The Influence of Financial and Digital Literacy on SMEs Productivity in Indonesia: The Mediating Role of Marketing Intensity

This present study explores financial and digital literacy among business actors of SMEs in Indonesia and how such literacies affect SMEs productivity through marketing intensity. The targeted population were business actors of SMEs in several regions of Indonesia, out of 232 small and medium businesses were selected through simple random sampling. In addition, the collected data were further analyzed undergoing structural equation modeling (PLS-SEM) with Smart-PLS version 3.0. The results indicated that financial literacy plays a robust role in influencing SMEs productivity and marketing intensity. Indeed, digital literacy has a robust effect on SMEs productivity and marketing intensity. The result also showed that there is a robust link between marketing strategy and SMEs productivity. The mediation test indicated that marketing intensity partially mediates the relationship between financial literacy and SMEs productivity, as well as digital literacy and SMEs productivity. This study provides practical contributions for a need of several trainings to increase the productivity of SMEs conducted by the government, and they can also learn from several sources, such as social media channels, which provide information regarding product trends and current markets.