Assessing the role of financial risk attitudes in small and medium-sized enterprises’ digitalization and sustainability investment decisions

In today’s complex business environment, the financial risk attitudes of the managers of small and medium-sized enterprises (SMEs) shape their approach to opportunities and challenges. A proactive stance leads to strategic decisions, especially in terms of funding, innovation, and long-term growth. This study examines how financial risk attitudes impact investments in digitalization and sustainability. Digitalization boosts efficiency and competitiveness, whereas sustainability ensures long-term viability. An analysis of 400 Spanish SMEs using a structural equation model reveals that SMEs with positive financial risk attitudes are more likely to invest in these areas than are those with negative attitudes. Access to finance plays a crucial mediating role in this relationship, enabling bolder, forward-looking decisions. Improved financial access strengthens the link between risk attitudes and strategic growth, enhancing business performance. The study underscores the importance of fostering a risk-aware yet opportunity-driven mindset among SME managers to improve decision-making and secure a competitive edge in an evolving market.