How Digital Financial Literacy Shapes Sustainable Economic Performance: Evidence from Rural MSME

Rafida Khairani; Maya Andriani; Debbi Chyntia Ovami; Dwita Sakuntala

doi:10.64276/ams.v1i2.55

Authors

Rafida Khairani Universitas Prima Indonesia
Maya Andriani Sekolah Tinggi Ilmu Ekonomi Profesional Indonesia
Debbi Chyntia Ovami Universitas Muslim Nusantara Al-Washliyah
Dwita Sakuntala Universitas Pembangunan Panca Budi

DOI:

https://doi.org/10.64276/ams.v1i2.55

Keywords:

Digital Financial Literacy, Technology Adoption, Sustainable Economic Performance, Rural MSMEs, Performance-Based Budgeting

Abstract

This study examines the effect of digital financial literacy on the sustainable economic performance of rural MSMEs, with technology adoption serving as a mediating mechanism. Data were collected through questionnaires administered to rural micro-entrepreneurs and analyzed using the Structural Equation Modeling (SEM) approach. The results indicate that digital financial literacy has a positive and significant impact on sustainable economic performance. Moreover, technology adoption strengthens this relationship by acting as a key pathway through which financial knowledge is transformed into improved economic outcomes. These findings underscore the importance of enhancing digital financial literacy and promoting the adoption of digital technologies to support business sustainability. The practical implications suggest that policymakers and development institutions should prioritize initiatives that enhance digital financial literacy and facilitate technology adoption to foster the sustainable economic performance of rural enterprises

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