Knowledge Management as a Moderator in Developing Digital Finance

in Timor Leste

MARCIA YOLANDA SOARES DAS NEVES

Department of Business Administration,

Telkom University,

Jalan Terusan Buah Batu, Bandung 40257,

INDONESIA

Sudirman Park Campus, Jl. Jend. Sudirman 32, Jakarta,

INDONESIA

perceived ease of use, and perceived risk on the intention of Dili (Timor Leste) residents to use a digital

transaction application. The sample size for this study, which uses quantitative approaches, is 350 respondents.

Additionally, they are using SmartPLS software to manage data from questionnaires issued online. This study

shows that there is a positive and statistically significant relationship between moderating effects and intention

to use. Additionally, the intention to use is significantly impacted by perceived risk.

Key-Words: - Digital Payment, Finance, Digital Business, Knowledge management, Fintech, Timor Leste

Received: May 15, 2022. Revised: January 25, 2023. Accepted: February 21, 2023. Published: March 7, 2023.

technologies themselves, [1]. Today, we always

utilize the internet as a media tool to carry out our

everyday tasks and to communicate with others.

Consequently, the internet has assimilated into

everyday life. The world now uses a variety of

technologies in the domains of communication,

medicine, construction, and information, [2].

However, technological advancement is not just

confined to those purposes. In recent years, financial

technology (fintech) has also become a new area of

a payment transaction required face-to-face

interaction and required a small sum of money,

payments can now be conducted instantly and

remotely, [5]. Fintech payment techniques are

electronic payment tools that allow for the storage

of money on a specific electronic medium, or "E-

services value chain each year while also generating

new market structures in underbanked developing

nations, [6]. Now, certain banks that offer

innovative, digitally friendly banking services and

incorporate digital payments, microfinancing, and

robot advisor services into current bank accounts

share the market alongside pure FinTech businesses,

[7].

Fintech in Timor-Leste started to grow at the end of

2019 and is currently seeing a significant increase in

anywhere, [9].

The culture of the Timorese people, who prefer to

hold cash, continues to impede the growth of digital

payment to build an efficient and effective payment

system, despite the rise in users, [10]. The payment

system still heavily relies on cash transactions.

However, there has been a noticeable rise in recent

years in the number of transactions using digital

payment methods. Some publications believe that

Timor-Leste is a nation that is already developing

society's existence, particularly with the emergence

of money transaction mechanisms, [11].

Due to its effective use in saving time and

enhancing personal happiness, FinTech will

continue to grow and develop in relation to the use

of digital payments, [12]. Fintech has been

beneficial for start-up companies and e-commerce

companies in Timor Leste, [10]. There are already a

number of businesses in Timor-Leste that offer

instruments for cashless transactions. Due to their

levels of society, e-Wallet is gradually gaining

popularity in the community, [13].

Therefore, this article tries to explore fintech in

terms of digital payment in Timor Leste. By

incorporating several existing education and

technological acceptance theory then combining

look for when performing their tasks, [14]. The

frequency of use and variety of applications used to

measure these advantages, [15]. The amount to

which technology will enhance work performance is

known as perceived usefulness, [16]. The user's

perception of a system's usefulness is their

expectation that using it will boost their professional

performance, [17]. Additionally, a belief regarding

the decision-making process is Perceived

Usefulness, [18]. Therefore, a person will use

useful, and useful, he will use it; nevertheless, if he

believes that something is not beneficial, he will not

use it, [20]. The profitability of a potential user

using a specific application system will increase its

performance is described as perceived usefulness,

[21].

When something is easy to use, it can be thought of

as something that is liked or sought as the

toward use is perceived ease of use, [22]. The

degree to which prospective users anticipate being

able to utilize the new system without regard to

universality is the basis for perceived ease of use.

Another belief about decision-making is perceived

usability. A user will use a new system if they

frequently indicate that the user knows them better

and that they are simpler to use. Several factors,

including user experience of using similar

technology, the use of technology that is easy to

understand, easy to control, clear and easy to

understand, flexible, easy to be skilled, and

reputation for the technology obtained by the user,

affect users' perceptions of how easy it is to use

technology, [20]. A positive reputation that people

will hear will boost their trust in the technology's

behavioral ambiguity, [22]. Network

communication methods that are out of the user’s

control cause environmental uncertainty. Even

information technology employees are challenging

to manage, [21]. In line with this viewpoint, this

study defines risk perception as the user’s subjective

belief that there is a chance for the emergence of

risk to experience losses when using services

provided by electronic wallet applications, [20]. The

degree of loss experienced by technology users

One of the features of human psychology that tends

to draw attention to or make an object more

pleasurable to use is interest, and this tendency can

motivate a person to pursue their goals, [20].

Interest in using is characterized as a person's

circumstances just prior to acting. Additionally, a

person's interest in utilizing can be utilized to

forecast their behavior or activities, [27]. In relation

to this, post-purchase behavior is the position of

viewpoint of consumer behavior in purchasing

decisions, [28]. Typically, consumers will continue

to remember how they felt when they feel interested

or satisfaction in fulfilling a need.

The relationships between the three variables can be

seen in these hypotheses:

knowledge of work experience, ideas, skills, and

contextual information, is crucial. Therefore, the last

hypothesis is:

technique for predicting constructs in models with

numerous components and collinear interactions is

known as partial least square (PLS), [33]. Latent

variables, or variables that cannot be measured

directly, and the specification of routes that connect

variables are commonly combined in a composite

Our set of questionnaires was distributed to

respondents in Timor Leste. The questionnaire

includes various items related to the usage patterns

as indicated in the literature review, as well as

several other relevant variables identified during the

follow up. In the end, we collected responses from

384 respondents which can be seen in table 1.

4 Results

The measured model, is used to assess the

association between indicator variables and

indicators and the directional link between the

measurement’s validity and reliability can be seen in

table 2.

The table above displays the overall findings for

reliability and validity. All Composite Reliability

3.

According to table 3, there is no outside loading

indication with a value of 0.70. This indicates that

the indicator has been deemed legitimate for

research and may be utilized for further

investigation.

We subsequently examine the t-statistic value

between the independent and dependent variables to

determine the predictive model's importance in

evaluating the structural model. The t-statistic

between the independent and dependent variables in

the path coefficient table in the SmartPLS output

prediction model in testing the structural model.

(table 4).

Table 4. Hypothesis Test

Table 4 suggests that the perceived ease of use has

an effect on the intention to use, but the effect is not

reason, H3 is also rejected (p-value 0.212). These

two verdicts mean that perceived ease of use and

perceived usefulness do not have significant effects

on intention to use.

association between perceived risk and intention to

use has a positive and significant relationship, as

seen by the research significance values of 0.000,

which is smaller than the cut-off value of 0.05, and

0.499 for the positive path coefficient, [35].

Therefore, it can be concluded that hypothesis 2 is

accepted. This result demonstrates how the

perception of risk has an impact on usage intention.

Lastly, the significance level of the moderating

effect of knowledge management is 0.000, which is

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Prabowo was responsible for the field survey.

The authors report no source of funding.