Financial Management Based on Economic Digitalization and Information Technology Utilization Applications in Industry SMEs in Barru Regency, Indonesia
Year: 2024
Type: article
Study design: Observational Study
Abstract: An effective financial management system based on digitalization and the need for information technology applications is not just a choice but a necessity for the profitability of industrial businesses. This study aims to analyze the factors that influence economic digitalization and technology applications on the financial management of Industrial SMEs; analyze the direct and indirect effects of economic digitalization, technology applications, and financial management on increasing business profitability and sustainability of SMEs; formulate a model of economic digitalization, technology applications, and financial management on the sustainability of Industrial SMEs in Barru Regency. This study uses a quantitative survey approach. Data were obtained through a survey involving 291 respondents, and data was sourced from the study results. The study results show that compatibility, owner commitment, and competitive pressure influence economic digitalization and technology applications on SMEs. Furthermore, the highest direct influence is the Development of Economic Digitalization on Financial Management at 45.7%, the highest indirect influence is the Development of Economic Digitalization on Business Sustainability at 29.3%, and the total influence of the Development of Economic Digitalization on Business Sustainability is at 55.7%. This study recommends that the sustainability of SMEs is not a future goal but a present responsibility that can be achieved through the immediate and strategic use of technology and economic digitalization, efficient financial management, and enhanced productivity of SMEs.
Institution: Universitas Bosowa
Language: English
Subfield: Demography
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4404651291