined by academic experts familiar with the research context before final administration.

Additionally, as common method bias (CMB) is a common problem in social sciences, the researcher attempted to reduce its risk by following several procedural remedies. For example, during the survey design and data collection, participation was voluntary and anonymous, and respondents were assured that there were no right or wrong answers to minimize social desirability bias. Likewise, the predictor and outcome variables used in the research were presented in separate sections with neutral wording. Finally, a pilot study with 15 respondents was conducted to check for unclear statements or challenges in understanding them. Since there was no issue, the questionnaire was sent to respondents to fill out. The gathered sample of 259 responses is considered adequate for this research according to the 10 times sampling rule [64,65].

4.2. Measures of the Study

This research applied different concepts: Cashless Technology Knowledge and Experience (CTKE), Enterprise Continuity Intention (ECI), Cash Flow Management Skills (CFMS), and Access to Mobile Cashless Technology (AMCT). After carefully reviewing the extant literature, these concepts were measured by adapting measures from previous studies. The measures for the first concept, namely CTKE, were adapted and inspired by the study of Refs. [41,66], and a sample of these measures included “I am familiar with how cashless payment systems work”. This variable specifically captures knowledge and familiarity with cashless systems and experience, confidence in using digital tools.

The measures for the second concept, namely ECI, were adapted from the study of Ref. [67], and a sample for these measures included “I will make every effort to keep my business running during challenging times”. This variable captures the intention of micro and small entrepreneurs to continue their business during crises and instability. The measures of the third concept, CFMS, were inspired by the study of Refs. [48,49,68], and an example of this measure included “Cashless transactions will make it easier for me to manage my business finances”. This variable describes how well entrepreneurs are able to effectively monitor, organize, and control their business finances through the use of cashless systems.

The measures for the fourth concept, AMCT, were taken from the study of [35] and a sample of these measures was “I can easily access the internet to use cashless payment platforms”. This construct reflects entrepreneurs’ access to internet connectivity, mobile devices, and the availability of cashless payment platforms. Some of the measures used were adapted to suit the needs of this research. The response scale for the questionnaire was a five-point Likert scale. All measures/items developed for measuring the concepts of the study were retained, and none of them were removed during analysis, as they all met the threshold and showed good reliability and validity.

5. Analysis and Interpretation of Findings

Demographic Analysis

In this section, we report the respondents’ demographic information in

Table 1. Demographic information.

Construct	Classes	Frequency (n)	Percentage (%)
Gender	Male	211	81.5
	Female	48	18.5
Marital Status	Married	148	57.1
	Single	101	39.0
	Other	10	3.9
Age	18–28 years	114	44.0
	29–39 years	102	39.4
	40–50 years	39	15.1
	Over 50 years	4	1.5
Education Level	Secondary school	95	36.7
	Bachelor’s degree	99	38.2
	Diploma	28	10.8
	Primary or intermediate	25	9.7
	Postgraduate degree	12	4.6
Experience	Less than 5 years	72	27.8
	5–10 years	108	41.7
	More than 10 years	79	30.5
Sector of the business	Retail and wholesale	151	58.3
	Micro and Small crafts	42	16.2
	Basic technology	32	12.4
	Micro and Small Services	26	10.0
	Agriculture	8	3.1
Number of Employees	1–3 employees (Micro)	211	81.5
	4–9 employees (Small)	48	18.5
Total	-	259	100%

Source: Primary data.

below.

Table 1 indicates that most respondents are male, comprising 81.5%. This indicates that there is a dominance of male respondents over female respondents. This also confirms the existence of a male-dominated structure of micro and small enterprises in Yemen, likely due to cultural and economic constraints on female entrepreneurship. This may limit the generalizability of the findings to female entrepreneurs.

Furthermore, the table shows that the majority of respondents are married (57.1%). This suggests that these micro and small entrepreneurs have higher financial responsibilities and household obligations. These obligations can strengthen their intention to continue business operations during crises. This is because they need to sustain their businesses so that they can ensure income and economic stability for their families. Also, a maximum of 44% of respondents are aged between 18 and 28, indicating that most of them are young respondents. There are middle-aged respondents, suggesting that micro and small entrepreneurs in this study are largely economically active individuals. This active age group is more open to adopting mobile and cashless technologies.

