Factors that influence the improvement of financial performance of Micro, Small and Medium Enterprises in Java Island
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Published
Sep 20, 2025
Abstract
The role of Micro, Small, and Medium Enterprises (MSMEs) as the economic pillar of a developing country. Indonesia is one of the countries that prioritizes MSMEs as its economic strength. The purpose of this study is to analyze the influence of Accounting Information Systems, Financial Literacy, and Accounting Management Strategies on improving the financial performance of MSMEs. This study used primary data collected by distributing questionnaires to MSMEs on the island of Java, including MSMEs in Jakarta, Bandung, and Surabaya. The sampling technique used purposive sampling, with 153 respondents from a total of 170 questionnaires distributed. Data were analyzed using multiple linear regression with SPSS. The results of this study are: (i) Accounting Information Systems and Financial Literacy have a significant and positive effect on the financial performance of MSMEs. Meanwhile, Accounting Management Strategies do not have a significant effect on the financial performance of MSMEs. This study has limitations because it only examined MSMEs located on the island of Java. It is hoped that future research will be conducted on other islands, such as Sulawesi or Kalimantan.
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How to Cite
Surjadi, M., Simandjuntak, J. B., Hakki, T. W. and Rosewita, B. (2025) “Factors that influence the improvement of financial performance of Micro, Small and Medium Enterprises in Java Island”, Ranah Research : Journal of Multidisciplinary Research and Development, 7(6), pp. 4637-4647. doi: 10.38035/rrj.v7i6.1807.
References
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Ahinful, G. S., Boakye, J. D., & Osei Bempah, N. D. (2021). Determinants of SMEs’ financial performance: evidence from an emerging economy. Journal of Small Business and Entrepreneurship, 1-25. https://doi.org/10.1080/08276331.2021.1885247
Ajzen, Icek. 2005. Attitudes, Personality and Behavior. New York. USA: Open University Press.
Almulla, D., & Aljughaiman, A. A. (2021). Does financial technology matter? Evidence from an alternative banking system. Cogent Economics and Finance, 9(1), 1-21. https://doi.org/10.1080/23322039.2021.1934978
Anisah, N., Franzias Crisnata, H. (2021). Analisis Tingkat Literasi Keuangan Pengguna Fintech Payment OVO. Jurnal Riset Akuntansi dan Keuangan Dewantara, 4(1), 47-60. https://ejournal.stiedewantara.ac.id/index.php/JAD/issue/view/59
Anshika, Singla, A., & Mallik, G. (2021). Determinants of financial literacy: Empirical evidence from micro and small enterprises in India. Asia Pacific Management Review, 26(4), 248–255. https://doi.org/10.1016/j.apmrv.2021.03.001
Ariani, A., & Utomo, M. N. (2017). Kajian Strategi Pengembangan Usaha Mikro Kecil dan Menengah (UMKM) di Kota Tarakan. Jurnal Organisasi Dan Manajemen, 13(2), 99–118. https://doi.org/10.33830/jom.v13i2.55.2017
Breliastiti, R., Setiawan, T., & Herninta, T. (2023). Implementation of Global Reporting Initiatives (GRI) Standards in Service Sector Companies. Dinasti International Journal of Economics, Finance & Accounting, 4(5), 648-660.
Breliastiti, R., & Josephine, K. (2017). Creating shared value (CSV) as a development of corporate social responsibility (CSR) in Indonesia. Advanced Science Letters, 23(8), 7039-7041.
