E-Business Innovation on SME Resilience Model: The Moderating Role of Financial Literacy
DOI:
https://doi.org/10.14414/jebav,28(1)2025,4729Keywords:
E-Business Innovation, SME Resilience Model, Financial LiteracyAbstract
In the era of advanced digitalization, the ability of SMEs to adapt and adopt
e-business innovation is a key factor to survive and compete in the global
market. This study aims to determine the effect of e-business innovation in
improving the resilience of SMEs and explore the extent to which financial
literacy moderates the relationship between the adoption of e-business
innovation and SME resilience. This research was conducted in the printing
sector of Malang City, Indonesia, which has around 2,145 printing SMEs
based on data from the Malang City Cooperative Office in 2023. The research
method uses a quantitative approach with a Structural Equation Model (SEM)
assisted by the Smart PLS application. The sampling technique used
purposive sampling with a sample of 100 SMEs selected based on criteria
such as business size, level of e-business technology adoption, and financial
literacy. The results showed that the variables studied had a significant and
positive effect so that it was accepted. In addition, strong financial literacy
can strengthen the relationship between e-business innovation and SME
resilience. These findings underscore the importance of improving financial
literacy among SMEs as part of the strategy to maximize the benefits of e
business innovation in improving SMEs' business resilience.
References
Abbad, M., Magboul, I. H. M., & AlQeisi, K. (2022). Determinants and outcomes of e-business adoption
among manufacturing SMEs: Insights from a developing country. Journal of Science and Technology Policy
Management. https://doi.org/10.1108/JSTPM-03-2021-0049
Abdul-Halim, H., Ahmad, N. H., Geare, A., & Thurasamy, R. (2019). Innovation Culture in SMEs: The
Importance of Organizational Culture, Organizational Learning and Market Orientation.
Entrepreneurship Research Journal. https://doi.org/10.1515/erj-2017-0014
Acharya, C., Sigdyal, P., Ojha, D., Patel, P. C., & Dhir, A. (2024). Knowledge codifiability, common interests
and knowledge transfer: the inhibiting role of system dependence under increasing novelty. Journal of
Knowledge Management. https://doi.org/10.1108/JKM-10-2022-0775
Achmad, F., Prambudia, Y., & Rumanti, A. A. (2023a). Improving Tourism Industry Performance through
Support System Facilities and Stakeholders: The Role of Environmental Dynamism. Sustainability, 15(5),
4103. https://doi.org/10.3390/su15054103
Achmad, F., Prambudia, Y., & Rumanti, A. A. (2023b). Sustainable Tourism Industry Development: A
Collaborative Model of Open Innovation, Stakeholders, and Support System Facilities. IEEE Access, 11,
83343–83363. https://doi.org/10.1109/ACCESS.2023.3301574
Addo, S. D., Asantey, J., & Awadzie, D. M. (2022). The impact of financial literacy on risk propensity mediated
by access to finance. Pressacademia. https://doi.org/10.17261/pressacademia.2022.1647
Akbari, A. D., Suhardini, D., & Sasongko, A. (2022). The Influence of Knowledge Management and
Organization Innovativeness on The Organizational Resilience: A Theoretical Framework. OPSI.
https://doi.org/10.31315/opsi.v15i1.6585
AL-Shboul, M. A. (2019). Towards better understanding of determinants logistical factors in SMEs for cloud
ERP adoption in developing economies. Business Process Management Journal.
https://doi.org/10.1108/BPMJ-01-2018-0004
model
Albats, E., Podmetina, D., & Vanhaverbeke, W. (2023). Open innovation in SMEs: A process view towards
business
innovation.
Journal
https://doi.org/10.1080/00472778.2021.1913595
of
Small
Business
Management.
Alshahrani, M. A., & Salam, M. A. (2022). The Role of Supply Chain Resilience on SMEs’ Performance: The
Case of an Emerging Economy. Logistics, 6(3), 47. https://doi.org/10.3390/logistics6030047
Andersén, J. (2021). A relational natural-resource-based view on product innovation: The influence of green
product innovation and green suppliers on differentiation advantage in small manufacturing firms.
