The Role of Financial Technology in Moderating Financial Literacy and Financial Inclusion on Financial Performance of SMEs in Semarang, Central Java, Indonesia

DOI

10.2991/978-94-6463-801-1_12How to use a DOI?

Keywords

Financial Literacy; Financial Inclusion; Financial Technology; Financial Performance

Abstract

This study examines the precursors of financial performance determinants in SMEs from a knowledge-based viewpoint. Furthermore, it examines financial inclusion and financial technology to enhance the financial performance of Fashion and Culinary SMEs in Semarang, Central Java, Indonesia. In the 4.0 era, all company operations are transitioning to digital formats. These alterations have significant implications on SMEs. This research enhances SMEs’ financial performance by leveraging financial literacy, financial inclusion, and financial technology as tools to promote their financial outcomes. This research is explanatory and utilises both primary and secondary data sources. Primary data is collected directly from respondents through the distribution of questionnaires on a 5-point Likert scale via Google Forms. Additionally, secondary data was acquired from journals and pertinent study findings. This study employed a purposive sampling technique, encompassing a total sample of 105 SMEs in the Fashion and Culinary sectors in Semarang, Central Java, Indonesia. The data analysis method employed was Partial Least Squares (PLS) in conjunction with Structural Equation Modelling (SEM). This research showed that financial literacy positively and significantly influences the financial performance of SMEs. Simultaneously, financial inclusion exerts no substantial impact on financial performance. Moreover, financial technology cannot influence the relationship between financial literacy and financial inclusion regarding the financial performance of SMEs.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ibnu Khajar
AU  - Aisyah Dinda Saphira
AU  - Wan Anisabanum Salleh
AU  - Noorimah Misnan
AU  - Zainuddin Zakaria
PY  - 2025
DA  - 2025/07/31
TI  - The Role of Financial Technology in Moderating Financial Literacy and Financial Inclusion on Financial Performance of SMEs in Semarang, Central Java, Indonesia
BT  - Proceedings of the 9th Terengganu International Business and Economics Conference 2025 (TiBEC IX 2025)
PB  - Atlantis Press
SP  - 157
EP  - 172
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-801-1_12
DO  - 10.2991/978-94-6463-801-1_12
ID  - Khajar2025
ER  -