This work is licensed under a Creative Commons Attribution 4.0 International License.
Perceived Benefits and Risks Influencing Fintech Adoption and Sustainability Performance of Indonesian MSME's
Corresponding Author(s) : Ratih Nur Widyantari
Startupreneur Business Digital (SABDA Journal),
Vol. 5 No. 2 (2026): October
Abstract
This research explores the interrelationships between perceived benefits, perceived risks, FinTech adoption, and sustainability performance among Indonesian MSMEs operating in environments characterized by economic disruption and technological uncertainty. Drawing on technology adoption perspectives, the study conceptualizes perceived benefits and perceived risks as key determinants shaping MSMEs’ willingness to integrate FinTech into financial and operational activities. A quantitative methodology was employed, and Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied to analyze the structural relationships, including both direct and indirect effects, among the constructs. The findings demonstrate that perceived benefits significantly and positively influence FinTech adoption, indicating that MSMEs are more likely to embrace digital financial technologies when they perceive improvements in transaction efficiency, accessibility, financial flexibility, and business management. FinTech adoption subsequently exerts a significant positive effect on sustainability performance, strengthening MSMEs’ economic resilience, operational continuity, and social sustainability during periods of disruption. Although perceived risks encourage greater caution during the initial stages of FinTech integration, their non-significant direct effect on long-term sustainability performance suggests that risk perceptions primarily shape adoption decisions rather than sustainability outcomes. The study highlights FinTech adoption as a strategic mechanism that transforms digital financial value into organizational resilience and sustainable performance. These findings contribute to the FinTech and MSME literature and offer actionable insights for policymakers, financial institutions, and digital innovators in building an inclusive and resilient MSME ecosystem.
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- R. Abdul-Rahim, S. A. Bohari, A. Aman, and Z. Awang, “Benefit–risk perceptions of fintech adoption for sustainability from bank consumers’ perspective: The moderating role of fear of covid-19,” Sustainability, vol. 14, no. 14, p. 8357, 2022.
- F. Rahmawati and S. Merlinda, “The effect of perceived benefits, ease of use, and risk on culinary msmes’ interest in utilizing qris,” Journal of Business & Banking, vol. 14, no. 1, pp. 19–38, 2024.
- D. Apriadi, D. Adelin, P. R. Mutumanikam, and L. Lanjarsih, “Personal finance transformation in the digital era: The impact of financial technology on people’s economic behavior,” Oikonomia: Journal of Management Economics and Accounting, vol. 2, no. 3, pp. 89–100, 2025.
- U. Rahardja, Q. Aini, A. S. Bist, S. Maulana, and S. Millah, “Examining the interplay of technology readiness and behavioural intentions in health detection safe entry station,” JDM (Jurnal Dinamika Manajemen), vol. 15, no. 1, pp. 125–143, 2024.
- S. Sriyono, J. Jermias, U. Udin, and A. M. Rohmi, “Behavioral and risk factors in sme fintech adoption: Evidence from indonesian small enterprises,” Journal of Logistics, Informatics and Service Science, vol. 13, no. 1, pp. 148–161, 2026.
- R. Ahli, M. F. Hilmi, and A. Abudaqa, “Moderating effect of perceived organizational support on the relationship between employee performance and its determinants: A case of entrepreneurial firms in uae,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 2, pp. 199–212, 2024.
- V. Juita, V. Pujani, R. Rahim, and R. Rahayu, “Gender differences in financial technology (fintech) adoption in indonesia: An analysis of risk perceptions and benefits,” Riset Akuntansi Dan Keuangan Indonesia, vol. 8, no. 2, pp. 145–158, 2023.
- M. Alsadoun and F. S. Alrobai, “Influence of fintech adoption on sustainable performance via mediation role of green finance and green innovation,” American Journal of Business Science Philosophy, pp. p61–72, 2024.
- T. Appiah and V. V. Agblewornu, “The interplay of perceived benefit, perceived risk, and trust in fintech adoption: Insights from sub-saharan africa,” Heliyon, vol. 11, no. 2, 2025.
