Smart Finance, Stronger Business: Digital Financial Management Impact on MSME Sustainability

Authors

  • Yulianti Yulianti Postgraduate MSIM, ISB Atma Luhur
  • Burham Isnanto Postgraduate MSIM, ISB Atma Luhur
  • Amri Amri Teknik Informatika, ISB Atma Luhur
  • Iput Yolantika Postgraduate MSIM, ISB Atma Luhur

DOI:

https://doi.org/10.62007/joumi.v3i2.498

Keywords:

Digital Financial Technology, Digital Financial Management, MSME Sustainability, SEM-PLS, Pangkalpinang City

Abstract

The effect of digital financial management on the long-term viability of SMEs in Pangkalpinang City is examined in this study. This study looks at how business financial management and the sustainability of SMEs are affected by the use of digital financial technology, digital financial literacy, digital security awareness, and digital payment integration. Using a quantitative approach and survey methodology, the study aims to survey 389 MSME owners and managers in Pangkalpinang who were chosen by simple random sampling. Structural Equation Modeling-Partial Least Square (SEM-PLS) was used to analyze the data. The findings of the study indicate that the Adoption of Digital Financial Technology has the strongest influence on Business Financial Management (0.716) and MSME Sustainability (0.934), followed by Digital Financial Literacy which significantly affects Business Financial Management (0.603) and MSME Sustainability (0.735). Digital Security Awareness and Digital Payment Integration also show a positive influence on both variables. Business Financial Management has a positive effect on the Sustainability of SMEs (0.605), with an R Square value of 0.742 indicating that the research model has strong predictive capability. These findings imply the importance of digital transformation in supporting the sustainability of MSMEs through the enhancement of operational efficiency and the optimisation of financial resource management.

References

Aeni, T., Rena, S., & Destiana, R. (2024). The influence of the use financial technology, owner financial literacy, and risk tolerance on the performance of MSMEs in Indonesia. International Journal of Business Law and Education, 5(1), 996–1006. https://doi.org/10.56442/ijble.v5i1.494

Akhmadi, M., Fuady, M., & Pribadi, Y. (2023). The role of village-owned enterprise in fostering financial literacy and digital economy: case study in Yogyakarta, Indonesia. https://doi.org/10.4108/eai.10-10-2023.2342197

Antoni, A., Judijanto, L., & Supriadi, A. (2024). Impact of fintech adoption, MSME digital readiness, and regulatory environment on financial performance in Indonesia. West Science Accounting and Finance, 2(2), 275–286. https://doi.org/10.58812/wsaf.v2i02.1046

Aprialita, E., Putri, W., & Hasthoro, H. (2024). The impact of financial literacy, fintech utilization, and literacy of risk in fintech on MSMEs business continuity in Yogyakarta. KnE Social Sciences. https://doi.org/10.18502/kss.v9i17.16383

Daud, I. (2022). The effect of digital marketing, digital finance and digital payment on finance performance of indonesian smes. International Journal of Data and Network Science, 6(1), 37–44. https://doi.org/10.5267/J.IJDNS.2021.10.006

Edwy, F., Firdaus, M., AP, I., Leonardi, S., & AP, Z. (2023). Financial management: The implementation in MSMEs. International Journal of Multicultural and Multireligious Understanding, 10(10), 273. https://doi.org/10.18415/ijmmu.v10i10.5170

Eniola, A. A., & Entebang, H. (2017). SME managers and financial literacy. Global Business Review, 18(3), 559–576. https://doi.org/10.1177/0972150917692063

Kaur, H., Mukhopadhyay, L., Aggarwal, N., Gupta, N., Narayan, J., Vijay, N., & others. (2022). Inter-laboratory testing as a strategy for external quality assessment for qualitative detection of sars-cov-2 by real-time rt-pcr testing in india. The Indian Journal of Medical Research, 155(1), 86. https://doi.org/10.4103/ijmr.ijmr_2433_21

Kee, K. F. (2017). Adoption and diffusion. The International Encyclopedia of Organizational Communication, 1–14. https://doi.org/10.1002/9781118955567.wbieoc058

Li, D. (2017). Effects of corporate environmental responsibility on financial performance: The moderating role of government regulation and organizational slack. Journal of Cleaner Production, 166, 1323–1334. https://doi.org/10.1016/j.jclepro.2017.08.129

Mangawing, L., Sari, A., & Ramadhan, W. (2023). The influence of digital financial literacy on MSME performance in Balikpapan City. Proceeding of the International Seminar on Business Economics Social Science and Technology, 3(1). https://doi.org/10.33830/isbest.v3i1.1348

Mavclutova, I., Spilbergs, A., Verdenhofs, A., N=atricnš, A., Arefjevs, I., & Volkova, T. (2022). Digital transformation as a driver of the financial sector sustainable development: An impact on financial inclusion and operational efficiency. Sustainability, 15(1), 207. https://doi.org/10.3390/su15010207

Nawai, N. (2024). Factors influencing the adoption of digital finance among microentrepreneurs. Epibaf, 11(1), 871–882. https://doi.org/10.33102/zpq9jj24

