Citation:

Maria Widyastuti. "MSME Financial Performance Model in East Java" International Research Journal of Economics and Management Studies, Vol. 3, No. 8, pp. 163-173, 2024.

Abstract:

This research studies quantitative and including type study explanatory/associative accompanied with a testing hypothesis; its population is MSME actors in Java East (Malang, Gresik, Pasuruhan, Sidoarjo, And City Surabaya). Sample size in study This includes as many as 250 MSME actors with method purposive sampling with criteria Still active try until month December 2023, perpetrator MSMEs at a time as owner, active working for at least 5 years. Data analysis uses Structural Equation Modeling - Partial least Square with the help of Liisrel software. This research discusses the financial performance of MSMEs, and this needs to be analyzed because MSMEs contribute 60% of GDP and are able to absorb 57.23% of the workforce. The research aims to test the MSME financial performance model. The research results show 1) financial literacy and financial technology have a significant effect on financial inclusion, and 2) financial literacy, financial technology, and financial inclusion have a significant effect on financial performance.

References:

[1] Adetunji, OM, & David-West, O (2019) The Relative Impact of Income and Financial Literacy on Financial Inclusion in Nigeria. Journal of International Development, 312-335 http://doi.org/10.1002/jid.3407
[2] Desiyanti, R., Husin, NA, Kassim, AAM, & Elvira, R. (2022). The Impact of Payment Systems and Peer-to-Peer Lending on the Performance of SMEs in Indonesia. KnE Social Sciences, 2, 48–58.
[3] https://doi.org/10.18502/kss.v7i6.1060 8
[4] Erna Retno Rahadjeng, Heri Pratikto, Imam Mukhlis, Nurika Restuningdiah (2023) Analysis of Financial Technology, Financial Literacy, Financial Attitudes, On Mediated Business Performance Financial Inclusion And Self-Efficiency In Small Medium Industry (SMI) In Malang City, Indonesia. Internal. Journal of Profession. Bus. Reviews. | Miami, v. 8 | n. 8 | p. 01-25| e03041 | 2023.
[5] Esiebugie, U., Richard, AT, &Emmanuel, AL, (2018) Financial Literacy and Performance of Small and Medium scale enterprises in Benue State, Nigeria International Journal of Economics, Business and Management Research, 2 (4), 6579
[6] Fatihudin, D., Jusni, & Mochklas, M. (2018). How measuring financial performance. International Journal of Civil Engineering and Technology, 9(6), 553–557.
[7] Grohmann, A., & Menkhoff, L (2021). The Relationship Between Financial Literacy and Financial Inclusion. The Routledge Handbook of Financial Literacy, 517-530. https://doi.org/10.4324/9781003025221-39
[8] Hamidah N., R Prihatni., IGKA Ulupui (2020) The effect of Financial Literacy, Financial Technology and Intellectual Capital on the Performance of MSMEs Depok City, West Java. Journal of Social Science P- ISSN: 27020-9938
[9] Hidayatulloh, I. (2020). The Influence of Financial Inclusion, Financial Literacy, and the Ability to Prepare Financial Reports on the Financial Performance of MSMEs in Tegal Regency.
[10] Hilmawati, MR N., & Kusumaningtias, R. (2021). Inclusion Finance And Financial Literacy on Performance and Sustainability Sectors Business Micro Small Medium. Accounting and Management Research Barometer, 10 (1).
[11] Huston, S. J. (201 0 ) . Mea suri n g Finan c i a l L i t e r a c y . The J ournal of Co n sum e r Affairs, 4 4 ( 2 ) , 296 - 317.
[12] IrmanM., Budiyanto., Suwito (2021) Increasing Financial Technology On MSMEs. International Journal of Economic Development Research Vol 2(2) pp :126 -147
[13] Jemal, L (2019) Effect of Financial Literacy on Financial Performance of Medium Scale Enterprise; Case Study in Hawassa City, Ethiopia. International Journal of Research in Business Studies and Management, 6 (11),33 -39
[14] Lubis, A., Dalimunthe, R., & Situmeang, C (2019) Antecedents Effect of Financial Inclusion for The People of North Sumatra. Budapest International Research and Critics Institute-Journal (BIRCI-Journal): Humanities and Social Sciences, 2(4), 401-408. https://doi.rog/10.33258/birci.v2i4.602 )
