Enhancing Msme Financial Performance Through Strategic Capabilities: The Mediating Role Of Managerial Decision-Making
DOI:
https://doi.org/10.53866/jimi.v5i4.930Keywords:
Financial Literacy, Accounting Technology, Entrepreneurial Orientation, Managerial Decision-Making, MSME Financial PerformanceAbstract
Micro, Small, and Medium Enterprises (MSMEs) are vital to economic growth but often face challenges in financial sustainability and decision-making effectiveness. This study aims to examine how financial literacy, accounting technology utilization, and entrepreneurial orientation influence MSME financial performance, with managerial decision-making as a mediating variable. Using a quantitative research design, data were collected from 222 MSMEs in Makassar City through structured questionnaires and analyzed using Structural Equation Modeling with SmartPLS. The results reveal that accounting technology utilization and entrepreneurial orientation have significant direct effects on financial performance. Financial literacy, while not directly associated with financial outcomes, significantly influences performance through managerial decision-making. This mediating role highlights that the strategic application of financial knowledge is more impactful than financial literacy alone. Conversely, technology and entrepreneurial behavior tend to bypass structured decision-making processes, indicating a need for better integration of these capabilities into managerial frameworks. These findings contribute to existing knowledge by integrating cognitive, technological, and behavioral factors into a unified performance model. The study emphasizes that empowering decision-making capacities enhances the value of internal resources. Policymakers and business advisors are encouraged to adopt holistic development strategies that combine literacy, digital tools, and strategic judgment to strengthen MSME competitiveness.
References
Alvarez-Torres, F. J., Torres, G. C. L., & Schiuma, G. (2019). Linking Entrepreneurial Orientation to SMEs’ Performance. Management Decision, 57(12), 3364–3386. https://doi.org/10.1108/md-11-2018-1234
Anggraini, F., Puttri, D., & Nabila, H. (2022). Linkage of Entrepreneurial Orientation on Business Performance of Women Entrepreneurs and Mediation Role of Competitive Advantage. Jurnal Manajemen Dan Kewirausahaan, 10(1), 71–78. https://doi.org/10.26905/jmdk.v10i1.6745
Arumsari, N. R., Whetyningtyas, A., & Ashari, A. (2024). Entrepreneurial Success Strategies Through Competitive Advantage and Financial Literacy on Batik MSMES in Jepara and Kudus. Kne Social Sciences. https://doi.org/10.18502/kss.v9i17.16370
Dewi, I. A. P. R., & Candraningrat, I. R. (2022). Relationship of Financial Literacy and Financial Performance to Business Sustainability. International Research Journal of Management It and Social Sciences, 9(4), 598–611. https://doi.org/10.21744/irjmis.v9n4.2120
Dwyanti, D. (2024). The Importance of Financial Literacy in Financial Management in Micro, Small and Medium Enterprises (MSMEs). Journal of Applied Management and Business (Jamb), 5(1), 1–6. https://doi.org/10.37802/jamb.v5i1.661
Ferli, O. (2023). Financial Literacy for Better Access to Finance, Financial Risk Attitude, and Sustainability of MSMEs in Indonesia. Jurnal Manajemen, 14(1), 111. https://doi.org/10.32832/jm-uika.v14i1.9792
Fikri, A. S. K., & Nahda, K. (2023). The Effect of Financial Literacy on MSME Performance Through Financial Access and Financial Risk Attitude as a Mediation Variable. Jurnal Economic Resource, 6(2), 238–247. https://doi.org/10.57178/jer.v6i2.664
Galbreath, J., Lucianetti, L., Thomas, B. W., & Tisch, D. (2020). Entrepreneurial Orientation and Firm Performance in Italian Firms. International Journal of Entrepreneurial Behaviour & Research, 26(4), 629–646. https://doi.org/10.1108/ijebr-07-2019-0457
Gunawan, A., Jufrizen, J., & Pulungan, D. R. (2023). Improving MSME Performance Through Financial Literacy, Financial Technology, and Financial Inclusion. International Journal of Applied Economics Finance and Accounting, 15(1), 39–52. https://doi.org/10.33094/ijaefa.v15i1.761
