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I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia

Author

Listed:
  • Suria Abu Basar

    (Faculty of Business and Accountancy, Universiti Selangor, Selangor, Malaysia)

  • Noor Ayuernie Ibrahim

    (Faculty of Business and Accountancy, Universiti Selangor, Selangor, Malaysia)

  • Fazilah Tamsir

    (Faculty of Business and Accountancy, Universiti Selangor, Selangor, Malaysia)

  • Asma Rina Abdul Rahman

    (Faculty of Business and Accountancy, Universiti Selangor, Selangor, Malaysia)

  • Noor Nasyikin Mohd Zain

    (Faculty of Business and Accountancy, Universiti Selangor, Selangor, Malaysia)

  • Halimi Poniran

    (Faculty of Business and Accountancy, Universiti Selangor, Selangor, Malaysia)

  • Rina Fadhilah Ismail

    (Faculty of Accountancy, Universiti Teknologi MARA, Selangor, Malaysia)

Abstract

The term “i-FinTech†refers to businesses or entrepreneurs that integrate modern, Shariah-compliant technologies with financial services. Nevertheless, MSMEs are typically having lack internal knowledge or poor management, incompetent entrepreneurs, and limited financial resources. The purpose of this research is to analyse if financial literacy elements affect i-FinTech adoption and, in turn, promote sustainable entrepreneurship among Bumiputera SMEs in Selangor, Malaysia. A convenience sample strategy was used to disseminate 1,394 surveys to the Bumiputera entrepreneurs, utilizing a quantitative approach. PLS-SEM and mediation analysis are used to analyse the data. The findings indicate that financial literacy and digital financial literacy have a favorable and significant impact on the adoption of i-Fintech. On the other hand, the adoption of i-Fintech is adversely affected by financial management behavior. Furthermore, this study shows that the relationship between financial literacy and digital financial literacy towards sustainable entrepreneurship is mediated in a complimentary way by the adoption of i-FinTech. This result indicates that Bumiputera business owners that are financially and digitally literate are more likely to use i-FinTech and ultimately make a substantial contribution to sustainable entrepreneurship. The results should improve knowledge of the dynamics between the potential of i-FinTech and sustainable entrepreneurship for researchers, regulators, entrepreneurs, and i-FinTech service providers. It is advised that MSMEs keep using i-FinTech to support their operations in order to minimise the effects of a downturn in the market and maintain seamless operations.

Suggested Citation

  • Suria Abu Basar & Noor Ayuernie Ibrahim & Fazilah Tamsir & Asma Rina Abdul Rahman & Noor Nasyikin Mohd Zain & Halimi Poniran & Rina Fadhilah Ismail, 2024. "I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 14(4), pages 138-147, July.
    • Handle: RePEc:eco:journ1:2024-04-15
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    References listed on IDEAS

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    Cited by:

    1. Agha Jahanzeb & Teoh Yee Xin & Hyder Ali, 2026. "Beyond intention: the critical role of digital financial literacy in the actual usage of AI-enabled fintech applications in Malaysia," Future Business Journal, Springer, vol. 12(1), pages 1-16, December.
    2. Nargis Mohapatra & Mousumi Das & Sameer Shekhar & Rubee Singh & Shahbaz Khan & Lalit Mohan Tewari & Maria João Félix & Gilberto Santos, 2025. "Assessing the Role of Financial Literacy in FinTech Adoption by MSEs: Ensuring Sustainability Through a Fuzzy AHP Approach," Sustainability, MDPI, vol. 17(10), pages 1-28, May.
    3. Kamilah Ahmad, 2024. "The Influence of Financial Literacy, Risk Orientation and Qualified Accountants on Performance in Micro, Small and Medium Enterprises: The Mediating Role of Management Accounting," International Review of Management and Marketing, International Review of Management and Marketing, vol. 14(6), pages 317-324, October.

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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