Navigating Financial Success: The Impact of Financial Literacy, Family Involvement, and Digital Transformation on Family-Owned SMEs in ASEAN
DOI:
https://doi.org/10.47747/fmiic.v1i3.3555Abstract
This study investigates the impact of entrepreneurial orientation, family involvement, digital transformation, and innovation capability on the financial performance of family-owned SMEs in ASEAN countries, with financial literacy and access to finance as mediating variables. Data were collected from 310 respondents across Indonesia, Malaysia, and Thailand and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that entrepreneurial orientation, digital transformation, and financial literacy significantly enhance financial performance, while family involvement affects financial performance only through access to finance. Innovation capability improves access to finance but does not directly affect performance. The mediating roles of financial literacy and access to finance highlight their critical importance in optimizing business outcomes. These insights provide practical recommendations for policymakers and SME practitioners to promote digital transformation, enhance financial literacy, and improve access to financial resources for sustainable business growth.
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