: The Role of Literacy and Government Support in Improving
MSME Performance Through Digital Financial Services Adoption and
Financial Inclusion

: The Role of Literacy and Government Support in Improving
MSME Performance Through Digital Financial Services Adoption and
Financial Inclusion

RBV; financial performance; financial digitalization; government support; financial
inclusion
JEL Classi

This study aims to identify the role of financial literacy, digital literacy, and government support
mediated by digital financial services adoption and financial inclusion in influencing the financial
performance of MSMEs in Central Java. The model in this study was developed from the RBV (Resource
Based View) theoretical framework. This study is a type of quantitative study with an explanatory
design. The population determined is MSMEs in the food and beverage sector of Central Java Province.
The sample was selected using a simple random sampling of 238 respondents using Google Forms.
Next, the data analysis technique used SEM-PLS with Smart-PLS 3. This study found that financial
literacy, government support, digital financial services adoption, and financial inclusion determine the
financial performance of MSMEs. These four factors show a significant influence. On the contrary,
digital literacy did not significantly affect MSMEs’ financial performance. This research contribution is
theoretically expected to be useful in developing RBV (Resource Based View) theory. In addition, it is a
direction for three parties (government, entrepreneurs, and financiers) in formulating policies related
to strategies to optimize MSMEs’ financial performance based on digital technology.

Erlinda Sholihah1
, Risma Nurhapsari2
, Aftuqa Sholikatur Rohmania3

https://jurnal.unmer.ac.id/index.php/jkdp/

Sekolah Tinggi Ilmu Ekonomi Studi Ekonomi Modern, Indonesia

2023-06-25

Fajar bagus W

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