Investigating the influence of financial literacy and supply chain management on the financial performance and sustainability of SMEs

Abstract

The aim of this research is to analyze the relationship between financial literacy and financial performance, the relationship between financial literacy and the sustainability of SMEs, the relationship between supply chain management and financial performance, the relationship between supply chain management and the sustainability of SMEs, and financial performance with the sustainability of SMEs. This research method is a quantitative survey, the research data was obtained by distributing online questionnaires to 740 SMEs owners in Indonesia. Data analysis used structural equation modeling (SEM) with SmartPLS 3.0 software tools. The stages of data analysis are validity, reliability and significance tests. The sampling technique used is non-probability sampling. The questionnaire used in this study uses the Google form, distributed to respondents. The measurement method for this questionnaire uses a Likert scale of 5, namely Strongly Disagree (STS), (2) Answers Disagree (TS), (3) Neutral Answers (N), (4) Answers Agree (S), Strongly Agree (SS). The independent variables used in this study are as follows: Financial literacy, supply chain management, the dependent variables used in this study are sustainability and financial performance. The results of this research indicate that financial literacy had a positive and significant effect on financial performance, financial literacy had a positive and significant effect on sustainability, supply chain management had a positive and significant effect on financial performance, supply chain management had a positive and significant effect on sustainability, financial performance had a positive and significant effect on sustainability. The novelty of this research is that it found a correlation model of the relationship between the variables of financial literacy, supply chain management, financial performance and sustainability in SMEs which did not exist in previous research studies.