ISLAMIC FINANCE, GREEN INNOVATION AND FINTECH: A TRIPLE BOOST FOR MSME FINANCIAL GROWTH
Abstract
Indonesia has a large number of MSMEs but does not have good financial performance, thus hindering its development. This research focuses on the analysis of the determinants of MSME financial performance through Islamic financial literacy and inclusion, green innovation with financial technology as a moderator. The research was conducted in Demak Regency through a quantitative approach. The population is aimed at Food and Beverage MSMEs in Demak district. The data source was obtained through primary data with questionnaire instruments. To obtain a representative sample, samples will be taken using purposive sampling techniques so that 100 respondents are obtained. The findings through PLS's Structural Equation Modelling (SEM) explained that Islamic financial literacy and green innovation have a significant contribution to improving positive financial performance in MSMEs. Islamic financial inclusion has a positive influence on the performance of MSMEs but is not significant. Fintech cannot strengthen Islamic financial literacy and inclusion in financial performance. The use of financial technology can strengthen the influence of green innovation on the financial performance of MSMEs. These findings contribute to improving the financial performance of MSMEs involving sharia finance factors and the ability to innovate.
References
Abad-Segura, E., González-Zamar, M. D., López-Meneses, E., & Vázquez-Cano, E. (2020). Financial Technology: Review of trends, approaches and management. Mathematics, 8(6). https://doi.org/10.3390/math8060951
Abbas, S., Dastgeer, G., Nasreen, S., Kousar, S., Riaz, U., Arsh, S., & Imran, M. (2024). How Financial Inclusion and Green Innovation Promote Green Economic Growth in Developing Countries. Sustainability (Switzerland), 16(15). https://doi.org/10.3390/su16156430
Ade Heaven Nareswari, & Winarsih. (2024). Pengaruh literasi keuangan, sistem informasi akuntansi, adopsi it dan green innovation performance terhadap kinerja keuangan umkm di Jawa Tengah. Jurnal Riset Ekonomi Dan Bisnis, 17(1), 51–66.
Aini, F. N., & Astuti, C. D. (2023). Pengaruh Inovasi Teknologi, Literasi Keuangan Terhadap Kinerja Keuangan Dengan Inklusi Keuangan Sebagai Variabel Intervening Kasus UMKM Di Jabodetabek. EBID:Ekonomi Bisnis Digital, 1(2), 93–102. https://doi.org/10.37365/ebid.v1i2.181
Alias, N. E., Nor, N. M., & Hassan, R. (2016). The relationships between talent management practices, employee engagement, and employee retention in the information and technology (it) organizations in Selangor. In Proceedings of the 1st AAGBS International Conference on Business Management 2014 (AiCoBM 2014) (pp. 101-115). Springer, Singapore.
Amin, N. F., Garancang, S., & Abunawas, K. (2023). Konsep Umum Populasi Dan Sampel Dalam Penelitian. JURNAL PILAR: Jurnal Kajian Islam Kontemporer, 14.
Arafah, S., Utama, U. P., Miko, J., Potensi, U., & Ria, U. (2023). Edukasi Peran Inklusi Keuangan Syariah Dalam Meningkatkan Stabilitas Ekonomi Masyarakat. Jurnal Pengabdian Kepada Masyarakat, 3(2), 2023. https://ejournal.unhasy.ac.id/index.php/dinamis
Astohar, Andanarini Minar Savitri, D., Ristianawati, Y., Siswo Nugroho, P., Totalwin, S., & Industri, M. (2022). Inklusi Keuangan pada Usaha Mikro Kecil dan Menengah (UMKM) di Kabupaten Demak. 15(2), 126.
Bakhtiar, F., Mulia, A., & Islam Negeri Alauddin Makassar, U. (2022). YUME: Journal of Management Pengaruh Literasi Keuangan Syariah, Terhadap Inklusi Keuangan Syariah Melalui Financial Technologi Syariah Sebagai Variabel Intervening. YUME: Journal of Management, 5(2), 588–603. https://doi.org/10.37531/yume.vxix.3466
Barney, J. (1991). Firm Resource and Sustained Competitive Advantage. Journal of Manajement, 17, 99–120.
Barney, J. (1997). Gaining and Sustaining Competitive Advantage (Reading). Addison-Wesley Publisihng Company.
Bhattacharyya, A., & Khan, M. (2023). Financial inclusion, corporate social responsibility and firm performance – analysis of interactive relationship. Meditari Accountancy Research, 31(2), 417–440. https://doi.org/10.1108/MEDAR-12-2020-1121
BPS. (2024). Industri makanan dan minuman 2024.
Common, R. (2004). Administrative change in the Asia Pacific: Applying the political nexus triad. International public management journal, 7(3), 347-364.
