The Effect of Financial Literacy, Market Orientation, and Use of Information Technology on The Financial Performance of MSMEs In Payangan District

  ABSTRACT : The rapid development of technology can affect all aspects of life in society, including economic aspects. People in the current digital era are required to be able to utilize technology in the business world so that it is hoped that with the current technological advances, it can advance the community’s economy. Micro, Small, and Medium Enterprises (MSMEs) are one of the sectors that are the main targets for the government in advancing the community’s economy, so optimal financial performance of MSMEs is needed to help improve the economy. This study aims to determine the influence of financial literacy, market orientation, and the use of information technology on the financial performance of MSMEs in Payangan District. The sample was determined by the purposive sampling method and calculated based on the Slovin formula so that a sample of 100 MSMEs was obtained. The data collection method uses a questionnaire. The data analysis technique used in this study uses multiple linear regression analysis. The results of the study show that financial literacy, market orientation, and the use of information technology have a positive and significant effect on the financial performance of MSMEs in Payangan District. Business actors with strong financial literacy and a better market orientation and using information technology in business optimally tend to be able to improve business financial performance.

KEYWORDS : Financial Literacy, Market Orientation, Use of Information Technology, Financial Performance, MSMEs