Appraising the role of alleviating financial constraints and knowledge sharing in advancing technological innovation environment

Technological innovations have become more necessary in the post-COVID-19 economic recovery strategies. Although financial literacy, particularly among CEOs, influences firms’ performance, the existing studies on technological innovation have not demonstrated how the availability of financial resources and knowledge sharing are critical in aiding CEOs’ financial literacy to maximize technological innovation. This study, for the first time, investigates the influence of financial literacy on technological innovation, considering the mediating role of alleviating financial constraints in this process and the moderating effect of knowledge sharing on the relationship between alleviating financial constraints and technological innovation. Using the PLS-SEM 4 and a sample of 210 respondents from SMEs in Ghana, we found a significant and positive influence of CEOs’ financial literacy, alleviation of financial constraints, and knowledge sharing on technological innovation. Furthermore, the results revealed that alleviating financial constraints partially mediates the positive relationship between CEOs’ financial literacy and technological innovation. Finally, the study identified that knowledge sharing moderates the relationship between alleviating financial constraints and technological innovation. Policy directions should be directed towards proactively investing in their financial knowledge during the innovation process.