Technovation. https://doi.org/10.1016/j.technovation.2021.102254
Ardiada, I. M. D., Susanto, P. C., & Utami, G. W. N. (2023). Digitalization towards business resilience: SME
partnership
program
at
Ketut
https://doi.org/10.31603/ce.7952
Bagong
Rental,
Bali.
Community
Empowerment.
Azadda, W. N., Koomson, S., & Klutse, S. K. (2024). Sustainable finance and business risk resilience: a
conceptual perspective and suggestions for upcoming research. Vilakshan - XIMB Journal of Management.
https://doi.org/10.1108/xjm-02-2023-0034
Bagale, G. S., Vandadi, V. R., Singh, D., Sharma, D. K., Garlapati, D. V. K., Bommisetti, R. K., Gupta, R. K.,
Setsiawan, R., Subramaniyaswamy, V., & Sengan, S. (2023). RETRACTED ARTICLE: Small and
medium-sized enterprises’ contribution in digital technology. Annals of Operations Research.
https://doi.org/10.1007/s10479-021-04235-5
Barykin, S. Y., Bochkarev, A. A., Sergeev, S. M., Baranova, T. A., Mokhorov, D. A., & Kobicheva, A. M. (2021).
A Methodology Of Bringing Perspective Innovation Products To Market. Academy of Strategic
Management Journal.
Buccieri, D., & Park, J. E. (2022). Entrepreneurial marketing and reconfiguration towards post-entry
performance: Moderating effects of market dynamism and entry mode. Journal of Business Research.
https://doi.org/10.1016/j.jbusres.2022.04.053
Burchi, A., Włodarczyk, B., Szturo, M., & Martelli, D. (2021). The effects of financial literacy on sustainable
entrepreneurship. Sustainability (Switzerland). https://doi.org/10.3390/su13095070
Chidiogo Uzoamaka Akpuokwe, Chidinma Favour Chikwe, & Nkechi Emmanuella Eneh. (2024). Leveraging
technology and financial literacy for women’s empowerment in SMEs: A conceptual framework for
sustainable
development.
Global
Journal
https://doi.org/10.30574/gjeta.2024.18.3.0041
green
of
Engineering
and
Technology
Advances.
De Giovanni, P., & Cariola, A. (2021). Process innovation through industry 4.0 technologies, lean practices
and
supply
chains.
https://doi.org/10.1016/j.retrec.2020.100869
Research
in
Transportation
Economics.
Dumitriu, D., Militaru, G., Deselnicu, D. C., Niculescu, A., & Popescu, M. A. M. (2019). A perspective over
modern SMEs: Managing brand equity, growth and sustainability through digital marketing tools and
techniques. Sustainability (Switzerland). https://doi.org/10.3390/su11072111
Dutta, G., Kumar, R., Sindhwani, R., & Singh, R. K. (2022). Overcoming the barriers of effective
implementation of manufacturing execution system in pursuit of smart manufacturing in SMEs.
Procedia Computer Science. https://doi.org/10.1016/j.procs.2022.01.279
Eggers, F. (2020). Masters of disasters? Challenges and opportunities for SMEs in times of crisis. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2020.05.025
Esiebugie, U., Richard, A., & Emmanuel, A. (2018). Financial literacy and performance of small and medium
scale enterprises in Benue State, Nigeria. International Journal of Economics, Business and Management
Research.
Fadil, N., & St-Pierre, J. (2021). Growing SMEs and internal financing: the role of business practices. Journal
of Small Business and Enterprise Development. https://doi.org/10.1108/JSBED-11-2019-0375
Fenwick, M., McCahery, J. A., & Vermeulen, E. P. M. (2018). Fintech and the financing of SMEs and
entrepreneurs: From crowdfunding to marketplace lending. In The Economics of Crowdfunding: Startups,
Portals and Investor Behavior. https://doi.org/10.1007/978-3-319-66119-3_6
Fitriasari, F. (2020). How do Small and Medium Enterprise (SME) survive the COVID-19 outbreak? Jurnal
Inovasi Ekonomi, 5(02). https://doi.org/https://doi.org/10.22219/jiko.v5i02.11838
Gamage, S. K. N., Ekanayake, E. M. S., Abeyrathne, G. A. K. N. J., Prasanna, R. P. I. R., Jayasundara, J. M. S.
