The Influence of Digital Loans, E-Commerce Marketing, and Business Location on MSME Performance in Malang City toward Indonesia Emas 2045

This study aims to analyze the influence of financial capital and financial management on the performance of Micro, Small, and Medium Enterprises (MSMEs) at the Mentaya Shopping Center in Sampit, Central Kalimantan. Using a quantitative approach with a survey method, data were collected from 82 MSME respondents and analyzed through Structural Equation Modeling using SmartPLS 4.0. The research reveals that both financial capital and financial management have a positive and significant effect on MSME performance, both individually and simultaneously. The coefficient of determination (R²) value of 0.612 indicates that 61.2% of the variation in MSME performance is explained by the two independent variables. The findings show that most MSMEs rely on internal capital and face challenges accessing external financing. At the same time, financial management practices—especially in recording, reporting, and controlling—are still not fully optimized. The research supports the Resource-Based View (RBV) and Financial Capability Theory, which emphasize that a combination of financial resources and managerial competence is critical to enhancing business performance. Strategic implications highlight the importance of integrated interventions from stakeholders to improve access to capital and financial literacy among MSME actors. Programs combining digital finance access with structured financial training can significantly enhance MSME competitiveness, especially in traditional market settings. The study contributes both theoretically and practically to the development of inclusive economic models for MSME sustainability in regional markets.

This study aims to analyze the influence of financial capital, financial technology, and financial behavior on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Sampang Regency. The method used is a quantitative method involving 50 MSME actors as research samples. Data were collected using a Likert-based questionnaire, which was designed to measure research variables systematically. The data analysis process was carried out using SPSS software. The results of the study showed that financial capital has a positive and significant influence on MSME performance. Similar things were also found in financial technology and financial behavior, where both variables had a significant positive influence on MSME performance. In addition, the results of the simultaneous test revealed that the three variables—financial capital, financial technology, and financial behavior—together had a significant influence on MSME performance in Sampang Regency. Thus, this study confirms the importance of financial and behavioral factors in supporting the success of MSMEs, especially in the research area. This conclusion provides important insights for MSME actors and policy makers to strengthen these factors in order to improve the performance of the MSME sector in Sampang Regency.

This study explores the impact of fintech payment and e-commerce adoption on the performance of Micro, Small, and Medium Enterprises (MSMEs), focusing on the moderating role of the cashless society. Using a quantitative approach, data were collected from MSMEs operating in Central Java to examine how digital financial solutions influence business performance. The findings reveal that fintech payment adoption enhances MSME performance by improving transaction efficiency, financial management, and access to a broader market. However, e-commerce adoption does not directly affect MSME performance, which may be attributed to challenges such as technological readiness, digital literacy, and infrastructure limitations. The cashless society strengthens the impact of fintech payments on MSME performance, indicating that the shift toward digital transactions provides competitive advantages for MSMEs. However, its role in moderating the effect of e-commerce on MSME performance remains limited, suggesting that successful e-commerce adoption requires additional supporting factors. These findings underscore the importance of digital payment integration for MSMEs and highlight the need for financial literacy programs, digital mentoring, and infrastructure development to support MSMEs in adapting to an increasingly digital economy. This study provides valuable insights for policymakers, financial institutions, and MSME stakeholders in shaping strategies to enhance digital transformation and financial inclusion in the MSME sector.

