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The Effect of Innovation, Business Adaptability, and Financial Literacy on Sustainability with Empowerment as a Moderating Variable Permana, Muhammad Alwi; Yunizar, Yunizar; Sutisna, Sutisna
Research Horizon Vol. 6 No. 1 (2026): Research Horizon - February 2026
Publisher : LifeSciFi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54518/rh.6.1.2026.1003

Abstract

The sustainability of food and beverage Micro, Small, and Medium Enterprises (MSMEs) is challenged by rapid market changes, digital transformation, intense competition, and limited innovation, adaptability, and financial management capacity. This study aims to examine the effect of product innovation, business adaptability, and financial literacy on the sustainability of food and beverage MSMEs, with MSME empowerment as a moderating variable. The research adopts a quantitative explanatory approach using a survey method. Data were collected through structured questionnaires distributed to food and beverage MSME owners in Bandung Regency and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results show that business adaptability has a significant and strong positive effect on MSME sustainability, while product innovation and financial literacy do not have a significant direct effect. MSME empowerment has a significant direct effect on sustainability and selectively moderates the relationship between business adaptability and sustainability, but does not moderate the effects of product innovation and financial literacy. These findings indicate that MSME sustainability is primarily driven by adaptive capabilities, which are strengthened through effective empowerment programs. The study highlights the importance of integrating adaptability and empowerment strategies to support sustainable MSME development.
Access to Capital and Regeneration of Young Farmers in Kintamani Village Paramaartha, I Made Ary; Harsanto, Budi; Yunizar, Yunizar
Research Horizon Vol. 6 No. 1 (2026): Research Horizon - February 2026
Publisher : LifeSciFi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54518/rh.6.1.2026.1000

Abstract

Access to capital is a crucial factor in the sustainability of the agricultural sector, especially in production centers such as Kintamani, Bali. This study aims to explore farmers’ accessibility to Microfinance Institutions (MFIs), its impact on their welfare, as well as its implication on the interest of regeneration. Welfare, as well as its implication on young farmers’ regeneration interest. This research uses a qualitative method with a case study approach in Kintamani. Data were collected through in-depth interviews with 21 informants consisting of farmers, farmers group association/LKM administrators, village government, and the younger generation, as well as field observations. Field observation. The results showed a dualism of access to capital where traditional farmers prefer the informal sector (middlemen) because of the ease of procedures (zero admin) and speed of liquidity compared to formal MFIs. Speed of liquidity compared to formal MFIs. In terms of welfare, the existing access to capital has not been able to become a significant economic leverage and only functions as a safety net in a cycle of “digging holes closing holes”. Transformation is needed institutionalization of Farmers Group Association into an off-taker and modernization of technology to re-attract the younger generation.