How Financial Literacy Shapes Financial Decision-Making: A Multiple Case Study of MSMEs

Nurjannah; Muhammad Azis; Marhawati

doi:10.63922/ijbqr.v4i03.5530

Nurjannah Universitas Negeri Makassar
Muhammad Azis Universitas Negeri Makassar
Marhawati Universitas Negeri Makassar

DOI: https://doi.org/10.63922/ijbqr.v4i03.5530

Keywords: Financial Literacy, Financial Decision Making, Digital Financial Capability, MSMEs, Multiple Case Study

Abstract

In an increasingly digital and uncertain global economy, financial literacy has become a key capability for strengthening the sustainability of micro, small, and medium-sized enterprises (MSMEs). However, limited research has explained how financial literacy shapes financial decision-making from the perspectives of MSME owners. This study explores this relationship using a qualitative multiple case study approach. Data were collected through semi-structured interviews with 15 MSME owners in Pangkep Regency, Indonesia, and analyzed using reflexive thematic analysis and cross-case comparison. The findings show that financial literacy functions as a multidimensional capability encompassing financial knowledge, financial behaviour, and digital financial capability. These dimensions interact to support more informed and planned decisions related to financial management, investment, and business expansion. The study proposes an emergent model illustrating how financial literacy is transformed into strategic financial decision-making through the integration of cognitive understanding, behavioural implementation, and digital capability. This study contributes to the financial literacy literature by explaining the mechanisms underlying financial decision-making in MSMEs and provides practical insights for designing integrated financial literacy programs to enhance business sustainability.

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