Bridging Capability Gaps for MSMEs in the Digital Era: The Role of Financial Literacy, Digital Technology, and Business Coaching

Lusia Adinda Dua Nurak (), Fitriningsih Amalo, Upik Djaniar and I Putu Astawa ()
Additional contact information
Lusia Adinda Dua Nurak: Muhammadiyah University
Fitriningsih Amalo: Muhammadiyah University
Upik Djaniar: Muhammadiyah University
I Putu Astawa: State Polytechnic Bali

A chapter in Entrepreneurship and Human-Centric Business Strategies for Social and Economic Resilience, 2026, pp 1991-2002 from Springer

Abstract: Abstract This study aims to analyze the effect of financial literacy and business coaching on MSMEs performance, with digital technology as a moderating variable in the digital era. The research was conducted on 76 MSMEs in Kupang, Indonesia, using a closed-ended questionnaire. Data analysis was performed using SEM–PLS with the assistance of WarpPLS software to examine both direct effects and the moderating effects. The findings show that the impact of financial literacy as well as business coaching on MSMEs performance is elevated by digital technology. In addition, business coaching is shown to be effective in enhancing MSME performance; however, financial literacy, on its own, and the presence of digital technology do not directly influence MSME performance. The research that integrated three variables into one empirical framework offers fresh perspectives on the MSME performance. The study further stresses the impact of business coaching and technology on the performance of MSMEs. The conclusions emphasize the importance of digital technology initiatives in enhancing the performance of MSMEs in the contemporary digital age.

Keywords: Financial literacy; Digital technology; Business coaching; SMEs performance (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:prbchp:978-981-95-6415-6_124

Ordering information: This item can be ordered from
http://www.springer.com/9789819564156

DOI: 10.1007/978-981-95-6415-6_124

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().