The Effect of Digital Financial Literacy on Financial Performance: The Moderating Role of Financial Access among MSMEs in Surakarta

Sari Alia Nuragustin, Muhammad Sabandi

Abstract


Digital technology has changed the way Micro, Small, and Medium Enterprises (MSMEs) manage their finances. However, limited digital financial literacy and financial access remain barriers to improved financial performance. This study examines the effects of digital financial literacy and financial access on financial performance, the moderating role of financial access, and differences in the digital financial literacy–performance relationship by participation in financial training. A quantitative survey of 288 MSME owners in Surakarta was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The results show that digital financial literacy (β = 0.535; p < 0.001) and financial access (β = 0.449; p < 0.001) have positive and significant effects on financial performance. Their interaction is also significant (β = 0.132; p = 0.001), indicating that financial access strengthens the effect of digital financial literacy. Multi-Group Analysis shows a stronger effect among trained MSMEs (β = 0.607) than among untrained MSMEs (β = 0.152). The findings suggest that digital financial knowledge, access to financial services, and training function as complementary resources for improving MSME financial performance.

Keywords


digital financial literacy; financial access; financial performance; financial training; MSMEs

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References


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DOI: http://dx.doi.org/10.33087/ekonomis.v10i2.2999

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