The Effect of Cash Flow Management Capability, Digital Payment Adoption, and Financial Resilience on Business Growth among Retail MSMEs in Bandung City
DOI:
https://doi.org/10.58812/wsshs.v4i09.3133Keywords:
Cash Flow Management Capability, Digital Payment Adoption, Financial Resilience, Business Growth, Retail MSMEsAbstract
This study examines the effects of cash flow management capability, digital payment adoption, and financial resilience on the business growth of retail micro, small, and medium enterprises (MSMEs) in Bandung. A quantitative explanatory research design was employed using primary data collected from 155 retail MSME owners and managers selected through purposive sampling. Data were collected using a structured questionnaire measured on a five-point Likert scale and analyzed using IBM SPSS Statistics version 25. The analytical procedures included validity and reliability tests, classical assumption tests, multiple linear regression, partial t-tests, simultaneous F-tests, and coefficient of determination analysis. The results indicate that cash flow management capability has a positive and significant effect on business growth. Digital payment adoption also positively and significantly affects business growth, while financial resilience demonstrates the strongest positive effect. Simultaneously, the three variables significantly influence business growth (F = 81.113; p < 0.001) and explain 61.7% of its variation (R² = 0.617). These findings indicate that sustainable retail MSME growth requires not only technological adoption but also effective cash flow management and strong financial resilience. Strengthening these capabilities can improve MSMEs' ability to maintain liquidity, facilitate transactions, adapt to financial uncertainty, and support sustainable business expansion.
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