The Mediating Role of Risk Management in the Relationship Between Financial Technology Adoption and Business Growth in Indonesian MSMEs

Authors

  • Loso Judijanto IPOSS Jakarta, Indonesia
  • Yuli Dewi Universitas Bina Insani
  • Arlinta Prasetian Dewi Institut Agama Islam Riyadlotul Mujahidin Ngabar Ponorogo
  • Imelda Barus Universitas Tama Jagakarsa
  • Adhy Firdaus STIE GANESHA

DOI:

https://doi.org/10.58812/wsjee.v3i01.1667

Keywords:

Financial Technology, Risk Management, Business Growth, MSMEs

Abstract

This study examines the mediating role of risk management in the relationship between financial technology (fintech) adoption and business growth in Indonesian Micro, Small, and Medium Enterprises (MSMEs). A quantitative approach was employed with a sample of 125 MSMEs, utilizing a 5-point Likert scale for survey data and Structural Equation Modeling (SEM) with Partial Least Squares (PLS) for analysis. The results indicate a significant positive relationship between fintech adoption and risk management, as well as between risk management and business growth. Moreover, fintech adoption positively impacts business growth both directly and indirectly through the mediating effect of risk management. The findings highlight the importance of integrating fintech solutions with robust risk management frameworks to foster sustainable growth in MSMEs. Policy implications suggest that MSME owners, fintech providers, and policymakers should focus on enhancing risk management practices to maximize the benefits of fintech adoption.

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Published

2025-02-27

Issue

Vol. 3 No. 01 (2025): West Science Journal Economic and Entrepreneurship

Section

Articles

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Copyright (c) 2025 Loso Judijanto

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How to Cite

The Mediating Role of Risk Management in the Relationship Between Financial Technology Adoption and Business Growth in Indonesian MSMEs (L. Judijanto, Y. Dewi, A. P. Dewi, I. Barus, & A. Firdaus , Trans.). (2025). West Science Journal Economic and Entrepreneurship, 3(01), 33-41. https://doi.org/10.58812/wsjee.v3i01.1667