Interaction of Financial Literacy and Technology in Improving MSME Performance: Social Capital Perspective

This study aims to analyze the effect of financial literacy and technological literacy on the performance of MSMEs with social capital as a moderating variable. This study uses a quantitative approach with a survey method to test the effect of financial literacy and technological literacy on the performance of MSMEs with social capital as a moderating variable. The sample in this study was 120 MSME actors in Palangkaraya City. Primary data were collected through questionnaires. The results of this study indicate that financial literacy and technological literacy have a positive and significant effect on MSME performance. MSME actors who have a good level of financial literacy are able to manage business finances more effectively, including in financial planning, cash management, and investment decision making. In addition, this study proves that social capital has a moderating role in the relationship between financial literacy and technological literacy on MSME performance. Social capital, which reflects social networks, trust, and norms in the business community, strengthens the influence of financial and technological literacy on MSME performance. Keywords: Financial Literacy; Technological Literacy; MSME Performance; Social Capital; Moderation Regression