Abstract
Micro Small and Medium Enterprises (MSMEs) have a very significant role in the economy, can even be said to be the backbone of the economy. However, MSMEs are precisely the sector hardest hit by the Covid-19 pandemic. Digitalization creates new opportunities for MSMEs in the pandemic. FinTech, one of the implementations of digitalization should be pursued to be used by MSMEs. Using path analysis processed using Partial Least Square (PLS), this research aims to identify how Unified Theory of Acceptance and Use of Technology (UTAUT) works on Adopting FinTech by MSMEs. The Outer Model and Inner Model reflect that the model work. The outer loading value of ? 0.7, AVE value ? of 0.5, Cronbach's Alpha ? 0,70, a correlation value ? of 0.50; and Composite Reliability ? 0.6, and R-Square 0.716 reflect it. However, regarding the factors that influence intention to use, it is different from previous research that became a reference. There are only four hypotheses proven. Those are Context had a significant positive effect on Perceived Ease of Use and Perceived Usefulness, and Perceived Ease of Use and Perceived Usefulness had a significant positive effect on the intention to use fintech. Keywords: FinTech, MSMEs, Digitalization, UTAUT, Inclusive
Highlights
Micro Small and Medium Enterprises (MSMEs) have a very significant role in the economy, can even be said to be the backbone of the economy
The object of this study is the adoption of the digitalization behavior intention of MSMEs on a perceptual basis with various factors that affect it conducted in the city of Semarang
The Context variable only explains the variation of the Perceived Ease of Use variable by 32.3 percent and Perceived Usefulness by 50.7 percent
Summary
Micro Small and Medium Enterprises (MSMEs) have a very significant role in the economy, can even be said to be the backbone of the economy. With a small business scale based on local consumers, MSMEs products are always needed by the community. MSMEs are not dependent on the capital market and have proven to have high durability in crises. MSMEs are precisely the sector hardest hit by the Covid-19 pandemic. This condition occurs because the MSMEs sector is dominated by informal business units that require conducting business outside the home. The era of industrial revolution 4.0 marked by digitalization, automation, the internet of things (IoT), and artificial intelligence create new opportunities for MSMEs. The outbreak of covid 19 seems to be the trigger for the faster era of MSMEs digitization
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