B., & Rajapakshe, P. S. K. (2020). A review of global challenges and survival strategies of small and
medium enterprises (SMEs). In Economies. https://doi.org/10.3390/ECONOMIES8040079
García-Pérez-de-Lema, D., Ruiz-Palomo, D., & Diéguez-Soto, J. (2021). Analysing the roles of CEO’s financial
literacy and financial constraints on Spanish SMEs technological innovation. Technology in Society.
https://doi.org/10.1016/j.techsoc.2020.101519
Garrido-Moreno, A., Martín-Rojas, R., & García-Morales, V. J. (2024). The key role of innovation and
organizational resilience in improving business performance: A mixed-methods approach. International
Journal of Information Management. https://doi.org/10.1016/j.ijinfomgt.2024.102777
Graña-Alvarez, R., Lopez-Valeiras, E., Gonzalez-Loureiro, M., & Coronado, F. (2024). Financial literacy in
SMEs: A systematic literature review and a framework for further inquiry. Journal of Small Business
Management, 62(1), 331–380. https://doi.org/10.1080/00472778.2022.2051176
Harel, R., Schwartz, D., & Kaufmann, D. (2020). Organizational culture processes for promoting innovation
in small businesses. EuroMed Journal of Business. https://doi.org/10.1108/EMJB-03-2020-0027
Healy, B., O’Dwyer, M., & Ledwith, A. (2018). An exploration of product advantage and its antecedents in
SMEs. Journal of Small Business and Enterprise Development. https://doi.org/10.1108/JSBED-06-2017
0206
Hirvonen, J. (2018). Financial Behavior and Well -Being of Young Adults: Effects of Self-Control and
Optimism. Journal of Economics.
Hossain, M.A., Quaddus, M., Islam, N. (2021). An integrated model of SME performance through innovation
ambidexterity, supply chain agility and resilience. Journal of Small Business Management.
Ključnikov, A., Civelek, M., & Čech, P. (2021). Digital financial literacy in small and medium-sized
enterprises.
Journal
of
Innovation
and
https://doi.org/https://doi.org/10.1186/s13731-021-00156-0
Entrepreneurship,
10(1),
1–20.
Kosasih, N., Abimanyu, N., Megawati, R., & Irawati, D. (2021). Strategies to Enhance SMEs’ Resilience in
Facing Business Uncertainty. The Journal of Asian Finance, Economics and Business, 8(9), 321–331.
https://doi.org/https://doi.org/10.13106/jafeb.2021.vol8.no9.0321
Kulathunga, K. M. M. C. B., Ye, J., Sharma, S., & Weerathunga, P. R. (2020). How does technological and
financial literacy influence SME performance: Mediating role of ERM practices. Information
(Switzerland). https://doi.org/10.3390/INFO11060297
Kumar, V., Sindhwani, R., Behl, A., Kaur, A., & Pereira, V. (2023). Modelling and analysing the enablers of
digital resilience for small and medium enterprises. Journal of Enterprise Information Management.
https://doi.org/10.1108/JEIM-01-2023-0002
Leckel, A., Veilleux, S., & Dana, L. P. (2020). Local Open Innovation: A means for public policy to increase
collaboration
for
innovation
in
SMEs. Technological Forecasting and Social Change.
https://doi.org/10.1016/j.techfore.2019.119891
Lontchi, C. B., Yang, B., & Shuaib, K. M. (2023). Effect of Financial Technology on SMEs Performance in
Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy. Sustainability
(Switzerland). https://doi.org/10.3390/su15032171
Lopez, E., Flecha-Ortiz, J. A., Santos-Corrada, M., & Dones, V. (2024). The role of organizational resilience in
SME service innovation and value cocreation. Journal of Services Marketing.
https://doi.org/10.1108/JSM-03-2023-0081
Mabula, J. B., & Ping, H. D. (2018). Financial literacy of SME managers’ on access to finance and performance:The mediating role of financial service utilization. International Journal of Advanced Computer Science and
Applications. https://doi.org/10.14569/ijacsa.2018.090905
Malesev, S., & Cherry, M. (2021). Digital and social media marketing-growing market share for construction
smes. Construction Economics and Building. https://doi.org/10.5130/AJCEB.v21i1.7521
Marcazzan, E., Campagnolo, D., & Gianecchini, M. (2022). Reaction or anticipation? Resilience in small- and
medium-sized
enterprises.
