Financial literacy and technology adoption for the sustainability of micro small and medium enterprises: evidence from Indonesia and Malaysia MSME’S / Oswald Timothy Edward, Aloysius Harry Mukti, Faridah Najuna Misman and Istianingsih Sastrodiharjo

This study explores the impact of financial literacy and technology adoption on the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia and Malaysia. Utilizing a quantitative approach and Structural Equation Modelling (SEM) via Partial Least Squares (PLS), the research investigates these influences amidst the challenges faced by MSNfEs in these regions. While financial literacy does not significantly affect the sustainability of Indonesian MSN'Æs, technology adoption demonstrates a positive impact in both Indonesia and Malaysia. This indicates that while the foundational understanding of finance is crucial, the integration and utilization of technology play a more decisive role in ensuring MS'VfE sustainability in the face of modern economic challenges. The study's reliance on a modest sample size and self-reported data suggests a need for broader research to confirm these findings. Nevertheless, this work highlights the critical nature of digital capabilities for MSNÆs in emerging economies, offering significant implications for policymakers and business leaders aiming to foster sustainable growth and resilience. The study's originality lies in its comparative analysis, emphasizing technological adoption as a key driver of MSNfE sustainability in the post-pandemic landscape.
Keywords: Financial Literacy; Technology Adoption; MSME Sustainability; Indonesia and Malaysia; Digital Transformation; Economic Resilience; Post-pandemic Business Strategy