ISLAMIC FINTECH ADOPTION AND BUSINESS SUSTAINABILITY AMONG RATTAN CRAFT SMES: THE MEDIATING ROLE OF FINANCIAL INCLUSION
DOI:
https://doi.org/10.52166/adilla.v8i1.6650Keywords:
Business sustainability,, financial inclusion,, Islamic fintech,, rattan craft SMEs,, Sharia-compliant finance,Abstract
This study examines the relationship between Islamic fintech adoption, financial inclusion, and business sustainability among rattan craft small and medium-sized enterprises (SMEs) in East Lombok, Indonesia. Rattan craft SMEs face challenges related to limited financial access, inadequate financial management, market limitations, and the need to adapt to digital transformation. This study aims to determine whether Islamic fintech adoption contributes to business sustainability and to examine the mediating role of financial inclusion. A quantitative explanatory research design was employed, involving 150 rattan craft SME owners and managers selected through purposive sampling. Data were collected using a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that Islamic fintech adoption has a significant positive effect on financial inclusion (β = 0.684, p < 0.001) and business sustainability (β = 0.293, p < 0.001). Financial inclusion also significantly affects business sustainability (β = 0.517, p < 0.001). Furthermore, financial inclusion significantly mediates the relationship between Islamic fintech adoption and business sustainability (β = 0.354, p < 0.001). The findings highlight Islamic fintech as a potential instrument for strengthening financial inclusion and sustainable development among traditional SMEs.
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