Digital Technology Adoption and Financial Literacy: The Moderating Role of  Entrepreneurial Proactivity in MSME Performance

Arzal Syah; Zainuddin; Muhammad Ikram S.; Andi Nurrahma Gaffar; Dini Nurpratiwi

doi:10.24256/dinamis.v9i2.12682

Authors

Arzal Syah Universitas Islam Negeri Palopo, Indonesia
Zainuddin Universitas Islam Negeri Palopo, Indonesia
Muhammad Ikram S. Universitas Islam Negeri Palopo, Indonesia
Andi Nurrahma Gaffar Universitas Islam Negeri Palopo, Indonesia
Dini Nurpratiwi Universitas Islam Negeri Palopo, Indonesia

DOI:

https://doi.org/10.24256/dinamis.v9i2.12682

Abstract

This study examines the effects of digital technology
adoption and financial literacy on MSME performance, with
Proactive Entrepreneurial Behavior (PEB) as a moderating
variable. Using a quantitative approach, data were collected from
98 MSME respondents and analyzed using PLS-SEM with
SmartPLS 4.0. The results show that digital technology adoption
does not significantly affect MSME performance (β = 0.110, p =
0.444), while PEB (β = 0.156, p = 0.048) and financial literacy (β =
0.147, p < 0.001) have significant positive effects. PEB does not
significantly moderate the relationship between digital
technology adoption and MSME performance (β = 0.097, p =
0.058), but significantly moderates the relationship between
financial literacy and MSME performance (β = 0.098, p = 0.005).
These findings highlight the importance of financial literacy and
proactive entrepreneurial behavior in improving MSME
performance.