Financial Technology Mediates the Impact of Business Strategy on MSME Financial Performance in West Nusa Tenggara

Abstract

This study aims to explore the business strategies that have been carried out by MSMEs so that results of MSME financial performance can be obtained in adopting digital financial service technology in Fintech. The method with accidental sampling is 100 respondents using questionnaires – data analysis with Structural Equation Modeling (SEM) using SmartPLS 3.0 software. The results show that business strategy positively and significantly affects the financial performance of MSME business actors in West Nusa Tenggara. Business strategy completely and significantly affects financial technology for MSME businesses in West Nusa Tenggara. Financial technology positively and significantly affects the financial performance of MSME business actors in West Nusa Tenggara. Financial technology can strengthen the influence of business strategy on the financial performance of MSMEs in West Nusa Tenggara. The research results show that all variable impacts are positive and significant, as well as the effect of mediation variables on independent variables on dependents. Therefore, in the future, MSME players must always consider preparing business strategies and applying technology because this affects their financial performance significantly and sustainably.

Keywords

• business strategy
• financial technology
• financial performance