THE INFLUENCE OF FINANCIAL LITERACY ON THE FINANCIAL PERFORMANCE OF UMKM IN KENDARI CITY WITH SOCIAL CAPITAL MODERATION

Authors

  • Kusman Paluala Sekolah Tinggi Ilmu Ekonomi Enam Enam Kendari
  • Khaerunnisa Ibnu Hajar Sekolah Tinggi Ilmu Ekonomi Enam Enam Kendari
  • Mirza Hapsari Hasidin Sekolah Tinggi Ilmu Ekonomi Enam Enam Kendari

Keywords:

financial literacy; financial performance; MSMEs; social capital

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in Indonesia's economy, yet their financial performance sustainability is often hindered by low financial literacy. Additionally, social capital is frequently underutilized in local contexts as a potential supporting element for MSMEs' success. Although financial literacy and social capital have been extensively studied, limited research explores how social capital moderates the relationship between financial literacy and MSMEs' financial performance, particularly in Kendari City. This study employs a quantitative approach using Partial Least Squares (PLS) with 73 MSMEs sampled through the Slovin method. The findings reveal that financial literacy significantly influences MSMEs' financial performance, and this relationship is strengthened by social capital as a moderating variable. This study contributes theoretically to the literature on financial literacy and social capital and provides practical guidance for policymakers to design interventions supporting MSMEs' sustainability through enhanced financial literacy and social capital.

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Published

2025-01-06

Issue

Vol. 1 No. 1 (2025): Asri International; Journal Of Economic, Business, And Management

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Articles

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Copyright (c) 2025 Kusman Paluala, Khaerunnisa Ibnu Hajar , Mirza Hapsari Hasidin

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