Enhancing digital financial inclusion: Adoption factors of digital accounting among MSMEs in Indonesia

Abstract

This study investigates the factors influencing the adoption of digital accounting among Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, aiming to contribute to the achievement of enhanced digital financial inclusion. A quantitative research design was employed, utilizing a questionnaire survey to gather data from 155 MSMEs partnered with Bank Indonesia in South Sulawesi. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3.0 software. The results reveal that digital financial literacy, perceived usefulness, and perceived ease of use significantly and positively influence the adoption of digital accounting among MSMEs. However, perceived ease of use was not found to have a significant effect on perceived usefulness. The study also confirms that the adoption of digital accounting contributes positively to the advancement of digital financial inclusion. The Digital Technology Acceptance Model (DTAM), extended from the Technology Acceptance Model (TAM) by incorporating digital financial literacy, proves to be a suitable framework for predicting improvements in digital financial inclusion within the context of Indonesian MSMEs. This study provides valuable insights for policymakers, financial institutions, and technology developers. By highlighting the importance of digital financial literacy, the study encourages the development of targeted training programs and user-friendly digital accounting solutions to empower MSMEs and promote financial inclusion.