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Inclusive banking financing, financial literacy, and social innovation: strategies for MSME resilience and performance
(1) Politeknik Baubau
(2) Politeknik Baubau
(3) Universitas Sembilanbelas November Kolaka
(4) Politeknik Baubau
(*) Corresponding Author
Abstract
This study analyzes how inclusive banking finance, financial literacy, and social innovation are transformed into MSME performance through business resilience in Baubau City. The study employs a sequential explanatory mixed-methods design. Quantitative data were obtained from 150 MSME owners and analyzed using PLS-SEM with SmartPLS 4, followed by a thematic analysis of in-depth interviews with six key informants to explain the patterns found in the quantitative results. Inclusive banking finance, financial literacy, and social innovation have a positive and significant impact on MSME resilience. Inclusive banking finance also has a direct and significant impact on performance, whereas the direct effects of financial literacy and social innovation on performance are not significant. MSME resilience has a positive and significant impact on performance and mediates all antecedent relationships partially for inclusive banking finance and fully for financial literacy and social innovation. The model explains 85.8% of the variance in resilience and 86.4% of the variance in performance. Qualitative findings indicate that financing strengthens liquidity and operational continuity, financial literacy improves cash flow discipline and risk preparedness, and innovation enhances adaptive capacity. Thus, MSME resilience is positioned as a conversion mechanism that transforms financial resources and innovation capabilities into more sustainable MSME performance.
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DOI: https://doi.org/10.24123/mabis.v25i3.1209
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