Impact of FinTech acceptance, external financial support, and firm innovation on MSME performance in Indonesia

The performance of micro, small, and medium enterprises (MSMEs) has become a critical concern, for which to be fully understood, it is crucial to investigate up-to-date factors driving it. This study examines the impact of financial technology (FinTech) acceptance, external financial support, and firm innovation on MSME performance. It employs a mixed-method approach that uses a questionnaire which collected valid responses from 400 MSME actors across 34 provinces and interviews conducted with 27 MSME owners. The quantitative results show that FinTech acceptance, external financial support, and firm innovation significantly increase MSME performance. Firm innovation has the greatest impact on MSME performance, followed by FinTech acceptance and external financial support. The qualitative results provide details regarding the enhancement mechanisms through which the factors influence. The results update the understanding of important drivers of MSME performance while offering practical suggestions to improve MSME performance. This study contributes to the understanding of FinTech acceptance, external financial support, and firm innovation in driving MSME performance. This study provides a comprehensive nationwide perspective by integrating broad quantitative patterns and in-depth qualitative insights, addressing geographical and methodological gaps in prior research. The findings provide insights for MSMEs to assess their business performance and identify key factors influencing success, ultimately enhancing their competitive advantage. The study provides implications for policymakers to simplifying loan processes, offering targeted financial products, and enhancing financial literacy programs to support the survival and growth of MSMEs.