Smart Financial Management Strategies for Enhancing the Profitability of Micro, Small, and Medium Enterprises in the Era of Global Competition
Kata Kunci:
Smart Financial Management Strategies, Financial Technology Adoption, MSME Profitability, MSMEs, PLS-SEMAbstrak
Objective: Digital transformation in the financial sector provides strategic opportunities for Micro, Small, and Medium Enterprises (MSMEs) to improve efficiency, access to finance, and competitiveness. However, many MSMEs have not fully optimized these opportunities due to limited financial management capability and uneven adoption of financial technology. This study aims to analyze the effect of smart financial management strategies on MSME profitability, both directly and indirectly through financial technology adoption.
Methodology: This study employed a quantitative explanatory research design. The population consisted of active MSMEs in West Java Province that had used at least one form of financial technology service. The sample was selected using purposive sampling, involving 200 MSME owners or managers as respondents. Data were collected through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.
Findings: The results show that smart financial management strategies have a positive and significant effect on MSME profitability and financial technology adoption. Financial technology adoption also has a positive and significant effect on MSME profitability. Furthermore, financial technology adoption partially mediates the relationship between smart financial management strategies and MSME profitability. These findings indicate that financial management capability improves profitability not only through direct financial efficiency, but also by encouraging the effective adoption and utilization of digital financial services.
Conclusion: This study highlights the importance of integrating internal financial management capability with financial technology adoption as a strategic approach to improving MSME profitability. Theoretically, this study contributes to the fintech and strategic financial management literature by integrating the Resource-Based View and the Technology Acceptance Model in explaining MSME performance. Practically, the findings suggest that MSME development programs should combine financial management training, digital financial literacy, and fintech adoption assistance to strengthen business sustainability and competitiveness.
Referensi
Anggraeni, R., & Anwar, H. (2023). Challenges of West Java MSMEs in Access to Financing and Financial Literacy. Journal of Regional Economics, 8(2), 120-132.
Arimbi, J. (2023). Analysis of Factors Affecting the Profitability of MSMEs. Arimbi Journal, 3(2), 67-80. https://unkartur.ac.id/journal/index.php/arimbi/article/download/175/174/1063
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches (4th ed.). Thousand Oaks, CA: SAGE Publications.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-340. https://doi.org/10.2307/249008
Denscombe, M. (2010). The good research guide: For small-scale social research projects (4th ed.). Maidenhead, UK: Open University Press.
Disperindag Jabar. (2022). Annual Report of West Java MSMEs. Bandung: Department of Industry and Trade of West Java Province.
Gitman, L. J., & Zutter, C. J. (2015). Principles of managerial finance (14th ed.). Boston: Pearson Education.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modelling (PLS-SEM) (2nd ed.). Thousand Oaks, CA: SAGE Publications. https://doi.org/10.1007/978-3-030-80519-7
Hidayat, R., Rahmawati, Y., & Fadilah, L. (2020). The Effect of Financial Literacy and Fintech on MSME Performance. Indonesian Journal of Management and Business, 6(1), 55-65.
INDEF (2024). The role of digital platforms in the development of MSMEs in Indonesia. https://indef.or.id/wp-content/uploads/2024/01/Laporan-Final-Peran-Platform-Digital-Terhadap-Pengembangan-UMKM-di-Indonesia-INDEF.pdf
Israel, M., & Hay, I. (2006). Research ethics for social scientists. London: SAGE Publications.
Ministry of Cooperatives and SMEs. (2022). National MSME Data 2022. Retrieved from https://kemenkopukm.go.id
Kinerja, D. (2023). The Effect of Capital Structure and Liquidity on the Profitability of MSMEs. Journal of Economics and Business, 5(1), 45-58. https://jurnal.kdi.or.id/index.php/eb/article/download/2028/1094/11376
Kumar, R. (2013). Research methodology: A step-by-step guide for beginners (3rd ed.). Thousand Oaks, CA: SAGE Publications.
