I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia

The term “i-FinTech” refers to businesses or entrepreneurs that integrate modern, Shariah-compliant technologies with financial services. Nevertheless, MSMEs are typically having lack internal knowledge or poor management, incompetent entrepreneurs, and limited financial resources. The purpose of th...

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Published in:International Journal of Economics and Financial Issues
Main Author: Basar S.A.; Ibrahim N.A.; Tamsir F.; Rahman A.R.A.; Zain N.N.M.; Poniran H.; Ismail R.F.
Format: Article
Language:English
Published: Econjournals 2024
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85199667446&doi=10.32479%2fijefi.16546&partnerID=40&md5=df18d59692e0ca298dd9fd0090bf6f97
id 2-s2.0-85199667446
spelling 2-s2.0-85199667446
Basar S.A.; Ibrahim N.A.; Tamsir F.; Rahman A.R.A.; Zain N.N.M.; Poniran H.; Ismail R.F.
I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia
2024
International Journal of Economics and Financial Issues
14
4
10.32479/ijefi.16546
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85199667446&doi=10.32479%2fijefi.16546&partnerID=40&md5=df18d59692e0ca298dd9fd0090bf6f97
The term “i-FinTech” refers to businesses or entrepreneurs that integrate modern, Shariah-compliant technologies with financial services. Nevertheless, MSMEs are typically having lack internal knowledge or poor management, incompetent entrepreneurs, and limited financial resources. The purpose of this research is to analyse if financial literacy elements affect i-FinTech adoption and, in turn, promote sustainable entrepreneurship among Bumiputera SMEs in Selangor, Malaysia. A convenience sample strategy was used to disseminate 1,394 surveys to the Bumiputera entrepreneurs, utilizing a quantitative approach. PLS-SEM and mediation analysis are used to analyse the data. The findings indicate that financial literacy and digital financial literacy have a favorable and significant impact on the adoption of i-Fintech. On the other hand, the adoption of i-Fintech is adversely affected by financial management behavior. Furthermore, this study shows that the relationship between financial literacy and digital financial literacy towards sustainable entrepreneurship is mediated in a complimentary way by the adoption of i-FinTech. This result indicates that Bumiputera business owners that are financially and digitally literate are more likely to use i-FinTech and ultimately make a substantial contribution to sustainable entrepreneurship. The results should improve knowledge of the dynamics between the potential of i-FinTech and sustainable entrepreneurship for researchers, regulators, entrepreneurs, and i-FinTech service providers. It is advised that MSMEs keep using i-FinTech to support their operations in order to minimise the effects of a downturn in the market and maintain seamless operations. © 2024, Econjournals. All rights reserved.
Econjournals
21464138
English
Article
All Open Access; Gold Open Access
author Basar S.A.; Ibrahim N.A.; Tamsir F.; Rahman A.R.A.; Zain N.N.M.; Poniran H.; Ismail R.F.
spellingShingle Basar S.A.; Ibrahim N.A.; Tamsir F.; Rahman A.R.A.; Zain N.N.M.; Poniran H.; Ismail R.F.
I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia
author_facet Basar S.A.; Ibrahim N.A.; Tamsir F.; Rahman A.R.A.; Zain N.N.M.; Poniran H.; Ismail R.F.
author_sort Basar S.A.; Ibrahim N.A.; Tamsir F.; Rahman A.R.A.; Zain N.N.M.; Poniran H.; Ismail R.F.
title I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia
title_short I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia
title_full I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia
title_fullStr I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia
title_full_unstemmed I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia
title_sort I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia
publishDate 2024
container_title International Journal of Economics and Financial Issues
container_volume 14
container_issue 4
doi_str_mv 10.32479/ijefi.16546
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85199667446&doi=10.32479%2fijefi.16546&partnerID=40&md5=df18d59692e0ca298dd9fd0090bf6f97
description The term “i-FinTech” refers to businesses or entrepreneurs that integrate modern, Shariah-compliant technologies with financial services. Nevertheless, MSMEs are typically having lack internal knowledge or poor management, incompetent entrepreneurs, and limited financial resources. The purpose of this research is to analyse if financial literacy elements affect i-FinTech adoption and, in turn, promote sustainable entrepreneurship among Bumiputera SMEs in Selangor, Malaysia. A convenience sample strategy was used to disseminate 1,394 surveys to the Bumiputera entrepreneurs, utilizing a quantitative approach. PLS-SEM and mediation analysis are used to analyse the data. The findings indicate that financial literacy and digital financial literacy have a favorable and significant impact on the adoption of i-Fintech. On the other hand, the adoption of i-Fintech is adversely affected by financial management behavior. Furthermore, this study shows that the relationship between financial literacy and digital financial literacy towards sustainable entrepreneurship is mediated in a complimentary way by the adoption of i-FinTech. This result indicates that Bumiputera business owners that are financially and digitally literate are more likely to use i-FinTech and ultimately make a substantial contribution to sustainable entrepreneurship. The results should improve knowledge of the dynamics between the potential of i-FinTech and sustainable entrepreneurship for researchers, regulators, entrepreneurs, and i-FinTech service providers. It is advised that MSMEs keep using i-FinTech to support their operations in order to minimise the effects of a downturn in the market and maintain seamless operations. © 2024, Econjournals. All rights reserved.
publisher Econjournals
issn 21464138
language English
format Article
accesstype All Open Access; Gold Open Access
record_format scopus
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