The table further reports that 38.2% of respondents have a bachelor’s degree. This educational attainment means respondents possess sufficient basic education to understand and use cashless systems. This supports the relevance of testing knowledge and technology-based capabilities in explaining financial management behavior. With regards to experience, it was found that 41.7% have experience of 5–10 years, highlighting that respondents have enough experience in handling business and dealing with the different scenarios of the market. About the sectors of business, the findings showed that 58.3% are in the retail and wholesale sectors. This may indicate that the findings may be more representative of retail and wholesale-oriented MSEs than of other sectors with lower transaction frequency. Finally, 81.5% are classified as micro enterprises hosting one to three employees, and 18.5% are called small enterprises with four to nine employees.

6. Data Analysis

Two steps must be completed when following the Partial Least Squares Structural Equation Modeling (PLS-SEM): the assessment of the measurement model and structural model. Below is a detailed analysis of them.

6.1. Analyzing the Measurement Model

Different tests were required in the process of the measurement model analysis. The first examined the reliability and convergent validity of the variables used in developing the study’s model. It is advised to use Cronbach’s Alpha (CA) and Composite Reliability (CR) when testing the reliability, and apply the test of average variance extracted (AVE) when checking the convergent validity. CA and CR checked the internal consistency of the items, and the AVE evaluated whether the items and measures of the same variables are significantly correlated. The threshold for CA and CR is 0.70, and AVE is 50, per the guidelines of Ref. [65]. The results in

Table 2. Construct reliability and validity.

	CA	CR	AVE
AMCT	0.860	0.905	0.704
CFMS	0.805	0.874	0.636
ECI	0.772	0.853	0.592
CTKE	0.815	0.878	0.643

Source: Primary data.

indicate that the CA, CR, and AVE thresholds are met and have good reliability and convergent validity.

Then, the validity of the items’ factor loadings was checked to determine how well these items are correlated and represent the model’s constructs. The accepted threshold for the indicator factor loadings is 0.70 [69], and in exploratory research, a value of 0.60 is also considered acceptable as a good loading [65,70]. Hence, CFMS4 was retained in

Table 3. Outer loadings.

	AMCT	CFMS	ECI	CTKE
AMCT1	0.811
AMCT2	0.843
AMCT3	0.858
AMCT4	0.844
CFMS1		0.814
CFMS2		0.845
CFMS3		0.859
CFMS4		0.656
ECI1			0.747
ECI2			0.806
ECI3			0.756
ECI4			0.769
CTKE1				0.812
CTKE2				0.724
CTKE3				0.826
CTKE4				0.841

Source: Primary data.

. In the AMCT construct, AMCT4 showed a greater representation of the construct (0.844), while CFMS3 showed the maximum representation in the CFMS construct (0.859). For ECI and CTKE, ECI2 and CTKE4 showed maximum representation for these constructs, i.e., (0.806) and (0.826), respectively.

Table 3 shows that the threshold is met, and items measuring the study variables have good validity and represent the variables well.

The discriminant validity was also evaluated to ensure that exogenous variables are distinct.

Table 4. HTMT findings.

	AMCT	CFMS	ECI
CFMS	0.673	-	-
ECI	0.599	0.709	-
CTKE	0.687	0.709	0.618

Source: Primary data.

reports that heterotrait–monotrait ratio (HTMT) values are below 0.85. It indicates the presence of good discriminant validity among the study constructs and confirms that the variables are distinct from each other [65].

The next step was to assess the correlations among the study variables.

Table 5. Fornell–Larcker criterion.

	AMT	CFMS	ECI	KAE
AMT	0.839
CFMS	0.561	0.798
ECI	0.495	0.565	0.770
KAE	0.584	0.577	0.506	0.802

Source: Primary data.

shows the correlation matrix.

