TY - JOUR
T1 - Micro, small, and medium-sized enterprises (MSMEs) during the post-pandemic economic recovery period
T2 - digitalization, literation, innovation, and its impact on financial performance
AU - Rosyidiana, Riska Nur
AU - Narsa, I. Made
N1 - Publisher Copyright:
© 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
PY - 2024
Y1 - 2024
N2 - This study explores the impact of digitalization, literation, and innovation on the financial performance of Micro, Small, and Medium-Sized Enterprises (MSMEs) in Bojonegoro, East Java, Indonesia. Using a sample of 35 business owners, the research employs partial least squares structural equations modelling. The findings reveal a positive and significant relationship between innovation and MSMEs’ financial performance, emphasizing the crucial role of innovative practices. Additionally, business owners’ literacy levels positively influence innovation. Although digitalization shows a positive impact on innovation and financial performance, the lack of statistical significance calls for nuanced exploration. The study contributes to understanding the complex dynamics within MSMEs post-pandemic, emphasizing the importance of literation and innovation. The research offers practical insights for MSME owners on enhancing financial literacy and fostering an innovative culture within their businesses. Policymakers were also encouraged to allocate resources to facilitate financial training for business owners. Urban areas might employ varying pandemic response strategies depending on their economic circumstances, resulting in differences in interaction variables. Future studies should extend these findings to diverse urban settings to broaden our understanding of literation, innovation, and digitalization’s impact on MSME performance.
AB - This study explores the impact of digitalization, literation, and innovation on the financial performance of Micro, Small, and Medium-Sized Enterprises (MSMEs) in Bojonegoro, East Java, Indonesia. Using a sample of 35 business owners, the research employs partial least squares structural equations modelling. The findings reveal a positive and significant relationship between innovation and MSMEs’ financial performance, emphasizing the crucial role of innovative practices. Additionally, business owners’ literacy levels positively influence innovation. Although digitalization shows a positive impact on innovation and financial performance, the lack of statistical significance calls for nuanced exploration. The study contributes to understanding the complex dynamics within MSMEs post-pandemic, emphasizing the importance of literation and innovation. The research offers practical insights for MSME owners on enhancing financial literacy and fostering an innovative culture within their businesses. Policymakers were also encouraged to allocate resources to facilitate financial training for business owners. Urban areas might employ varying pandemic response strategies depending on their economic circumstances, resulting in differences in interaction variables. Future studies should extend these findings to diverse urban settings to broaden our understanding of literation, innovation, and digitalization’s impact on MSME performance.
KW - Digitalization
KW - Entrepreneurial Finance
KW - Entrepreneurship and Small Business Management
KW - Jeffrey Muldoon, Emporia State University, United States
KW - MSMEs
KW - Management of Technology and Innovation
KW - Strategic Management
KW - financial performance
KW - innovation
KW - literation
UR - http://www.scopus.com/inward/record.url?scp=85191068146&partnerID=8YFLogxK
U2 - 10.1080/23311975.2024.2342488
DO - 10.1080/23311975.2024.2342488
M3 - Article
AN - SCOPUS:85191068146
SN - 2331-1975
VL - 11
JO - Cogent Business and Management
JF - Cogent Business and Management
IS - 1
M1 - 2342488
ER -