Chang, V., Baudier, P., Zhang, H., Xu, Q., Zhang, J., & Arami, M. (2020). How Blockchain can impact financial services – The overview, challenges and recommendations from expert interviewees. Technological Forecasting and Social Change, 158, 1-12. https://doi.org/10.1016/j.techfore.2020.120166
Lema, García-Pérez-de- D., Ruiz-Palomo, D., & Diéguez-Soto, J. (2021). Analysing the roles of CEO’s financial literacy and financial constraints on Spanish SMEs technological innovation. Technology in Society, 64, 1-12. https://doi.org/10.1016/j.techsoc.2020.101519
Hadiwardoyo, W. (2020). Kerugian Ekonomi Nasional Akibat Pandemi Covid-19. Baskara: Journal of Business and Entrepreneurship, 2(2), 83–92. https://doi.org/10.24853/baskara.2.2.83-92
Harsana, M., Baiquni, M., Harmayani, E., & Widyaningsih, Y. A. (2019). Potensi Makanan Tradisional Kue Kolombeng Sebagai Daya Tarik Wisata Di Daerah Istimewa Yogyakarta. Home Economics Journal, 2(2), 40–47. https://doi.org/10.21831/hej.v2i2.23291
Hasan, M., Dzakiyyah, A., Kumalasari, D. A., Safira, N., & Aini, S. N. (2021). Transformasi Digital UMKM Sektor Kuliner Di Kelurahan Jatinegara, Jakarta Timur. Jurnal Bisnis Dan Kewirausahaan, 17(2), 135–150. https://doi.org/10.31940/jbk.v17i2.2529
Idawati, I. A. A., & Pratama, I. G. S. (2020). Pengaruh Literasi Keuangan Terhadap Kinerja dan Keberlangsungan UMKM di Kota Denpasar. Warmadewa Management and Business Journal (WMBJ), 2(1), 1–9. https://doi.org/10.22225/wmbj.2.1.1644.1-9
Luckandi, D. (2019). Analisis Transaksi Pembayaran Menggunakan Fintech Pada UMKM Di Indonesia: Pendekatan Adaptive Structuration Theory. Jiko - Stmik Akakom Yogyakarta, 4(1), 1–86. https://dspace.uii.ac.id/handle/123456789/9681
Mukarromah, Denis., Jubaedah dan M. Astuti. 2020. Financial Performance Analysis on Micro, Small, and Medium Entreprises of Cassava Product in Cibadak, Lebak Regency, Banten. Jurnal Economia, 16(2), 257-268.
Oktavina, Larissa A. dan Mario Ria R. (2021). Digitalisasi UMKM, Literasi Keuangan, dan Kinerja Keuangan: Studi pada Masa Pandemi Covid-19. Journal of Business and Banking, 11(1), 73-92.
Opiyo, M. O., Ondoro, C., & Obura, J. (2019). Influence of Digital Financial Information Services on Financial Performance of Commercial Banks in Kisumu Country, Kenya. International Journal of Research and Innovation in Social Science, 3(6), 153-156.
Pangestu, J. C. (2021). Strategi Pengembangan Pada Perspektif Nonkeuangan Metode Balance Scorecard Terhadap Peningkatan Kinerja Keuangan Umkm Di Indonesia Saat Pandemic Covid-19. Jurnal Lentera Akuntansi, 6(1), 31-47.
Rahayu, A. Y., & Musdholifah. (2017). Pengaruh literasi keuangan terhadap kinerja dan keberlanjutan umkm di kota surabaya. Jurnal Ilmu Manajemen, 5(2016), 1-7.
Rakhma Wulan, V. (2017). Financial Technology (Fintech) A New Transaction in Future. Journal of Electrical Engineering and Computer Sciences, 2(1), 177-182.
Rusli, Y. M., & Surjadi, M. (2021). Business Development Strategy For Non- Financial Perspective Balance Scorecard Methods To Increase The Performance Of Msmes In Indonesia During The Covid-19 PANDEMIC. Dinasti International Journal of Management Science, 3(2), 276-286.
Sanistasya, P. A., Raharjo, K., & Iqbal, M. (2019). The Effect of Financial Literacy and Financial Inclusion on Small Enterprises Performance in East Kalimantan. Jurnal Economia, 15(1), 48–59. https://doi.org/10.21831/economia.v15i1.23192
Saragih, E. V. O., & Nugroho, S. (2015). Makna Ketersediaan Trans Sarbagita Jalur Denpasar-Gwk Bagi Pariwisata Bali. Jurnal Destinasi Pariwisata, 3(2), 7–13.
