The Influence of Financial Inclusion, Financial Literacy, and Financial Behavior on MSME Financial Performance: The Moderating Role of Financial Technology Adoption in Indonesia and Malaysia

Abstract

This study is designed to explore the mediating role of financial technology adoption in shaping the influence of financial inclusion, financial literacy, and financial behavior on overall economic outcomes. The study employed a survey using a questionnaire and collected 200 valid responses. The survey was distributed to informants in Malaysia and Indonesia. The data were examined through SEM using partial least squares, revealing that financial inclusion, literacy, behavior, and the adoption of technology significantly influence financial performance. Financial technology adoption moderated the effects of inclusion and literacy on performance. Meanwhile, adopting financial technology did not moderate the linkage between behavior and performance. The results further revealed that MSMEs continuously enhance financial inclusion, literacy, behavior, and the adoption of technology. MSMEs are able to adapt and utilize these factors appropriately and quickly to reduce costs and improve their performance.