The Mediating Role of Digital Literacy in the Relationships Between Digital Payment and Marketplace Adoption, MSME Sustainability, and Competitiveness in Makassar City (Amkop Management Accounting Review.)

Summary

• A quantitative survey of 300 MSMEs in Makassar City, Indonesia, was analyzed with PLS-SEM.p.1
• Digital payment adoption positively affects MSME competitiveness (β = 0.401).p.1
• Marketplace use positively affects MSME sustainability (β = 0.367).p.1
• The direct effects of digital payment on sustainability (β = 0.070) and of marketplace use on competitiveness (β = −0.043) are not statistically significant.p.1
• Digital literacy is positively related to both sustainability (β = 0.374) and competitiveness (β = 0.500).p.1
• All four indirect effects through digital literacy are significant, with coefficients ranging from 0.160 to 0.258.p.1

Key insights

1. The study population comprised 31,848 MSMEs using digital technologies, and 300 owners or managers were sampled purposively.p.5
2. Food and beverage businesses were the largest group of respondents, with 172 businesses (57.33%).p.6
3. All 25 indicators met the outer-loading criterion, with values ranging from 0.817 to 0.869.p.7
4. The model explained 60.3% of the variance in MSME competitiveness, the highest of the three outcomes.p.8
5. Digital payment adoption (β = 0.429) and marketplace adoption (β = 0.516) both raise digital literacy.p.8