The Effect Of Digital Literacy And Business Strategy On The Performance Of Micro, Small, And Medium Enterprises (MSMES) In Culinary Industry In Padang City

Abstract

This study aimed to determine the effect of digital literacy and business strategy on the performance of Micro, Small and Medium Enterprises in the Culinary Industry in Padang partially and simultaneously. Primary research data sources were collected from questionnaires. The research population was 361 Culinary Micro, Small and Medium Enterprises, and a sample of 193 Culinary Micro, Small and Medium Enterprises was determined by purposive sampling. All research variables met the provisions of the instrument test and the classical assumption test so that multiple linear regression data analysis could be carried out. The multiple linear regression equations Y = 0.401 + 0.492X1 + 0.247X2 + e indicated that digital literacy and business strategy significantly positively affect the performance of Culinary Micro, Small and Medium Enterprises in Padang partially and simultaneously.

The effect of financial literacy on business performance through mediation of financial access and financial risk attitude

“…financial knowledge of a business manager, financial awareness and financial attitudes in changing financial literacy to improve MSME performance. As well as other studies that support the positive and significant effect of financial literacy on MSME performance such as (Agyei, 2018;Mabula & Ping, 2018b;Dewi et al, 2018;KMMCB et al, 2019;Ye & Kulathunga, 2019;Buchdadi et al, 2020;Hamdana et al, 2021).…”

“…Wachira et al (2012) examined the impact of financial literacy on access to financial services for MSMEs in Kenya and also found that low financial literacy for businesses will hinder access to financial services. As well as other studies that support financial literacy on financial access such as ( (Dewi et al, 2018;KMMCB et al, 2019;Buchdadi et al, 2020;Khajar & Ghoniyah, 2022).…”

“…Companies that have a low risk attitude, they tend to avoid risk and prefer to secure their capital. Sabana, (2014); Dewi et al, (2018); Buchdadi et al, (2020); Khajar & Ghoniyah, (2022) Conversely, if financial risk attitudes are high, they tend to take greater risks in an effort to achieve higher profits. An appropriate and balanced financial risk attitude can contribute positively to business performance.…”

“…Eniola and Entebang (2017) found that the total effect of a business manager's financial knowledge, financial awareness, and financial attitudes in changing financial literacy to improve MSME performance in three Nigerian states. Other studies that support the impact of financial literacy on MSME performance include (Agyei, 2018;Mabula & Ping, 2018;Dewi et al, 2018;KMMCB et al, 2019;Ye & Kulathunga, 2019;Buchdadi et al, 2020;Hamdana et al, 2021;and Shofi et al, 2022). Improving financial literacy is regarded as a life skill and a necessary foundation for MSME management, economic stability, and community finance (Mabula & Ping, 2018a).…”

“…Good access to finance will increase working capital, strengthen the company's innovation and dynamism, increase entrepreneurship, encourage more efficient asset allocation, and increase the company's ability to capitalise on growth opportunities, all of which will improve the performance of MSMEs (Beck & Demirguc-Kunt, 2006). Financial literacy influences financial access, and several studies show that financial access influences MSMEs' performance (Nunoo & Andoh, 2012;Sabana, 2014;Adomako et al, 2016;Dewi et al, 2018;KMMCB et al, 2019;Buchdadi et al, 2020;Khajar & Ghoniyah, 2022).…”