FINANCIAL LITERACY, SOCIAL CAPITAL, DEMOGRAPHY, FINANCIAL INCLUSION, AND FINANCIAL PERFORMANCE: THE ROLE OF THE ALIGNMENT USE OF INFORMATION TECHNOLOGY

Abstract

This study investigates the influence of financial literacy, social capital, demography, and financial inclusion on financial performance and the role of alignment moderation in information technology (IT). The samples used in this study were 701 respondents from micro, small, and medium enterprises (MSMEs). The data were analyzed using the regression method and test of Moderated Regression Analysis Interaction. The results show that the financial performance of those MSMEs might be positively influenced by financial literacy, social capital, and financial inclusion. The financial inclusion of SMEs cannot be influenced by demography. The financial inclusion of MSMEs might be positively influenced by financial literacy, social capital, and financial inclusion in financial performance. However, the alignment of IT usage cannot promote the demographic influence on financial performance. This study also includes some consideration of the effectivity of the application of IT as a moderating factor for the influence of financial literacy, social capital, demography, and financial inclusion on the financial performance of those MSMEs.