Financial attitude and financial performance of export MSMEs: Financial well-being as a mediating

Abstract

This study aims to analyze the effect of financial attitudes on financial well-being and financial performance moreover, it analyses financial well-being to mediate the effect of financial attitudes on MSME financial performance. This is explanatory research with quantitative data analysis method. The unit of analysis is the 112 small and medium sized enterprises (SMEs) in the handicraft industry that export in Banyuwangi Regency. Samples were drawn using saturation and census sampling. Structural Equation Modeling (SEM) analysis, explain that there is a direct effect of financial attitudes on financial well-being and financial performance and financial well-being can mediate the effect of financial attitudes on financial performance. This study concludes that the financial attitude of MSMEs for export handicrafts in Banyuwangi Regency contributes to financial well-being and improving financial performance and financial well-being is able to improve financial performance and is able to mediate the effect of financial attitudes on MSME financial performance. This study’s practical implication is that the export of handicraft (MSMEs) in Banyuwangi Regency need to have a financial attitude to develop a knowledge of personal financial orientation such as the ability to create effective financial planning records.