The Effect of Financial Knowledge, Financial Literacy, and Financial Capability on MSME Performance

Maulinda Putri Riyadi; Vidi Hadyarti

Authors

Maulinda Putri Riyadi Faculty of Economics and Business, Trunojoyo University, Madura; Indonesia
Vidi Hadyarti Faculty of Economics and Business, Trunojoyo University, Madura; Indonesia

Keywords:

Financial Knowledge, Financial Literacy, Financial Capability, MSMEs Performance

Abstract

MSMEs frequently face development challenges due to a lack of financial expertise. Thus, the purpose of this study is to determine how much financial literacy, financial knowledge, and financial competence impact MSMEs' performance in Sampang Regency. The important of information and skills for corporate success is emphasized in this study. 55 MSMEs made up the sample set, which was selected using a purposive sampling strategy and a quantitative approach. Questionnaires were distributed in October 2024, and SPSS was used to analyze the data. According to the study's findings, MSME performance is positively and significantly impacted by financial knowledge, financial literacy, and financial competence. This result highlights how crucial training and capacity building initiatives are for MSME actors looking to advance their financial literacy. This study creates avenues for future research to delve deeper into the processes that connect MSME success to knowledge, literacy, and financial capacities, as well as other factors that impact MSME performance.

Downloads

Download data is not yet available.

References

Al-Aziz, M. A., & Rinofah, R. (2021). Pengaruh literasi keuangan dan faktor demografi terhadap keputusan investasi mahasiswa FE universitas sarjanawiyata tamansiswa. J-MAS (Jurnal Manajemen Dan Sains), 6(1), 81-87.

Anantadjaya, S. P., Nawangwulan, I. M., Candra, E., Widyaswati, R., & Choerudin, A. (2023). Pengaruh Financial Capabilities, Networking Terhadap Kinerja Usaha UMKM di Kota Sukabumi Melalui Intellectual Capital. Jurnal Bisnisman: Riset Bisnis dan Manajemen, 5(1), 16-32.

Aribawa, D. (2016). Pengaruh literasi keuangan terhadap kinerja dan keberlangsungan UMKM di Jawa Tengah. Jurnal Siasat Bisnis, 20(1), 1-13.

Bapat, D. (2020). Antecedents to responsible financial management behavior among young adults: moderating role of financial risk tolerance. International Journal of Bank Marketing, 38(5), 1177-1194

Farwitawati, R. (2018). Pengelolaan keuangan bagi usaha mikro kecil menengah (umkm) di kelurahan airputih kecamatan tampan kota pekanbaru. Prosiding Sembadha, 1, 225-229.

Firli, A., & Hidayati, N. (2021). The influence of financial knowledge, financial attitude, and personality towards financial management behavior on productive age population. Review of Integrative Business and Economics Research, 10, 43-55.

Francis Hutabarat, M. B. A. (2021). Analisis kinerja keuangan perusahaan. Serang: Desanta Publisher.

Gamo, K. G., & Gollagari, R. (2020). Role of local government and MSMEs performance: The case of Ethiopia. International Journal of Small and Medium Enterprises, 3(1), 1-17.

Gustika, R., Rinofah, R., & Maulida, A. (2024). The Influence of Financial Literacy, Credit Requirements, and Financial Report Quality on Access to Financing for Micro, Small and Medium Enterprises. Jurnal Ilmiah Manajemen Kesatuan, 12(5), 1499-1508.

Hanasri, A., Rinofah, R., & Sari, P. P. (2023). Pengaruh Literasi Keuangan, Pengetahuan Keuangan, dan Sikap Keuangan Terhadap Kinerja Keuangan pada Pelaku UMKM Bisnis online di Bantul. Ekonomis: Journal of Economics and Business, 7(1), 443-450.

Handayani, M. A., Amalia, C., & Sari, T. D. R. (2022). Pengaruh Pengetahuan Keuangan, Sikap Keuangan dan Kepribadian Terhadap Perilaku Manajemen Keuangan (Studi Kasus pada Pelaku UMKM Batik di Lampung). EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi Dan Bisnis, 10(2), 647-660.

Hang, Y., Sarfraz, M., Khalid, R., Ozturk, I., & Tariq, J. (2022). Does corporate social responsibility and green product innovation boost organizational performance? a moderated mediation model of competitive advantage and green trust. Economic research-Ekonomska istraživanja, 35(1), 5379-5399.

Ilarrahmah, M. D. (2021). Pengaruh Kemampuan Menyusun Laporan Keuangan, Literasi Keuangan Dan Penggunaan Teknologi Informasi Terhadap Kinerja UMKM. JPEK (Jurnal Pendidikan Ekonomi dan Kewirausahaan), 5(1), 51-64.

Kasolati, K., & Kamilah, K. (2024). Data Collection on MSME Creative Industries in Medan City According to a Sharia Accounting Perspective. Jurnal Ilmiah Akuntansi Kesatuan, 12(1), 189-196.

