The Role of Digital Financial Literacy and Sharia Financial Inclusion in Post-Pandemic MSME Resilience: Dynamic Capabilities as Mediator and Government Support as Moderator
DOI:
https://doi.org/10.62503/err.1.1.58-72Keywords:
Digital Financial Literacy, Sharia Financial Inclusion, MSME ResilienceAbstract
Post-pandemic resilience requires micro, small, and medium enterprises (MSMEs) to combine financial resources with adaptive capabilities. This study examines the relationships of digital financial literacy and Islamic financial inclusion with MSME resilience, the mediating role of dynamic capabilities, and the moderating role of government support. A cross-sectional survey of 200 MSME owners or managers was analysed using partial least squares structural equation modelling in SmartPLS 3 with 500 bootstrap samples. Digital financial literacy and Islamic financial inclusion were positively associated with dynamic capabilities (β = 0.556 and 0.393) and resilience (β = 0.221 and 0.218). Dynamic capabilities had the largest reported direct coefficient for resilience (β = 0.419). Positive indirect associations supported partial statistical mediation for digital financial literacy (β = 0.233) and Islamic financial inclusion (β = 0.165). Government support had a positive direct association with resilience (β = 0.114, p = 0.014), but its interaction with dynamic capabilities was not significant (β = 0.047, p = 0.122). The model explained 72.2% of the variance in dynamic capabilities and 74.2% in resilience. The contribution is an integrated examination of financial resources, adaptive capability, and institutional support. However, supplementary full-collinearity diagnostics exceeded the 3.3 threshold for two constructs, and cross-sectional self-reports limit causal inference. Financial education and inclusion initiatives may benefit from practical adaptation activities, while programme quality, accessibility, and timing require further investigation.
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