Saunila, M. (2014). Innovation capability for SME success: perspectives of financial and operational performance. Journal of Advances in Management Research, 11(2), 163–175. https://doi.org/10.1108/JAMR-11-2013-0063
Sudaryanti, D. S., Sahroni, N., & Kurniawati, A. (2018). Analisa Pengaruh Mobile Banking terhadap Kinerja Perusahaan Sektor Perbankan yang Tercatat di Bursa Efek Indonesia. Jurnal Ekonomi Manajemen, 4, 96–107. http://jurnal.unsil.ac.id/index.php/jem
Surjadi, M. (2023). Pengaruh Moral Pajak Dan Etika Uang Terhadap Kepatuhan Wajib Pajak Umkm Dengan Peran Sistem Digitalisasi Pajak Sebagai Pemoderasi Saat Era New Normal Pandemik Covid-19. Jurnal Analisa Akuntansi Dan Perpajakan, 7(1), 1-18.
Surjadi, M., Hakki, T. W., & Saputra, F. (2023). Improving Msme Performance: Management Accounting Strategies, Leadership Quality and Market Orientation. Journal of Accounting and Finance Management, 4(3), 250-257.
Suryanto, Rusdin dan R. Meisa Dai. (2020). Fintech as A Catalyst for Growth of Micro, Small and Medium Enterprises in Indonesia. Academy of Strategic Management Journal, 19(5), 1-12. https://www.researchgate.net/publication/344819009
Susan, M. (2020). Financial literacy and growth of micro, small, and medium enterprises in west java, indonesia. In International Symposia in Economic Theory and Econometrics, 27, 39–48. Emerald Group Publishing Ltd. https://doi.org/10.1108/S1571-038620200000027004
Sutarmin, O., & Susanto, A. (2017). Potensi Pengembangan Transaksi Non Tunai di Indonesia. Sustainable Competitive Advantage (SCA), 7 (1), 1-12.
Setiawan, Temy. (2022). Mahir Akuntansi untuk Usaha Mikro, Kecil, dan Menengah. Bhuana Ilmu Populer.
Wahyono, & Hutahayan, B. (2021). The relationships between market orientation, learning orientation, financial literacy, on the knowledge competence, innovation, and performance of small and medium textile industries in Java and Bali. Asia Pacific Management Review, 26(1), 39–46. https://doi.org/10.1016/j.apmrv.2020.07.001
Ye, J., & Kulathunga, K. M. M. C. B. (2019). How does financial literacy promote sustainability in SMEs? A developing country perspective. Sustainability (Switzerland), 11(10), 1–21. https://doi.org/10.3390/su11102990
Ahinful, G. S., Boakye, J. D., & Osei Bempah, N. D. (2021). Determinants of SMEs’ financial performance: evidence from an emerging economy. Journal of Small Business and Entrepreneurship, 1-25. https://doi.org/10.1080/08276331.2021.1885247
Ajzen, Icek. 2005. Attitudes, Personality and Behavior. New York. USA: Open University Press.
Almulla, D., & Aljughaiman, A. A. (2021). Does financial technology matter? Evidence from an alternative banking system. Cogent Economics and Finance, 9(1), 1-21. https://doi.org/10.1080/23322039.2021.1934978
Anisah, N., Franzias Crisnata, H. (2021). Analisis Tingkat Literasi Keuangan Pengguna Fintech Payment OVO. Jurnal Riset Akuntansi dan Keuangan Dewantara, 4(1), 47-60. https://ejournal.stiedewantara.ac.id/index.php/JAD/issue/view/59
Anshika, Singla, A., & Mallik, G. (2021). Determinants of financial literacy: Empirical evidence from micro and small enterprises in India. Asia Pacific Management Review, 26(4), 248–255. https://doi.org/10.1016/j.apmrv.2021.03.001
Ariani, A., & Utomo, M. N. (2017). Kajian Strategi Pengembangan Usaha Mikro Kecil dan Menengah (UMKM) di Kota Tarakan. Jurnal Organisasi Dan Manajemen, 13(2), 99–118. https://doi.org/10.33830/jom.v13i2.55.2017
Breliastiti, R., Setiawan, T., & Herninta, T. (2023). Implementation of Global Reporting Initiatives (GRI) Standards in Service Sector Companies. Dinasti International Journal of Economics, Finance & Accounting, 4(5), 648-660.
