The Influence of Digital Financial Literacy, Digital Financial Inclusion, and Financial Technology Mediated by Locus of Control on the Performance of Medan City MSMEs Through Financial Behavior

This study aims to look at the personality of MSMEs in managing a business called locus of control and connecting it to financial behavior that should be done by MSMEs after being affected by the Covid-19 pandemic to improve the performance of MSMEs by utilizing increasingly sophisticated technology as an effort to improve digital financial literacy, digital financial inclusion, and financial technology. This research uses Structural Equation Model (SEM) based on Partial Least Square (PLS) approach. PLS is a structural equation modeling (SEM) based on components or variants. This study used quantitative methods. The method of data collection is done by distributing questionnaires. Source data obtained using primary data. The population in this study is the number of MSMEs registered as assisted by the Medan City Cooperative and SME Office 2020-2023 as many as 1,888 MSMEs, with a sample of 100 respondents processed using the slovin formula. This research was conducted in several districts in Medan, namely Medan Denai, Medan sandpaper, Medan Area, Medan word, Medan City, Medan Petisah, Medan Maimun, and Medan Perjuangan. The results of this study indicate that digital financial inclusion variables directly have a significant effect on the performance of MSMEs. However, the variables of digital financial literacy, financial technology, and financial behavior directly have no significant effect on the performance of MSMEs. Furthermore, digital financial literacy variables indirectly affect financial behavior, while the variables of digital financial inclusion and financial technology indirectly have no significant effect on financial behavior. Then, financial behavior does not mediate between digital financial literacy, digital financial inclusion, and financial technology on MSME performance. Then, locus of control does not moderate digital financial literacy, digital financial inclusion, and financial technology on MSME performance. Keywords: Digital Financial Literacy, Digital Financial Inclusion, Financial Technology, Financial Behavior, Locus of Control