Women in business: The impact of digital and financial literacy on female-owned small and medium-sized enterprises
The growth of small and medium enterprises (SMEs) shows a positive trend and has even become a major highlight in the national economic landscape. Moreover, most of these businesses are owned by women. Examining how digital capability and financial literacy and a dynamic environment affect the succe...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2024-09-01
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| Series: | Investment Management & Financial Innovations |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20622/IMFI_2024_03_Asandimitra.pdf |
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| author | Nadia Asandimitra Achmad Kautsar Dewie Tri Wijayati Nunik Dwi Kusumawati Ina Uswatun Nihaya |
| author_facet | Nadia Asandimitra Achmad Kautsar Dewie Tri Wijayati Nunik Dwi Kusumawati Ina Uswatun Nihaya |
| author_sort | Nadia Asandimitra |
| collection | DOAJ |
| description | The growth of small and medium enterprises (SMEs) shows a positive trend and has even become a major highlight in the national economic landscape. Moreover, most of these businesses are owned by women. Examining how digital capability and financial literacy and a dynamic environment affect the success of female-owned small and medium-sized enterprises in Indonesia is the main goal of this study. Financial and digital capability are examined as mediators between performance and these factors. The study used a causal explanatory research approach. The data in this study were collected through questionnaires. This research surveyed 100 female-owned small and medium-sized enterprises in Indonesia’s food and beverage, herbal and pharmaceutical, fashion, and craft industries. Partial Least Square (PLS) analysis was utilized in this work as an analytical tool. The study reveals that financial literacy significantly enhances SMEs` performance by improving resource management. However, a dynamic environment alone does not impact performance unless supported by other competencies. Financial competence does not strengthen the effect of financial literacy, indicating it may not be sufficient for success. Conversely, digital competence is crucial, mediating the relationship between a dynamic environment and SMEs` performance. Therefore, SMEs with strong digital skills are better positioned to adapt and thrive, making digital competence key to sustained business success. |
| format | Article |
| id | doaj-art-8fc068fe75404eb8a9b1832402a4d60a |
| institution | Kabale University |
| issn | 1810-4967 1812-9358 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj-art-8fc068fe75404eb8a9b1832402a4d60a2025-02-03T12:03:18ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582024-09-0121333034310.21511/imfi.21(3).2024.2720622Women in business: The impact of digital and financial literacy on female-owned small and medium-sized enterprisesNadia Asandimitra0https://orcid.org/0000-0003-0702-6919Achmad Kautsar1https://orcid.org/0000-0001-6155-4320Dewie Tri Wijayati2https://orcid.org/0000-0002-4631-8781Nunik Dwi Kusumawati3https://orcid.org/0000-0001-6448-5738Ina Uswatun Nihaya4https://orcid.org/0009-0004-6062-6379Doctor, Associate Professor, Faculty of Economics and Business, Department of Management, Universitas Negeri Surabaya, IndonesiaMaster of Management, Assistant Professor, Faculty of Economics and Business, Department of Digital Business, Universitas Negeri Surabaya, IndonesiaDoctor, Professor, Faculty of Economics and Business, Department of Management, Universitas Negeri Surabaya, IndonesiaMaster of Science in Management, Assistant Professor, Faculty of Economics and Business, Department of Management, Universitas Negeri Surabaya, IndonesiaMaster of Science in Management, Lecturer, Faculty of Economics and Business, Department of Management, Universitas Negeri Surabaya, IndonesiaThe growth of small and medium enterprises (SMEs) shows a positive trend and has even become a major highlight in the national economic landscape. Moreover, most of these businesses are owned by women. Examining how digital capability and financial literacy and a dynamic environment affect the success of female-owned small and medium-sized enterprises in Indonesia is the main goal of this study. Financial and digital capability are examined as mediators between performance and these factors. The study used a causal explanatory research approach. The data in this study were collected through questionnaires. This research surveyed 100 female-owned small and medium-sized enterprises in Indonesia’s food and beverage, herbal and pharmaceutical, fashion, and craft industries. Partial Least Square (PLS) analysis was utilized in this work as an analytical tool. The study reveals that financial literacy significantly enhances SMEs` performance by improving resource management. However, a dynamic environment alone does not impact performance unless supported by other competencies. Financial competence does not strengthen the effect of financial literacy, indicating it may not be sufficient for success. Conversely, digital competence is crucial, mediating the relationship between a dynamic environment and SMEs` performance. Therefore, SMEs with strong digital skills are better positioned to adapt and thrive, making digital competence key to sustained business success.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20622/IMFI_2024_03_Asandimitra.pdfdigital capabilitydynamic environmentfemale-owned enterprisesfinancial capabilityfinancial literacy |
| spellingShingle | Nadia Asandimitra Achmad Kautsar Dewie Tri Wijayati Nunik Dwi Kusumawati Ina Uswatun Nihaya Women in business: The impact of digital and financial literacy on female-owned small and medium-sized enterprises Investment Management & Financial Innovations digital capability dynamic environment female-owned enterprises financial capability financial literacy |
| title | Women in business: The impact of digital and financial literacy on female-owned small and medium-sized enterprises |
| title_full | Women in business: The impact of digital and financial literacy on female-owned small and medium-sized enterprises |
| title_fullStr | Women in business: The impact of digital and financial literacy on female-owned small and medium-sized enterprises |
| title_full_unstemmed | Women in business: The impact of digital and financial literacy on female-owned small and medium-sized enterprises |
| title_short | Women in business: The impact of digital and financial literacy on female-owned small and medium-sized enterprises |
| title_sort | women in business the impact of digital and financial literacy on female owned small and medium sized enterprises |
| topic | digital capability dynamic environment female-owned enterprises financial capability financial literacy |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/20622/IMFI_2024_03_Asandimitra.pdf |
| work_keys_str_mv | AT nadiaasandimitra womeninbusinesstheimpactofdigitalandfinancialliteracyonfemaleownedsmallandmediumsizedenterprises AT achmadkautsar womeninbusinesstheimpactofdigitalandfinancialliteracyonfemaleownedsmallandmediumsizedenterprises AT dewietriwijayati womeninbusinesstheimpactofdigitalandfinancialliteracyonfemaleownedsmallandmediumsizedenterprises AT nunikdwikusumawati womeninbusinesstheimpactofdigitalandfinancialliteracyonfemaleownedsmallandmediumsizedenterprises AT inauswatunnihaya womeninbusinesstheimpactofdigitalandfinancialliteracyonfemaleownedsmallandmediumsizedenterprises |