- S. Singh and B. Karamcheti, “Robo-advisor enablers and inhibitors: A dual-factor framework and a benefit-risk model integration for understanding customer acceptance,” Sustainable Futures, vol. 9, p. 100570, 2025.
- I. Hidayat-ur Rehman and M. N. Alam, “Digital transformation and sustainable performance: the roles of fintech, financial inclusion and competitiveness,” South Asian Journal of Business Studies, pp. 1–27, 2026.
- U. Rahardja, I. D. Hapsari, P. H. Putra, and A. N. Hidayanto, “Technological readiness and its impact on mobile payment usage: A case study of go-pay,” Cogent Engineering, vol. 10, no. 1, p. 2171566, 2023.
- K. Saadah and D. Setiawan, “Determinants of fintech adoption: evidence from smes in indonesia,” LBS Journal of Management & Research, vol. 22, no. 1, pp. 55–65, 2024.
- S. Rahmani, F. Abdillah, and V. Ristanti, “Optimizing msme sustainability through digital marketing, innovation, and financial literacy with financial technology support,” IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita, vol. 14, no. 1, pp. 212–239, 2025.
- C. Lukita, T. Handra, F. P. Oganda, and M. Laurens, “Data-driven innovation for circular digital economy in sustainable urban development,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 7, no. 1, pp. 97–105, 2025.
- M. A. Bhat, S. T. Khan, A. F. Alkhwaldi, and A. A. Abdulmuhsin, “Investigating the critical drivers of fintech adoption to promote business sustainability of smes,” Global Knowledge, Memory and Communication, 2024.
- B. Setiawan, S. Rani, E. Emilda, F. Arifin, and D. Utami, “Understanding fintech adoption drivers for digital financial sustainability in urban and rural msmes,” Risks, vol. 14, no. 4, p. 77, 2026.
- E. Susetyono, D. S. Priyarsono, A. Sukmawati, and P. Nurhayati, “Improving risk management maturity in ultra micro soe holding companies,” Aptisi Transactions on Technopreneurship (ATT), vol. 8, no. 1, pp. 310–324, 2026.
- M. S. Hassan, N. H. Mai, N. S. A. Wahab, M. B. Amin, M. M. Hassan, and J. Ol´ah, “Decentralized fintech platforms adoption intention in cyber risk environment among genz: A dual-method approach using pls-sem and necessary condition analysis,” Computers in Human Behavior Reports, vol. 18, p. 100687, 2025.
- R. Aprianto, E. P. Lestari, E. Fletcher et al., “Harnessing artificial intelligence in higher education: Balancing innovation and ethical challenges,” International Transactions on Education Technology (ITEE), vol. 3, no. 1, pp. 84–93, 2024.
- C. Yan, A. B. Siddik, L. Yong, Q. Dong, G.-W. Zheng, and M. N. Rahman, “A two-staged sem-artificial neural network approach to analyze the impact of fintech adoption on the sustainability performance of banking firms: the mediating effect of green finance and innovation,” Systems, vol. 10, no. 5, p. 148, 2022.
- F. Kurniasari, N. Abd Hamid, and E. D. Lestari, “Unraveling the impact of financial literacy, financial technology adoption, and access to finance on small medium enterprises business performance and sustainability: a serial mediation model,” Cogent Business & Management, vol. 12, no. 1, p. 2487837, 2025.
- D. Alassaf, T. Daim, M. Dabi´c, and S. Alzahrani, “Fintech and entrepreneurship: an assessment model to evaluate policy instruments for fintech adoption by small and medium enterprises,” IEEE Transactions on Engineering Management, vol. 71, pp. 14 046–14 062, 2024.
- C. S. Bangun, S. Solahudin, A. Sutarman, and S. Dlamini, “The role of application programming interface in transforming restaurant delivery operations,” Startupreneur Business Digital (SABDA Journal), vol. 5, no. 1, pp. 88–95, 2026.
- R. Desiyanti, “Financial technology and business performance among small medium enterprises (smes) in indonesia,” in Transforming Business Through Digital Sustainability Models. IGI Global Scientific Publishing, 2025, pp. 143–170.
