The Influence of Financial Literacy and Financial Inclusion on Working Capital Management with Financial Technology as a Moderating Variable in MSMEs in Palembang City

The purpose of this study is to analyze the application of the influence of financial literacy and financial inclusion on working capital management with financial technology as a moderating variable in MSMEs in Palembang City. The population in this study were all Micro, Small and Medium Enterprises (MSMEs) in Palembang City who have used or have access to financial technology services in managing their business finances, namely 78,627 MSMEs. The sample was taken using a purposive sampling method so that a sample of 398 MSMEs was obtained. The analysis technique used was the structural equation model partial least square (SEM PLS) method consisting of an inner model and an outer model. The results showed that financial literacy did not have a significant effect on working capital management of MSMEs in Palembang City, financial inclusion had a significant effect on working capital management of MSMEs in Palembang City, financial technology was proven to moderate the relationship between financial literacy and working capital management positively but the moderation of financial technology on the relationship of financial inclusion showed a negative direction.