THE ROLE OF ENVIRONMENTAL DYNAMISM AS A MEDIATOR OF THE RELATIONSHIP BETWEEN FINANCIAL TECHNOLOGY AND MSME INCOME

Abstract

MSMEs, as the most important sector in GDP, still experience obstacles in their development, including limited skills and digital literacy capabilities for MSME actors that hinder business operational aspects Second, many MSMEs have not been able to prepare financial statements digitally, reducing accountability and weakening their position in obtaining capital loans. Third, MSME actors have difficulty meeting product standards for digital-based exports, despite the great potential of the digital economy. This is the reason for the need to improve financial literacy, digital marketing, financial technology and financial inclusion. This study aims to examine more deeply the influence of digital marketing, financial literacy, financial technology, and financial inclusion on increasing MSME income in Salatiga City. And how the role of environment dynamics in strengthening independent variables against dependent variables.  This study uses a two-analysis approach, namely multiple linear regression and Moderated Regression Analysis (MRA) with a total of 400 respondents from MSME actors in Salatiga City. The sampling technique uses the probability sampling technique. Data was obtained through the distribution of questionnaires with a likert scale. Based on the findings of previous research, the factors that affect the increase in MSME income include financial literacy, digital marketing, financial technology and financial inclusion.