Perceived Benefits and Risks Influencing Fintech Adoption and Sustainability Performance of Indonesian MSME's
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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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