The Role of Financial Literacy on the Financial Performance with Financial Behavior as a Mediation (Case Study on Creative Industry Startups in Malang)
DOI:
https://doi.org/10.35877/454RI.daengku1134Keywords:
financial literacy, financial attitude, financial knowledge, financial behavior, financial performances, creative industry, creative economyAbstract
Abstract
Malang is one of the cities that are still in the 10 Creative Cities in Indonesia. The growth development of creative industry startups in Malang is very rapid considering the many supporting factors such as the number of demographics of productive age, market potential as far as support infrastructure, so that it is interesting to investigate further, especially regarding financial performance which is influenced by financial literacy. The purpose of this study is to investigate the role of financial literacy on the financial performance of creative industry startups in Malang. The research approach used is quantitative using smart PLS. The findings of this study are that financial knowledge has a significant positive effect on financial performance, as well as financial attitude has a significant positive effect on financial performance. In addition, financial behavior plays a role in mediating between financial knowledge on financial performance and financial attitude on financial performance.
Keywords: financial literacy, financial knowledge, financial attitude, financial behavior, financial performances, creative industry, creative economy.
References
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Amanah, E., Iradianty, A., & Rahardian, D. (2016). The Influence of Financial Knowledge, Financial Attitude and External Locus of Control on Personal Financial Management Behavior Case Study of Bachelor Degree Student in Telkom University. E-Proceeding of Management, 3(2), 1228–1235.
Ameliawati, M., & Setiyani, R. (2018). The influence of financial attitude, financial socialization, and financial experience to financial management behavior with financial literacy as the mediation variable. KnE Social Sciences, 811–832.
Atkinson, A., & Messy, F.-A. (2012). Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study.
Barney, J. B., & Hesterly, W. S. (2015). Strategic management and competitive advantage: Concepts and cases. Pearson.
Bunyaminu, A., Tuffour, J. K., & Barnor, C. (2019). Assessing the determinants of business failure of companies listed on the Ghana Stock Exchange. Journal of Accounting and Finance, 19(4), 39–54.
Chaston, I., Badger, B., Mangles, T., & Sadler?Smith, E. (2001). Organisational learning style, competencies and learning systems in small, UK manufacturing firms. International Journal of Operations & Production Management.
Christiyaningsih. (2017). Puluhan Startup Ditantang Maksimalkan Potensi Kota Malang. http://nasional.republika.co.id/berita/nasional/daerah/17/01/22/ok6v8o368-puluhan-startup-ditantang-maksimalkan-potensi-kota-malang
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Gavigan, K. (2010). Show me the money resources: Financial literacy for 21st century learners. Library Media Connection, 28(5), 24–27.
Godwin-Opara, M. (2016). A resource-based perspective on financial resource strategies for small business sustainability. Walden University.
Grable, J. E., & Joo, S.-H. (2000). A cross-disciplinary examination of financial risk tolerance. Consumer Interests Annual, 46, 151–157.
Habib, K., & Yazdanfar, D. (2016). Determinants of SME growth. Management Research Review, 39(9), 966–986.
Hair Jr, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2017). Advanced issues in partial least squares structural equation modeling. saGe publications.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Hudáková, J. (2018). Startups support in Slovak republic. XXI. Mezinárodní Kolokvium o Regionálních.
Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296–316.
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Iswari, H. R., & Wati, C. R. (2021). Financial literacy: What is the fact of the digital startups “Startup Singo Edan Malang”? ICONS 2020: Proceedings of the 1st International Conference on Social Science, Humanities, Education and Society Development, ICONS 2020, 30 November, Tegal, Indonesia, 265.
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Kausar, A., & Ahmad, M. A. (2020). A Study on Financial Literacy Creating Sustainable Startups in the Indian Context. E-Journal-First Pan IIT International Management Conference–2018.
Khan, R. U., Salamzadeh, Y., Kawamorita, H., & Rethi, G. (2021). Entrepreneurial orientation and small and medium-sized enterprises’ performance; does ‘access to finance’moderate the relation in emerging economies? Vision, 25(1), 88–102.
Lailiyah, E. H., Dewi, A., Shidiq, Y., & Lestari, D. (2022). Prediction of Financial Behavior with Financial Literacy as a Moderating Variable in Muhammadiyah Religious Organizations in Indonesia. Journal of Accounting Science, 6(1), 84–101.