This study specifically examines the influence of five main internal factors, namely innovation, diversification, error, information, and entrepreneurship, on the performance of Micro, Small and Medium Enterprises (MSMEs) in Pamekasan Regency. This study uses an explanatory quantitative approach with the aim of deeply understanding the influence of each internal factor on MSME performance. The research sample involved 400 MSME actors who were randomly selected from various business sectors in Pamekasan Regency, including trade, services, manufacturing, and other sectors. Data were collected through a questionnaire designed to measure the dimensions of the five independent variables and the MSME performance variable as the dependent variable. Data analysis was carried out using SPSS software to ensure the accuracy and validity of the results obtained. The results of the multiple linear regression analysis showed that each independent variable had a significant influence on MSME performance. Innovation contributes greatly to increasing the competitive advantage of MSMEs through the creation of new, relevant products and services that are in accordance with the needs of the ever-growing market. Diversification was also found to have a significant influence, where MSMEs that have a variety of products or services tend to be more resistant to economic risk and are able to maintain business stability in fluctuating market conditions. Flexibility, as the ability of MSMEs to adapt to changes in the business environment, shows a positive influence on MSME performance, especially in dealing with rapid changes in consumer preferences. Meanwhile, information plays an important role in supporting strategic decision-making, by enabling MSMEs to have access to accurate market data and trends. Finally, entrepreneurship has a significant impact on MSME performance, because the proactive, creative, and innovative attitudes of business actors are able to open up new opportunities and strengthen the position of MSMEs in the market

This research investigates the influence of digital transformation based on religious ethics on the performance of Micro, Small, and Medium Enterprises (MSMEs) in the era of Industry 4.0. The variables used in this study include digital transformation as the independent variable, MSME performance as the dependent variable, and religious ethics as a moderating variable. This research aims to analyze the extent to which digital transformation affects MSME performance in Pekalongan City, explore the role of religious ethics as a moderating variable that influences the relationship between digital transformation and MSME performance, and identify the challenges faced by MSMEs in Pekalongan in adopting digital transformation without neglecting the religious, ethical values they adhere to. The population in this study consisted of 180 MSMEs, which met the criteria of implementing digital transformation initiatives and having a clear orientation towards religious ethics in their business practices. This research used a census approach, where the entire population was considered the sample. The analysis tool used was Structural Equation Modeling - Partial Least Squares (SEM-PLS) with WarpPLS 8.0 software. The findings indicate that digital transformation has a positive and significant effect on MSME performance, religious ethics has a positive and significant effect on MSME performance, and religious ethics moderates the relationship between digital transformation and MSME performance. The supporting factors for digital transformation among MSMEs include government support, access to technology, and partnerships with technology companies. Meanwhile, the inhibiting factors are low digital literacy, limited financial access, and inadequate digital infrastructure.

This study investigates how digital agility and knowledge-sharing culture affect the performance of Micro Small and Medium Enterprises (MSMEs) in Semarang City, with innovation performance as a mediating factor. In today's rapidly evolving technological and business landscape, digital agility enables organizations and individuals to adapt swiftly, maintaining relevance and competitiveness. Knowledge-sharing culture facilitates the exchange of expertise and experiences, fostering new ideas through the combination of diverse knowledge. The research proposes seven hypotheses. First, digital agility's effect on innovation performance. Second, knowledge sharing's impact on innovation performance. Third, digital agility's influence on MSMEs performance. Fourth, knowledge sharing's effect on MSMEs performance. Fifth, innovation performance's impact on MSMEs performance. The indirect effect, digital agility has a positive and significant effect on MSMEs performance through innovation performance as a hypothesis 6, then knowledge sharing has a positive and significant effect on MSMEs performance through innovation performance as a hypothesis 7. The study surveyed 100 MSMEs owners in Semarang City, categorized by their business net income. Data analysis was conducted using SMART-PLS 4 software. Results indicate that both digital agility and knowledge sharing positively and significantly influence innovation performance. While digital agility has a positive but insignificant direct effect on MSMEs performance, knowledge sharing demonstrates a positive and significant direct impact. Importantly, the study reveals that digital agility and knowledge sharing indirectly enhance MSMEs performance through innovation performance. This research emphasizes the importance of digital agility and knowledge-sharing culture in improving MSMEs performance. As MSMEs reach critical growth stages, implementing more productive methods through digital agility and knowledge sharing becomes crucial. These practices generate new ideas, fostering creativity and innovation within the organization. The resulting innovation competitiveness allows MSMEs to develop unique products or services, creating a competitive advantage and attracting new customers.

