Digital Management Accounting Systems and Fintech Adoption as Drivers of SME Financial Resilience: The Mediating Role of Financial Literacy

Abstract

Small and medium-sized enterprises (SMEs) in emerging economies face growing challenges in maintaining financial resilience amid economic volatility, yet limited attention has been given to how digital tools and financial literacy jointly address this issue. This study investigates the effects of Digital Management Accounting Systems (DMAS) and fintech adoption on the financial resilience of SMEs in Cirebon City, Indonesia, with financial literacy as a mediating variable. A quantitative survey was administered to 150 SME owners and managers across trade, culinary, and creative industries, analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Results show that DMAS (β = 0.342) and fintech adoption (β = 0.298) significantly enhance financial literacy, which in turn is the strongest predictor of financial resilience (β = 0.411). Financial literacy partially mediates both relationships, while direct effects of DMAS (β = 0.214) and fintech adoption (β = 0.193) on resilience remain significant. The model explains 56.3% of variance in financial resilience (R² = 0.563). This study is limited to one city and cross-sectional data; future research should employ longitudinal designs across broader SME populations to strengthen generalizability.