As an additional test for the discriminant validity among the variables of the study, the Fornell–Larcker criterion was tested with the results presented in Table 5 for this purpose. The result showed that each variable has more variance with its own indicators than with other constructs in the model. Hence, discriminant validity is confirmed.

According to the findings presented in

Table 6. Correlations Matrix.

	AMCT	CFMS	ECI	CTKE
AMCT	1.000	0.561	0.495	0.584
CFMS	0.561	1.000	0.565	0.577
ECI	0.495	0.565	1.000	0.506
CTKE	0.584	0.577	0.506	1.000

Source: Primary data.

, the strongest correlation is found between AMCT and CTKE (R = 0.584), while the weakest correlation is observed between AMCT and ECI (R = 0.495). Other variables also reported good correlations.

6.2. Structural Model

Once the measurement model analysis was completed, the structural model was assessed. In the structural model, the developed hypotheses were tested using the bootstrapping method. With regards to the mediation analysis, it was conducted using the bootstrapping procedure in PLS-SEM with 5000 resamples, as suggested for testing indirect effects. The significance of the indirect paths was assessed using bias-corrected confidence intervals.

Table 7. Tested hypotheses results.

Hypothesis	Assumptions	β	T Value	p Value	Finding
H1	AMCT → CFMS	0.339	5.230	0.000	Approved
H2	AMCT → ECI	0.184	2.929	0.003	Approved
H3	AMCT → CFMS → ECI	0.118	3.651	0.000	Partial Mediation
H4	CTKE → CFMS	0.379	6.470	0.000	Approved
H5	CTKE → ECI	0.198	2.741	0.006	Approved
H6	CTKE → CFMS → ECI	0.131	3.774	0.000	Partial Mediation
H7	CFMS → ECI	0.347	5.063	0.000	Approved

Source: Primary data.

provides a summary of the tested hypotheses and their results. The significance level considered when testing the hypothesis is 0.05%. According to the results shown in Table 6, all developed hypotheses with direct relationships got approved, including the mediation hypotheses that showed partial mediation (p < 0.05). The mediation result is based on the simultaneous significance of both the direct and indirect effects, recommending partial rather than full mediation.

According to Table 6, CTKE → CFMS (β = 0.379, T = 6.47) has the strongest direct path, showing that knowledge and experience greatly enhance cash flow financial management capability. The discussion section explains the findings of the hypotheses in more detail.

It is also important to disclose the results of the key metrics related to the model, such as Effect Size (F²), Coefficient of Determination (R²), Predictive Relevance (Q²), Variance Inflation Factor (VIF), and Common Method Bias (CMB).

Table 8. Model key metrics.

Measure	Path/Indicator	Interpretation
R2	CFMS = 0.409 ECI = 0.387	Significant explanatory power
f2	AMCT → CFMS = 0.128 CTKE → CFMS = 0.160 AMCT → ECI = 0.032 CTKE → ECI = 0.036 CFMS → ECI = 0.116	Small to Medium effects
Q2	CFMS = 0.246 ECI = 0.211	good predictive relevance
VIF	AMCT → CFMS = 1.518 AMCT → ECI = 1.713 CTKE → CFMS = 1.518 CTKE → ECI = 1.761 CFMS → ECI = 1.692	All below 3 (No multicollinearity)
CMB	42.167	CMB is below 50% (No bias concern)

Source: Primary data.

reveals the results of these metrics.

Table 8 reports the results of the key metrics for the model of the study. The table reports that AMCT, CTKE, and CFMS could explain about 38.7% of the variance in ECI, while AMCT and CTKE predicted about 40.9% of the variance in CFMS according to Ref. [71].

Regarding the effect size, it was found that CTKE has a medium effect on CFMS (F = 0.160). In other words, more improvements in the knowledge and experience about cashless technologies of micro and small entrepreneurs will result in better improvements in their ability to manage cash inflows and outflows. Practically, a one-unit increase in CTKE shows greater familiarity, confidence, and usage of cashless systems. This results in better financial tracking, faster access to records, and improved liquidity planning.

Furthermore, AMCT has a negligible effect on CFMS (0.128), AMCT has a tiny effect on ECI (0.032), CTKE also has a minimal effect on ECI (0.036), and finally, the CFMS has a negligible effect on ECI (F = 0.116) according to Ref. [71].