This paper investigates how the impact of the COVID-19 pandemic crisis affects the innovation of Micro, small and medium enterprises (MSME) in Indonesia and how innovation, namely product, process, marketing, and organizational innovation, acts as a mediator for MSME performance. An integrated conceptual framework is developed and empirically tested using cross-sectional survey design data from 300 MSME owners in Indonesia. Structural Equation Modelling (SEM) software Smart PLS examines the hypotheses testing. Descriptive analysis is also used to provide demographic data of the owners of MSMEs in Indonesia. This study reveals that the COVID-19 pandemic crisis significantly and positively impacts four dimensions of innovation. The results indicate that the pandemic triggered the MSME owners to innovate or adapt. This study also found that four dimensions of innovation partially mediate the COVID-19 pandemic crisis and MSME performance relationship. The results show that product, marketing, and organizational innovation significantly impact MSME performance. With marketing innovation as the lowest innovation dimension that affects performance, and organizational innovation as a major contributor that significantly impacts MSME performance. However, the results also demonstrate that among the four dimensions of innovation, process innovation does not significantly impact MSME performance which is highlighted by an indicator such as reducing production cost. This shows that reducing production costs is optional and does not mean that the performance of MSME will increase significantly. Therefore, the findings of this study are set to advance theories in MSME innovation and performance. It also presents important implications for the MSME owners to develop a successful and sustainable MSME industry.

This study aims to test the influence of Financial Knowledge and Fintech Implementation Payment on the Performance of Micro, Small and Medium Enterprises (MSMEs) in Bandar Lampung City. The research sample consisted of 100 MSMEs obtained through Slovin's estimation. The variables analyzed included Financial Knowledge as an understanding of basic financial concepts and Fintech Payment which includes the use of digital payment technology in business transactions. Multiple receivable analysis method used to see the influence of the two variables on the performance of MSMEs. The results of the study show that partially Financial Knowledge positive influence but not significant towards MSME performance, while Fintech Payment has a positive and significant influence on the performance of MSMEs. In addition, both variables simultaneously have a positive influence which is significant to the performance of MSMEs. The findings show that the implementation of Fintech Payment plays a bigger role in increasing the efficiency and effectiveness of MSME operations compared to the level of Financial Knowledge possessed by MSME actors. Therefore, this study suggests increasing financial literacy and adopting digital payment technology as a strategy to encourage the development of MSMEs in Bandar Lampung City.

This study aims to analyze the influence of legal protection innovation and marketing education on the performance of Micro, Small and Medium Enterprises (MSMEs) in Banjarbaru City in the context of the Society 5.0 era. The Society 5.0 era emphasizes the important role of digital technology in various sectors, including MSMEs. MSMEs play a significant role in the Indonesian economy, but face various challenges, such as increasingly tight competition and changes in market patterns towards digital. This study uses a quantitative approach with a sample of 26 MSMEs from a total population of 10,869 registered in Banjarbaru City. Data were collected through questionnaires and processed using non-parametric statistical analysis, such as Spearman Rank Correlation and Kruskal-Wallis, because the data were not normally distributed. The results of the study indicate that legal protection innovation does not have a significant effect on MSME performance, with a correlation coefficient of -0.026 and a significance value of 0.901. In contrast, marketing education has a significant positive effect on MSME performance, with a correlation coefficient of 0.591 and a significance value of 0.001. This confirms that MSMEs who receive better marketing education tend to have higher performance, especially in terms of sales growth, customers, and profits. This study also found significant differences in MSME performance based on age, with older age groups showing higher levels of education and better MSME performance. In conclusion, although innovations in legal protection have not shown a significant impact, marketing education has been shown to play an important role in improving MSME performance in the digital era. This study recommends improving marketing training and education programs for MSMEs to strengthen their competitiveness in an increasingly modern and digital market.

