IDEAS home Printed from https://ideas.repec.org/a/ajp/edwast/v8y2024i6p5310-5328id3176.html
   My bibliography  Save this article

Analysis of the effect of financial literacy and financial behavior on the performance of MSMEs Setu Babakan with digital competency as a moderating variable

Author

Listed:
  • Mulyadi Mulyadi
  • Tyahya Whisnu Hendratni
  • Harimurti Wulandjani

Abstract

This study aims to analyze the effect of financial literacy and financial behavior on the performance of MSMEs in Setu Babakan, with digital competence as a moderating variable. MSMEs have an important role in the Indonesian economy, especially in creating jobs and supporting the local economy. In the Setu Babakan area, MSMEs face challenges such as limited digital literacy, business capital, and weak financial management. This research uses a survey method with a quantitative approach, collecting data from 60 MSME respondents, and testing hypotheses using the SEM-PLS (Partial Least Square) model. The results showed that financial literacy does not significantly influence the performance of MSMEs, while financial behavior has a positive effect on performance. Digital competency is proven to improve MSME performance, but cannot moderate the relationship between financial literacy and behavior with MSME performance. The implications of this study indicate the importance of financial behavior training and strengthening digital competencies for MSMEs. These results can be a reference for regional managers and universities to support digital competency training and financial management for MSME actors, so their performance can be more optimal in facing business competition.

Suggested Citation

  • Mulyadi Mulyadi & Tyahya Whisnu Hendratni & Harimurti Wulandjani, 2024. "Analysis of the effect of financial literacy and financial behavior on the performance of MSMEs Setu Babakan with digital competency as a moderating variable," Edelweiss Applied Science and Technology, Learning Gate, vol. 8(6), pages 5310-5328.
  • Handle: RePEc:ajp:edwast:v:8:y:2024:i:6:p:5310-5328:id:3176
    as

    Download full text from publisher

    File URL: https://learning-gate.com/index.php/2576-8484/article/view/3176/1188
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ajp:edwast:v:8:y:2024:i:6:p:5310-5328:id:3176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Melissa Fernandes (email available below). General contact details of provider: https://learning-gate.com/index.php/2576-8484/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.