The Influence Of Financial Literacy And Financial Technology On The Financial Performance Of Msmes
A Study on MSMEs in West Jakarta
Keywords:
Financial Literacy, Financial Technology, Financial Performance, MSMEs
Abstract
This study aims to examine the effect of financial literacy and financial technology on the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in West Jakarta. A quantitative survey method was applied. The population comprised 38,240 registered MSMEs in West Jakarta. Using the Slovin formula with an 8% margin of error, 150 respondents were selected through proportionate stratified random sampling. Data were collected via a five-point Likert scale questionnaire and analyzed using multiple linear regression with SPSS 26.0. The t-test results show that financial literacy has a positive and significant effect on financial performance (beta = 0.412; t = 6.149; sig. = 0.000), and financial technology also has a positive and significant effect (beta = 0.368; t = 5.183; sig. = 0.000). The F-test yields F = 48.621 (sig. = 0.000), confirming simultaneous significance. The coefficient of determination (R²) is 0.397, indicating that 39.7% of MSME financial performance variation is explained by both variables. This study recommends enhanced financial literacy education and accelerated digital financial technology adoption among MSMEs in West Jakarta
References
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Zeidy, I. A. (2022). The role of financial technology (FINTECH) in changing financial industry and increasing efficiency in the economy. COMESA Monetary Institute, 1–20.
Battisti, E., Alfiero, S., Quaglia, R., & Yahiaoui, D. (2022). Financial performance and global start-ups: the impact of knowledge management practices. Journal of International Management, 28(4), 100938. https://doi.org/https://doi.org/10.1016/j.intman.2022.100938
Brodny, J. (2022). Digitalization of Small and Medium-Sized Enterprises and Economic Growth : Evidence for the EU-27 Countries.
Danil, S., & Syah, S. (2025). Digital Economy Transformation and ITS Impact on MSME Productivity in the Post-Pandemic Era. IJEC Internatonal Journal of Economics, 4(2), 1147–1155. https://doi.org/10.55299/ijec.v4i2.1487
Eliyana, A., Sutoyo, M. N., & Sumerta, I. K. (2024). Technology adoption in the measurement of innovation performance in SMEs : A systematic literature review. Journal of Infrastructure, Policy and Development 2024, 8(8), 1–11.
Gunawan, G. G., & Sulaeman, M. (2017). Determining Factors in the Use of Digital Marketing and Its Effect on Marketing Performance in the Creative Industries in Tasikmalaya. 2543–2550.
Hashim, H. (2024). E-government impact on developing smart cities initiative in Saudi Arabia: Opportunities & challenges. Alexandria Engineering Journal, 96(April), 124–131. https://doi.org/10.1016/j.aej.2024.04.008
Ismail, J., Mopangga, H., Abdullah, F., & Ardi, M. (2025). Digital Literacy , Financial Technology Adoption , and Sustainable Business Practices Among MSMEs : Evidence From Gorontalo. 13(11), 9918–9928. https://doi.org/10.18535/ijsrm/v13i11.em01
Jungo, J., Madaleno, M., & Botelho, A. (2022). The Effect of Financial Inclusion and Competitiveness on Financial Stability: Why Financial Regulation Matters in Developing Countries? Journal of Risk and Financial Management, 15(3). https://doi.org/10.3390/jrfm15030122
Lukowski, F., Baum, M., & Mohr, S. (2021). Technology, tasks and training–evidence on the provision of employer-provided training in times of technological change in Germany. Studies in Continuing Education, 43(2), 174–195. https://doi.org/10.1080/0158037X.2020.1759525
Metris, D., Kraugusteeliana, K., Dwi, J., & Amory, S. (2024). The Influence of Community Support on the Sustainability of MSMEs in the Digital Era Integrasi Pengaruh Dukungan Masyarakat terhadap Keberlanjutan UMKM di Era Digital. 1(1), 21–29.
Mishrif, A., & Khan, A. (2023). Technology adoption as survival strategy for small and medium enterprises during COVID ‑ 19. Journal of Innovation and Entrepreneurship, 7(1), 13. https://doi.org/10.1186/s13731-023-00317-9
Priambodo, A., Sulaeman, M., Permana, I., & Sugiarto, I. (2024). Enhancing the Performance and Competitiveness of Women in MSMES Through Marketing , Capital , and Digital Literacy. 8(1), 1–12.
Qing, K., Sulaiman, A., Zakaria, N., Min, S., & Kamaludin, K. (2025). Sustainable Technology and Entrepreneurship Advancing sustainable technology adoption : Insights from SMEs in beauty , health , and wellness sectors. Sustainable Technology and Entrepreneurship, 5(1), 100122. https://doi.org/10.1016/j.stae.2025.100122
Rahayu, R., & Day, J. (2015). Determinant Factors of E-commerce Adoption by SMEs in Developing Country : Evidence from Indonesia. Procedia - Social and Behavioral Sciences, 195, 142–150. https://doi.org/10.1016/j.sbspro.2015.06.423
Raman, R., Alka, T. A., Suresh, M., & Nedungadi, P. (2025). Sustainable Technology and Entrepreneurship Social entrepreneurship and sustainable technologies : Impact on communities , social innovation , and inclusive development. Sustainable Technology and Entrepreneurship, 4(3), 100110. https://doi.org/10.1016/j.stae.2025.100110
Sadiq, S., Kaiwei, J., Aman, I., & Mansab, M. (2025). Examine the factors influencing the behavioral intention to use social commerce adoption and the role of AI in SC adoption. European Research on Management and Business Economics, 31(1), 100268. https://doi.org/10.1016/j.iedeen.2024.100268
Sulaeman, M., & Kusnandar, H. F. (2020). Integrated Marketing Communication Model in Shaping Brand Equity and Business Performance in the Creative Industries of Embroidery Sector. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 3(4), 3798–3805. https://doi.org/10.33258/birci.v3i4.1444
Thottoli, M. M., Islam, A., Ahsan, A., Faizal, M., Hassan, S., & Chowdhury, R. S. (2024). Exploring mediating and moderating factors of FinTech adoption for innovations in SMEs Exploring mediating and moderating factors of FinTech adoption. Cogent Economics & Finance, 12(1). https://doi.org/10.1080/23322039.2024.2387443
Yao, G., Mansor, Z. D., Ghazali, H. B., & Yan, Z. (2024). Research Article A comprehensive mixed-methods study on cross-border e-commerce SMEs , digital transformation and dynamic managerial capabilities. Environment and Social Psychology, 9(4), 1–22. https://doi.org/10.54517/esp.v9i4.2255
Zeidy, I. A. (2022). The role of financial technology (FINTECH) in changing financial industry and increasing efficiency in the economy. COMESA Monetary Institute, 1–20.
Published
2026-04-11
How to Cite
M Bahanan, I., & Sulaeman, M. (2026). The Influence Of Financial Literacy And Financial Technology On The Financial Performance Of Msmes: A Study on MSMEs in West Jakarta. International Journal of Economics, Business and Innovation Research, 5(03), 153-166. https://doi.org/10.63922/ijebir.v5i03.3157
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