WSEAS Transactions on Computer Research
Print ISSN: 1991-8755, E-ISSN: 2415-1521
Volume 14, 2026
(Special Issue: Computer Research and Financial Systems) Improving MSME Performance through Financial Literacy, Access to Financing, and Business Innovation:
The Important Role of Risk Management
Authors: , , ,
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Abstract: The innovation financing' innovation literacy' and 'capital accessibility' constructs and their impact on MSME performance, with risk management as the mediating variable, advance the research on the presumed roles the constructs play. This cross-sectional quantitative study was conducted among 344 MSMEs in East Java Province, Indonesia. The respondents completed self-administered questionnaires for the study, and the responses were analyzed using the Pls-SeM approach to structural equation modeling. The study reveals that the weighted-average portfolio of a business's perimeter innovation, financial literacy, and the overall level of capital accessibility in the economy positively influences the financial performance of MSMEs at all tiers of their operations. The research suggests that lower-tier MSMEs are best assisted in the management and performance of their financial risk load with IT-advantageous financial literacy tools, and gap financing assists MSMEs, but only marginally.
Keywords:
MSME, Financial Literacy, Financial Access, Business Innovation, Risk Management, East Java Province, Indonesia
Pages: 413-420
DOI: 10.37394/232018.2026.14.35