Bridging The Gap In Food-Processing Msmes: Financial Behavior And Performance

Purpose - This study examines the effects of financial literacy and financial technology on the performance of micro, small, and medium-sized enterprises (MSMEs), with financial behavior conceptualized as a mediating mechanism. Design/methodology/approach - The study used a quantitative design and survey data from 120 MSME owners in Malang City, Indonesia. The study used Structural Equation Modeling (SEM) to evaluate direct and indirect relationships among the constructs. Findings - Financial literacy and financial technology positively affect financial behavior. Financial behavior positively influences MSME performance and mediates the relationships between financial literacy and performance, as well as between financial technology and performance. Practical implications - Strengthening financial behavior through financial literacy initiatives and the effective use of financial technology may enhance MSME performance and long-term sustainability. Originality/value - Integration of the Resource-Based View and the Theory of Planned Behavior provides an explanatory framework for the mediating role of financial behavior in the MSME context. Paper type - Research Article