Digital Financial Capability and SME Financial Performance: Parallel Mediation through Accounting Information Quality and Financial Decision Quality in Bekasi, Indonesia

Maidani Maidani (Universitas Bhayangkara Jakarta Raya, Jakarta, Indonesia)
Muhammad Richo Rianto (Universitas Bhayangkara Jakarta Raya, Jakarta, Indonesia)
Rinjani Rinjani (Sekolah Tinggi Ilmu Ekonomi Trisakti, Jakarta, Indonesia)
Sugiarto Prajitno (Sekolah Tinggi Ilmu Ekonomi Trisakti, Jakarta, Indonesia)

Greenation International Journal of Economics and Accounting
Vol. 4 No. 4 (2026): Greenation International Journal of Economics and Accounting (September - Octob

The rapid development of digital financial services has encouraged Micro, Small, and Medium Enterprises (MSMEs) to adopt digital technologies in managing their business finances. However, digital financial capability does not necessarily translate into improved financial performance. This study examines the relationship between Digital Financial Capability and SME Financial Performance through the parallel mediating roles of Accounting Information Quality and Financial Decision Quality among MSMEs in Bekasi City, Indonesia. A quantitative approach with an explanatory research design was employed. Data were collected from 120 MSME owners (n = 120) using accidental sampling and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results indicate that Digital Financial Capability is positively and significantly associated with Accounting Information Quality and Financial Decision Quality, while Accounting Information Quality is positively and significantly associated with SME Financial Performance. In contrast, Digital Financial Capability and Financial Decision Quality do not show significant direct associations with SME Financial Performance. Furthermore, Accounting Information Quality significantly mediates the relationship between Digital Financial Capability and SME Financial Performance, whereas Financial Decision Quality does not provide a significant mediating effect. These findings indicate that the two parallel mediation mechanisms operate differently, with the information-based pathway through Accounting Information Quality being more effective in translating Digital Financial Capability into financial performance. This finding highlights the importance of strengthening internal financial management processes to ensure that digital financial capabilities are effectively transformed into useful accounting information and, ultimately, better financial outcomes. Overall, the findings suggest that Digital Financial Capability alone does not necessarily translate into improved SME financial performance without effective internal financial management mechanisms.