THE INTEGRATIVE ROLE OF FINANCIAL LITERACY, FINANCIAL TECHNOLOGY, AND DIGITAL ACCOUNTING ON MSME PERFORMANCE: A LITERATURE REVIEW
DOI:
https://doi.org/10.61990/ijamesc.v4i3.794Keywords:
Financial Literacy, Financial Technology, Digital Accounting, MSME Performance, Literature ReviewAbstract
This study aims to comprehensively analyze the integrative role of financial literacy, financial technology, and digital accounting on the performance of micro, small, and medium enterprises (MSMEs) through a literature review approach. The method used was a qualitative-descriptive literature review by analyzing 30 SCOPUS-indexed international journal articles (Q1, Q2, and Q3) that were relevant to the research topic. The analysis process is carried out through data extraction, thematic grouping, and narrative synthesis to identify patterns of relationships between variables. The results of the study show that financial literacy plays a role as a foundation in financial decision-making and management, financial technology functions as an enabler in improving the efficiency and access to financial services, and digital accounting contributes to improving the quality of financial information and decision-making. These three variables interact with each other and form integrative relationships in influencing the performance of MSMEs. The conclusion of this study confirms that the integrative approach between financial literacy, financial technology, and digital accounting provides a more comprehensive understanding in explaining the performance of MSMEs compared to the partial approach. This research contributes to the development of literature related to MSMEs in the digital era and becomes the basis for further research.
Downloads
References
Anthanasius Fomum, T., & Opperman, P. (2023). Financial inclusion and performance of MSMEs in Eswatini. International Journal of Social Economics, 50(11), 1551–1567. https://doi.org/10.1108/IJSE-10-2020-0689
Anwarul Islam, K. M., & Khan, M. S. (2024). The role of financial literacy, digital literacy, and financial self-efficacy in FinTech adoption. Investment Management and Financial Innovations, 21(2), 370–380. https://doi.org/10.21511/imfi.21(2).2024.30
Asandimitra, N., Kautsar, A., Wijayati, D. T., Kusumawati, N. D., & Nihaya, I. U. (2024). Women in Business: the Impact of Digital and Financial Literacy on Female-Owned Small and Medium-Sized Enterprises. Investment Management and Financial Innovations, 21(3), 330–343. https://doi.org/10.21511/imfi.21(3).2024.27
Charfeddine, L., Umlai, M. I., & El-Masri, M. (2024). Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: evidence from Qatari MSME importers. Financial Innovation, 10(1). https://doi.org/10.1186/s40854-023-00557-4
Culebro-Martínez, R., Moreno-García, E., & Hernández-Mejía, S. (2024). Financial Literacy of Entrepreneurs and Companies’ Performance. Journal of Risk and Financial Management, 17(2). https://doi.org/10.3390/jrfm17020063
Daud, I., Nurjannah, D., Mohyi, A., Ambarwati, T., Cahyono, Y., Haryoko, A. D. E., Handoko, A. L., Putra, R. S., Wijoyo, H., Ari-Yanto, A., & Jihadi, M. (2022). The effect of digital marketing, digital finance and digital payment on finance performance of indonesian smes. International Journal of Data and Network Science, 6(1), 37–44. https://doi.org/10.5267/J.IJDNS.2021.10.006
Dwijayanty, R., Buchory, H. A., Nuryaman, N., & Kusumah, W. R. (2025). The mediating role of financial management behavior in the relationship between financial literacy and business performance. Edelweiss Applied Science and Technology, 9(8), 1406–1412. https://doi.org/10.55214/2576-8484.v9i8.9618
González-Prida, V., Pariona-Amaya, D., Sánchez-Soto, J. M., Barzola-Inga, S. L., Aguado-Riveros, U., Moreno-Menéndez, F. M., & Villar-Aranda, M. D. (2025). Exploring the Effects of Financial Knowledge on Better Decision-Making in SMEs. Administrative Sciences, 15(1), 1–25. https://doi.org/10.3390/admsci15010024
Hung, B. Q., Hoa, T. A., Hoai, T. T., & Nguyen, N. P. (2023). Advancement of cloud-based accounting effectiveness, decision-making quality, and firm performance through digital transformation and digital leadership: Empirical evidence from Vietnam. Heliyon, 9(6), e16929. https://doi.org/10.1016/j.heliyon.2023.e16929
Kilay, A. L., Simamora, B. H., & Putra, D. P. (2022). The Influence of E-Payment and E-Commerce Services on Supply Chain Performance: Implications of Open Innovation and Solutions for the Digitalization of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(3). https://doi.org/10.3390/joitmc8030119
