The mediation role of financial literation in ensuring MSMEs sustainability: An organizational characteristics perspective

Abstract

The Micro, Small, and Medium Enterprise (MSMEs) sector has been recognized as an essential contributor to the economic development of Indonesia. However, the sustainability of MSMEs in Indonesia is still relatively low compared to the rest of ASEAN countries with similar levels of economic growth. This study aims to extend previous studies on the relationship between MSMEs characteristics and their sustainability by specifically including financial literation as a mediation role. This study used proportional random sampling as a sampling technique. A total of 191 MSMEs owner-managers questionnaire data were processed by using Partial Least Square analysis. This study confirmed the positive influence of MSMEs characteristics on financial literacy and financial literacy on the sustainability of MSMEs. Moreover, financial literation proves to be a significant mediator of MSMEs sustainability. This study suggests that MSMEs owner-managers need to be financially literate as it can enable them to make a good financial decision that can ensure their business sustainability.

Determinants of SMEs performance: The role of knowledge management, market orientation, and product innovation

“…H6: Market orientation positively mediates the relationship between knowledge management and SME's performance Also, the role of product innovation as mediation had been derived from previous research (Astuti et al, 2020;Prasetya et al, 2021). While market orientation is a key determinant to leveraging SME's performance, product innovation can also be another determinant that bridges the extent to which knowledge management's ability to intensify SME's performance.…”

Determinasi Literasi Keuangan, Inklusi Keuangan dan Literasi Digital terhadap Kinerja Usaha Mikro Kecil Menengah: Studi pada UMKM di Kabupaten Sumenep

“…Salah satu sektor yang diyakini dapat mengurangi tingkat pengangguran dan tingkat kemiskinan di Indonesia yaitu sektor sektor usaha mikro, kecil, dan menengah (UMKM). UMKM telah diakui sebagai kontributor penting bagi pembangunan ekonomi Indonesia (Prasetya et al, 2021).…”

“…Hasil penelitian ini mendukung hasil dari penelitian Prasetya et al (2021), Septiani & Wuryani (2020), Sari et al (2022 dan Ruli et al (2021) menyatakan bahwa variabel literasi keuangan berpengaruh positif terhadap kinerja UMKM. Literasi keuangan membantu UMKM untuk memperoleh pengetahuan, keterampilan dan kemampuan untuk menyusun strategi keuangan untuk membuat keputusan dan pilihan layanan keuangan.…”

Does internationalization moderate the effect of SMEs size, age, and other financial determinants on investment opportunities set? Evidence from Indonesia

“…When compared to other ASEAN countries, the competitiveness of Indonesian SMEs is relatively low. One of the reasons for the weak position of competitiveness and the growth of SMEs is the lack of access to formal financial services and literation (Prasetya et al, 2021).…”