Exploring the impact of religious culture on financial constraints: The moderating role of environmental responsibility, innovation, and law enforcement on SMEs

This study explores the role of religious culture in alleviating financial constraints for SMEs, emphasizing the moderating effects of environmental responsibility, innovation, and law enforcement. By analyzing data from 2,833 SMEs across diverse geographic regions with varying religious influences from 2011 to 2020, we discovered that firms in areas with strong religious cultural networks experience fewer financial constraints. The moderating mechanisms of enhanced environmental responsibility and innovation contribute to a more favorable economic policy environment. These findings suggest that financial products tailored to respect religious cultural dimensions can more effectively address the financing challenges faced by SMEs. Therefore, policymakers and financial institutions should consider cultural factors when designing economic support mechanisms.