Willy Tri Hardiyanto
Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia

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The Role of Financial Management in Product Innovation in SMEs: A Case Study of the Keripik Lumba-Lumba Nutrition Kitchen Malang City Yohanes Baldinuci Beda; Willy Tri Hardiyanto; Yuni Setyawati
International Journal of Management and Business Vol. 3 No. 4 (2026): October
Publisher : International Research & Development for Human Beings (IRDH)

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Abstract

In the era of globalization and digital transformation, product innovation has become a key factor in the competitiveness of Small and Medium Enterprises (SMEs). However, many SMEs still face limitations in financial management and sustainable innovation. The SME "Dapur Gizi Keripik Lumba-Lumba" in Malang City serves as a clear example of how financial management can drive the innovation of local products based on healthy food ingredients. This study aims to interpret the role of financial management in supporting the development of innovative products and to identify the factors influencing its effectiveness. The method used is a qualitative case study with primary data collection through interviews and direct observation using purposive sampling, along with relevant secondary data from literature studies. Data analysis was conducted through three stages: data reduction, data display, and conclusion drawing. The results show that financial management in this SME has transformed from a transactional recording function into a strategic pillar driving healthy product innovation. Its effectiveness is supported by the synergy of the owner's vision, budgetary discipline, and technological integration, which mitigate financial risks while optimizing capital allocation as a long-term investment. Funding is no longer viewed as a cost burden, but rather as an instrument to build a healthy lifestyle-based product identity. Through measurable financial governance, the SME strives to accelerate adaptation to market trends and ensure operational sustainability in the processed food industry of Malang City.
The Role of Payment Digitalization and Payment System Innovation on Financial Management in SMEs: A Case Study of the Keripik Lumba-Lumba Nutrition Kitchen Malang City Daniel Lamatokan; Willy Tri Hardiyanto; Rachmad Yusuf Susanto
International Journal of Management and Business Vol. 3 No. 4 (2026): October
Publisher : International Research & Development for Human Beings (IRDH)

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Abstract

The development of digital technology is driving the transformation of payment systems toward more efficient methods, requiring small and medium enterprises (SMEs) as the backbone of the national economy to adapt in order to maintain competitiveness and financial management efficiency. This study examines the role of payment digitalization and payment system innovation in the financial management of SME Dapur Gizi Keripik Lumba-Lumba in Malang City, which previously relied on manual bookkeeping and cash transactions. Based on Rogers' (2003) diffusion of innovation theory, this study aims to describe the implementation of payment digitalization, identify the forms of payment system innovation applied, and analyze their role in the effectiveness of SME internal financial management. A descriptive qualitative approach with a constructivist paradigm was employed, through in-depth interviews, observation, and documentation during the period of January–February 2026, involving four informants selected through purposive and snowball sampling techniques. Data analysis followed the Miles and Huberman model, accompanied by source and method triangulation. The findings reveal that this SME has adopted QRIS and mobile banking since July 2025, with the proportion of digital transactions reaching 60–65% of total daily transactions. These innovations have had a positive impact on transaction recording accuracy, real-time cash flow monitoring, and the reduction of cash loss risks. However, financial management remains semi-manual and is constrained by internet network instability as well as the absence of a separation between business and personal bank accounts. The study concludes that payment digitalization plays a positive role in improving the quality of SME financial management, although strengthening technological infrastructure and digital literacy is still needed to fully optimize its benefits.