Common, R. (2017a). Public management and policy transfer in South-East Asia. In Mark Evans (Ed.), Policy transfer in global perspective (pp. 143-161). London: Routledge.
Common, R. (2017b). Beyond the Horizon: Policy Learning and Development. In Ahmed Shafiqul Huque & Habib Zafarullah (Ed.), International Development Governance (pp. 671-681). London: Routledge.
Duggan, V., Rahardja, S., & Varela, G. (2013). Service Sector Reform and Manufacturing Productivity: Evidence from Indonesia. World Bank Policy Research Working Paper, (6349).
Liu, M., Liu, L., & Feng, A. (2024). The Impact of Green Innovation on Corporate Performance: An Analysis Based on Substantive and Strategic Green Innovations. Sustainability (Switzerland) , 16(6). https://doi.org/10.3390/su16062588
Mediaty, Diza Kurnianty Jamal, & Abdul Hamid Habbe. (2023). Green Innovation for Small-to Medium-Sized Enterprises (SMEs): Systematic Literature Review. Indonesian Journal of Economic & Management Sciences, 1(6), 791–804. https://doi.org/10.55927/ijems.v1i6.7274
Putri, R. E., Goso, Hamid, R. S., & Ukkas, I. (2022b). Pengaruh Literasi Keuangan, Financial Technology dan Inklusi Keuangan terhadap Kinerja Keuangan Pengusaha Muda. Owner, 6(2), 1664–1676. https://doi.org/10.33395/owner.v6i2.790
Putu A. (2012). Metodologi Penelitian Bisnis.
R., I. H., Majid, J., & Suhartono, S. (2022). Faktor-Faktor Yang Mempengaruhi Kinerja Perusahaan Dimoderasi Oleh Financial Technology. JPS (Jurnal Perbankan Syariah), 3(2), 142–159. https://doi.org/10.46367/jps.v3i2.785
Shevlin, R. (2020). PPP Loans: Who Got What and How Well Did the Loans Perform? Forbes (Jul 13, 2020). Available on https://www.forbes.com/sites/ronshevlin/2020/07/13/ppp-loans-who-got-what-and-how-well-did-the-loans-perform/#2cd7aa164fdb. Accessed Jul 15, 2020.
Simon, A. (2008). Essays on Analysts' Long-term Earnings Growth Forecasts. PhD Thesis, School of Business, The University of Queensland, Australia.
Suryono, R. R., Budi, I., & Purwandari, B. (2020). Challenges and trends of financial technology (Fintech): A systematic literature review. In Information (Switzerland) (Vol. 11, Issue 12, pp. 1–20). MDPI AG. https://doi.org/10.3390/info11120590
Tirdasari, N. L., & Dhewanto, W. (2012). Family business succession in Indonesia: A study of hospitality industry. Procedia-Social and Behavioral Sciences, 57, 69-74.
Ward, K. (2012). Strategic management accounting. London and New York: Routledge.
Abbas, S., Dastgeer, G., Nasreen, S., Kousar, S., Riaz, U., Arsh, S., & Imran, M. (2024). How Financial Inclusion and Green Innovation Promote Green Economic Growth in Developing Countries. Sustainability (Switzerland), 16(15). https://doi.org/10.3390/su16156430
Ade Heaven Nareswari, & Winarsih. (2024). Pengaruh literasi keuangan, sistem informasi akuntansi, adopsi it dan green innovation performance terhadap kinerja keuangan umkm di Jawa Tengah. Jurnal Riset Ekonomi Dan Bisnis, 17(1), 51–66.
Aini, F. N., & Astuti, C. D. (2023). Pengaruh Inovasi Teknologi, Literasi Keuangan Terhadap Kinerja Keuangan Dengan Inklusi Keuangan Sebagai Variabel Intervening Kasus UMKM Di Jabodetabek. EBID:Ekonomi Bisnis Digital, 1(2), 93–102. https://doi.org/10.37365/ebid.v1i2.181
Alias, N. E., Nor, N. M., & Hassan, R. (2016). The relationships between talent management practices, employee engagement, and employee retention in the information and technology (it) organizations in Selangor. In Proceedings of the 1st AAGBS International Conference on Business Management 2014 (AiCoBM 2014) (pp. 101-115). Springer, Singapore.
Amin, N. F., Garancang, S., & Abunawas, K. (2023). Konsep Umum Populasi Dan Sampel Dalam Penelitian. JURNAL PILAR: Jurnal Kajian Islam Kontemporer, 14.
Arafah, S., Utama, U. P., Miko, J., Potensi, U., & Ria, U. (2023). Edukasi Peran Inklusi Keuangan Syariah Dalam Meningkatkan Stabilitas Ekonomi Masyarakat. Jurnal Pengabdian Kepada Masyarakat, 3(2), 2023. https://ejournal.unhasy.ac.id/index.php/dinamis
Astohar, Andanarini Minar Savitri, D., Ristianawati, Y., Siswo Nugroho, P., Totalwin, S., & Industri, M. (2022). Inklusi Keuangan pada Usaha Mikro Kecil dan Menengah (UMKM) di Kabupaten Demak. 15(2), 126.