The result of Q2 for both CFMS and ECI was above zero, indicating good predictive relevance. The found values for VIF were all fewer than 3, indicating that multicollinearity is not an issue in the regression. Finally, the CMB score was less than 50%, confirming no bias in the data.

The researcher also tested the model fit indices using the Standardized Root Mean Square Residual (SRMR) and the Normed Fit Index (NFI). The SRMR result shown in

Table 9. Model fit.

	Saturated Model	Estimated Model
SRMR	0.075	0.075
NFI	0.800	0.800

Source: Primary data.

was 0.075 while the NFI result was 0.800. This indicates an acceptable overall model fit and supports the adequacy of the proposed structural model.

Figure 2 indicates different paths and their interconnections.

7. Discussion

7.1. Interpretation of the Findings

This section further discusses the results of the hypothesis test reported in Table 7. In this study, a total of seven hypotheses were accepted, including the mediation ones. Table 7 began with revealing the results of H1, H2, and H3, which assumed the presence of positive relationships between AMCT, CFMS, and ECI, and also assumed that CFMS mediates the connection between AMCT and ECI. The findings confirmed H1 and H2 and reported the partial mediation of CFMS between AMCT and ECI. These findings align with the RBV theory [25], which emphasizes the need to have unique and inimitable resources in order to obtain a competitive advantage, all of which result in better sustainability and continuity of the business. In other words, in the disturbed context of the study, like Yemen, resources such as AMCTA and CTKE act as significant strategic resources that help micro and small enterprises continue operating efficiently during crises by depending less on an unstable cash-based system.

Furthermore, the results of the study also align with the concept of dynamic capabilities theory [26]. DCT emphasizes that one should sense the changes and crises, such as conflict, cash shortage, or unstable currency, and seize opportunities by adopting digital payment systems. This involves reconfiguration of resources by managing cash flow and depending less on physical cash systems. The findings of the previous hypotheses are also supported and corroborated by prior studies, Refs. [13,15,38]. They confirmed that cashless and mobile technology are important for sustainability, survival, better performance, and better financial management of the business. Having access to digital payment tools enables entrepreneurs to continue transactions even though there are liquidity shortages, damaged banknotes, or limited banking access challenges in Yemen. This emphasizes the need for more focus on the development of new technological tools and systems that can be easily applied by micro and small entrepreneurs in their businesses, especially during conflict and unstable times.

Concerning H4, H5, and H6 hypotheses, they anticipated the presence of a positive influence of CTKE on CFMS and ECI, and also assumed that CFMS mediates the connection between CTKE and ECI. The results of these hypotheses were approved, and partial mediation was found. This finding also aligns with the RBV theory. RBV highlights the need to have unique and inimitable resources in order to obtain a competitive advantage. All of these result in better sustainability and continuity of the business. Knowledge and experience here represent strategic resources and intangible ones. Here, the micro and small entrepreneurs use the knowledge and experience they have about financial technology and transfer it into actionable capabilities. This know-how also enhances their internal abilities to monitor, plan, and control their financial transactions and activities, all of which reduce risks and strengthen resilience and financial capabilities [25,26]. These findings also confirm that when entrepreneurs obtain essential knowledge and tools and utilize mobile and digital payment systems, they can better manage their financial resources more effectually [18,43,45,46]. In other words, entrepreneurs with knowledge and enough experience about the usage of cashless systems and financial technology can continue sales, interact smoothly with clients electronically, and receive payments regularly. This reduces operational disruption and maximizes their confidence in keeping the business active during crises. Furthermore, entrepreneurs who have knowledge and capabilities can improve their business’s internal process performance, leading to greater efficiency within their business.

Finally, H7 was also examined, and the result confirmed that a high level of cash flow management skills increases the intention of micro and small entrepreneurs to continue operating their business even during crises and instabilities. This finding is logical in the sense that better management of the cash in the business leads to better fulfillment of the business goals. It can also minimize default risk and increase the ability of entrepreneurs to take solid strategic decisions, resulting finally in maximizing the intention to continue operating the business despite adversities [51,56].

