“Business sustainability: Functions of financial behavior, technology, and knowledge”

Micro, small, and medium-sized enterprises (MSMEs) are among the cornerstones of the Indonesian economy that managed to survive the world crisis. The development of MSMEs also demands that owners be ready to compete with other MSMEs. This study aims to analyze whether business sustainability is influenced by financial literacy with financial behavior and financial technology as mediators. The research sample includes owners and managers of MSMEs in Indonesia, totaling 342 respondents. Data collection methods used are non-probability sampling techniques by distributing questionnaires. This study uses SEM analysis with PLS analysis tools. It was found that financial literacy does not directly affect business sustainability but affects financial behavior and financial technology. Financial behavior and financial technology are proven to influence business sustainability. Furthermore, financial behavior and financial technology mediate the effect of financial literacy on business sustainability. The results of this study show that financial behavior and financial technology can fully mediate the relationship between financial literacy and business sustainability. Moreover, financial literacy cannot directly affect business sustainability, which must be fully mediated by financial behavior and financial technology. This study also provides practical value regarding the sustainability of MSMEs. Thus, companies can survive in the long term not only with a robust financial literacy foundation but they must be supported by good financial behavior and also be able to choose the right financial technology in their business activities.


INTRODUCTION
Micro, small, and medium-sized businesses are among the cornerstones of the Indonesian economy that managed to survive the crisis hitting the world.During the monetary crisis of 1997-1998, MSMEs continued to keep operating and were even able to absorb the workforce.At that time, they were not prohibited from working or doing business, and there were no work-from-home activities.However, when the pandemic hit the world, which first appeared in China, it impacted not only public but also the economic health of the entire world.A member of the Financial Sector Stability Committee (KSSK), Ubaidillah (2020), remarked that, in the worst case scenario, it is estimated that Indonesia's economic growth would reach as low as negative 0.4%.the worst case, reach -4%.According to Ubaidillah (2020), "the MSME sector is also a sector that received an adverse impact, despite it being the safety net all this time.Now, this sector, which was usually resilient and able to deal with various conditions, experienced a massive blow due to restrictions on economic and social activities that affect the ability of MSMEs.In 1997-1998, MSMEs managed to survive.However, currently, MSMEs received another hard hit due to the absence of/a decline in people's purchasing power."Economic growth directly impacts increasing employment (Durana et al., 2020).This means that large or small commerce supports increasing economic growth.Following Law Number 20 of 2008, MSMEs are medium and small businesses operated and owned by a person or a small group of people with a certain amount of income and wealth (Purnamasari et al., 2022).MSMEs have a vital position in the country's economic development and encourage Indonesia's economic development (Asianti et al., 2021).The MSME sector provides jobs that absorb the workforce (Haddad & Hornuf, 2019).
The development of MSMEs also demands that MSME owners be ready to compete with other MSMEs (Susan, 2020).This encourages MSME owners to create new and different businesses.Other than that, MSMEs are also expected to have good performances.Although MSMEs have a potential role, there are still many problems faced in their development.One of the difficulties MSMEs face today is business management-related problems (Morgan & Long, 2020).MSMEs often experience delays in their growth due to various general difficulties that cannot be resolved perfectly, such as problems with financing, human resource capacity, marketing, ownership, and various other problems related to business management.
Financial literacy is possessing financial understanding (Sabri et al., 2021).It is the level of skills, knowledge, and beliefs that can influence behavior and attitudes and improve the quality of decision-making and financial management to achieve prosperity (Noor et al., 2020).Moreover, financial literacy is knowledge and understanding related to finance, which can influence someone to apply and carry out financial management (Henager & Cude, 2019).It refers to knowledge that can hone a person's abilities and skills in finance to achieve success in a business.Based on this definition, it is expected that small and medium enterprises not only know and understand financial services but also understand financial literacy to operate their businesses better (Klapper & Lusardi, 2020).
Regulations for Banks in Indonesia 2017 state that financial technology is "the use of financial system technology that produces new products, services, technology, and/or business models and can have an impact on monetary stability, financial system stability, efficiency, smoothness, security and the reliability of the payment system."Because consumers can only conduct internet-based and smartphone transactions, fintech is a development that benefits the general public in the financial sector.In addition, because the value and quantity of purchases continue to soar, the presence of fintech has a beneficial effect on growing the economy (Hu et al., 2019).However, beyond those positive impacts, online and cashless shopping also bring a side effect, materialism, which can affect a person's financial behavior.

