The effect of digital marketing, digital finance and digital payment on finance performance of Indonesian SMEs

Abstract

The purpose of this study is to analyze the effect of digital finance, digital marketing and digital payment variables on finance performance. This study uses quantitative methods and data analysis techniques is performed based on Structural Equation Modeling using SmartPLS 3.0 software. The method of selecting the sample using the snowball sampling methods. Online questionnaires were sent to 190 SMEs respondents in the province of Banten Indonesia and evaluated the returned questionnaires. The results of data analysis show that the digital finance had a positive and significant effect on the finance performance, the digital payment had a positive and significant effect on the finance performance and the digital marketing had a positive and significant effect on the finance performance. The findings of this research can provide benefits for MSME actors in developing their business to improve business performance, by paying attention to aspects of MSME digitization and financial literacy of MSME entrepreneurs. Keep in mind, the important role of information technology in business activities requires entrepreneurs to improve their digital literacy.

Digital Marketing and Entrepreneurship in Women of El Porvenir District, Peru

“…Regarding the specific objective to determine to what extent digital marketing in its referential framework dimension affects business entrepreneurship in women in the El Porvenir 2022 district, Table 4 shows that there is a high positive correlation (r = 0.983) between the referential framework dimension of digital marketing and business entrepreneurship, this result is consistent with what was investigated by Daud et al [28] who analyzed the effects of digital marketing, digital finance and digital payment on the financial performance of MSMEs in Indonesia, determining that, through communications and transactions that are carried out at any time and from anywhere in the world, increasing the profits of the ventures, they concluded that these factors have positive effects on the development of their businesses, especially if they work on the digitalization of MSMEs and financial training. These results confirm the impact of the reference framework on women's entrepreneurship, as it serves as a model to imitate, always seeking the development of their businesses [29,30].…”

Digital Adoption and Financial Performance: Evidence From Indonesian SMES in Food and Beverage Sector

“…Furthermore, the adoption of digital payments, the value of Sig 0.000 < 0.05 means that digital payments have a positive and significant influence on the financial performance of SMEs. These results are also in line with previous research (Daud et al, 2022). Digital payments certainly make transactions safer, more practical, easier and more efficient.…”

“…In this study, digital adoption of digital finance has a positive and significant influence on the financial performance of SMEs, according to the results of research that has been conducted in the Table . 4 Sig value of 0.000 < 0.05, meaning that digital finance has a positive and significant effect on financial performance. This research is in line with previous research (Daud et al, 2022). Sharma & Sharma (2019), digital financial services as a key driver of use intention and satisfaction in using mobile banking.…”

“…Delivery services allow consumers to be more flexible in ordering food, can provide feedback in the form of comments, both excellence and anxiety in orders which can later be a reference for business owners to improve their performance. Furthermore, financial literacy is an ability to manage and solve financial problems, as well as behaviors and mindsets that affect an individual's financial situation for the better.by (Angeles, 2022;Daud et al, 2022). In this study, financial literacy was unable to moderates the relationship between digital adoption, namely digital finance and digital payments, on financial performance as evidenced the results in the Table.…”

“…From the exposure that has been explained, the study wants to discuss the role of digital adoption on the financial performance of SMEs. This study is the latest research from previous researchers (Daud et al, 2022). where this study focuses on the food and beverage sector in Indonesia with moderation of financial literacy and financial inclusion.…”