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The behavioral finance of MSMEs in the advancement of financial inclusion and financial technology (fintech)

Author

Listed:
  • Risman, Asep
  • Ali, Anees Janee
  • Soelton, Mochamad
  • Siswanti, Indra

Abstract

This study aims to determine empirical evidence of the effect of financial inclusion and financial technology (fintech) on the behavioral finance of MSMEs. This study uses a quantitative method with a positivist paradigm approach. The population of this study is all MSMEs in Indonesia. The sample used in this study is 205 respondents (MSME owners) from all over Indonesia. Sampling is carried out using a random technique. Data collection is carried out by distributing questionnaires, both manually and online using Google Forms, and is measured using a 5-point Likert scale. The data processing is carried out using Partial Least Square (PLS) software with a Structural Equation Modeling (SEM) model. The results of this study show that financial inclusion and financial technology (fintech) have a direct positive effect on the behavioral finance of MSMEs. Financial technology (fintech) can mediate and increase the effect of financial inclusion on the behavioral finance of MSMEs.

Suggested Citation

  • Risman, Asep & Ali, Anees Janee & Soelton, Mochamad & Siswanti, Indra, 2022. "The behavioral finance of MSMEs in the advancement of financial inclusion and financial technology (fintech)," MPRA Paper 118212, University Library of Munich, Germany, revised 10 Feb 2023.
    • Handle: RePEc:pra:mprapa:118212
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    References listed on IDEAS

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    1. Ebrahim Endris & Andualem Kassegn, 2022. "The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sub-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-18, December.
    2. Mohamed Kossaï & Patrick Piget, 2014. "Adoption of information and communication technology and firm profitability: Empirical evidence from Tunisian SMEs," Post-Print hal-03968800, HAL.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial Inclusion; Financial Technology; Behavioral Finance of MSMEs;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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