Performance of Women-Led Smes in Indonesia: The Role of Financial Inclusion, Financial Literacy, and Technology adoption

Abstract

Purpose: Women entrepreneurs have an important role in increasing economic growth. This research aims to explore the relationship between financial literacy, technology adoption, financial inclusion and women SME performance.   Theoretical framework: Resource based theory is used as the theory underlying the influence of technology adoption on financial inclusion. The Technology Acceptance Model (TAM) theory explains the influence of technology adoption on company performance. Upper echelon theory is used as the basis for the relationship between financial literacy, financial inclusion and SME   Design/methodology/approach: The population was women-owned SMEs in Indonesia. A total of 250 female SME owners were drawn as respondents. This study used convenience sampling method. Data were collected using a structured questionnaire.   Findings: The results showed the contribution of financial literacy and technology adoption to financial inclusion. There is an influence of technology adoption on the performance of women's SMEs. The direct influence of financial literacy on SME performance is not supported. The mediating role of financial inclusion in the effect of financial literacy and technology adoption on the performance of women's SMEs is supported. The direct influence of financial literacy on SME performance is not supported.    Research, Practical & Social implications: This study can provide a real contribution to the government in developing women-owned SMEs by paying attention to financial literacy, technology adoption and financial inclusion of women SME owners   Originality/value: This research provided novelty by examining the mediating role of financial inclusion in the effect of financial literacy and technology adoption on the performance of women's