Micro, small, and medium-sized enterprises (MSMEs) during the post-pandemic economic recovery period: digitalization, literation, innovation, and its impact on financial performance

Riska Nur Rosyidiana and I. Made Narsa

Cogent Business & Management, 2024, vol. 11, issue 1, 2342488

Abstract: This study explores the impact of digitalization, literation, and innovation on the financial performance of Micro, Small, and Medium-Sized Enterprises (MSMEs) in Bojonegoro, East Java, Indonesia. Using a sample of 35 business owners, the research employs partial least squares structural equations modelling. The findings reveal a positive and significant relationship between innovation and MSMEs’ financial performance, emphasizing the crucial role of innovative practices. Additionally, business owners’ literacy levels positively influence innovation. Although digitalization shows a positive impact on innovation and financial performance, the lack of statistical significance calls for nuanced exploration. The study contributes to understanding the complex dynamics within MSMEs post-pandemic, emphasizing the importance of literation and innovation. The research offers practical insights for MSME owners on enhancing financial literacy and fostering an innovative culture within their businesses. Policymakers were also encouraged to allocate resources to facilitate financial training for business owners. Urban areas might employ varying pandemic response strategies depending on their economic circumstances, resulting in differences in interaction variables. Future studies should extend these findings to diverse urban settings to broaden our understanding of literation, innovation, and digitalization’s impact on MSME performance.

Date: 2024
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2024.2342488 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:11:y:2024:i:1:p:2342488

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2024.2342488

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().