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All Journal JURNAL MANAJEMEN MOTIVASI
Sari, Rindi Kartika
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Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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The Influence Of Digital Transformation And Financial Literacy On Msme Performance With Innovation As A Mediating Variable (A Study on MSMEs in Purwosari District) Sari, Rindi Kartika; Choiruddin, Muhammad Nanang
JURNAL MANAJEMEN MOTIVASI Vol 22 No 1 (2026): Jurnal Manajemen Motivasi
Publisher : Universitas Muhammadiyah Pontianak

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29406/jmm.v22i1.8916

Abstract

This study examines the influence of digital transformation and financial literacy on MSME performance through innovation in Purwosari District, Pasuruan. Using a quantitative approach, data were collected from 100 MSMEs and analyzed with PLS-SEM. The results show that digital transformation directly improves MSME performance, whereas financial literacy has no direct effect. Both variables significantly enhance innovation, which positively affects performance and mediates their relationships with performance. These findings highlight innovation as a key mechanism for transforming digital capabilities and financial knowledge into business outcomes. Therefore, strengthening innovation capacity is essential for improving MSME competitiveness and sustainability.
Co-Authors Nanang Choiruddin, Muhammad