Purpose: This study examines the effect of distinctive capabilities and adaptive capabilities to business model adaptation and performance of Micro, Small and Medium Enterprises (MSMEs) in Indonesia.Method: The proposed hypotheses and the relationships between distinctive capabilities, adaptive capability, business model adaptation, and MSME performance were examined using Structural Equation Modeling (SEM) and regression analysis.Findings: The results show that both unique capabilities and adaptive capabilities play a crucial role in the adaptation of business models and the performance of MSMEs. The results prove that adaptive capability acts as a mediator between distinctive capabilities and business model adaptation, as well as between distinctive capabilities and MSME performance. Moreover, the relationship between distinctive capabilities on business model adaptation and MSME performance was moderated by adaptive capacity, indicating that firms with higher adaptive capacity are better placed to utilize their distinctive capabilities to achieve superior performance.Novelty: This paper adds to the dynamic capabilities literature by providing empirical insight into the relationships between distinctive capabilities, adaptive capability, business model adaptation and performance within MSMEs. This research sheds light on MSME success through a new lens of adaptive capacity as a mediator and moderator, providing an avenue for new ground in SME strategic management research particularly in emerging markets.Implications: The research indicates that MSMEs should strengthen their unique capabilities; also, the capabilities for market adaptability will be essential in this context for MSMEs to thrive and recover. Policymakers and practitioners must cultivate innovation, flexibility, and capability-building environments. Further exploration of the long-term impacts of these capabilities and extending the study to different geographical contexts or industries would provide a more in-depth understanding of their implications for business performance.

Purpose: This study aims to identify the factors influencing the performance of Micro, Small, and Medium Enterprises (MSMEs) in the culinary sector, with a particular focus on their capabilities in artificial intelligence (AI). The research examines business model innovation as a mediating factor and business agility as a moderating factor.Method: The research was conducted in Medan, targeting culinary entrepreneurs with a sample size of 165 respondents. Hypothesis testing was performed using PLS-SEM.Result: The results indicate that AI capabilities and business model innovation have a positive and significant impact on the business performance of culinary MSMEs in Medan. Mediation analysis reveals that business model innovation effectively mediates the relationship between AI capabilities and the performance of culinary MSMEs. However, moderation analysis shows that business agility does not strengthen the impact of AI capabilities and business model innovation on business performance.Practical Implications for Economic Growth and Development: This study emphasizes the significance of artificial intelligence, business agility, and business model innovation in enhancing the performance of MSMEs within the culinary sector. Adopting AI, improving business agility, and promoting business model innovation can enhance MSMEs' performance and contribute to digital economic growth.Originality/Value: This study evaluates AI capacity through mediation and moderation approaches based on the Resource-Based View (RBV) theory. It explores how AI capabilities, business agility, and business model innovation can improve MSME performance, an area that remains underexplored in developing countries such as Indonesia.

The implementation of Accounting Information Systems (AIS) and the effectiveness of decision-making play a significant role in enhancing the performance of Micro, Small, and Medium Enterprises (MSMEs). This research aims to examine the influence of AIS and decision-making effectiveness on the performance of MSMEs in Pematang Serai Village, Tanjung Pura District. Using a quantitative method and a saturated sampling technique involving 35 MSMEs, multiple linear regression analysis was conducted to test the relationship between AIS, decision-making effectiveness, and MSME performance. The research findings indicate that the adoption of AIS has a significant positive impact on MSME performance, with MSMEs effectively utilizing AIS more likely to experience increased revenue growth, profitability, and operational efficiency. Furthermore, the effectiveness of decision-making was found to have a positive impact on MSME performance, enabling MSMEs to respond quickly to market changes, identify growth opportunities, and optimize resource allocation. By integrating quantitative and qualitative findings, this study provides a comprehensive understanding of the influence of AIS and decision-making effectiveness on MSME performance in Pematang Serai Village