To conclude, the stronger effect of CTKE compared to AMCT indicates that, in fragile contexts such as Yemen, knowing how to use digital systems is more critical than simply having access to them. This result extends RBV by emphasizing that skill-based digital and intangible resources can be more valuable than infrastructural access alone when high uncertainty exists in such an unstable environment. Still, it can be inferred that challenges such as infrastructure disruptions, security concerns, and low institutional trust might hinder the direct effects of cashless access while increasing the importance of financial skills and experiential knowledge.

7.2. Theoretical Implications

This research contributes to the limited literature on the resilience and survival of micro and small enterprises operating in fragile contexts and developing countries during crises. The study provides new empirical evidence on how digitalization, financial knowledge, and experience contribute to business survival during crises. In relation to the RBV theory and dynamic capabilities theory, this study adds to these theories by revealing how knowledge-based and technological resources can be transferred into capabilities necessary for business continuity in adverse times. The findings of this research confirm that AMCT and CTKE are key resources for strengthening cash flow management skills. CFMS, in turn, is a significant capability necessary for the survival and resilience of MSEs.

More specifically, this research adapts RBV/DC theory to fragile monetary systems through conceptualizing digital payment access and know-how as critical resources. The findings prove that CFMS is an indispensable dynamic capability for crisis-affected MSEs. The results also demonstrate that digital resources primarily shape continuity intention through financial management capabilities rather than through direct effects alone. The findings highlight that mobile payments are important as they provide users with a seamless and efficient way to conduct transactions, eliminating the need for cash and other physical cards [13,19]. These digital tools also reduce operational costs by streamlining communication, automating processes, and enabling online transactions [16].

This study also extends the RBV theory by confirming the role of digital financial resources in developing countries where physical assets are limited or constrained. Additionally, the presence of CFMS as a mediator in the model of the study adds insight to DC theory by demonstrating how entrepreneurs reconfigure existing resources and convert them into financial practices that result in better sustainability and survival of the business during adverse times. This research provides a new contribution and insight into how financial management capabilities and digital systems interact and enhance micro and small enterprises during crises in Yemen. Finally, the study contributes internationally by linking the literature of financial technologies and financial inclusion with the literature of resilience and continuous intention among MSEs. Thus, the insights of this study extend beyond the Yemeni context and are applicable to other developing and fragile nations.

7.3. Practical Implications

In addition to offering theoretical contributions, this research also provides practical implications for policymakers, micro and small entrepreneurs, financial institutions, and development organizations in the context of the study. It emphasizes the need for enhancing access to cashless mobile technologies and improving the level of cashless technological knowledge and experience in using these systems. Enhancing the capabilities of these platforms and technologies will help micro and small entrepreneurs manage their cash flow effectively, including income and expenses, and other operational transactions, and ensure better continuity and sustainability of their businesses, especially during crises.

More specifically, policymakers are encouraged to design targeted training programs that integrate basic financial literacy with hands-on training for specific mobile platforms used in Yemen. They need to consider subsidizing connectivity or transaction fees for MSEs. With regard to the financial institutions and mobile operators in Yemen, they are recommended to work on developing simplified, low-literacy user interfaces. They should also support services tailored for MSE owners, and collaborate with local associations to increase trust and uptake.

While these previously mentioned initiatives are considered key guidelines for policymakers, it is still necessary to prioritize interventions in terms of feasibility, timeframe, and systemic reforms. Short-term initiatives, such as digital literacy training, basic financial training, and awareness campaigns, are more realistic and can be implemented and replicated in fragile contexts quickly, like Yemen. On the other hand, long-term systematic reforms, such as establishing comprehensive regulatory frameworks for e-money, enhancing platform interoperability, and strengthening the structure and systems of financial infrastructure, need higher levels of institutional capacity and stability. Prioritizing interventions in this way helps policymakers and stakeholders make the right decisions and adopt a context-sensitive approach to support MSEs.