Harjito, R. R. W. (2022). Determinants of Investment Decision Making Behavior (Empirical Study on MSMEs in Semarang City). Ubar, 1(1), 43. https://doi.org/10.56444/ubar.v1i1.2926
Herman, N. M., Nirwana, N., Fahdal, M. A., & Hasan, H. (2023). The Role of Technology and Accounting Information Systems in Improving the Operational Activities of MSMEs. International Journal of Humanities Education and Social Sciences (Ijhess), 3(3). https://doi.org/10.55227/ijhess.v3i3.683
Imran, T., Ahmed, R. R., Štreimikienė, D., Soomro, R. H., Parmar, V., & Vveinhardt, J. (2019). Assessment of Entrepreneurial Traits and Small-Firm Performance With Entrepreneurial Orientation as a Mediating Factor. Sustainability, 11(19), 5301. https://doi.org/10.3390/su11195301
Islam, A., & Wahab, S. A. (2021). The Intervention of Strategic Innovation Practices in Between Regulations and Sustainable Business Growth: A Holistic Perspective for Malaysian SMEs. World Journal of Entrepreneurship Management and Sustainable Development, ahead-of-print(ahead-of-print). https://doi.org/10.1108/wjemsd-04-2020-0035
Istianingsih, N., Masnun, A., & Pratiwi, W. (2020). Managerial Performance Models Through Decision Making and Emotional Intelligence in Public Sector. Administratie Si Management Public, 1(35), 153–166. https://doi.org/10.24818/amp/2020.35-10
Kaban, R. F., & Safitry, M. (2020). Does Financial Literacy Effect To Perfomance And Sustainability Of Culinary Msmes In Greater Jakarta? Ekonomi Bisnis, 25(1), 1. https://doi.org/10.17977/um042v25i1p1-13
Karami, M., & Tang, J. (2019). Entrepreneurial Orientation and SME International Performance: The Mediating Role of Networking Capability and Experiential Learning. International Small Business Journal Researching Entrepreneurship, 37(2), 105–124. https://doi.org/10.1177/0266242618807275
Kiyabo, K., & Isaga, N. (2020). Entrepreneurial Orientation, Competitive Advantage, and SMEs’ Performance: Application of Firm Growth and Personal Wealth Measures. Journal of Innovation and Entrepreneurship, 9(1). https://doi.org/10.1186/s13731-020-00123-7
Komariyah, F. (2024). Analysis of the Effect of Implementing a Digital Technology-Based Accounting System on the Financial Performance of Msme’s in Indonesia. Transekonomika Akuntansi Bisnis Dan Keuangan, 4(6), 1220–1226. https://doi.org/10.55047/transekonomika.v4i6.805
Kurniawan, R., Budiastuti, D., Hamsal, M., & Kosasih, W. (2020). Networking Capability and Firm Performance: The Mediating Role of Market Orientation and Business Process Agility. Journal of Business and Industrial Marketing, 36(9), 1646–1664. https://doi.org/10.1108/jbim-01-2020-0023
Li, R., & Qian, Y. (2019). Entrepreneurial Participation and Performance: The Role of Financial Literacy. Management Decision, 58(3), 583–599. https://doi.org/10.1108/md-11-2018-1283
Liu, Z., & Ali, D. A. (2024). The Review of the Mediating Role of Organizational Agility in the Impact of Entrepreneurial Orientation on Corporate Performance. Journal of Ecohumanism, 3(7), 149–157. https://doi.org/10.62754/joe.v3i7.4187
Lubis, K. S., & Irawati, L. (2022). The Effect of Financial Literacy on Financial and Capital Management on MSME Performance. Asean International Journal of Business, 1(1), 77–85. https://doi.org/10.54099/aijb.v1i1.66
Mangawing, L. A., Sari, A. P., & Ramadhan, W. (2023). The Influence of Digital Financial Literacy on MSME Performance in Balikpapan City. Proceeding of the International Seminar on Business Economics Social Science and Technology (Isbest), 3(1). https://doi.org/10.33830/isbest.v3i1.1348
Marini, M., Yusmaniarti, Y., Faradilla, I., & Setiorini, H. (2024). Measuring the Financial Performance of Msmes From the Perspective of Financial Literacy, Financial Inclusion and Financial Technology. Ekombis Review Jurnal Ilmiah Ekonomi Dan Bisnis, 12(1). https://doi.org/10.37676/ekombis.v12i1.5323
