Financial Literacy, Technology, Competitive Advantages and Implications to MSMEs Performance

Purpose – This study aims to analyze the effect of the application of financial literacy and technology on the competitive advantage and performance of MSMEs in the Riau Region. Methodology – The population consists of 341,695 MSMEs, and the sample size of 400 MSMEs is determined using Slovin Formula. The data used is primary data, in which respondents will be given questionnaires and interviews will be conducted with several MSMEs actors. Results – In light of the analysis conducted using SEM-PLS, it was determined that financial literacy, technology, and competitive advantage affect the performance of MSMEs in the Riau Region. Financial literacy and technology influence the competitive advantage of MSMEs in the Riau Region. The connection between technology and financial literacy to performance is mediated by competitive advantage. Originality – The study model was developed by adding Financial Literacy as an exogenous variable and competitive advantage as a mediating variable influencing company performance.