Financial Knowledge or Managerial Competence? Disentangling Financial Literacy and Liquidity Constraints for...

The economic resilience of agricultural enterprises is increasingly relevant for maintaining processing continuity and food quality in highly perishable agro-food chains. This study examines the associations between financial knowledge, financial management competency, business liquidity, and operational food-processing continuity in Türkiye's tea sector. A quantitative cross-sectional design was employed, using structured survey data from 203 senior managers across 86 public and private tea-processing firms in Rize Province. The data were analysed using Ordinary Least Squares regression, mediation analysis, exploratory factor analysis, and robustness checks in accordance with OECD/INFE guidelines. Results indicate a significant deficit in theoretical financial knowledge (mean score: 4.47/10) alongside widespread overconfidence among 85% of managers. Applied financial management competency is positively associated with perceived business liquidity (β = 0.336, p < 0.001), suggesting that practical budgeting, cash-flow planning, and financial decision-making capabilities are relevant to maintaining operational funding capacity. In contrast, cash-flow difficulties are not significantly explained by firm-level financial knowledge, managerial competency, liquidity, or ownership structure (R² = 0.014, p = 0.722), indicating that these difficulties may reflect broader seasonal and sector-wide financing constraints. The findings challenge the assumption of a linear relationship between theoretical financial knowledge and managerial outcomes. They suggest a dual policy approach that combines applied financial management training with structural financing mechanisms to ensure the continuity of fresh leaf procurement and processing. While the study does not directly measure food safety, post-harvest losses, or SDG outcomes, the results have potential implications for reducing processing disruptions and supporting more resilient agro-food processing systems.