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The Effect of Financial Literacy, Cost of Technology Adoption, Technology Perceived Usefulness, and Government Support on MSMEs' Business Resilience

Author

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  • Elissa Dwi Lestari

    (Faculty of Business, Universitas Multimedia Nusantara, Indonesia Author-2-Name: Nadiah Abd Hamid Author-2-Workplace-Name: Universiti Teknologi Mara, Shah Alam Selangor, 40450, Shah Alam Selangor, Malaysia Author-3-Name: Nosica Rizkalla Author-3-Workplace-Name: Universitas Multimedia Nusantara, Jl. Scientia Boulevard, 15810, Tangerang, Indonesia Author-4-Name: "Purnamaningsih Purnamaningsih" Author-4-Workplace-Name: Universitas Multimedia Nusantara, Jl. Scientia Boulevard, 15810, Tangerang, Indonesia Author-5-Name: Sharina Bt Tajul Urus Author-5-Workplace-Name: Universiti Teknologi Mara, Shah Alam Selangor, 40450, Shah Alam Selangor, Malaysia Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

" Objective - The Covid-19 pandemic has made MSMEs enter a crisis period that makes them the most vulnerable sector during a crisis. Given the vital role of MSMEs in economic stability, this study identified the drivers that shape the resilience of the MSME business, which is still not widely explored. This study elaborates on the role of knowledge-based financial literacy, financial resources and the cost of technology adoption from the financial side, TAM from the technology side, and external environmental factors in the form of government support as a driver of MSMEs' business resilience. Methodology/Technique - This study collected data from 339 MSMEs operating amid the Covid-19 crisis, and data analysis was carried out using the PLS-SEM technique. Finding - The results show that financial literacy positively affects financial resources and the cost of adopting technology from a financial perspective. However, only the cost of adoption directly affects business resilience, while financial resources have no effect. In terms of technological acceptance, perceived ease of use positively impacts perceived usefulness. However, only perceived usefulness directly affects business resilience, while perceived ease of use does not. Finally, government support positively affected business resilience during the pandemic. Novelty - This paper elaborates on the financial, technological, and government support aspects as an integrated framework to examine MSME resilience. Type of Paper - Empirical"

Suggested Citation

  • Elissa Dwi Lestari, 2022. "The Effect of Financial Literacy, Cost of Technology Adoption, Technology Perceived Usefulness, and Government Support on MSMEs' Business Resilience ," GATR Journals gjbssr620, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:gjbssr620
    DOI: https://doi.org/10.35609/gjbssr.2022.10.3(3)
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    References listed on IDEAS

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    More about this item

    Keywords

    MSME Business Resilience; Financial Literacy; Cost of Technology Adoption; Perceived Usefulness; Government Support.;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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