Green Financing and Sustainable Growth of Small and Medium Enterprises in Uganda and Ghana: The Moderating Role of Organisational Innovative Capacity

Abstract

ABSTRACT Despite growing interest in sustainability finance, empirical evidence remains limited on how green finance contributes to the sustainable growth of small‐ and medium‐sized enterprises (SMEs) in African economies, particularly, in distinguishing between access to and utilisation of green finance. This study examines the influence of access to and utilisation of green finance on SME sustainable growth in Uganda and Ghana, while assessing the moderating role of organisational innovative capacity (OIC). The study draws on the resource‐based view and the capability‐based view, which emphasise the interaction between financial resources and internal capabilities in shaping firm performance. A mixed‐methods approach was used, combining quantitative survey data ( n = 323) with qualitative interviews to clarify statistical relationships. The findings show that access to green finance has a positive and statistically significant influence on SME sustainable growth ( β = 0.171, p = 0.005). Utilisation of green finance also contributes positively and significantly, though to a smaller extent ( β = 0.126, p = 0.040). However, the moderating effect of OIC was not statistically significant ( β = −0.012, p = 0.315). The study contributes to the literature by distinguishing between access to and utilisation of green finance and demonstrating their independent roles in shaping SME sustainability.