LITERATURE REVIEW AND HYPOTHESES
One economic behavior development that has not been performed for a very long time in Indonesia is financial literacy, also known as knowledge of financial regulation (Lusardi, 2019) Due to the demands of the expanding corporate and academic worlds, financial conduct evolved, which began addressing how people behave when making financial and investment decisions (Urban et al., 2020).How a person manages, organizes, and uses all of his finances is known as behavioral finance (Sorongan, 2022).For example, a person with good financial habits would use money wisely, stick to a budget, save money, keep spending under control, make investments, and make timely debt payments (Hastings & Mitchell, 2020).
Putting expectations and ideals into practice leads to financial behavior, which results from the desire for financial behavior to mediate the link between financial security and expectations (Deuflhard et al., 2015).A person's financial responsibilities and how he handles the funds are related to how a person behaves about the finances (Wiyono & Kirana, 2021).The practice of handling money and other assets in a way that is regarded as productive is known as financial responsibility (Sugiyanto et al., 2019).This also has something to do with regulating how financial resources are used.Effective money management involves some factors, including budgeting, determining if expenditures are necessary, and paying off retirement debt within a reasonable amount of time (Yuliani et al., 2019).
The name "fintech" contains "financial" and "technology" (Hu et al., 2019).In line with Bank Indonesia, financial technology is the application of technology and financial systems to services, new products, technology updates, and many business concepts.It affects the security, efficiency, and fluency of the financial system, the currency's stability, and trust in the payment method.
According to Bank Indonesia, there are four groups of financial technology.First is crowdfunding and peer-to-peer lending (P2P).This categorization is based on the use of the platform as a means to bring together capital seekers and investors in the lending industry.The platform offers simple lending and borrowing money using information technology, especially the internet (Noor et al., 2020).Through an online platform, the borrower manages the lending process while the lender just gives funds.
Second is market aggregator.This medium gathers financial information from numerous data suppliers to show to users.Users will then find it easier to compare and select the best financial products using this financial data (Nurohman et al., 2021).Third is investment and risk management.Finally, virtual financial planning is one of the classifications of financial technology services that can assist users in managing their finances (Wati et al., 2020).This service can help users plan and understand financial conditions at each phase and under any conditions.
The last is payment, clearing, and settlement.Using technology, this category of financial services helps consumers swiftly complete online payments (Febriani & Sa'diyah, 2021).In 2016, Regulations were published by Bank Indonesia on the Introduction of Procedures for Payment of Transactions.By placing a high priority on management and fulfillment principles, considering increased accessibility, consumer protection, and national interests, as well as international practices and standards, this regulation looks for ways to support the improvement of payment methods that are efficient, smooth, reliable, and secure (Subagiyo, 2021).
Considering the literature review, the study elaborates on the research model (Figure 1) and the following hypotheses: H1: Financial literacy influences financial behavior.
H2: Financial literacy influences financial technology.H3: Financial literacy influences business sustainability.
H4: Financial behavior influences business sustainability.
H5: Financial technology influences business sustainability.
H6: Financial literacy influences business sustainability with financial behavior as a mediator.
H7: Financial literacy influences business sustainability with financial technology as a mediator.

METHODOLOGY
This study is explanatory research that aims to see the results of the relationship between the variables in the study ( This study focuses on four variables: business sustainability as the dependent variable, financial literacy as the independent variable, and financial behavior and financial technology as mediating variables.This study defines financial literacy as the ability to process financial information and make decisions regarding wealth accumulation, financial planning, retirement and debt (Purwidianti & Tubastuvi, 2019).Business sustainability is a sustainable business that grows long-term and produces long-term benefits (Ye & Kulathunga, 2019).In addition, financial behavior is the capability to manage (plan, check, budget, store, control and search) the available financial resources (Arianti, 2020).Financial technology refers to the development of technological innovations in the financial sector with the aim of making financial transactions easier, more convenient, and more effective (Wiyono & Kirana, 2021).This research analysis uses SEM with the PLS tool.

