Digital Literacy, Financial Technology Adoption, and Sustainable Business Practices Among MSMEs: Evidence From Gorontalo
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Digital transformation has reshaped financial management and accounting behavior among micro, small, and medium enterprises (MSMEs), particularly within the framework of Islamic finance, where technology adoption is closely linked to ethical and sharia compliance values. This study examines the influence of digital literacy on sustainable business practices, with Islamic fintech adoption as a mediating variable among MSME actors in Gorontalo Province, Indonesia. Using a mixed-methods sequential explanatory design, this research integrates quantitative data from 49 respondents with qualitative insights obtained through in-depth interviews. The quantitative findings indicate that digital literacy significantly affects sustainable business practices (β = 0.6303, p < 0.001), while the mediating role of Islamic fintech adoption is statistically insignificant (z = 1.188, p = 0.235). The qualitative analysis reveals that social trust, religious values, and accessibility shape MSME adoption behavior toward Pegadaian Digital Syariah. Theoretically, this study strengthens the integration of the Technology Acceptance Model (TAM), Diffusion of Innovation Theory (DOI), and Sustainable Business Model Innovation (SBM) in explaining digital transformation within Islamic finance. Practically, the results emphasize the importance of Islamic value-based digital literacy programs and inclusive digital financial accounting strategies that foster trust, ethics, and sustainability. Overall, digital literacy emerges as the key driver of MSME sustainability in the digital era, while the success of Islamic fintech adoption depends on ethical awareness and socio-cultural trust within local contexts.
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