Lim, T. S., Mail, R., Abd Karim, M. R., Ulum, Z. K. A. B., Jaidi, J., & Noordin, R. (2018). A serial mediation model of financial knowledge on the intention to invest: The central role of risk perception and attitude. Journal of Behavioral and Experimental Finance, 20, 74–79.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172.
Mabula, J. B., & Ping, H. D. (2018). Use of Technology and SME Managers’ Financial Literacy in Developing Economies. Proceedings of the 2nd International Conference on E-Education, E-Business and E-Technology, 145–152.
Mandell, L., & Klein, L. S. (2007). Motivation and financial literacy. Financial Services Review, 16(2), 105.
Matlay, H. (2000). Organisational learning in small learning organisations: an empirical overview. Education+ Training.
Maulana, R. (2019). Daftar program inkubator dan akselerator startup Indonesia. Techinasia. https://id.techinasia.com/daftar-program-inkubator-akselerator-startup-indonesia
MENKOMINFO. (2020). DI WEF 2020, Menkominfo Pamerkan Pesatnya Perkembangan Startup Indonesia. 2020. https://kominfo.go.id/content/detail/23975/di-wef-2020-menkominfo-pamerkan-pesatnya-perkembangan-startup-indonesia/0/sorotan_media
Miller, D., & Friesen, P. H. (1982). Innovation in conservative and entrepreneurial firms: Two models of strategic momentum. Strategic Management Journal, 3(1), 1–25.
Morgan, P. J., Huang, B., & Trinh, L. Q. (2019). The need to promote digital financial literacy for the digital age. IN THE DIGITAL AGE.
Morgan, P. J., & Trinh, L. Q. (2020). Fintech and financial literacy in Viet Nam. ADBI Working Paper Series.
Naqvi, S. W. H. (2011). Critical success and failure factors of entrepreneurial organizations: Study of SMEs in Bahawalpur. Journal of Public Administration and Governance, 1(2), 17–22.
Purwidianti, W., & Tubastuvi, N. (2019). The effect of financial literacy and financial experience on SME financial behavior in Indonesia. JDM (Jurnal Dinamika Manajemen), 10(1), 40–45.
Rant, M. B. (2017). How to successfully internationalize SMEs from the CEE region: the role of strategies of differentiation and education. Central European Management Journal, 25(4), 2–27.
Rehman, A. U., Shoaib, M., Javed, M., Abbas, Z., Nawal, A., & Záme?ník, R. (2022). Understanding Revisit Intention towards Religious Attraction of Kartarpur Temple: Moderation Analysis of Religiosity. Sustainability, 14(14), 8646.
Riepe, J., Rudeloff, M., & Veer, T. (2020). Financial literacy and entrepreneurial risk aversion. Journal of Small Business Management, 1–20.
Sulaiman, N. B. (2016). The impact of financial knowledge and capabilities on SME firm performance in Australia. RMIT University.
Tuffour, J. K., Amoako, A. A., & Amartey, E. O. (2020). Assessing the effect of financial literacy among managers on the performance of small-scale enterprises. Global Business Review, 0972150919899753.
Ye, J., & Kulathunga, K. (2019). How does financial literacy promote sustainability in SMEs? A developing country perspective. Sustainability, 11(10), 2990.
Yong, C.-C., Yew, S.-Y., & Wee, C.-K. (2018). Financial knowledge, attitude and behaviour of young working adults in Malaysia. Institutions and Economies, 10(4).
Zaky, M. A., Nuzar, I., Saputro, W. E., Praysuta, B. D. S., Wijaya, S. B., & Riswan, M. (2018). Mapping & Database Startup Indonesia 2018. In Badan Ekonomi Kreatif. https://www.kemenparekraf.go.id/asset_admin/assets/uploads/media/pdf/media_1589838814_Mapping_Database_Startup_Indonesia_2018.pdf
Ajzen, I. (2005). EBOOK: Attitudes, Personality and Behaviour. McGraw-hill education (UK).
