The impact of financial technology on MSME performance ‎in indonesia: a study using the technology acceptance model

  • Authors

    • Heny Triastuti Kurnia Ningsih Lecturer, Department of Accounting, Economics and Business, Universitas Islam Sumatera Utara, Medan, Sumatera Utara 20217, ‎Indonesia and Student, Department of Accounting, Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Sumatera Utara 20222, ‎Indonesia
    • Erlina Department of Accounting, Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Sumatera Utara 20222, ‎Indonesia
    • Agung Wahyudhi Atmanegara Department of Accounting, Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Sumatera Utara 20222, ‎Indonesia
    https://doi.org/10.14419/4pktwq88

    Received date: April 12, 2025

    Accepted date: June 1, 2025

    Published date: June 7, 2025

  • Acceptance Model; Economic; Financial Technology; MSME Performance; Technology

  • Abstract

    This research is based on the Technology Admission Model (TAM) investigates how financial technology (known as FinTech) affects ‎MSMEs in Indonesia. The research seeks to explore how detected availability and ease of use of financial technology. They have a great ‎influence on the activity of these MSMEs. It is a quantitative approach that uses questionnaires to survey 240 owners of MSMEs from ‎different sectors operating in Indonesia. Next, A structural equation model was applied for the evaluation of hypotheses stated here. Both ‎characteristics have been found to significantly boost the performance of their respective industries and companies, thus confirming that if ‎FinTech is adopted; it can enhance operational efficiency and enhance financial outcomes for firms. In light of these findings, policymakers ‎and other stakeholders should encourage the adoption of FinTech among MSMEs to ensure economic growth and resilience during the ‎digital age. This paper provides empirical evidence from developing countries on how FinTech enhances performance in SMEs, thereby ‎adding value to the existing literature‎.

