Fintech Adoption Drivers for Innovation for SMEs in Indonesia
ABSTRACT: The rapid evolution of technology and a large number of smartphone users are transforming the way the masses access financial services. Fintech companies consistently innovate in developing customized products and services for users and SMEs to increase financial access and inclusiveness t...
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| Format: | Article |
| Language: | English |
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Elsevier
2022-12-01
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| Series: | Journal of Open Innovation: Technology, Market and Complexity |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S219985312300094X |
| _version_ | 1827584975979937792 |
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| author | Deni Pandu Nugraha Budi Setiawan Robert Jeyakumar Nathan Maria Fekete-Farkas |
| author_facet | Deni Pandu Nugraha Budi Setiawan Robert Jeyakumar Nathan Maria Fekete-Farkas |
| author_sort | Deni Pandu Nugraha |
| collection | DOAJ |
| description | ABSTRACT: The rapid evolution of technology and a large number of smartphone users are transforming the way the masses access financial services. Fintech companies consistently innovate in developing customized products and services for users and SMEs to increase financial access and inclusiveness to achieve the Indonesian national financial inclusion target of 90 percent by 2024. Access to digital financial products via Fintech contributes to greater financial inclusion for SMEs, particularly during the COVID-19 pandemic, which restricted economic activities. Using an extended TAM model, this study explores the driving factors of Fintech adoption for Indonesian SMEs during the COVID-19 outbreak. Data analysis of 415 respondents was conducted utilizing Smart-PLS 3.0 software. The findings confirm perceived usefulness, perceived ease of use, government support, trust, and user innovativeness to have a direct positive effect on the intention of SMEs to adopt Fintech. The result also reveals that financial literacy indirectly correlates with Fintech adoption mediated by user innovativeness. This indicates that Fintech could contribute to bridging financial inclusion where SMEs with lower financial literacy can utilize financial products and services via Fintech. This is a positive contribution of Fintech for SMEs in developing economies. The present study suggests that policymakers could foster the expansion of Fintech business infrastructure to improve access to SME financial services. |
| first_indexed | 2024-03-08T23:39:00Z |
| format | Article |
| id | doaj.art-a949dd1ab83542d7842621e6c3c2ea22 |
| institution | Directory Open Access Journal |
| issn | 2199-8531 |
| language | English |
| last_indexed | 2024-03-08T23:39:00Z |
| publishDate | 2022-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj.art-a949dd1ab83542d7842621e6c3c2ea222023-12-14T05:22:03ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312022-12-0184208Fintech Adoption Drivers for Innovation for SMEs in IndonesiaDeni Pandu Nugraha0Budi Setiawan1Robert Jeyakumar Nathan2Maria Fekete-Farkas3Doctoral School of Economic and Regional Sciences, The Hungarian University of Agriculture and Life Sciences, 2100 Godollo, Hungary; Department of Management, UIN Syarif Hidayatullah Jakarta, Tangerang Selatan 15412, Indonesia; Correspondence:Doctoral School of Economic and Regional Sciences, The Hungarian University of Agriculture and Life Sciences, 2100 Godollo, Hungary; Faculty of Economics, Universitas Indo Global Mandiri, Palembang 30129, Indonesia; Correspondence:Faculty of Business, Multimedia University, Cyberjaya 63100, Malaysia; Faculty of Economics, The University of South Bohemia, 37005 České Budějovice, Czech RepublicInstitute of Agricultural and Food Economics, The Hungarian University of Agriculture and Life Sciences, 2100 Godollo, HungaryABSTRACT: The rapid evolution of technology and a large number of smartphone users are transforming the way the masses access financial services. Fintech companies consistently innovate in developing customized products and services for users and SMEs to increase financial access and inclusiveness to achieve the Indonesian national financial inclusion target of 90 percent by 2024. Access to digital financial products via Fintech contributes to greater financial inclusion for SMEs, particularly during the COVID-19 pandemic, which restricted economic activities. Using an extended TAM model, this study explores the driving factors of Fintech adoption for Indonesian SMEs during the COVID-19 outbreak. Data analysis of 415 respondents was conducted utilizing Smart-PLS 3.0 software. The findings confirm perceived usefulness, perceived ease of use, government support, trust, and user innovativeness to have a direct positive effect on the intention of SMEs to adopt Fintech. The result also reveals that financial literacy indirectly correlates with Fintech adoption mediated by user innovativeness. This indicates that Fintech could contribute to bridging financial inclusion where SMEs with lower financial literacy can utilize financial products and services via Fintech. This is a positive contribution of Fintech for SMEs in developing economies. The present study suggests that policymakers could foster the expansion of Fintech business infrastructure to improve access to SME financial services.http://www.sciencedirect.com/science/article/pii/S219985312300094Xdigitization in financeIndonesian SMEsextended TAMSustainable Development Goals 10SME Innovativeness |
| spellingShingle | Deni Pandu Nugraha Budi Setiawan Robert Jeyakumar Nathan Maria Fekete-Farkas Fintech Adoption Drivers for Innovation for SMEs in Indonesia Journal of Open Innovation: Technology, Market and Complexity digitization in finance Indonesian SMEs extended TAM Sustainable Development Goals 10 SME Innovativeness |
| title | Fintech Adoption Drivers for Innovation for SMEs in Indonesia |
| title_full | Fintech Adoption Drivers for Innovation for SMEs in Indonesia |
| title_fullStr | Fintech Adoption Drivers for Innovation for SMEs in Indonesia |
| title_full_unstemmed | Fintech Adoption Drivers for Innovation for SMEs in Indonesia |
| title_short | Fintech Adoption Drivers for Innovation for SMEs in Indonesia |
| title_sort | fintech adoption drivers for innovation for smes in indonesia |
| topic | digitization in finance Indonesian SMEs extended TAM Sustainable Development Goals 10 SME Innovativeness |
| url | http://www.sciencedirect.com/science/article/pii/S219985312300094X |
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