Kurniasari, F., Lestari, E. D., & Tannady, H. (2023). Pursuing Long-Term Business Performance: Investigating the Effects of Financial and Technological Factors on Digital Adoption to Leverage SME Performance and Business Sustainability—Evidence from Indonesian SMEs in the Traditional Market. Sustainability (Switzerland), 15(16). https://doi.org/10.3390/su151612668
Lontchi, C. B., Yang, B., & Shuaib, K. M. (2023). Effect of Financial Technology on SMEs Performance in Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy. Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15032171
Lutfi, A., Alkelani, S. N., Al-Khasawneh, M. A., Alshira’h, A. F., Alshirah, M. H., Almaiah, M. A., Alrawad, M., Alsyouf, A., Saad, M., & Ibrahim, N. (2022). Influence of Digital Accounting System Usage on SMEs Performance: The Moderating Effect of COVID-19. Sustainability (Switzerland), 14(22), 1–23. https://doi.org/10.3390/su142215048
Martin. (2025). The Effect of Financial Inclusion and Fintech Adoption on MSME Sustainability Mediated by Financial Literacy and Self-Efficacy. Journal of Information Systems Engineering and Management, 10(49s), 502–517. https://doi.org/10.52783/jisem.v10i49s.9900
Miran, M., Evinita, L. L., & Pesak, P. J. (2025a). Factors Affecting the Financial Performance of MSMEs in 3T (Frontier, Outermost, and Underdeveloped) Areas: The Moderating Role of Financial Literacy. Society, 13(1), 350–368. https://doi.org/10.33019/society.v13i1.802
Miran, M., Evinita, L., & Pesak, P. J. (2025b). Financial literacy as mediating factors affecting the financial performance of MSMEs in digital cities and special economic zones in 3T regions. Edelweiss Applied Science and Technology, 9(3), 801–816. https://doi.org/10.55214/25768484.v9i3.5320
Novianti, W., Narimawati, U., Ahiase, G., & Pramuditha, P. (2025). A Knowledge Capabilities Financial Model Based on the Performance of Fashion Enterprises: Micro, Small, and Medium. Australasian Accounting, Business and Finance Journal, 19(2), 80–96. https://doi.org/10.14453/AABFJ.V19I2.05
Nugraheni, P., Darma, E. S., & Muhammad, R. (2025). Adoption of Digital Technology and Financial Knowledge: Strategies for Achieving Sustainable Performance of MSMEs. Journal of Risk and Financial Management, 18(11), 1–15. https://doi.org/10.3390/jrfm18110646
Oduro, S., De Nisco, A., & Mainolfi, G. (2023). Do digital technologies pay off? A meta-analytic review of the digital technologies/firm performance nexus. Technovation, 128(September), 102836. https://doi.org/10.1016/j.technovation.2023.102836
Purba, M. I., Simanjutak, D. C. Y., Malau, Y. N., Sholihat, W., & Ahmadi, E. A. (2021). The effect of digital marketing and e-commerce on financial performance and business sustainability of MSMEs during COVID-19 pandemic in Indonesia. International Journal of Data and Network Science, 5(3), 275–282. https://doi.org/10.5267/j.ijdns.2021.6.006
Rahayu, S. K., Budiarti, I., Firdauas, D. W., & Onegina, V. (2023). Digitalization and informal MSME: Digital financial inclusion…. Jeecar, 10(1), 9–19. www.ieeca.org/journal
Ratnawati, Rokhman, M. T. N., & Ningsih, A. A. T. (2025). The role of digital financial inclusion in improving financial literacy and financial well-being for business sustainability: Indonesian women’s export craft SMEs. Problems and Perspectives in Management, 23(2), 398–408. https://doi.org/10.21511/ppm.23(2).2025.28
Rawashdeh, A., & Rawashdeh, B. S. (2023). The effect cloud accounting adoption on organizational performance in SMEs. International Journal of Data and Network Science, 7(1), 411–424. https://doi.org/10.5267/j.ijdns.2022.9.005
Setiawati, S., Gursida, H., & Indrayono, Y. (2025). Financial Literacy Model for MSMEs as a Financial Performance Measurement Tool (Case Study of MSMEs in Bogor, Depok, and Kuningan). Journal of World Science, 4(2), 247–255. https://doi.org/10.58344/jws.v4i2.1303
Tandilino, C., Pontoh, G. T., Darmawati, D., & Indrijawati, A. (2025). Digital Financial Inclusion as a Mediator of Digital Financial Literacy and Government Support in MSME Performance. International Journal of Financial Studies, 13(4), 199. https://doi.org/10.3390/ijfs13040199
Widagdo, B., & Sa’diyah, C. (2023). Business sustainability: Functions of financial behavior, technology, and knowledge. Problems and Perspectives in Management, 21(1), 120–130. https://doi.org/10.21511/ppm.21(1).2023.11
Widyastuti, M., Ferdinand, D. Y. Y., & Hermanto, Y. B. (2023). Strengthening Formal Credit Access and Performance through Financial Literacy and Credit Terms in Micro, Small and Medium Businesses. Journal of Risk and Financial Management, 16(1). https://doi.org/10.3390/jrfm16010052
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Sev Rahmiyanti, Agung Praptapa, Puji Lestari, Eliada Herwiyanti
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