[15] Komang Eni Candraningsih, Anantawikrama Single Atmadja and Desak Nyoman Sri
[16] Werastuti (2023) Testing Model Financial Performance on MSMEs in Buleleng Regency. Talisman Ganesha University of Education Vol 14, No 01
[17] Marini, M., Linawati. L & Putra R. E (2020) The Role of Fintech in Financial Inclusion in South Tangerang MSMEs. Sustainability Journal of Management and Accounting 5(2)
[18] Mendari, AS, & Kewal, SS (2013) Level of Financial Literacy among STIE Musi Students. Economia Journal 9(2), 30-140
[19] Mochklas, M., Panggayudi, D. S., Mauliddah, N., Sari, T. A. M., & Maretasari, R. (2023). Motivasi Kerja Memediasi Pengaruh Pelatihan Terhadap Produktivitas Umkm Masyarakat Pesisir Surabaya. EKUITAS (Jurnal Ekonomi Dan Keuangan), 7(3), 305–327. https://doi.org/10.24034/j25485024.y2023.v7.i3.5475
[20] Natalia, MA, Kurniasari, F., Hendrawaty, E., & Oktaviani, VM (2020). The Influence of Financial Literacy on Financial Inclusion Using Social Capital as a Mediator Variable. Ultima Management: Journal of Management Science, 12 (1), 16–33. https://doi.org/10.31937/manajemen.v 12i1.1522
[21] Nkundabanyanga, S. K., Kasozi, D., Nalukenge, I., & Tauringana, V. (2014). Lending terms, financial literacy and formal credit accessibility. International Journal of Social Economics, 41(5), 342–361. https://doi.org/10.1108/IJSE-03-2013-0075
[22] Noerchoidah, Mochklas, M., Indriyani, R., & Arianto, B. (2022). The Mediating Effect of Knowledge Sharing on Interpersonal Trust and Job Satisfaction of Creative Industry in East Java. Matrik: Jurnal Manajemen, Strategi Bisnis Dan Kewirausahaan, 16(1), 75–86. https://ojs.unud.ac.id/index.php/jmbk/article/view/6997
[23] Rizki Mitfatur Rohmah, TG (2021) The Influence of Financial Literacy and Fintech on Financial Inclusion in Yogyakarta Society. Proceedings of the National Multidisciplinary Science Seminar, 3(1), 219-226
[24] Salsabila, DR (2021). The Influence of Financial Literacy, Financial Technology and Financial Inclusion on the Performance of MSMEs in Kupang City.
[25] Sari, A. N., & Kautsar, A. (2020). Analysis of the Influence of Financial Literacy, Financial Technology, and Demography on Financial Inclusion in Communities in the City of Surabaya. Journal of Management Science, 8 (4).
[26] Simanjuntak, Y. (2019). The Influence of Financial Literacy and Financial Technology on Financial Inclusion. 4–16.
[27] Syahdanadarma, K., and Hidayati, S. (2019). Determinant Performance Finance for Micro, Small and Medium Enterprises in the District Cilandak. (1), 1712–1727.
[28] Subanidja, S., Sorongan, FA, & Legowo MB (2022) Leveraging Financial Technology Entities into Sustainable Bank Performance through a Competitive Advantage. Emerging Science Journal, 6(1), 53-63 https://doi.org/10.28991/ESJ-2022-06-01-04
[29] OR Togun, Ranti Ogunrinade, Ola T Olalekan, and TD Jooda (2022) Financial Inclusion and SMEs' Performance: Mediating Effect of Financial Literacy. Journal of Business and Environmental Management (JBEM) Volume 1, Number 1, 2022, Pages 23 – 33
[30] Wahyuni Saskia, Andi Ainil Putri, Hismawati, A.Muh.Nurjalal, Ishak, Linda Razak (2023) The Influence of Financial Inclusion, Financial Literacy and Financial Behavior on Company Performance in MSMEs in Makassar City International Journal of Economic Research and Financial Accounting ( IJERFA) Volume 1, Number 4, Page. 146 – 156
[31] Winbaktianur. & Siregar LM (2021) Financial performance of Micro and Small Enterprises Pelita Bangsa Business Accounting Journal 5 (02), 121-129. https://doi.org/10.37366/akubis.V5i02.151.
[32] Zulkieflimansyah, Hakim, L., Sari, P, R, K & Zulkarnaen (2020) The effect of Financial Literacy on the Financial Performance of SMEs with financial Inclusion as Intervening Variables. International Journal of Innovative Science and Research Technology, 5(12), 1207-1210

Keywords:

Model, Financial Performance, MSMEs.