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Financial literacy innovation is mediated by financial attitudes and lifestyles on financial behavior in MSME players

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  • Carolina Ety Widjayanti

    (Doctorate in Management, Faculty of Economics and Business, Universitas Jenderal Soedirman)

  • Wiwiek Rabiatul Adawiyah

    (Doctorate in Management, Faculty of Economics and Business, Universitas Jenderal Soedirman
    Universitas Jenderal Soedirman)

  • Sudarto

    (Doctorate in Management, Faculty of Economics and Business, Universitas Jenderal Soedirman
    Universitas Jenderal Soedirman)

Abstract

Many MSME players do not have basic knowledge about financial management, such as cash flow management, financial recording, and understanding financial products. This deficiency makes them vulnerable to errors in financial decision making, such as inefficient use of loans or inappropriate investments. This research aims to analyze financial literacy innovations on the financial behavior of MSME players with the mediation of financial attitudes and lifestyle. By understanding the relationship between financial literacy, financial attitudes and lifestyle, as well as their impact on financial behavior, it is hoped that it can provide a more comprehensive insight into how MSMEs operate. The sample used in this research was 382 MSMEs in Banyumas Regency, using SEM PLS as a tool for analysis and research. The results of this research are that financial literacy influences behavioral finance. Financial literacy influences financial attitude. Financial literacy influences lifestyle. Financial attitude mediates financial literacy towards behavioral finance and lifestyle mediates financial literacy towards behavioral finance.

Suggested Citation

  • Carolina Ety Widjayanti & Wiwiek Rabiatul Adawiyah & Sudarto, 2025. "Financial literacy innovation is mediated by financial attitudes and lifestyles on financial behavior in MSME players," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-15, December.
    • Handle: RePEc:spr:joiaen:v:14:y:2025:i:1:d:10.1186_s13731-025-00525-5
    DOI: 10.1186/s13731-025-00525-5
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