Big Data Analytics as an Organizational Mechanism: Linking Financial Literacy and Managerial Competence to Micro, Small, and Medium Enterprise Performance in Indonesia

This study examines the role of big data analytics (BDA) as an organizational mechanism in linking individual readiness—represented by financial literacy and managerial competence—to micro, small, and medium enterprise (MSME) performance in Indonesia. Despite increasing attention to digital transformation, limited research has explored how individual readiness translates into performance within MSMEs. Using a quantitative approach with partial least squares structural equation modeling (PLS-SEM), data were collected from 204 owner-managed MSMEs in Indonesia through an online questionnaire. The findings indicate that financial literacy and managerial competence significantly influence the adoption of BDA, which in turn enhances both financial and market performance. However, the direct effects of individual readiness on performance are limited, suggesting that individual readiness alone is insufficient to generate performance improvements. The results further show that BDA serves as a key mechanism linking individual readiness and performance outcomes. This study concludes that MSME performance is achieved when individual readiness is effectively translated into data-driven practices, positioning BDA as an organizational conversion mechanism that enables the transformation of individual readiness into measurable outcomes.