<![CDATA[Purpose – This study examines how digital financial capability and financial literacy influence the performance of Micro, Small, and Medium Enterprises (MSMEs), with financial capability serving as a mediating mechanism and business experience capturing heterogeneity across entrepreneurs. Design/methodology/approach – A quantitative survey was conducted among 230 owners and managers of food and beverage MSMEs in South Tangerang. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) and Multi-Group Analysis (MGA) was subsequently employed to compare structural relationships between MSMEs with less than five years and those with five years or more of business experience. Findings/Results – Digital financial capability and financial literacy significantly enhance financial capability, while digital financial capability and financial capability significantly improve MSME performance. Financial literacy has no significant direct effect on MSME performance; however, its effect becomes significant through financial capability, confirming the critical role of practical financial capability in translating financial knowledge into business outcomes Originality/Value – Digital financial capability and financial literacy significantly enhance financial capability, while digital financial capability and financial capability significantly improve MSME performance. Financial literacy has no significant direct effect on MSME performance; however, its effect becomes significant through financial capability, confirming the critical role of practical financial capability in translating financial knowledge into business outcomes.]]>
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