Financial inclusion moderates the determinans of SME’s financial performance

Purpose: The aims of the investigation is the determine the influence of financial literacy, financial technology, and digital business on the financial performance of SMEs and the moderating role of financial inclusion in this context. Methodology/approach: This research uses quantitative data with a purposive sampling approach. 104 MSMEs in the city of Yogyakarta made up the study’s population. Findings: According to the study’s findings, MSMEs financial performance is positively impacted by financial literacy and digital business, but not financial technology. In addition, financial inclusion is able to moderate financial literacy on financial performance, but cannot moderate financial technology and digital business on the financial performance of MSMEs. Practical and Theoretical contribution/Originality: This research can explain the Resources Based View (RBV) theory and the Technology Acceptance Model (TAM) theory regarding the level of financial performance. The implication is that increasing understanding of financial literacy and utilizing digital business platforms improves financial performance, but the adoption of financial technology is not yet optimal. Research Limitation: Limitations in the low R Square value of 21% when testing variables simultaneously so that it does not represent financial performance.