Kurniawan, A., & Handayani, S. (2021). Digital Finance Integration in MSME Strategy in Java Region. Journal of Innovative Finance, 3(2), 98-112.
Luckieta, M. (2025). Financial Management Strategy and its Impact on MSME Profitability. LOCUS Journal: Research & Service, 4(3), 1279-1287. https://doi.org/10.58344/locus.v4i3.3932
Nugraha, A., et al. (2022). Analysis of the Use of Financial Technology in MSMEs. Islamic University of Indonesia. https://dspace.uii.ac.id/bitstream/handle/123456789/45984/19313319.pdf
Nugraha, K., Suryani, R., & Mulyani, N. (2022). Utilisation of Financial Technology in Financial Management in MSMEs in Depok Region. Journal of Madani Community Service, 2(1), 67-77. https://doi.org/10.51805/jpmm.v2i1.70
Open Data Jabar. (2023). Growth of West Java MSMEs in 2023. https://opendata.jabarprov.go.id
Patton, M. Q. (2015). Qualitative research & evaluation methods: Integrating theory and practice (4th ed.). Thousand Oaks, CA: SAGE Publications.
Ramida, D., Nurul, A., & Fibrianti, A. (2022). The Effect of Digital Marketing on the Profitability of MSME Businesses in Kalimanah District, Purbalingga Regency. Arimbi Journal, 3(2), 65-75. https://unkartur.ac.id/journal/index.php/arimbi/article/download/175/174
Rizkia, A., & Mulyadi, M. (2021). Financial Digitalisation as a Post-Pandemic MSME Strategy. Journal of Contemporary Business, 10(3), 70-82.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). Chichester, UK: John Wiley & Sons.
Syahdan, A., Wijaya, M., & Amelia, T. (2021). The Role of Financial Technology in Expanding MSME Access. Journal of Indonesian Digital Economy, 2(1), 34-47.
Tambunan, T. (2019). MSME Development in Indonesia: Challenges and Strategies. Jakarta: LP3ES.
Tambunan, T. T. H. (2019). Micro, Small and Medium Enterprises in Indonesia: Key Issues. Jakarta: LP3ES.
Utami, N., & Nurhayati, A. (2022). Financial Management of MSMEs: A Case Study in Sumedang Regency. Scientific Journal of Local Economics, 4(1), 45-58. https://doi.org/10.31294/jel.v4i1.15821
Tan, A., & Syahwildan, R. (2022). Financial Technology and Sustainable Performance of Micro and Small Enterprises: Mediated by Financial Literacy and Financial Inclusion. Journal of Islamic Economics and Finance, 4(1), 45-58. https://doi.org/10.47065/jeks.v4i1.1450
Diterbitkan
Cara Mengutip
Terbitan
Bagian
Lisensi
Hak Cipta (c) 2026 MIX: JURNAL ILMIAH MANAJEMEN
Artikel ini berlisensiCreative Commons Attribution-ShareAlike 4.0 International License.
The copyright to this article is transferred to Universitas Mercu Buana (UMB) if and when the article is accepted for publication. The undersigned hereby transfers any and all rights in and to the paper including without limitation all copyrights to UMB. The undersigned hereby represents and warrants that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required. The undersigned represents that he/she has the power and authority to make and execute this assignment.
We declare that this paper has not been published in the same form elsewhere.
Furthermore, I/We hereby transfer the unlimited rights of publication of the above mentioned paper in whole to UMB. The copyright transfer covers the right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline, online) or any other reproductions of similar nature.
The corresponding author signs for and accepts responsibility for releasing this material on behalf of any and all co-authors. This agreement is to be signed by at least one of the authors who have obtained the assent of the co-author(s) where applicable. After submission of this agreement signed by the corresponding author, changes of authorship or in the order of the authors listed will not be accepted.
Retained Rights/Terms and Conditions
Although authors are permitted to re-use all or portions of the Work in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use.