Bakhtiar, F., Mulia, A., & Islam Negeri Alauddin Makassar, U. (2022). YUME: Journal of Management Pengaruh Literasi Keuangan Syariah, Terhadap Inklusi Keuangan Syariah Melalui Financial Technologi Syariah Sebagai Variabel Intervening. YUME: Journal of Management, 5(2), 588–603. https://doi.org/10.37531/yume.vxix.3466
Barney, J. (1991). Firm Resource and Sustained Competitive Advantage. Journal of Manajement, 17, 99–120.
Barney, J. (1997). Gaining and Sustaining Competitive Advantage (Reading). Addison-Wesley Publisihng Company.
Bhattacharyya, A., & Khan, M. (2023). Financial inclusion, corporate social responsibility and firm performance – analysis of interactive relationship. Meditari Accountancy Research, 31(2), 417–440. https://doi.org/10.1108/MEDAR-12-2020-1121
BPS. (2024). Industri makanan dan minuman 2024.
Common, R. (2004). Administrative change in the Asia Pacific: Applying the political nexus triad. International public management journal, 7(3), 347-364.
Common, R. (2017a). Public management and policy transfer in South-East Asia. In Mark Evans (Ed.), Policy transfer in global perspective (pp. 143-161). London: Routledge.
Common, R. (2017b). Beyond the Horizon: Policy Learning and Development. In Ahmed Shafiqul Huque & Habib Zafarullah (Ed.), International Development Governance (pp. 671-681). London: Routledge.
Duggan, V., Rahardja, S., & Varela, G. (2013). Service Sector Reform and Manufacturing Productivity: Evidence from Indonesia. World Bank Policy Research Working Paper, (6349).
Liu, M., Liu, L., & Feng, A. (2024). The Impact of Green Innovation on Corporate Performance: An Analysis Based on Substantive and Strategic Green Innovations. Sustainability (Switzerland) , 16(6). https://doi.org/10.3390/su16062588
Mediaty, Diza Kurnianty Jamal, & Abdul Hamid Habbe. (2023). Green Innovation for Small-to Medium-Sized Enterprises (SMEs): Systematic Literature Review. Indonesian Journal of Economic & Management Sciences, 1(6), 791–804. https://doi.org/10.55927/ijems.v1i6.7274
Putri, R. E., Goso, Hamid, R. S., & Ukkas, I. (2022b). Pengaruh Literasi Keuangan, Financial Technology dan Inklusi Keuangan terhadap Kinerja Keuangan Pengusaha Muda. Owner, 6(2), 1664–1676. https://doi.org/10.33395/owner.v6i2.790
Putu A. (2012). Metodologi Penelitian Bisnis.
R., I. H., Majid, J., & Suhartono, S. (2022). Faktor-Faktor Yang Mempengaruhi Kinerja Perusahaan Dimoderasi Oleh Financial Technology. JPS (Jurnal Perbankan Syariah), 3(2), 142–159. https://doi.org/10.46367/jps.v3i2.785
Shevlin, R. (2020). PPP Loans: Who Got What and How Well Did the Loans Perform? Forbes (Jul 13, 2020). Available on https://www.forbes.com/sites/ronshevlin/2020/07/13/ppp-loans-who-got-what-and-how-well-did-the-loans-perform/#2cd7aa164fdb. Accessed Jul 15, 2020.
Simon, A. (2008). Essays on Analysts' Long-term Earnings Growth Forecasts. PhD Thesis, School of Business, The University of Queensland, Australia.
Suryono, R. R., Budi, I., & Purwandari, B. (2020). Challenges and trends of financial technology (Fintech): A systematic literature review. In Information (Switzerland) (Vol. 11, Issue 12, pp. 1–20). MDPI AG. https://doi.org/10.3390/info11120590
Tirdasari, N. L., & Dhewanto, W. (2012). Family business succession in Indonesia: A study of hospitality industry. Procedia-Social and Behavioral Sciences, 57, 69-74.
Ward, K. (2012). Strategic management accounting. London and New York: Routledge.
Published
2025-10-15
How to Cite
WIDYASTUTI, Emy et al.
ISLAMIC FINANCE, GREEN INNOVATION AND FINTECH: A TRIPLE BOOST FOR MSME FINANCIAL GROWTH.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 11, n. 1, p. 717-732, oct. 2025.
ISSN 2541-3333.
Available at: <https://conferences.uin-malang.ac.id/index.php/iconies/article/view/3379>. Date accessed: 15 may 2026.
Section
Articles
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
