The Mediating Role of Financial Behavior on Financial Literacy/Inclusion, and Financial Well–being among SMEs Owners in Indonesian Marine and Fisheries Industry

Background/ problem: The rapid advancement of digital technology and financial innovation has created new opportunities for small and medium-sized enterprises (SMEs). However, limited financial literacy and the digital divide continue to hinder the financial well-being of business actors, especially in archipelagic regions on Indonesia. Objective/ purpose: This study examined the inter-relations between financial literacy, digital financial inclusion, financial behavior, and financial well-being of maritime SME owners in Eastern Indonesia according to the theories of social learning and planned behavior. Design and Methodology: A survey of n = 303 SME owners was conducted using a quantitative approach. All constructs demonstrated acceptable reliability (α > .70). Data were analyzed using partial least squares structural equation modelling. Results: Financial literacy significantly influenced financial behavior (β = .28, p < .001) and financial well-being (β = .49, p< .001). Digital financial inclusion also significantly affected financial behavior (β = .26, p< .001) and financial well-being (β = .16, p = .01). Financial behavior predicted financial well-being (β = .13, p = .009) and mediated the effects of financial literacy (β = .04, p = .04) and digital financial inclusion (β = .03, p = .03). Conclusion and Implications: The findings confirm that financial literacy and digital financial inclusion promote SME owners' financial well-being through behavioral change. From a behavioral science perspective, interventions must expand literacy and digital tools while shaping attitudes, intentions, and habits. Policies integrating literacy, digital access, and community learning can foster resilience and financial well-being in coastal and island contexts.