- M. Florez-Jimenez, A. Lleo, P. Ruiz-Palomino, and A. Mu˜noz-Villamizar, “Corporate sustainability, organizational resilience, and corporate purpose: a review of the academic traditions connecting them,” Review of Managerial Science, vol. 19, no. 1, pp. 67–104, 2025.
- F. Zidan, D. Nugroho, and B. A. Putra, “Securing enterprises: harnessing blockchain technology against cybercrime threats,” International Journal of Cyber and IT Service Management, vol. 3, no. 2, pp. 168–173, 2023.
- A. Zakariya and A. A. Arifin, “The application of digital payments (qris & e-wallet) on the efficiency of msme transactions,” Journal of Finance, Economics and Business, vol. 4, no. 2, pp. 1–19, 2025.
- A. D. Garcia, A. M. Rosyid, M. Yusup, and M. Khasanah, “Product innovation of foodpreneurs towards customer loyalty,” Startupreneur Business Digital (SABDA Journal), vol. 4, no. 2, pp. 104–113, 2025.
- R. Reniati, B. Susantyo, N. R. Irmayani, F. Sabri, and W. Widiastuti, “The influence of leadership strategies and social capital on the business performance and resilience of indonesian msmes,” Journal of the Knowledge Economy, vol. 16, no. 2, pp. 9932–9971, 2025.
- U. Rahardja, S.-C. Chen, Y.-C. Lin, T.-C. Tsai, Q. Aini, A. Khan, F. P. Oganda, E. R. Dewi, Y.-C. Cho, and C.-H. Hsu, “Evaluating the mediating mechanism of perceived trust and risk toward cryptocurrency: An empirical research,” SAGE Open, vol. 13, no. 4, p. 21582440231217854, 2023.
- K. A. Akhmad, S. Purnomo, S. Purwandari, and I. Sentosa, “Digital technology adoption to support sustainable innovation among MSMEs in indonesia,” EKUITAS (Jurnal Ekonomi dan Keuangan), vol. 9, no. 3, pp. 387–405, 2025. [Online]. Available: https://garuda.kemdiktisaintek.go.id/documents/detail/5792864
- A. Gamage, “Research design, philosophy, and quantitative approaches in scientific research methodology,” Scholars Journal of Engineering and Technology, 2025.
- I. Irawan, A. Fadhlihi, I. R. Diwasya, and S. Astuti, “Financial literacy, government support, and fintech adoption as drivers of sme sustainability performance,” Academia Open, vol. 11, no. 1, pp. 10–21 070, 2026.
- M. Asad, A. Ghazalat, A. Z. Mansour, M. U. Asif, and A. C. Campbell, “Fintech adoption and sustainable performance of smes: moderated mediated analysis of technological turbulence and competitive advantage,” Management & Sustainability: An Arab Review, pp. 1–22, 2025.
References
R. Abdul-Rahim, S. A. Bohari, A. Aman, and Z. Awang, “Benefit–risk perceptions of fintech adoption for sustainability from bank consumers’ perspective: The moderating role of fear of covid-19,” Sustainability, vol. 14, no. 14, p. 8357, 2022.
F. Rahmawati and S. Merlinda, “The effect of perceived benefits, ease of use, and risk on culinary msmes’ interest in utilizing qris,” Journal of Business & Banking, vol. 14, no. 1, pp. 19–38, 2024.
D. Apriadi, D. Adelin, P. R. Mutumanikam, and L. Lanjarsih, “Personal finance transformation in the digital era: The impact of financial technology on people’s economic behavior,” Oikonomia: Journal of Management Economics and Accounting, vol. 2, no. 3, pp. 89–100, 2025.
U. Rahardja, Q. Aini, A. S. Bist, S. Maulana, and S. Millah, “Examining the interplay of technology readiness and behavioural intentions in health detection safe entry station,” JDM (Jurnal Dinamika Manajemen), vol. 15, no. 1, pp. 125–143, 2024.