Breliastiti, R., & Josephine, K. (2017). Creating shared value (CSV) as a development of corporate social responsibility (CSR) in Indonesia. Advanced Science Letters, 23(8), 7039-7041.
Chang, V., Baudier, P., Zhang, H., Xu, Q., Zhang, J., & Arami, M. (2020). How Blockchain can impact financial services – The overview, challenges and recommendations from expert interviewees. Technological Forecasting and Social Change, 158, 1-12. https://doi.org/10.1016/j.techfore.2020.120166
Lema, García-Pérez-de- D., Ruiz-Palomo, D., & Diéguez-Soto, J. (2021). Analysing the roles of CEO’s financial literacy and financial constraints on Spanish SMEs technological innovation. Technology in Society, 64, 1-12. https://doi.org/10.1016/j.techsoc.2020.101519
Hadiwardoyo, W. (2020). Kerugian Ekonomi Nasional Akibat Pandemi Covid-19. Baskara: Journal of Business and Entrepreneurship, 2(2), 83–92. https://doi.org/10.24853/baskara.2.2.83-92
Harsana, M., Baiquni, M., Harmayani, E., & Widyaningsih, Y. A. (2019). Potensi Makanan Tradisional Kue Kolombeng Sebagai Daya Tarik Wisata Di Daerah Istimewa Yogyakarta. Home Economics Journal, 2(2), 40–47. https://doi.org/10.21831/hej.v2i2.23291
Hasan, M., Dzakiyyah, A., Kumalasari, D. A., Safira, N., & Aini, S. N. (2021). Transformasi Digital UMKM Sektor Kuliner Di Kelurahan Jatinegara, Jakarta Timur. Jurnal Bisnis Dan Kewirausahaan, 17(2), 135–150. https://doi.org/10.31940/jbk.v17i2.2529
Idawati, I. A. A., & Pratama, I. G. S. (2020). Pengaruh Literasi Keuangan Terhadap Kinerja dan Keberlangsungan UMKM di Kota Denpasar. Warmadewa Management and Business Journal (WMBJ), 2(1), 1–9. https://doi.org/10.22225/wmbj.2.1.1644.1-9
Luckandi, D. (2019). Analisis Transaksi Pembayaran Menggunakan Fintech Pada UMKM Di Indonesia: Pendekatan Adaptive Structuration Theory. Jiko - Stmik Akakom Yogyakarta, 4(1), 1–86. https://dspace.uii.ac.id/handle/123456789/9681
Mukarromah, Denis., Jubaedah dan M. Astuti. 2020. Financial Performance Analysis on Micro, Small, and Medium Entreprises of Cassava Product in Cibadak, Lebak Regency, Banten. Jurnal Economia, 16(2), 257-268.
Oktavina, Larissa A. dan Mario Ria R. (2021). Digitalisasi UMKM, Literasi Keuangan, dan Kinerja Keuangan: Studi pada Masa Pandemi Covid-19. Journal of Business and Banking, 11(1), 73-92.
Opiyo, M. O., Ondoro, C., & Obura, J. (2019). Influence of Digital Financial Information Services on Financial Performance of Commercial Banks in Kisumu Country, Kenya. International Journal of Research and Innovation in Social Science, 3(6), 153-156.
Pangestu, J. C. (2021). Strategi Pengembangan Pada Perspektif Nonkeuangan Metode Balance Scorecard Terhadap Peningkatan Kinerja Keuangan Umkm Di Indonesia Saat Pandemic Covid-19. Jurnal Lentera Akuntansi, 6(1), 31-47.
