Determinants Of Financial Application Use In Msmes: The Role Of Financial Literacy, Basic Accounting Understanding, And Entrepreneurial Orientation

Aisyah Andini Althafah; Sri Trisnaningsih

doi:10.63922/ijebir.v5i04.5539

Aisyah Andini Althafah Universitas Pembangunan Nasional Veteran Jawa Timur
Sri Trisnaningsih Universitas Pembangunan Nasional Veteran Jawa Timur

DOI: https://doi.org/10.63922/ijebir.v5i04.5539

Keywords: Financial Literacy, Basic Accounting Understanding, Entrepreneurial Orientation, Use of Financial Applications, MSMEs

Abstract

The rapid digital transformation demands that Micro, Small, and Medium Enterprises (MSMEs) adapt, including in financial management through the use of digital financial applications. However, the adoption of this technology still faces challenges, especially related to the internal capabilities of business actors. This study aims to analyze the influence of financial literacy, basic accounting understanding, and entrepreneurial orientation on the use of financial applications in MSMEs in Gubeng District, Surabaya. An explanatory quantitative approach was used with a sample of 76 MSMEs selected by simple random sampling from a population of 314 MSMEs. Primary data were collected through questionnaires and analyzed using multiple linear regression with the help of SPSS. The results showed that simultaneously, the three independent variables significantly influenced the use of financial applications (F = 28.528; p < 0.001) with the ability to explain the variation of 51.1% (Adjusted R Square). Partially, financial literacy (β = 0.412; p = 0.001) and entrepreneurial orientation (β = 0.359; p = 0.005) were proven to have a positive and significant effect. Meanwhile, basic accounting understanding did not show a significant effect (p=0.954). In conclusion, improving financial literacy and strengthening entrepreneurial orientation are key factors in driving the adoption of financial applications among MSMEs. This study recommends an integrated training program that combines financial knowledge and the development of innovative attitudes to optimize MSME financial digitalization.

References

Ansori, MAZ, Wahyudin, MW, Nurbaet, NI, Isagozi, MR, Diva, SA, Zahra, NA, Nur, G., Yusuf, M., & Tabroni, M. (2024). Analysis of financial literacy in the use of fintech payments for MSME business actors. Economic Reviews Journal, 3 (1), 210–225. https://doi.org/10.56709/mrj.v3i1.130
Ayu, I., Manuari, R., Kadek, N., Artha, J., & Dewi, R. (2025). Optimizing financial recording and business data management at Toko Pie Susu Dhian, Tuban Branch. Proceedings of the National Community Service Seminar, 4 (2), 640–648.
Hakim, AR, Narulita, S., & Iswahyudi, M. (2024). Digitalization of financial records for small, micro, and medium enterprises (MSMEs): Is it necessary? Unesa Accounting Journal, 12 (3), 331–337.
Hidayatullah, T., & Rachmawati, D. (2024). The influence of basic accounting understanding on the implementation of accounting records at Husein Sastranegara Airport, Bandung. Journal of Economics and Business (NIKAMABI), 3 (2), 30–39. https://doi.org/10.31253/ni.v3i2.3275
Hilmawati, MRN, & Kusumaningtias, R. (2021). Financial inclusion and financial literacy on the performance and sustainability of the micro, small, and medium enterprise sector. Nominal: A Barometer of Accounting and Management Research, 10 (1), 135–152. https://doi.org/10.21831/nominal.v10i1.33881
Ismail, IJ, & Rashidi, FU (2025). Linking dynamic entrepreneurial capabilities and behavioral intentions to adopt FinTech in small and medium enterprises through digital financial innovation. Cogent Business & Management, 12 (1), 1–18. https://doi.org/10.1080/23311975.2025.2470915
Coordinating Ministry for Economic Affairs of the Republic of Indonesia. (2025, March 17). Retail business players are optimistic that the national economy can achieve its 8% growth target . https://ekon.go.id/publikasi/detail/6260/pelaku-usaha-ritel-optimis-perekonomian-nasional-dapat-capai-target-pertumbuhan-8
Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital transformation: An overview of the current state of the art of research. SAGE Open, 11(3), 1–15. https://doi.org/10.1177/21582440211047576
Kurniasari, F., Abd Hamid, N., & Lestari, E. D. (2025). Unraveling the impact of financial literacy, financial technology adoption, and access to finance on small medium enterprises business performance and sustainability: A serial mediation model. Cogent Business & Management, 12(1), 1–27. https://doi.org/10.1080/23311975.2025.2487837
Nugraha, DP, Setiawan, B., Nathan, RJ, & Farkas, MF (2022). Fintech adoption drivers for innovation for SMEs in Indonesia. Journal of Open Innovation: Technology, Markets, and Complexity, 8 (4), 1–16. https://doi.org/10.3390/joitmc8040208
Putra, DP, Alfikri, NS, Novita, Y., & Rahmat, Z. (2025). Entrepreneurial strategies in developing MSMEs in the digital era. MUARA EKONOMI: Scientific Journal of Economics, Management & Business, 1 (4), 193–203. https://doi.org/10.64365/muanomi.v1i4.134
Putriana, A., Rizka, NR, & Werdiningsih, W. (2026). The influence of financial literacy, income, and lifestyle on community financial management in Bukit Mulia Village, Tanah Laut. Journal of Accounting, 14 (2), 105–115. https://doi.org/10.46806/ja.v14i2.1480
Tullaili, M., & Susanto, P. (2025). Financial literacy and use of fintech in MSMEs: Systematic literature analysis. Journal of Accounting, Management, and Policy Planning, 2 (4), 1–9. https://doi.org/10.47134/jampk.v2i4.700
Yazid, MH (2025). Analyzing the relationship between financial literacy and MSME financing: A case study of microeconomic transformation. Journal of Sharia Economics, Banking and Accounting, 2 (2), 79–92. https://doi.org/10.52620/jseba.v2i2.175