S. Sriyono, J. Jermias, U. Udin, and A. M. Rohmi, “Behavioral and risk factors in sme fintech adoption: Evidence from indonesian small enterprises,” Journal of Logistics, Informatics and Service Science, vol. 13, no. 1, pp. 148–161, 2026.
R. Ahli, M. F. Hilmi, and A. Abudaqa, “Moderating effect of perceived organizational support on the relationship between employee performance and its determinants: A case of entrepreneurial firms in uae,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 2, pp. 199–212, 2024.
V. Juita, V. Pujani, R. Rahim, and R. Rahayu, “Gender differences in financial technology (fintech) adoption in indonesia: An analysis of risk perceptions and benefits,” Riset Akuntansi Dan Keuangan Indonesia, vol. 8, no. 2, pp. 145–158, 2023.
M. Alsadoun and F. S. Alrobai, “Influence of fintech adoption on sustainable performance via mediation role of green finance and green innovation,” American Journal of Business Science Philosophy, pp. p61–72, 2024.
T. Appiah and V. V. Agblewornu, “The interplay of perceived benefit, perceived risk, and trust in fintech adoption: Insights from sub-saharan africa,” Heliyon, vol. 11, no. 2, 2025.
S. Singh and B. Karamcheti, “Robo-advisor enablers and inhibitors: A dual-factor framework and a benefit-risk model integration for understanding customer acceptance,” Sustainable Futures, vol. 9, p. 100570, 2025.
I. Hidayat-ur Rehman and M. N. Alam, “Digital transformation and sustainable performance: the roles of fintech, financial inclusion and competitiveness,” South Asian Journal of Business Studies, pp. 1–27, 2026.
U. Rahardja, I. D. Hapsari, P. H. Putra, and A. N. Hidayanto, “Technological readiness and its impact on mobile payment usage: A case study of go-pay,” Cogent Engineering, vol. 10, no. 1, p. 2171566, 2023.
K. Saadah and D. Setiawan, “Determinants of fintech adoption: evidence from smes in indonesia,” LBS Journal of Management & Research, vol. 22, no. 1, pp. 55–65, 2024.
S. Rahmani, F. Abdillah, and V. Ristanti, “Optimizing msme sustainability through digital marketing, innovation, and financial literacy with financial technology support,” IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita, vol. 14, no. 1, pp. 212–239, 2025.
C. Lukita, T. Handra, F. P. Oganda, and M. Laurens, “Data-driven innovation for circular digital economy in sustainable urban development,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 7, no. 1, pp. 97–105, 2025.
M. A. Bhat, S. T. Khan, A. F. Alkhwaldi, and A. A. Abdulmuhsin, “Investigating the critical drivers of fintech adoption to promote business sustainability of smes,” Global Knowledge, Memory and Communication, 2024.
B. Setiawan, S. Rani, E. Emilda, F. Arifin, and D. Utami, “Understanding fintech adoption drivers for digital financial sustainability in urban and rural msmes,” Risks, vol. 14, no. 4, p. 77, 2026.
E. Susetyono, D. S. Priyarsono, A. Sukmawati, and P. Nurhayati, “Improving risk management maturity in ultra micro soe holding companies,” Aptisi Transactions on Technopreneurship (ATT), vol. 8, no. 1, pp. 310–324, 2026.
M. S. Hassan, N. H. Mai, N. S. A. Wahab, M. B. Amin, M. M. Hassan, and J. Ol´ah, “Decentralized fintech platforms adoption intention in cyber risk environment among genz: A dual-method approach using pls-sem and necessary condition analysis,” Computers in Human Behavior Reports, vol. 18, p. 100687, 2025.
R. Aprianto, E. P. Lestari, E. Fletcher et al., “Harnessing artificial intelligence in higher education: Balancing innovation and ethical challenges,” International Transactions on Education Technology (ITEE), vol. 3, no. 1, pp. 84–93, 2024.
