Financial Literacy, Entrepreneurial Competence, Entrepreneurial Resilience, and Sustainability Performance in MSMEs: A Measurement Model Approach

Abstract

This study examines how financial literacy, entrepreneurial competence, entrepreneurial resilience, and sustainability performance can reflect their respective indicators. In parallel, the researchers tested the indicators used as a research model, then confirmed whether each variable could define a construct (variable). Using an offline questionnaire, we used a quantitative approach to collect data from 366 MSME players. SEM with AMOS 26 software as processing and analysis of data collected and used to analyze structural theory in the form of interrelationships between variables. The results of the analysis conducted based on the regression model for the variables of sustainability performance, financial literacy, entrepreneurial competence and entrepreneurial resilience show that the convergent validity has been demonstrated and each variable can determine the variables of sustainability performance, financial literacy, entrepreneurial competence and entrepreneurial resilience from its indicators. Each indicator yields an SL value > 0.5 (above 0.5), which means that the relationship between the variables of each indicator is appropriate, and each indicator is at the 0.001 level. Based on the results of the standardized load (SL), the following indicators are used to adjust the sustainability performance variables: 0.606, 0.116, 0.676, 0.414, 0.231, 0.178, 0.510, 0.628, 0.514, 0.621, 0.476, 0.443, 0.617, 0.316, 0.201, 0.688. Based on the results of the standardized load (SL), the following indicators are used to determine the financial literacy variable: 0.238, 0.232, 0.392, 0.344, 0.302, 0.491, 0.902, 0.890. In addition, there are twenty-one indicators to determine the value of the variable “entrepreneurial competence”, namely 0.528, 0.642, 0 599, 0, 354, 0,649, 0,599, 0,433, 0,559, 0,559, 0,559, 0,502, 0,555, 0,620, 0,620, 0,620, 0,620, 0,620, 0,620, 0,620, 0,620, 0,620, 0,620, 0,620, 0,620. 695, 0.620, 0.561, 0.529, 0.364, 0.472, 0.410, 0.268, 0.296, while the indicators of entrepreneurial resilience determined based on the results of standardized load (SL) are 0.731, 0.642, 0.361, 0.339, 0.456. The measurement results of CFA scores for the variables of sustainability performance, financial knowledge, entrepreneurial competence and entrepreneurial resilience show acceptable convergence and agreement. These results show that almost all GOF scores for each variable show better results, so it can be concluded that the model fits in this measurement.