Journal
of
https://doi.org/10.1108/JSBED-07-2021-0271
Small
Business
and
Enterprise
Development.
Meiyola Krisma Agatha, Nurfadilah, Rizki Luthfi Aulia, & Maria Yovita R. Pandin. (2023). The Effect of
Financial Literacy and Financial Behavior on Financial Resilience in MSMEs (Study of MSME Actors in
Ngagel Village, Surabaya). Finance : International Journal of Management Finance.
https://doi.org/10.62017/finance.v1i2.25
Miroshnychenko, I., Strobl, A., Matzler, K., & De Massis, A. (2021). Absorptive capacity, strategic flexibility,
and business model innovation: Empirical evidence from Italian SMEs. Journal of Business Research.
https://doi.org/10.1016/j.jbusres.2020.02.015
Miswanto, M., Tarigan, S. T., Wardhani, S., Khuan, H., Rahmadyanti, E., Jumintono, J., Ranatarisza, M. M.,
& Machmud, M. (2024). Investigating the influence of financial literacy and supply chain management
on the financial performance and sustainability of SMEs. Uncertain Supply Chain Management.
https://doi.org/10.5267/j.uscm.2023.9.011
Neykova, M., & Miltchev, R. (2019). Conceptual Approach To Introduce An Integrated Model Improving
SMES E-Business Technologies. Management Theory and Studies for Rural Business and Infrastructure
Development. https://doi.org/10.15544/mts.2019.31
Oecd. (2010). The OECD Innovation Strategy: Getting a head start on tomorrow. Innovation.
Ozanne, L. K., Chowdhury, M., Prayag, G., & Mollenkopf, D. A. (2022). SMEs navigating COVID-19: The
influence of social capital and dynamic capabilities on organizational resilience. Industrial Marketing
Management. https://doi.org/10.1016/j.indmarman.2022.04.009
Pandey, A., & Gupta, R. (2018). Entrepreneur’s Performance and Financial Literacy – A Critical Review.
International Journal of Management Studies. https://doi.org/10.18843/ijms/v5is3/01
Pathak, M. D., Kar, B., Panigrahi, R. R., & Shrivastava, A. K. (2024). Role of entrepreneurial resilience in SMEs
to promote marketing and entrepreneurship amid Covid19 challenges. Journal of Research in Marketing
and Entrepreneurship. https://doi.org/10.1108/JRME-04-2022-0050
Pilav – Velic, A., Jahic, H., & Krndzija, L. (2024). Firm Resilience as A Moderating Force for SMEs’ Innovation
Performance: Evidence from An Emerging Economy Perspective Alegre. Regional Science Policy &
Practice, xxxx, 100033. https://doi.org/10.1016/j.rspp.2024.100033
Pozsgai-Alvarez, J. (2022). Corruption tolerance as a process of moral, social, and political cognition: evidence
from Latin America. Crime, Law and Social Change. https://doi.org/10.1007/s10611-021-09995-6
Quaye, D., & Mensah, I. (2019). Marketing innovation and sustainable competitive advantage of
manufacturing SMEs in Ghana. Management Decision, 57(7), 1535–1553. https://doi.org/10.1108/MD
08-2017-0784
Rachidi, H., & El Mohajir, M. (2021). Improving SMEs’ performance using innovative knowledge and
financial system designed from the Moroccan business environment. African Journal of Science,
Technology, Innovation and Development. https://doi.org/10.1080/20421338.2020.1816264
Rahman, M., & Mendy, J. (2019). Evaluating people-related resilience and non-resilience barriers of SMEs’
internationalisation.