Perwitasari, A. (2022). The effect of perceived usefulness and perceived easiness towards behavioral intention to use FinTech by Indonesian MSMEs. The Winners, 23(1), 1–9. https://doi.org/10.21512/tw.v23i1.7078

Prasetyo, R. (2022). Predicting E-commerce Consumers’ Loyalty Through the Lens of Protection Motivation Theory. 2022 International Conference on Data Analytics for Business and Industry, ICDABI 2022, 418–422. https://doi.org/10.1109/ICDABI56818.2022.10041643

Rachinger, M., Rauter, R., Müller, C., Vorraber, W., & Schirgi, E. (2019). Digitalization and its influence on business model innovation. Journal of Manufacturing Technology Management, 30(8), 1143–1160. https://doi.org/10.1108/jmtm-01-2018-0020

Shiau, W.-L., Yuan, Y., Pu, X., Ray, S., & Chen, C. C. (2020). Understanding FinTech continuance: Perspectives from self-efficacy and ECT-IS theories. Industrial Management & Data Systems, 120(9), 1659–1689. https://doi.org/10.1108/imds-02-2020-0069

Sinaga, K., Irene, J., & Christanti, R. (2023). Digital adoption and financial performance: Evidence from Indonesian SMEs in food and beverage sector. Return Study of Management Economic and Business, 2(4), 423–434. https://doi.org/10.57096/return.v2i04.94

Sonker, N., & Agarwal, K. (2024). Unlocking digital potential: Navigating the path to digital transformation for Indian MSMEs. https://doi.org/10.52783/eel.v14i1.1314

Suryanto, S. (2020). FINTECH AS A CATALYST FOR GROWTH OF MICRO, SMALL AND MEDIUM ENTERPRISES IN INDONESIA. Academy of Strategic Management Journal, 19(5), 1–12.

Susilowati, E., Permadi, A., Hariyanti, S., Munir, M., & Wahyudi, A. (2023). Analysis of the implementation of digitalization of financial statements in micro, small, and medium enterprises. Open Access Indonesia Journal of Social Sciences, 6(4), 1048–1054. https://doi.org/10.37275/oaijss.v6i4.170

Teker, S., Teker, D., & Orman, I. (2022). DIGITAL PAYMENT SYSTEMS: A FUTURE OUTLOOK. Pressacademia. https://doi.org/10.17261/pressacademia.2022.1613

Triwahyono, B., Rahayu, T., & Kraugusteeliana, K. (2023). Analysing the role of technological innovation in improving the operational efficiency of MSMEs. Jurnal Minfo Polgan, 12(1), 1417–1426. https://doi.org/10.33395/jmp.v12i1.12791

Ummasyroh, U., Astarina, Y., Riana, D., Muharramah, U., & Africano, F. (2024). Business development through the application of financial technology (digital payment) in MSMEs. ASEAN International Journal of Business, 3(2), 169–181. https://doi.org/10.54099/aijb.v3i2.997

Visconti, R. M., Rambaud, S. C., & Pascual, J. B. (2020). Sustainability in FinTechs: An explanation through business model scalability and market valuation. Sustainability, 12(24), 10316. https://doi.org/10.3390/su122410316

Widagdo, B., & Sa’diyah, C. (2023). Business sustainability: Functions of financial behavior, technology, and knowledge. Problems and Perspectives in Management, 21(1), 120–130. https://doi.org/10.21511/ppm.21(1).2023.11

Yang, T. (2024). Digital financial inclusion and enterprise technological innovation. Advances in Economics Management and Political Sciences, 73(1), 113–119. https://doi.org/10.54254/2754-1169/73/20231506

Zaky, M., & Hamidi, D. (2022). The role of financial technology in improving financial literacy for MSME actors. KnE Social Sciences. https://doi.org/10.18502/kss.v7i14.11974

Zhu, W. (2019). Exploring purchase intention in cross-border E-commerce: A three stage model. Journal of Retailing and Consumer Services, 51, 320–330. https://doi.org/10.1016/j.jretconser.2019.07.004

Zuo, D., Zoubi, M. A. L., Kwon, W. S., Kügler, M., Zmyślony, P., Zirkel, S., Zimmerman, B. J., Zhu, Y. P., Zhou, Y., Zheng, S., Zheng, P., Zheng, K., Zheng, D., Zhen, R., Zhao, X., Zhao, L., Zhang, Y., Zhang, X., Zhang, W., … Aalst, M. K. van. (2021). Theory of organizational knowledge creation as a framework for transnational learning in regional development. Sustainability (Switzerland), 14(1), 1–13. https://doi.org/10.1163/21971927-bja10029

Downloads

Published

2025-06-30

How to Cite

Yulianti, Y., Burham Isnanto, Amri , A., & Iput Yolantika. (2025). Smart Finance, Stronger Business: Digital Financial Management Impact on MSME Sustainability. Jurnal Multidisiplin Indonesia, 3(2). https://doi.org/10.62007/joumi.v3i2.498

Similar Articles

1 2 3 4 5 6 7 8 > >> 

You may also start an advanced similarity search for this article.