pdf Financial Literacy, Cash Flow Management, and Financial Digitalization on the Financial Performance of MSMEs

Herawati Dahlan; Evelyn  Talondo; Andi Pandangai  Andi Pandangai Tenrigau

Authors

Herawati Dahlan Universitas Fajar Author
Evelyn Talondo Universitas Fajar Author
Andi Pandangai Tenrigau Andi Pandangai Press Author

Keywords:

Financial Literacy, Financial Digitalization, Financial Performance, Micro, Small, and Medium Enterprises (MSMEs)

Abstract

Research Objectives - This study aims to analyze the effects of financial literacy, cash flow management, and financial digitalization on the financial performance of fashion MSMEs (UMKM) supported by business incubators in Makassar City, Indonesia.

Method - This study employs a quantitative approach involving 85 MSME owners using a saturated sampling technique. Data were collected through questionnaires and analyzed using multiple linear regression with SPSS version 32, based on the Resource-Based View (RBV) and Technology Acceptance Model (TAM) frameworks.

Research Findings - Financial literacy has a positive and significant effect on financial performance and cash flow management, while financial digitalization has a positive but statistically insignificant effect on financial performance. Simultaneously, the three variables have a significant effect on financial performance.

Theory and Practical Implications - MSME development initiatives should prioritize financial literacy and disciplined cash flow management. Financial digitalization should be accompanied by appropriate assistance and training to ensure that technological benefits are effectively integrated into business decision-making.

Novelty - This study integrates the RBV and TAM frameworks to explain the financial performance of fashion MSMEs. Its key contribution is the finding that financial literacy and cash flow management have significant partial effects on financial performance, whereas financial digitalization does not.

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References

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