RESULTS
342 respondents participated in the survey; Table 1 shows their demographic information: gender, age, education, business location, average income, and business operation duration.Furthermore, when asked how long their MSMEs have been in operation, as many as 164 (48%) stated that they had been established for > 5-10 years.
This study uses three measurements: the external model goodness of fit test, which consists of discriminant validity, composite reliability, and convergent reliability.When the value is greater than 0.5, each variable's outer loading is deemed valid.Table 2 shows the convergent validity results.Table 2 shows all outer loading higher than 0.7, according to the data processing results.Therefore, it was determined that each construct measuring indication is valid.Therefore, a research instrument is reliable if the composite reliability results are greater than 0.7.Table 3 shows the result of reliability calculations.A research instrument is reliable if the composite reliability value is more than 0.7.Based on Table 3, the research instrument showed more than 0.7.Therefore, all indicators can be used as measurements.Partial least square (PLS) analysis is carried out in several stages (Figure 2), including calculating the goodness-of-fit and inner and outer models.The PLS formula in this study is described by: The R 2 value, among other things, is used to express each endogenous variable: 1) Financial behavior (FB) and financial technology (FT), with 0.559 and 0.500, is influenced by financial literacy (FL).
The following formula is used to calculate the predictive value of relevance (Q 2 ): The result of the calculation is 0.690.In light of this, the model's predictive-relevance value was deter-mined.The result of 0.690 or 69% demonstrates that the PLS model can describe the diversity of the data, while other factors accounted for 0.310 or 30%.The most significant outer loading summarizes the indicators for these critical factors.Outer model results are significant if the p-value is less than 0.05 and the calculated is greater than 1.96.
Based on Table 4, financial literacy (FL) is described by three statement items: "Can prepare monthly income reports" (FL1), "Have attended bookkeeping training" (FL2), and "Knows the files needed to get a bank loan" (FL3).The results showed that the third indicator showed the highest score, "Knows the files needed to get a bank loan" (FL3).
The results showed that the highest score was shown by the fourth indicator, "Sets aside funds for emergency expenses" (FB4).Financial technology (FT) is reflected by four statement items: "Fintech increases store sales/turnovers" (FT1), "Fintech makes transactions easy" (FT2), "Fintech increases the number of customers" (FT3), and "Fintech is an easy-to-use application" (FT4).In addition, the results showed that financial technology was dominated by "Fintech makes transactions easy" (FT2).
Two statement items reflect business sustainability (BS): "Cuts operating costs" (BS1) and "Increases the profit growth rate and expands market share" (BS2).The results showed that business sustainability was dominated by "Cuts operating costs" (BS1).
After completing the outer model, it is continued with the calculation of the inner model.Two kinds of impacts were caused by partial testing, namely direct and indirect impact, with p-values and t-tests on each path.An intermediate was used to measure the impact, and a p-value greater than 0.05 indicates an unimportant result, while one of 0.05 or less indicates significance (Table 8).

DISCUSSION
Testing the first and second hypotheses, this study describes literacy as a behavior about finance and the choice of financial technology to be used.This shows that financial literacy influences behavioral finance and financial technology.These results are supported by previous research that showed that the financial knowledge possessed by MSME owners would affect behavior toward the use of finance (Sabri et (Widagdo & Roz, 2022).Many people have used fintech as a means of transactions that will facilitate their business so that business continuity will be better (Sarjono et al., 2022).
The findings show that some research updates can be explained by including financial technology as a mediating variable (Nurohman et al., 2021).The results of the indirect impact can also be explained that financial technology has a mediation effect that is greater than financial behavior.These results indicate that financial technology is more valuable than financial behavior.Someone with good financial knowledge in the digital era will increasingly look for more efficient ways of helping their business activities (Shankar et al., 2022).Financial technology is included in the operational activities of MSMEs, mainly related to making faster, more transparent, more accessible, and more flexible payments.
This study implies that owners or managers of small and medium businesses should pay attention to their financial knowledge to improve financial performance.Risk management that is carried out correctly can be done by making investments, buying insurance, and conducting financial audits to maintain financial sustainability (Pikus et al., 2018).Financial sustainability in MSMEs is also a characteristic of looking at fi-nancial conditions and the direction of strategic business plans (Azarenkova et al., 2018).Research on MSMEs finance is significant because MSME is one of the main factors supporting Indonesia's economy so that it can guarantee the country's progress.If a country's economic foundation is excellent, optimism and hope will materialize, leading to financial well-being and financial resilience (Ravikumar et al., 2022).

CONCLUSION
The study proves that financial behavior and financial technology can fully mediate the relationship between financial literacy and business sustainability.However, financial literacy cannot have a direct effect on business sustainability.This study provides some practical value regarding the sustainability of MSMEs, where companies can survive in the long term with a robust financial literacy foundation.However, they must be supported by good financial behavior and also be able to choose the right financial technology for their business activities.Good financial literacy will make MSME owners wiser in managing their finances; thus, they prefer financial technology as a means to help their business activities and promote better financial behavior.Companies will survive in the long term if they pay attention to financial literacy, financial behavior, and financial technology.
There are certain limitations in this study.For instance, although using online questionnaires is widely accessible to respondents throughout Indonesia, incomplete replies are received due to time limits, taking respondents' psychology into account when filling out question items.

Figure
Figure 2. PLS algorithm processing results

Table 3 .
Reliability test Source: Own elaboration using PLS.

Table 4 .
Outer loading of financial literacySource: Own elaboration using PLS.

Table 5 .
Outer loading of financial behavior

Table 6 .
Outer loading of financial technologySource: Own elaboration using PLS.

Table 7 .
Outer loading of business sustainability Source: Own elaboration using PLS.

Table 8 .
Direct and indirect impact Source: Own elaboration using PLS.Direct and Indirect Impact Original sample T-statistics P-value Description