Digital Transformation and SME Innovation Performance: Examining the Roles of Financial Inclusion and Financial Health
DOI:
https://doi.org/10.69980/bma.v12i3.2531Keywords:
Digital transformation, SME innovation, Financial inclusion, Financial health, Digital maturityAbstract
Digital transformation has become increasingly important for improving the competitiveness and innovation capacity of small and medium-sized enterprises (SMEs). Financial inclusion and financial health may further influence the ability of firms to adopt digital technologies and strengthen innovation performance. A quantitative cross-sectional secondary-data design was used with 175 SMEs. Financial inclusion, financial health, digital transformation, and innovation performance were assessed using multi-item measures. Descriptive statistics, Cronbach’s alpha, Spearman correlation, and multiple linear regression were applied to examine associations among the study constructs. Financial inclusion, financial health, and digital transformation were all positively associated with SME innovation performance. Digital transformation showed the strongest relationship with innovation performance and emerged as the largest independent predictor in the regression model. Financial inclusion also made a significant positive contribution, while financial health showed a smaller but statistically significant effect. The combined model explained a substantial proportion of the variation in innovation performance. SME innovation performance was closely linked with both digital and financial conditions. Strengthening digital maturity, improving financial inclusion, and supporting financial stability may enhance firms’ capacity to innovate. Future studies should use longitudinal designs and broader samples to clarify causal pathways and strengthen generalizability.
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