  • References

    1. Aeni TI, Rena S & Destiana R (2024), The influence of the use financial technology, owner financial literacy, and risk tolerance on the performance of MSMEs in Indonesia. International Journal of Business Law and Education, 5(1), 996–1006. https://doi.org/10.56442/ijble.v5i1.494.
    2. Agustina D, Yusnita M & Fitari T (2023), Digital Transformation: Optimizing the use of E-Payment gateways for MSME performance. E3S Web of Conferences, 440, 07005. https://doi.org/10.1051/e3sconf/202344007005.
    3. Ahmed S, Ahmed R, Ashrafi DM, Ahmed E & Annamalah S (2024), Building trust in cybernetic payment network: Insights from an emerging economy. Journal of Open Innovation Technology Market and Complexity, 10(3), 100331. https://doi.org/10.1016/j.joitmc.2024.100331.
    4. Al-Shami SA, Damayanti R, Adil H, Farhi F & Al Mamun A (2024), Financial and digital financial literacy through social media use towards fi-nancial inclusion among batik small enterprises in Indonesia. Heliyon, 10(15), e34902. https://doi.org/10.1016/j.heliyon.2024.e34902.
    5. Amnas MB, Selvam M & Parayitam S (2024), FinTech and Financial Inclusion: Exploring the mediating role of digital financial literacy and the moderating influence of perceived regulatory support. Journal of Risk and Financial Management, 17(3), 108. https://doi.org/10.3390/jrfm17030108.
    6. Aryanto A, Hanum N & Syaefudin R (2023), Technological, Organizational, and Environmental Factors in the Implementation of Digital Account-ing and Their Impact on MSME Performance. Owner, 7(1), 632–643. https://doi.org/10.33395/owner.v7i1.1224.
    7. Buchdadi AD, Rahmawati AA, Siregar MES, Muttaqien MR & Zaki A (2024), Analysis of factors affecting behavioral intention to use QRIS in MSMEs: Expansion of technology acceptance model. Journal of Infrastructure Policy and Development, 8(15), 9108. https://doi.org/10.24294/jipd9108.
    8. Buteau S (2021), Roadmap for digital technology to foster India’s MSME ecosystem—opportunities and challenges. CSI Transactions on ICT, 9(4), 233–244. https://doi.org/10.1007/s40012-021-00345-4.
    9. Chaveesuk S, Khalid B & Chaiyasoonthorn W (2022), Continuance intention to use digital payments in mitigating the spread of COVID-19 virus. International Journal of Data and Network Science, 6(2), 527–536. https://doi.org/10.5267/j.ijdns.2021.12.001.
    10. Dwivedi YK, Ismagilova E, Hughes DL, Carlson J, Filieri R, Jacobson J, Jain V, Karjaluoto H, Kefi H, Krishen AS, Kumar V, Rahman MM, Ra-man R, Rauschnabel PA, Rowley J, Salo J, Tran GA & Wang Y (2020), Setting the future of digital and social media marketing research: Perspec-tives and research propositions. International Journal of Information Management, 59(17), 102168. https://doi.org/10.1016/j.ijinfomgt.2020.102168.
    11. Fedorko I, Bacik R & Gavurova B (2021), Technology acceptance model in e-commerce segment. Management & Marketing, 13(4), 1242–1256. https://doi.org/10.2478/mmcks-2018-0034.
    12. Gupta U, Agarwal B & Nautiyal N (2022), Financial Technology adoption – a case of Indian MSMEs. Finance Theory and Practice, 26(6), 192–211. https://doi.org/10.26794/2587-5671-2022-26-6-192-211.
    13. Harris JE & Gleason PM (2022), Application of path analysis and structural equation modelling in nutrition and dietetics. Journal of the Academy of Nutrition and Dietetics, 122(11), 2023–2035. https://doi.org/10.1016/j.jand.2022.07.007.
    14. Hornuf L, Safari K & Voshaar J (2024), Mobile Fintech Adoption in Sub-Saharan Africa: A Systematic Literature Review and Meta-Analysis. Re-search in International Business and Finance, 73(9), 102529. https://doi.org/10.1016/j.ribaf.2024.102529.
    15. Hutapea RS & Wijaya E (2021), Perceived risk, trust, and intention to use fintech service during the COVID-19 pandemic. Advances in Engineer-ing Research, 207(51), 1–7. https://doi.org/10.2991/aer.k.211106.102.
    16. Idrees MA & Ullah S (2024), Comparative analysis of FinTech adoption among Islamic and conventional banking users with moderating effect of education level: A UTAUT2 perspective. Journal of Open Innovation Technology Market and Complexity, 10(3), 100343. https://doi.org/10.1016/j.joitmc.2024.100343.
    17. Julianto IP, Pasek NS & Wiguna IGDNH (2021), Technology Acceptance Model Approach to analysing the use of Fintech in MSME transactions in Buleleng. Advances in Economics, Business and Management Research, 197(34), 1–7. https://doi.org/10.2991/aebmr.k.211124.002.
    18. Kabir KH, Hassan F, Nahar Mukta MZ, Roy D, Darr D, Leggette HR & Ullah SMA (2022), Application of the technology acceptance model to assess the use and preferences of ICTs among field-level extension officers in Bangladesh. Digital Geography and Society, 3(7), 100027. https://doi.org/10.1016/j.diggeo.2022.100027.
    19. Karatri RH, Fahira NKT & Yasin NRM (2022), The influence of peer to peer lending (p2p) and electronic money on increasing profits of micro small and medium enterprises (MSME) in kudus regency. Journal of Management and Islamic Finance, 2(2), 204–221. https://doi.org/10.22515/jmif.v2i2.5509.
    20. Khando K, Islam MS & Gao S (2022), The Emerging Technologies of Digital Payments and Associated Challenges: A Systematic Literature re-view. Future Internet, 15(1), 21. https://doi.org/10.3390/fi15010021.
    21. Krah R, Tetteh LA, Boateng A & Amankwa RF (2024), Financial technology adoption among small and medium enterprises in Ghana. Cogent Business & Management, 11(1), 1–21. https://doi.org/10.1080/23311975.2024.2321786.
    22. Lai PC (2020), The literature review of technology adoption models and theories for the novelty technology. Journal of Information Systems and Technology Management, 14(1), 21–38. https://doi.org/10.4301/S1807-17752017000100002.
    23. Larios-Francia RP & Ferasso M (2023), The relationship between innovation and performance in MSMEs: The case of the wearing apparel sector in emerging countries. Journal of Open Innovation Technology Market and Complexity, 9(1), 100018. https://doi.org/10.1016/j.joitmc.2023.100018.
