The Impact of Financial Inclusion on Sustainability: Digital Transformation as a Mediating Variable

Evilis Sri Yuniar, Kusuma Agdhi Rahwana

Abstract


The development of MSME convection in Tasikmalaya has increased post-pandemic. Tasikmalaya City's MSMEs are mostly embroidered which is the identity of Tasikmalaya City. This research aims to determine the effect of financial inclusion on the sustainability of Tasikmalaya convection MSMEs through digital transformation mediation. With the digital transformation, MSMEs understand financial inclusion as an effort to encourage their business desires. Financial inclusion is an effort to encourage the sustainability of MSMEs because the availability of financial access makes it easier for MSMEs to run their businesses. The research sample consisted of 100 people in the convection sector. The research method is Structural Equation Model (SEM) analysis using the SmartPLS analysis tool. The research results show 1) Financial Inclusion has a significant influence on the sustainability of MSMEs 2) Digital Transformation has a significant influence on the sustainability of MSMEs, 3) Financial inclusion has a significant influence on digital transformation 4) Digital transformation is able to mediate the influence of financial inclusion on the sustainability of MSMEs.


Keywords


Financial Inclusion; Digital Transformation; Sustainability; MSMEs.

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References


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