The Effect of Fintech Implementation on The Performance of SMEs

Utami, Novia; Sitanggang, Marsiana Luciana

doi:10.32535/jicp.v4i3.1342

Cited by 17 publications

(15 citation statements)

References 9 publications

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“…This finding that competition affects the performance of the banking sector. Adoption of FinTech has a tremendous impact on organizational benefits, FinTech adoption positively and significantly influences SMEs’ performance (Utami and Sitanggang, 2021). The result is also aligned with Guang-Wen and Siddik (2023) who found that the impact of Fintech adoption on commercial banks’ environmental performance during the pandemic was expected, suggesting that FinTech adoption is crucial for businesses to achieve environmental sustainability.…”

Section: Research Discussion and Implicationsmentioning

confidence: 99%

The role of digital accounting transformation in the banking industry sector: an integrated model

Al-Okaily

Alsmadi

Alrawashdeh

et al. 2023

JFRA

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Purpose The digital transformation revolution has brought outstanding changes to business organizations, especially in the digital accounting transformation domain. Consequently, the purpose of this study is to explore the important role of digital accounting transformation in improving business performance in the context of the banking industry. Design/methodology/approach Data were collected through a questionnaire from the Jordanian bank sector with a sample of 190 respondents. Partial least squares structural equation modeling (PLS-SEM) was used to analyze the collected data and test the hypotheses. Findings The results have shown that the adoption of digital accounting, adoption of FinTech innovation and technological competition are the major drivers for improving business performance. All direct paths leading to improving business performance were found to be significant in the hypothesized directions, while technological savvy was found to indirectly affect the relationship between (the adoption of digital accounting and FinTech innovation) and improving business performance. Originality/value The current study is differentiated from other studies by developing a theoretical research model to incorporate the adoption of digital accounting, adoption of FinTech innovation, technological competition, technological savvy and business performance in the Jordanian context under the digital transformation revolution. For practitioners, the findings provide policymakers with meaningful insight for organizations looking to adopt these digital technologies for improved business performance.

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Section: Research Discussion and Implicationsmentioning

confidence: 99%

The role of digital accounting transformation in the banking industry sector: an integrated model

Al-Okaily

Alsmadi

Alrawashdeh

et al. 2023

JFRA

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“…Fintech, encompassing various technologies such as mobile money, peer-to-peer lending, and crowdfunding, plays a crucial role in supporting Small and Medium Enterprises (SMEs) in accessing finance and overcoming financial constraints (Abbasi et al, 2021;Utami & Sitanggang, 2021;Chen et al, 2023;Naysary & Daud, 2021;Winarsih et al, 2020;Rumondang, 2018;Mutamimah & Hendar, 2020). These technologies provide SMEs with easier access to capital, improve financing availability, and enhance financial literacy, ultimately contributing to the growth and sustainability of SMEs (Utami & Sitanggang, 2021;Qurniawati & Nurohman, 2021;Winarsih et al, 2020;Rumondang, 2018). Additionally, fintech solutions like P2P lending and crowdfunding have emerged as effective mechanisms for SMEs to meet their financing needs (Abbasi et al, 2021;Naysary & Daud, 2021;Rumondang, 2018).…”

Section: Table 1 Number Of Msmes In Surabaya City (2020-2022)mentioning

confidence: 99%

The Role of Fintech in Financial Inclusion (Case Study of MSME Entrepreneurs in Surabaya)

Nursansiwi,

Armiani

2024

PRODUCTIVITY

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This research aims to investigate the influence of certain factors on financial inclusion in Micro, Small and Medium Enterprises (MSMEs) in the City of Surabaya. The quantitative analysis method was used by collecting data through questionnaires from 100 respondents who were MSME owners. The research results show that financial risk factors have a positive and significant influence on financial inclusion, while the perceived usefulness and trust factors do not have a significant influence. These findings provide important insights for stakeholders in designing policies that support MSME financial inclusion in the city of Surabaya.

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“…Furthermore, Fintech has been playing a crucial role in improving the performance of small and medium enterprises (SMEs) (Utami & Sitanggang, 2021) through costs reduction and speedy services. In the same vein, financial technology has a positive and significant effect on the income of SME (Nasution, 2021) as well as on their growth (Shofawati, 2019).…”

Section: Literaturementioning

confidence: 99%

Entrepreneurial Risk and Digital Financial Inclusion: A Cross‐Country Analysis

Konou

2023

J of App Econs and Policy

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The inception of financial technologies (Fintech) has enabled expanded use of financial services. Fintech contributes to financial inclusion and by doing so provides impacts on income inequality, poverty and economic growth. A prospective route of influence exerted by Fintech is to assist economic agents in taking entrepreneurial risks. The purpose of this study was to investigate the impact of digital financial inclusion, as enhanced by FinTech, on entrepreneurial risk. An index for measuring levels of digital financial inclusion was constructed based on variation patterns in several indicators of digital activities. A cross‐country model was proposed that relates entrepreneurial risk to digital financial inclusion as well as to a variety of other economic and social factors. Estimation results based on a panel of countries show that digital financial inclusion (0.265), institutional quality (0.169), per capita GDP (0.0456) and education (0.0475) have positive and significant effects on entrepreneurial risk. In contrast, time required to start a business (−0.136) and effective tax rates on capital (−0.494) provide negative and significant effects. In addition, a significant quadratic relationship between entrepreneurial risk and remittances (employee compensation and personal transfers) was found.

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The Effect of Fintech Implementation on The Performance of SMEs

Cited by 17 publications

References 9 publications

The role of digital accounting transformation in the banking industry sector: an integrated model

The role of digital accounting transformation in the banking industry sector: an integrated model

The Role of Fintech in Financial Inclusion (Case Study of MSME Entrepreneurs in Surabaya)

Entrepreneurial Risk and Digital Financial Inclusion: A Cross‐Country Analysis

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