    24. Leong K & Sung A (2021), FinTech (Financial Technology): What is It and How to Use Technologies to Create Business Value in Fintech Way? International Journal of Innovation Management and Technology, 8(4), 74–78. https://doi.org/10.18178/ijimt.2018.9.2.791.
    25. Marhadi M, Fathoni AF, Setiawan B, Pratiwi D, Hayati R, Boros A & Sudibyo NA (2024), Continuance intention of Fintech Peer-to-Peer (P2P) financing Shariah: Moderation role of brand schematicity and digital financial literacy. Journal of Open Innovation Technology Market and Com-plexity, 10(2), 100301. https://doi.org/10.1016/j.joitmc.2024.100301.
    26. Musa HG, Fatmawati I, Nuryakin & Suyanto M (2024), Marketing research trends using technology acceptance model (TAM): a comprehensive review of researches (2002–2022). Cogent Business & Management, 11(1), 1–17. https://doi.org/10.1080/23311975.2024.2329375.
    27. Nadeem W, Juntunen M, Hajli N & Tajvidi M (2020), The role of ethical perceptions in consumers’ participation and value co-creation on sharing economy platforms. Journal of Business Ethics, 169(3), 421–441. https://doi.org/10.1007/s10551-019-04314-5.
    28. Noviyanti NA & Erawati NT (2021), The influence of perceptions of ease, trust and effectiveness on interest in using financial technology (fintech) (case study: MSMEs in Bantul Regency). Indonesian Scientific Journal of Accounting and Finance, 4(2), 65–74. https://doi.org/10.31629/jiafi.v4i2.3253.
    29. Pentury F (2023), The role of knowledge and penetration of fintech services in improving MSMEs of fishermen and marine farmers in remote small islands region. Journal of Theory and Applied Management, 16(1), 23–37. https://doi.org/10.20473/jmtt.v16i1.43743.
    30. Pramono IP, Suangga A, Mardiani R & Ilhamsyah MJ (2020), Android-Based Accounting Application and Profile Overview of Potential MSME Users Using IFLS Data. Accounting Studies, 21(1), 46–63. https://doi.org/10.29313/ka.v21i1.5128.
    31. Putri SA, Sartika D, Gunarto M & Helmi S (2023), Factors Affecting the Level of Trust of MSMEs in Using Fintech Using the Technology Ac-ceptance Model (TAM). Industrial Engineering and Operations Management Conference, 9(11), 1–12. https://doi.org/10.46254/SA04.20230182.
    32. Rahadian A & Thamrin H (2023), Analysis of factors Affecting MSME in using Fintech lending as alternative Financing: Technology Acceptance Model Approach. Brazilian Business Review, 20(3), 301–322. https://doi.org/10.15728/bbr.2023.20.3.4.en.
    33. Rakshit S, Islam N, Mondal S & Paul T (2022), Influence of blockchain technology in SME internationalization: Evidence from high-tech SMEs in India. Technovation, 115, 102518. https://doi.org/10.1016/j.technovation.2022.102518.
    34. Sanga B & Aziakpono M (2023), FinTech and SMEs financing: A systematic literature review and bibliometric analysis. Digital Business, 3(2), 100067. https://doi.org/10.1016/j.digbus.2023.100067.
    35. Saptono PB, Khozen I, Mahmud G, Hodžić S, Pratiwi I, Purwanto D & Imantoro LW (2024), Flourishing MSMEs: the role of innovation, creative compliance, and tax incentives. Journal of Risk and Financial Management, 17(12), 532. https://doi.org/10.3390/jrfm17120532.
    36. Saputri EJE & Chairunnisa F (2021), Financial technology and it’s impact on msmes in choosing bank credit services in Jambi. Journal of business studies and mangement review, 4(2), 137–142. https://doi.org/10.22437/jbsmr.v4i2.13188.
    37. Schorr A (2023), The Technology Acceptance Model (TAM) and its Importance for Digitalization Research: A Review. Sciendo eBooks, 7(3), 55–65. https://doi.org/10.2478/9788366675896-005.
    38. Siregar B & Aswadi LA (2024), Determinants of financial performance of MSMEs in Indonesia through Payment Gateway. IQTISHODUNA Journal of Islamic Economics, 13(1), 397–416. https://doi.org/10.54471/iqtishoduna.v13i1.2315.
    39. Sulistyowati SN, Pranoto AJ & Mas'adah N (2024), The Impact of Fintech and Financial Literacy on MSME Development through Access to Fi-nance. DiE Journal of Economics and Management, 15(1), 79–87. https://doi.org/10.30996/die.v15i1.10594.
    40. Sumani S & Prasetya, IB (2022), The effect of financial technology on the performance of micro, small, and medium businesses. Review of Man-agement and Entrepreneurship, 6(1), 51–72. https://doi.org/10.37715/rme.v6i1.2442.
    41. Surya B, Menne F, Sabhan H, Suriani S, Abubakar H & Idris M (2021), Economic growth, increasing productivity of SMEs, and open innovation. Journal of Open Innovation Technology Market and Complexity, 7(1), 20. https://doi.org/10.3390/joitmc7010020.
    42. Utami N (2023), Analysis of the use of financial technology and financial literacy among MSMEs. Journal Management, Business, and Accounting, 22(1), 11–21. https://doi.org/10.33557/mbia.v22i1.2217.
    43. Widadi WA & Puspitasari NFD (2024), Challenges and opportunities in fintech adoption by micro enterprises: a case study of Magelang, Indone-sia. Indonesian Journal of Social Technology, 5(12), 5863–5873. https://doi.org/10.59141/jist.v5i12.8767.
    44. Winarsih W, Winarti W, Machmuddah Z & Tahar EB (2021), The Relationship between Capital Financial, Accounting Capability and Micro-, Small- and Medium-Sized Enterprises’ (MSMEs) Financial Performance in Indonesia. Journal of Accounting and Business Dynamics, 8(2), 229–242. https://doi.org/10.24815/jdab.v8i2.21425.
    45. Zhao H & Khaliq N (2024), In quest of perceived risk determinants affecting intention to use fintech: Moderating effects of situational factors. Technological Forecasting and Social Change, 207, 123599. https://doi.org/10.1016/j.techfore.2024.123599.

  • Downloads

  • How to Cite

    Ningsih, H. T. K., Erlina, & Atmanegara, A. W. . (2025). The impact of financial technology on MSME performance ‎in indonesia: a study using the technology acceptance model. International Journal of Accounting and Economics Studies, 12(2), 76-84. https://doi.org/10.14419/4pktwq88