C. Yan, A. B. Siddik, L. Yong, Q. Dong, G.-W. Zheng, and M. N. Rahman, “A two-staged sem-artificial neural network approach to analyze the impact of fintech adoption on the sustainability performance of banking firms: the mediating effect of green finance and innovation,” Systems, vol. 10, no. 5, p. 148, 2022.
F. Kurniasari, N. Abd Hamid, and E. D. Lestari, “Unraveling the impact of financial literacy, financial technology adoption, and access to finance on small medium enterprises business performance and sustainability: a serial mediation model,” Cogent Business & Management, vol. 12, no. 1, p. 2487837, 2025.
D. Alassaf, T. Daim, M. Dabi´c, and S. Alzahrani, “Fintech and entrepreneurship: an assessment model to evaluate policy instruments for fintech adoption by small and medium enterprises,” IEEE Transactions on Engineering Management, vol. 71, pp. 14 046–14 062, 2024.
C. S. Bangun, S. Solahudin, A. Sutarman, and S. Dlamini, “The role of application programming interface in transforming restaurant delivery operations,” Startupreneur Business Digital (SABDA Journal), vol. 5, no. 1, pp. 88–95, 2026.
R. Desiyanti, “Financial technology and business performance among small medium enterprises (smes) in indonesia,” in Transforming Business Through Digital Sustainability Models. IGI Global Scientific Publishing, 2025, pp. 143–170.
M. Florez-Jimenez, A. Lleo, P. Ruiz-Palomino, and A. Mu˜noz-Villamizar, “Corporate sustainability, organizational resilience, and corporate purpose: a review of the academic traditions connecting them,” Review of Managerial Science, vol. 19, no. 1, pp. 67–104, 2025.
F. Zidan, D. Nugroho, and B. A. Putra, “Securing enterprises: harnessing blockchain technology against cybercrime threats,” International Journal of Cyber and IT Service Management, vol. 3, no. 2, pp. 168–173, 2023.
A. Zakariya and A. A. Arifin, “The application of digital payments (qris & e-wallet) on the efficiency of msme transactions,” Journal of Finance, Economics and Business, vol. 4, no. 2, pp. 1–19, 2025.
A. D. Garcia, A. M. Rosyid, M. Yusup, and M. Khasanah, “Product innovation of foodpreneurs towards customer loyalty,” Startupreneur Business Digital (SABDA Journal), vol. 4, no. 2, pp. 104–113, 2025.
R. Reniati, B. Susantyo, N. R. Irmayani, F. Sabri, and W. Widiastuti, “The influence of leadership strategies and social capital on the business performance and resilience of indonesian msmes,” Journal of the Knowledge Economy, vol. 16, no. 2, pp. 9932–9971, 2025.
U. Rahardja, S.-C. Chen, Y.-C. Lin, T.-C. Tsai, Q. Aini, A. Khan, F. P. Oganda, E. R. Dewi, Y.-C. Cho, and C.-H. Hsu, “Evaluating the mediating mechanism of perceived trust and risk toward cryptocurrency: An empirical research,” SAGE Open, vol. 13, no. 4, p. 21582440231217854, 2023.
K. A. Akhmad, S. Purnomo, S. Purwandari, and I. Sentosa, “Digital technology adoption to support sustainable innovation among MSMEs in indonesia,” EKUITAS (Jurnal Ekonomi dan Keuangan), vol. 9, no. 3, pp. 387–405, 2025. [Online]. Available: https://garuda.kemdiktisaintek.go.id/documents/detail/5792864
A. Gamage, “Research design, philosophy, and quantitative approaches in scientific research methodology,” Scholars Journal of Engineering and Technology, 2025.
I. Irawan, A. Fadhlihi, I. R. Diwasya, and S. Astuti, “Financial literacy, government support, and fintech adoption as drivers of sme sustainability performance,” Academia Open, vol. 11, no. 1, pp. 10–21 070, 2026.
M. Asad, A. Ghazalat, A. Z. Mansour, M. U. Asif, and A. C. Campbell, “Fintech adoption and sustainable performance of smes: moderated mediated analysis of technological turbulence and competitive advantage,” Management & Sustainability: An Arab Review, pp. 1–22, 2025.