Micro, Small and Medium Enterprises (MSMEs) are to grow and develop businesses in order to build a national economy based on a just economic democracy. MSMEs in Indonesia have a significant contribution or role in expanding and absorbing new workers. MSMEs themselves have the advantage of producing consumer goods and services that are close to the needs of the community. There is still an obstacle that MSME actors still lack an understanding of the effects of inclusion, financial literacy, innovation and financial management in various types of businesses, especially on the performance of MSME by business actors. The reason of this consider is to decide the impact of budgetary incorporation, budgetary proficiency, advancement and monetary administration on the execution of MSMEs. The test measure utilized was 100 respondents who claim businesses. The examining method utilized in this ponder utilized a focused on inspecting procedure and the information were analyzed utilizing numerous relapse investigation to test the speculations. The comes about of this think about appear that the affect of monetary incorporation features a positive and significant affect on MSME execution, money related proficiency incorporates a negative and noteworthy affect on MSME execution, and development contains a positive affect on MSME execution. However, the impact is small, financial management has a positive impact on MSME performance, while financial management has a significant impact on MSME performance. It has a positive effect and has a significant impact on MSME performance.

PurposeMicro, small and medium-sized enterprises (MSMEs) are vital for economic growth in developing countries. Yet, little research has explored the link between Islamic principles and MSME performance, especially in Uganda. This study aims to investigate the relationship between Islamic financial principles and MSMEs’ performance in Makindye Division Kampala – Uganda.Design/methodology/approachThis study used a correlational research design involving 86 respondents from 30 MSMEs between January and May 2023. Data collected through questionnaires was analyzed with Statistical Package for Social Sciences, examining three independent variables: ethicality, Halal investment and prohibition of riba, in relation to MSME performance.FindingsThe results revealed significant relationships between these variables and MSME performance. Prohibition of riba (r = 0.296, n = 86, p = 0.006), Halal investments (r = 0.308, n = 86, p = 0.004) and ethical principles (r = 0.283, n = 86, p = 0.008) all exhibited a statistically significant relationship. Regression analysis with R = 0.405, R2 = 0.164 and adjusted R2 = 0.134 indicated that all hypothesized variables were significant predictors of MSME performance. Based on findings, this study rejected the null hypothesis, confirming a moderately positive and significant relationship between Islamic financial principles and MSME performance.Originality/valueThis study underscores the importance of active involvement from key stakeholders such as the Uganda Halal Bureau, Uganda Muslim Supreme Council, Islamic financial institutions and government agencies in integrating robust support mechanisms for MSMEs into their strategic frameworks. Such efforts could enhance Uganda’s economic landscape, aligning with the experiences of Malaysia and Indonesia in leveraging Islamic principles for economic growth.

The purpose of the study was to assess the effects of microcredit on Micro, Small and Medium Enterprises (MSMEs) performance in Tanzania, with reference to selected MSMEs in Iringa Municipality specifically, to examine the contribution of the loan amount on the performance of MSMEs, to examine the influence of interest rate on the performance of MSMEs and to determine the effect of initial capital on the performance of MSMEs. The targeted population was 874 MSMEs benefiting from microcredit services from Iringa Municipality, where a sample size of 274 MSMEs was drawn. A descriptive research design was employed, and a quantitative approach was applied to analyse data. Stratified sampling technique, simple random technique and Convenience sampling technique were used to select loan benefiting. The findings revealed that loans benefiting MSMEs at Iringa Municipality receive loans from financing institutions and use them to improve performance. Moreover, the study found that interest rate has no statistically significant on the performance of MSMEs in Iringa Municipality. In addition, findings revealed that there was statistical significance in the effects of initial capital on the performance of MSMEs. In the case of the normal regression output, the adjusted R2 equals 0.698, implying that the model explains about 69.8% variations in MSMEs performance. The study recommends that the Government should ensure that MSMEs receive appropriate loan amounts and should take proactive measures to regulate interest rates on microcredit loans. MSMEs should have a clear strategy for how these funds will be used. Financing institutions should recognise that loan provisions to MSMEs should be based on the specific needs of the business. Also, they should provide micro-loans at competitive rates that balance affordability for MSMEs and sustainability for the institution. For further studies, the researchers should conduct similar research in different regions or countries that will allow scholars to ascertain the general ability of the findings. Also, the researchers should conduct longitudinal studies that can provide invaluable insights into the long-term effects of microcredit on MSMEs’ performance