Marissa, S., & Fitriyah, F. (2023). The Influence of Financial Knowledge, Financial Attitude, Financial Behavior on the Growth of MSMEs With Financial Literacy as a Mediation Variable. Mec-J (Management and Economics Journal), 7(3), 233–244. https://doi.org/10.18860/mec-j.v7i3.24333
Mtshali, S. S., & Chinyamurindi, W. (2021). Determinants of Small Business Performance in a Selected Region in South Africa : The Role of Entrepreneurial Orientation and Competitive Advantage. Journal of Contemporary Management, 18(1), 1–20. https://doi.org/10.35683/jcm20089.94
Musthafa, I., Handra, H., Bachtiar, N., Taifur, W. D., & Ariyanto, E. (2023). Financial Literacy and Performance of Micro, Small and Medium Enterprises: A Literature Review. Marginal Journal of Management Accounting General Finance and International Economic Issues, 3(1), 287–303. https://doi.org/10.55047/marginal.v3i1.956
Nuryakin, N. (2021). Mediating Effect of Relational Capabilities in the Relationship Between Entrepreneurial Orientation and SMEs Performance. Journal of Entrepreneurship Management and Innovation, 17(1), 129–146. https://doi.org/10.7341/20211714
Okręglicka, M., & Filipowicz, A. (2023). Entrepreneurial Orientation and Economic Performance of Small and Medium-Sized Enterprises a Comparative Analysis. Zeszyty Naukowe Wyższej Szkoły Humanitas Zarządzanie, 24(1), 43–60. https://doi.org/10.5604/01.3001.0053.4043
Permoni, N. L. E. A., & Oki, N. K. O. A. D. (2023). Improving Financial Performance Through Financial Management, Financial Literacy and Financial Inclusion. Artha Satya Dharma, 16(1), 61–67. https://doi.org/10.55822/asd.v16i1.306
Phong, V. T., & Tam, V. T. (2024). The Impact of Dynamic Capabilities on Performance of Small and Medium Tourism Businesses: A Study for the South-Central Coast Region, Vietnam. Open Journal of Business and Management, 12(01), 444–471. https://doi.org/10.4236/ojbm.2024.121028
Prastiwi, S. K., & Rohimat, A. M. (2020). Performance of GoFood MSEs Partnership: An Integration of Entrepreneurial Orientation, Marketing Capabilities, and Brand Orientation. Shirkah Journal of Economics and Business, 5(3), 310. https://doi.org/10.22515/shirkah.v5i3.337
Priyaadarshini, R. G., & Jena, L. K. (2024). Does Self and Role Efficacy Navigate Effectiveness Among MSME Managers? A Process-Based Perspective. Journal of Asia Business Studies, 18(4), 984–1003. https://doi.org/10.1108/jabs-10-2023-0427
Puspitasari, R., & Astrini, D. (2022). The Impact of Financial Literacy and Financial Inclusion on the Performance of MSME in Bogor City. Asian Journal of Economics Business and Accounting, 125–131. https://doi.org/10.9734/ajeba/2022/v22i2330741
Resmi, S., Pahlevi, R. W., & Sayekti, F. (2019). Financial Literacy as a Determinant Factor in Business Growth for Creative Msmes in Yogyakarta. Proceedings on Engineering Sciences, 1(2), 59–64. https://doi.org/10.24874/pes01.02.007
Rijaldi, S. M., Sunarya, E., & Ramdan, A. M. (2023). Analysis of Market Orientation and Financial Literacy on Msme Performance. Jurnal Apresiasi Ekonomi, 11(3), 472–483. https://doi.org/10.31846/jae.v11i3.653
Rofiqoh, I. (2023). Artistic Orientation, Financial Literacy, Digital Literacy, and MSME Performance. Ijhcm (International Journal of Human Capital Management), 7(1), 52–64. https://doi.org/10.21009/ijhcm.07.01.4
Ruiz, E. D., Gómez, J. F. S., & Rivera, M. de J. V. (2024). Financial Planning and Decision Making as Predictors of Financial Performance in Msmes. International Journal of Professional Business Review, 9(3), e04431. https://doi.org/10.26668/businessreview/2024.v9i3.4431
Santos, J. D., Giri, E. E., & Soares, A. d. C. (2020). The Effect of Entrepreneurial Orientation and Creativity on the Development of Small Business Credit Union Members on the Cu Lanamona, Maliana Timor Leste. Abm International Journal of Administration Business and Management, 2(2), 111–125. https://doi.org/10.31967/abm.v2i2.394
Sari, M. P. (2022). Decision-Making and Life Satisfaction: The Role of General Decision-Making Styles and Maximizing Tendency as Predictors. Humaniora, 13(2), 127–135. https://doi.org/10.21512/humaniora.v13i2.7769