Amanah, E., Iradianty, A., & Rahardian, D. (2016). The Influence of Financial Knowledge, Financial Attitude and External Locus of Control on Personal Financial Management Behavior Case Study of Bachelor Degree Student in Telkom University. E-Proceeding of Management, 3(2), 1228–1235.
Ameliawati, M., & Setiyani, R. (2018). The influence of financial attitude, financial socialization, and financial experience to financial management behavior with financial literacy as the mediation variable. KnE Social Sciences, 811–832.
Atkinson, A., & Messy, F.-A. (2012). Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study.
Barney, J. B., & Hesterly, W. S. (2015). Strategic management and competitive advantage: Concepts and cases. Pearson.
Bunyaminu, A., Tuffour, J. K., & Barnor, C. (2019). Assessing the determinants of business failure of companies listed on the Ghana Stock Exchange. Journal of Accounting and Finance, 19(4), 39–54.
Chaston, I., Badger, B., Mangles, T., & Sadler?Smith, E. (2001). Organisational learning style, competencies and learning systems in small, UK manufacturing firms. International Journal of Operations & Production Management.
Christiyaningsih. (2017). Puluhan Startup Ditantang Maksimalkan Potensi Kota Malang. http://nasional.republika.co.id/berita/nasional/daerah/17/01/22/ok6v8o368-puluhan-startup-ditantang-maksimalkan-potensi-kota-malang
Eniola, A. A., & Entebang, H. (2016). Financial literacy and SME firm performance. International Journal of Research Studies in Management, 5(1), 31–43.
Entebang, E. &. (2016). Financial literacy and SME firm performance. (pp. 31–43). International Journal of Research Studies in Management,.
Gavigan, K. (2010). Show me the money resources: Financial literacy for 21st century learners. Library Media Connection, 28(5), 24–27.
Godwin-Opara, M. (2016). A resource-based perspective on financial resource strategies for small business sustainability. Walden University.
Grable, J. E., & Joo, S.-H. (2000). A cross-disciplinary examination of financial risk tolerance. Consumer Interests Annual, 46, 151–157.
Habib, K., & Yazdanfar, D. (2016). Determinants of SME growth. Management Research Review, 39(9), 966–986.
Hair Jr, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2017). Advanced issues in partial least squares structural equation modeling. saGe publications.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Hudáková, J. (2018). Startups support in Slovak republic. XXI. Mezinárodní Kolokvium o Regionálních.
Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296–316.
Iswari, H. R. (2021). STUDI LITERATUR: MODEL HUBUNGAN ANTARA FINANCIAL LITERASI, FINANCIAL RISK ATTITUDE DAN PERTUMBUHAN BISNIS PADA STARTUP BISNIS. Widyagama National Conference on Economics and Business (WNCEB), 2(1), 392–403.
Iswari, H. R., & Dewi, D. C. (2021). PENGUKURAN FINANCIAL LITERACY STARTUP INDUSTRI KREATIF DI KOTA MALANG. Conference on Innovation and Application of Science and Technology (CIASTECH), 59–66.
Iswari, H. R., & Wati, C. R. (2021). Financial literacy: What is the fact of the digital startups “Startup Singo Edan Malang”? ICONS 2020: Proceedings of the 1st International Conference on Social Science, Humanities, Education and Society Development, ICONS 2020, 30 November, Tegal, Indonesia, 265.
Katadata. (2020). Pertumbuhan Investasi Startup Vietnam Tertinggi di Asia Tenggara. https://katadata.co.id/ariayudhistira/infografik/5e9a495c02989/pertumbuhan-investasi-startup-vietnam-tertinggi-di-asia-tenggara
Kausar, A., & Ahmad, M. A. (2020). A Study on Financial Literacy Creating Sustainable Startups in the Indian Context. E-Journal-First Pan IIT International Management Conference–2018.
Khan, R. U., Salamzadeh, Y., Kawamorita, H., & Rethi, G. (2021). Entrepreneurial orientation and small and medium-sized enterprises’ performance; does ‘access to finance’moderate the relation in emerging economies? Vision, 25(1), 88–102.
Lailiyah, E. H., Dewi, A., Shidiq, Y., & Lestari, D. (2022). Prediction of Financial Behavior with Financial Literacy as a Moderating Variable in Muhammadiyah Religious Organizations in Indonesia. Journal of Accounting Science, 6(1), 84–101.
