Impact of Intellectual Capital and Risk Attitude Through Financial Literacy on Business Sustainability in Indonesia Batik Smes

Idris Ahmad (), Hanafi Mamduh M., Rahmawati Alni and Surwanti Arni
Additional contact information
Idris Ahmad: Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia.
Hanafi Mamduh M.: Universitas Gadjah Mada, Yogyakarta, Indonesia.
Rahmawati Alni: Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia.
Surwanti Arni: Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia.

Economics, 2023, vol. 11, issue 2, 113-136

Abstract: This study aims to create a theoretical model of business sustainability with financial literacy antecedents. The antecedents of financial literacy are intellectual capital and risk attitudes. The research location is in the province of East Java, Indonesia. Batik SMEs are only found in Indonesia because it is a cultural heritage belonging to Indonesia that does not exist in other countries. The sampling technique used was purposive sampling, with 222 respondents from the batik SMEs spread across six cities. The data was taken using a questionnaire on a Likert scale. Data analysis uses SEM (structural equation modeling) with the SmartPLS application. The study results show that risk attitudes toward financial literacy have a positive effect. The effect of financial literacy on the business sustainability of the batik industry has a positive influence. The impact of intellectual capital on the business sustainability of the batik industry has a positive effect. Risk attitudes have no significant positive impact on business sustainability. Financial literacy has yet to be able to mediate intellectual capital’s influence on the batik SME’s business sustainability. This needs to be explored further with further research. Furthermore, financial literacy can mediate risk attitudes towards the business sustainability of batik SMEs.

Keywords: Financial literacy; business sustainability; intellectual capital; risk attitudes; batik SMEs (search for similar items in EconPapers)
JEL-codes: G32 G53 O34 O44 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/eoik-2023-0052 (text/html)

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:vrs:econom:v:11:y:2023:i:2:p:113-136:n:1

DOI: 10.2478/eoik-2023-0052

Access Statistics for this article

Economics is currently edited by Stelios Bekiros

More articles in Economics from Sciendo
Bibliographic data for series maintained by Peter Golla ().