<![CDATA[This study investigates how locus of control affects the financial performance of Micro, Small, and Medium Enterprises (MSMEs) and examines the mediating role of financial technology (fintech) innovation within MSMEs in Jambi City. As the modern economy advances, MSME actors need to adapt to digital transformation, especially through technology-based financial services that improve business management and financial results. In this setting, locus of control is seen as a psychological factor influencing decision-making, risk management, and the use of digital innovations in business activities. The research employs a quantitative approach with a survey of MSME actors in Jambi City. Purposive sampling was used to select MSMEs that have adopted fintech services. Data collection involved questionnaires, and analysis was performed using Structural Equation Modeling based on Partial Least Square (SEM-PLS). The variables studied include locus of control (independent), fintech innovation (mediator), and MSME financial performance (dependent). Findings show that a stronger locus of control positively impacts MSME financial performance and fintech innovation. Additionally, fintech innovation significantly enhances financial performance and mediates the link between locus of control and financial outcomes. These results imply that greater self-control among business actors improves their ability to adopt fintech innovations, leading to enhanced financial management. This research offers theoretical contributions to modern economic studies and MSME financial behavior, along with practical insights for government and business stakeholders to promote digital literacy and fintech adoption, thereby increasing MSME competitiveness.]]>
