Volume 07 Issue 09 September 2024
1D. Rahadian, 2A. Krisnawatie, 3W. Rachbini, 4Hadifian
1,2Lecturer at School of Economic and Business, (Distance Learning) Master in Management, Faculty of Economic and Business, Telkom University, West Java, Indonesia
3Lecturer at Graduate School, Faculty of Economics and Business, Pancasila University, Jakarta, Indonesia
4Postgraduate Student at School of Economic and Business, (Distance Learning) Master in Management, Faculty of Economic and Business, Telkom University, West Java, Indonesia
DOI : https://doi.org/10.47191/ijsshr/v7-i09-27Google Scholar Download Pdf
ABSTRACT
This research examines the relationship and impact of value creation models from the collaboration between Micro, Small, and Medium Enterprises (MSMEs) and Financial Technology (Fintech) companies on innovation and revenue growth within MSMEs. Fintech revolutionizes the financial sector with digital solutions for various business processes, benefiting MSMEs by addressing financing, electronic payments, cash management challenges and other business matters. This study focus on value creations through MSME-fintech collaboration and their effects on innovation and revenue growth in MSME, while previous studies highlight fintech's advantages. The research questions include: (1) What value creations arise from the collaboration? (2) How do these value creations impact innovation and revenue growth in MSMEs? A structural equation model (SEM) using partial least square (PLS) methodology analyses the relationships and impacts of the value creation models. Data were collected from 178 culinary sector MSMEs in Jakarta, Surabaya, and Medan, Indonesia. Three of the five identified value creation models—new customer base, new value chain efficiency, and new customer value—significantly influence incremental innovation from MSME-fintech collaboration. Incremental innovation significantly boosts MSME revenue growth. Multi-group analysis shows micro enterprises have the highest revenue growth impact at 54.8%, compared to 47.0% for small enterprises, 51.5% for medium enterprises, and 50.5% for the overall MSME group. Specific value creation models foster incremental innovation, enhancing MSME revenue growth. This study provides insights into optimizing fintech collaborations for MSME financial outcomes and contributes to understanding the fintech-MSME dynamic, offering a foundation for future research.
KEYWORDS:MSME; Financial Technology; Value Creation Models; Innovation; Collaboration.
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