Regionally, policymakers in the context of this study can also attempt to replicate the experience of Saudi Arabia in the field of entrepreneurship and small enterprises. Saudi Arabia has developed a comprehensive vision called “2030” and launched a package of interconnected initiatives to support the small enterprises sector. For example, they launched the service of “SARIE”, a real-time payment network service for money transfer, which helps in easy recovery of cash. They also implemented electronic invoicing through the “FATOORA” platform of the Zakat, Tax and Customs Authority (ZATCA) to enhance transparency, compliance, and minimize paper-based transactions. These initiatives and others can help reduce dependence on contaminated money, enhance better cash management, and result in more continuity of the enterprises. Selective adaptation of similar measures in Yemen may reduce dependence on contaminated physical currency, improve cash management, and ultimately support greater enterprise continuity.

8. Conclusions

The unstable political situation in Yemen has negatively affected MSEs and their operations, causing micro and small entrepreneurs to shut down their businesses or minimize their scope. MSEs in Yemen face numerous obstacles, including state instability, poor infrastructure, insufficient capital and technical support, and a demotivating business environment. One of the recent challenges facing the Yemeni MSEs is the problem of torn and worn cash notes that are unfit for use. Such obstacles exacerbate their inability to maintain market continuity and sustainability. As an initiative and potential remedy to overcome these challenges, this study proposed a theoretical research model that emphasizes the activation of mobile technology and the enhancement of cashless system knowledge and experience. The model posits that these factors improve cash management skills and lead to stronger business continuity.

The data for this model, as explained in the research methodology section, were collected from micro and small entrepreneurs operating in different locations of Sanaa province using convenience and snowball sampling techniques. Collecting data from a poor, unstable, developing country like Yemen, surrounded by many political and economic issues, offers new insight into such an underexplored context and recommends further exploration of familiar concepts in future research. The research offered interesting findings by confirming that both access to mobile technology and knowledge and experiences of cashless systems will result in better cash flow management skills. Achieving better cash flow management skills will enhance the ability of micro and small entrepreneurs to manage their businesses, specifically their cash flow. This improves their management skills, ability, and confidence to utilize their available resources, including cash, resulting ultimately in better decisions for business continuity. In this research, the main empirical insight is that digital access and knowledge improve the skills of managing cash and enhance the continuity intention via cash flow management skills. This relationship is confirmed in a fragile context such as Yemen.

Therefore, these findings offer new insight into the RBV theory and the dynamic capabilities theory. They highlight new insights through revealing how knowledge-based and technological resources can be transferred into capabilities necessary for business continuity in adverse times. These findings also emphasize that policymakers are encouraged to develop tailored training programs that integrate basic financial literacy with hands-on training for local mobile platforms used in Yemen. Mobile operators in the country can also develop simplified, low-literacy user interfaces to help micro and small enterprises use these technologies easily.

Despite offering new insights about sustainability and continuity of micro and small enterprises during crises and instability, the study still acknowledges certain limitations. For example, the authors acknowledge that even though snowball and convenience sampling applied in this study were deemed adequate for the purpose of this research, it may raise the possibility of generating some bias due to the absence of random selection of the data. When non-probability sampling is used, there is a possibility of over-representation of more digitally connected firms and an inability to establish temporal precedence. Therefore, future studies should employ probability sampling where feasible. Future research may also consider employing panel data and the inclusion of control variables such as access to credit, firm size, or multi-country comparison.

Furthermore, the author also acknowledges that the small sample size was collected exclusively from Sana’a province. Although Sana’a is the capital and hosts a high concentration of MSEs, this limits the generalizability of the findings to all of Yemen. Future studies should include respondents from diverse regions across the country.

Furthermore, the researcher relied entirely on a cross-sectional research design for data collection, where data were collected at a single point. This may introduce bias during the data collection process and prevent the analysis of changes over time. Future researchers are recommended to employ a longitudinal research design and try other moderator variables. Finally, it is recommended that future research examine additional mediators or moderators, such as trust in digital finance, institutional support, gender of owner, and compare sectors (retail vs. agriculture). They can also integrate qualitative work to understand the implementation challenges of mobile cashless systems.