Khan, S. Z., Yang, Q., & Waheed, A. (2019). Investment in intangible resources and capabilities spurs sustainable competitive advantage and firm performance. Corporate Social Responsibility and Environmental Management, 26(2), 285-295.

Kumalasari, D., & Farida, A. (2024). Utilizing Financial Technology (Fintech) to Drive Increased Economic Growth. Jurnal Ilmiah Manajemen Kesatuan, 12(1), 9-16.

Lubis, N. W. (2022). Resource based view (RBV) in improving company strategic capacity. Research Horizon, 2(6), 587-596.

Luo, Y., Peng, Y., & Zeng, L. (2021). Digital financial capability and entrepreneurial performance. International Review of Economics & Finance, 76, 55-74.

Murtadlo, K., & Utomo, D. (2024). Sustainability Analysis of MSMES in Sampang Regency Based on Multidimensional Scaling. Asian Journal of Management, Entrepreneurship and Social Science, 4(03), 1211-1226.

Mutasowifin, A., & Sutisna, C. (2023). MSME’s Financing Decisions and the Roles of Financial Literacy and Microbusiness Demographics. Jurnal Ilmiah Manajemen Kesatuan, 11(2), 445-460.

Pramestiningrum, D. R., & Iramani, R. (2020). Pengaruh literasi keuangan, financial capital, dan kebijakan pemerintah terhadap kinerja usaha pada usaha kecil dan menengah di jawa timur. J. Bus. Bank, 9(2), 279-296.

Pranisya, R., Sari, P. P., & Maulida, A. (2024). The Effect of Financial Literacy, Technology Financial Literacy and Financial Inclusion on MSME Performance. Jurnal Ekonomi Dan Bisnis, 25(2), 244-255.

Rahmawati, A., Wahyuningsih, S. H., & Garad, A. (2023). The effect of financial literacy, training and locus of control on creative economic business performance. Social Sciences & Humanities Open, 8(1), 100721.

Rai, K., Dua, S., & Yadav, M. (2019). Association of financial attitude, financial behaviour and financial knowledge towards financial literacy: A structural equation modeling approach. FIIB Business Review, 8(1), 51-60.

Safitri, N. W. N., & Wahyudi, A. (2022). Literasi Keuangan Dan Faktor Penentunya: Studi Kasus Masyarakat Di Labuan Bajo. E-Jurnal Manajemen Universitas Udayana, 11(9), 1657.

Sarira, S., & Saudi, N. D. S. (2023). Financial Literasi, Perilaku Keuangan Sebagai Pembentuk Financial Capability Pada Ukm Kreatif di Sulawesi Selatan. Jmbi Unsrat (Jurnal Ilmiah Manajemen Bisnis dan Inovasi Universitas Sam Ratulangi)., 10(2), 1610-1619.

Siagian, M., Kurniawan, P. H., & Hikmah, H. (2019). Analisis faktor eksternal dan internal terhadap kinerja umkm di kota batam. Jesya (Jurnal Ekonomi dan Ekonomi Syariah), 2(2), 265-271.

Sidiqqoh, S. A., & Alamsyah, D. P. (2017). Peningkatan kinerja bisnis usaha mikro melalui kajian komitmen dan ambisius pengusaha. Jurnal Ecodemica: Jurnal Ekonomi Manajemen dan Bisnis, 1(2), 259-265.

Sugiyono, P. (2016). Metode penelitian kuantitatif, kualitatif, dan R&D. Bandung: Alfabeta.

Sulistyowati, R., Nataliawati, R., Winarsih, T., Nabila, S. S., & Sari, D. S. (2023). Modal Manusia Memoderasi Pengaruh Kapabilitas Financial Pada Kinerja UKM. Jurnal Akademi Akuntansi, 6(4), 510-523.

Tsalitsa, A., & Rachmansyah, Y. (2016). Analisis pengaruh literasi keuangan dan faktor demografi terhadap pengambilan kredit pada pt. columbia cabang kudus. Media Ekonomi dan Manajemen, 31(1).

Waheed, A., & Zhang, Q. (2022). Effect of CSR and ethical practices on sustainable competitive performance: A case of emerging markets from stakeholder theory perspective. Journal of Business Ethics, 175(4), 837-855.

Wahyuni, S. F., & Hafiz, M. S. (2023). Financial literacy and financial attitude on financial management behavior: An examination of the mediating role of the behavioral intention of students at private universities in Indonesia. Investment Management & Financial Innovations, 20(3), 239.

Yulianto, M. A., & Rita, M. R. (2023). Mediasi Perilaku Pengelolaan Keuangan Dalam Pengaruh Fintech Dan Literasi Keuangan Terhadap Kinerja Usaha. EKUITAS (Jurnal Ekonomi dan Keuangan), 7(2), 212-232.

Zuliyati, Z., & Indrianingrum, I. (2021). Analysis Of Factors Affecting The Implementation Of Financial Accounting Standards For Micro, Small And Medium Entities (Sak-Emkm) On Sharia-Based Msmes In Kudus Regency. IJIBE (International Journal of Islamic Business Ethics), 6(2), 79-91.