Rahayu, A. Y., & Musdholifah. (2017). Pengaruh literasi keuangan terhadap kinerja dan keberlanjutan umkm di kota surabaya. Jurnal Ilmu Manajemen, 5(2016), 1-7.
Rakhma Wulan, V. (2017). Financial Technology (Fintech) A New Transaction in Future. Journal of Electrical Engineering and Computer Sciences, 2(1), 177-182.
Rusli, Y. M., & Surjadi, M. (2021). Business Development Strategy For Non- Financial Perspective Balance Scorecard Methods To Increase The Performance Of Msmes In Indonesia During The Covid-19 PANDEMIC. Dinasti International Journal of Management Science, 3(2), 276-286.
Sanistasya, P. A., Raharjo, K., & Iqbal, M. (2019). The Effect of Financial Literacy and Financial Inclusion on Small Enterprises Performance in East Kalimantan. Jurnal Economia, 15(1), 48–59. https://doi.org/10.21831/economia.v15i1.23192
Saragih, E. V. O., & Nugroho, S. (2015). Makna Ketersediaan Trans Sarbagita Jalur Denpasar-Gwk Bagi Pariwisata Bali. Jurnal Destinasi Pariwisata, 3(2), 7–13.
Saunila, M. (2014). Innovation capability for SME success: perspectives of financial and operational performance. Journal of Advances in Management Research, 11(2), 163–175. https://doi.org/10.1108/JAMR-11-2013-0063
Sudaryanti, D. S., Sahroni, N., & Kurniawati, A. (2018). Analisa Pengaruh Mobile Banking terhadap Kinerja Perusahaan Sektor Perbankan yang Tercatat di Bursa Efek Indonesia. Jurnal Ekonomi Manajemen, 4, 96–107. http://jurnal.unsil.ac.id/index.php/jem
Surjadi, M. (2023). Pengaruh Moral Pajak Dan Etika Uang Terhadap Kepatuhan Wajib Pajak Umkm Dengan Peran Sistem Digitalisasi Pajak Sebagai Pemoderasi Saat Era New Normal Pandemik Covid-19. Jurnal Analisa Akuntansi Dan Perpajakan, 7(1), 1-18.
Surjadi, M., Hakki, T. W., & Saputra, F. (2023). Improving Msme Performance: Management Accounting Strategies, Leadership Quality and Market Orientation. Journal of Accounting and Finance Management, 4(3), 250-257.
Suryanto, Rusdin dan R. Meisa Dai. (2020). Fintech as A Catalyst for Growth of Micro, Small and Medium Enterprises in Indonesia. Academy of Strategic Management Journal, 19(5), 1-12. https://www.researchgate.net/publication/344819009
Susan, M. (2020). Financial literacy and growth of micro, small, and medium enterprises in west java, indonesia. In International Symposia in Economic Theory and Econometrics, 27, 39–48. Emerald Group Publishing Ltd. https://doi.org/10.1108/S1571-038620200000027004
Sutarmin, O., & Susanto, A. (2017). Potensi Pengembangan Transaksi Non Tunai di Indonesia. Sustainable Competitive Advantage (SCA), 7 (1), 1-12.
Setiawan, Temy. (2022). Mahir Akuntansi untuk Usaha Mikro, Kecil, dan Menengah. Bhuana Ilmu Populer.
Wahyono, & Hutahayan, B. (2021). The relationships between market orientation, learning orientation, financial literacy, on the knowledge competence, innovation, and performance of small and medium textile industries in Java and Bali. Asia Pacific Management Review, 26(1), 39–46. https://doi.org/10.1016/j.apmrv.2020.07.001
Ye, J., & Kulathunga, K. M. M. C. B. (2019). How does financial literacy promote sustainability in SMEs? A developing country perspective. Sustainability (Switzerland), 11(10), 1–21. https://doi.org/10.3390/su11102990