Shim, Y., & Seo, J. (2019). A Study on Entrepreneurial Orientation and Startup Performance : Mediating Effect of Strategic Orientation. Ijemr, 3(4), 32–40. https://doi.org/10.22662/ijemr.2019.3.4.033
Spio-Kwofie, A., Boateng, N., & Eshun, P. A. (2023). Examining the Probabilities and Magnitude to Which Entrepreneurial Orientation, Industry Forces and Firm’s Resources Impact on Hotel Business Performance. American Journal of Industrial and Business Management, 13(09), 911–929. https://doi.org/10.4236/ajibm.2023.139051
Sulistiyowati, L. N., Setyahety, R. A., Pratiwi, A. A. S. D., & Yusuf, B. (2023). Financial Behavior With A Case-Based Approach On Y Generation Msmes For Sustainable Finance. Penanomics International Journal of Economics, 2(2), 83–92. https://doi.org/10.56107/penanomics.v2i2.140
Susbiyani, A., Nastiti, A. S., & Animah, A. (2021). SMEs’ Strategies for Improving Financial Performance Through Competitive Advantages. Mimbar Jurnal Sosial Dan Pembangunan, 37(2). https://doi.org/10.29313/mimbar.v37i2.7997
Tubastuvi, N., Ainun, R. N., Purwidianti, W., & Zamakhsyari, L. (2024). Enhancing MSME: Exploring the Relationship Between Financial Literacy, Financial Inclusion, and Capital Access to Improve Performance. Airlangga Journal of Innovation Management, 5(1), 1–16. https://doi.org/10.20473/ajim.v5i1.53990
Vo, L. T., Vo, N. V, Pham, T. N., & Hien, N. N. (2023). The Impact of Historical Performance and Managerial Risk-Taking Propensity on the Behavior of Choosing Prospector Strategy and Using Strategic Management Accounting Information in Viet Nam Manufacturer. Sage Open, 13(4). https://doi.org/10.1177/21582440231219360
Wibisono, T., Universari, N., & Budiati, Y. (2020). Market Orientation, Entrepreneurship Orientation, and Company Performance: Study on Small and Medium Industries (SMES) Furniture in Demak District. Economics and Business Solutions Journal, 4(1), 20. https://doi.org/10.26623/ebsj.v4i1.2240
Wibowo, E., & Widayat, B. C. (2023). Financial Performance Of Culinary Msmes In Jebres District, Surakarta City Based On Financial Literacy, Financial Inclusion, And Financial Technology. Marginal Journal of Management Accounting General Finance and International Economic Issues, 2(2), 607–617. https://doi.org/10.55047/marginal.v2i2.656
Wu, W., Jing, S., Lü, L., & Guo, H. (2024). Is Managerial Ability a Catalyst for Driving Digital Transformation in Enterprises? An Empirical Analysis From Internal and External Pressure Perspectives. Plos One, 19(2), e0293454. https://doi.org/10.1371/journal.pone.0293454
Ye, J., & Kulathunga, K. M. M. C. B. (2019). How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective. Sustainability, 11(10), 2990. https://doi.org/10.3390/su11102990
Ying, G., & Wang, L. (2022). Environmental Entrepreneurial Orientation and Firm Performance: The Role of Environmental Innovation and Stakeholder Pressure. Sage Open, 12(1). https://doi.org/10.1177/21582440211061354
Yustisi, Y. P. (2024). Effect of Financial Literacy, Capital Capacity, and Network on the Performance of MSMEs in South Tangerang, Banten, Indonesia. International Journal of Business Law and Education, 5(2), 1513–1523. https://doi.org/10.56442/ijble.v5i2.619
Zaniarti, S., Veronica, S., & Arsytania, R. A. (2022). The Effect of Financial Literacy on the Sustainability of Micro, Small, and Medium, Enterprises With Access to Finance as a Mediating Variable. The International Journal of Management Science and Business Administration, 9(1), 17–31. https://doi.org/10.18775/ijmsba.1849-5664-5419.2014.91.1002
Zhang, W., Yu, J., Diao, L., & Qi, S. (2023). Editorial: Managerial Decision-Making From the Perspectives of Behavioral Science and Neuroscience. Frontiers in Psychology, 14. https://doi.org/10.3389/fpsyg.2023.1125333Abdillah, M. (2016). An Error Analysis On The Use of Simple Present Tense In Descriptive Text Made By The First Grade Students of SMA Negeri 2 Boyolali In The Academic Year 2014/2015. Universitas Sebelas Maret.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Yayu Rakkang, Andi Nur Achsanuddin
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