International
Journal
https://doi.org/10.1108/IJOA-02-2018-1361
of
Organizational
Analysis,
27(2),
225–240.
Robledo-Ardila, C. A., Pérez-Villarreal, H., Muñoz-Sánchez, A., & Hernández-Perlines, F. (2020). Modeling
SME resilience in the face of COVID-19: A conceptual framework. Journal of Business Research, 128, 755
764. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.01.070
Sari, O. I. P., & Arifin, A. Z. (2023). Pengaruh financial technology adoption capability dan financial literacy
terhadap
business
sustainability.
https://doi.org/10.24912/jmbk.v7i3.23870
Jurnal
Manajemen
Bisnis
Dan
Kewirausahaan.
Sulastri, S., Mulyadi, H., Disman, D., Hendrayati, H., & Purnomo, H. (2023). Resilience Acceleration Model
Of Small And Medium Enterprises Through Digital Transformation. Journal of Eastern European and
Central Asian Research. https://doi.org/10.15549/jeecar.v10i4.1355
Suresh G. (2024). Impact of Financial Literacy and Behavioural Biases on Investment Decision-making. FIIB Business Review. https://doi.org/10.1177/23197145211035481
Temel, S., & Durst, S. (2020). Knowledge risk prevention strategies for handling new technological
innovations in small businesses. VINE Journal of Information and Knowledge Management Systems.
https://doi.org/10.1108/VJIKMS-10-2019-0155
Tuffour, J. K., Amoako, A. A., & Amartey, E. O. (2022). Assessing the Effect of Financial Literacy Among
Managers on the Performance of Small-Scale Enterprises. Global Business Review.
https://doi.org/10.1177/0972150919899753
Ulubeyli, S., Kazaz, A., & Sahin, S. (2018). Survival of construction SMEs in macroeconomic crises:
Innovation-based competitive strategies. Journal of Engineering, Design and Technology.
https://doi.org/10.1108/JEDT-03-2018-0057
Verbivska, L., Zhuk, O., Ievsieieva, O., Kuchmiiova, T., & Saienko, V. (2023). The Role Of E-Commerce In
Stimulating Innovative Business Development In The Conditions Of European Integration. Financial
and Credit Activity: Problems of Theory and Practice. https://doi.org/10.55643/fcaptp.3.50.2023.3930
Verreynne, M. L., Ford, J., & Steen, J. (2023). Strategic factors conferring organizational resilience in SMEs
during economic crises: a measurement scale. International Journal of Entrepreneurial Behaviour and
Research. https://doi.org/10.1108/IJEBR-07-2022-0681
Worthington, A. C. (2021). Small business financial literacy in developing economies. Pacific Accounting
Review. https://doi.org/https://doi.org/10.1108/PAR-07-2021-0113
Wziątek-Kubiak, A., & Pęczkowski, M. (2021). Strengthening the Innovation Resilience of Polish
Manufacturing Firms in Unstable Environments. Journal of the Knowledge Economy.
https://doi.org/10.1007/s13132-021-00725-w
Xie, X., Han, Y., Anderson, A., & Ribeiro-Navarrete, S. (2022). Digital platforms and SMEs’ business model
innovation: Exploring the mediating mechanisms of capability reconfiguration. International Journal of
Information Management. https://doi.org/10.1016/j.ijinfomgt.2022.102513
Yakob, S., Yakob, R., B.A.M., H.-S., & Rusli, R. Z. A. (2021). Financial Literacy and Financial Performance of
Small and Medium-sized Enterprises. The South East Asian Journal of Management.
https://doi.org/10.21002/seam.v15i1.13117
Zighan, S., & Ruel, S. (2023). SMEs’ resilience from continuous improvement lenses. Journal of
Entrepreneurship in Emerging Economies, 15(2), 233–253. https://doi.org/10.1108/JEEE-06-2021-0235
Zutshi, A., Mendy, J., Sharma, G. D., Thomas, A., & Sarker, T. (2021). From Challenges to Creativity:
Enhancing SMEs’ Resilience in the Context of COVID-19. Sustainability, 13(12), 6542.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Journal of Economics, Business, and Accountancy Ventura
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