Lim, T. S., Mail, R., Abd Karim, M. R., Ulum, Z. K. A. B., Jaidi, J., & Noordin, R. (2018). A serial mediation model of financial knowledge on the intention to invest: The central role of risk perception and attitude. Journal of Behavioral and Experimental Finance, 20, 74–79.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172.
Mabula, J. B., & Ping, H. D. (2018). Use of Technology and SME Managers’ Financial Literacy in Developing Economies. Proceedings of the 2nd International Conference on E-Education, E-Business and E-Technology, 145–152.
Mandell, L., & Klein, L. S. (2007). Motivation and financial literacy. Financial Services Review, 16(2), 105.
Matlay, H. (2000). Organisational learning in small learning organisations: an empirical overview. Education+ Training.
Maulana, R. (2019). Daftar program inkubator dan akselerator startup Indonesia. Techinasia. https://id.techinasia.com/daftar-program-inkubator-akselerator-startup-indonesia
MENKOMINFO. (2020). DI WEF 2020, Menkominfo Pamerkan Pesatnya Perkembangan Startup Indonesia. 2020. https://kominfo.go.id/content/detail/23975/di-wef-2020-menkominfo-pamerkan-pesatnya-perkembangan-startup-indonesia/0/sorotan_media
Miller, D., & Friesen, P. H. (1982). Innovation in conservative and entrepreneurial firms: Two models of strategic momentum. Strategic Management Journal, 3(1), 1–25.
Morgan, P. J., Huang, B., & Trinh, L. Q. (2019). The need to promote digital financial literacy for the digital age. IN THE DIGITAL AGE.
Morgan, P. J., & Trinh, L. Q. (2020). Fintech and financial literacy in Viet Nam. ADBI Working Paper Series.
Naqvi, S. W. H. (2011). Critical success and failure factors of entrepreneurial organizations: Study of SMEs in Bahawalpur. Journal of Public Administration and Governance, 1(2), 17–22.
Purwidianti, W., & Tubastuvi, N. (2019). The effect of financial literacy and financial experience on SME financial behavior in Indonesia. JDM (Jurnal Dinamika Manajemen), 10(1), 40–45.
Rant, M. B. (2017). How to successfully internationalize SMEs from the CEE region: the role of strategies of differentiation and education. Central European Management Journal, 25(4), 2–27.
Rehman, A. U., Shoaib, M., Javed, M., Abbas, Z., Nawal, A., & Záme?ník, R. (2022). Understanding Revisit Intention towards Religious Attraction of Kartarpur Temple: Moderation Analysis of Religiosity. Sustainability, 14(14), 8646.
Riepe, J., Rudeloff, M., & Veer, T. (2020). Financial literacy and entrepreneurial risk aversion. Journal of Small Business Management, 1–20.
Sulaiman, N. B. (2016). The impact of financial knowledge and capabilities on SME firm performance in Australia. RMIT University.
Tuffour, J. K., Amoako, A. A., & Amartey, E. O. (2020). Assessing the effect of financial literacy among managers on the performance of small-scale enterprises. Global Business Review, 0972150919899753.
Ye, J., & Kulathunga, K. (2019). How does financial literacy promote sustainability in SMEs? A developing country perspective. Sustainability, 11(10), 2990.
Yong, C.-C., Yew, S.-Y., & Wee, C.-K. (2018). Financial knowledge, attitude and behaviour of young working adults in Malaysia. Institutions and Economies, 10(4).
Zaky, M. A., Nuzar, I., Saputro, W. E., Praysuta, B. D. S., Wijaya, S. B., & Riswan, M. (2018). Mapping & Database Startup Indonesia 2018. In Badan Ekonomi Kreatif. https://www.kemenparekraf.go.id/asset_admin/assets/uploads/media/pdf/media_1589838814_Mapping_Database_Startup_Indonesia_2018.pdf
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Published
2022-10-24
How to Cite
Iswari, H. R. (2022). The Role of Financial Literacy on the Financial Performance with Financial Behavior as a Mediation (Case Study on Creative Industry Startups in Malang) . Daengku: Journal of Humanities and Social Sciences Innovation, 2(5), 688–700. https://doi.org/10.35877/454RI.daengku1134
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