Halim, Moh. and Suharsono, Riyanto Setiawan and Aspirandi, Rendy Mirwan (2026) STRENGTHENING FINANCIAL GOVERNANCE THROUGH DIGITAL PAYMENT SYSTEMS FOR THE SUSTAINABLE GROWTH OF MSMES IN JEMBER CITY. Journal of Economic and Economic Policy, 3 (2). ISSN 3047-4892

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Abstract

Objective: This study aims to examine the role of digital payment systems in strengthening financial governance and promoting sustainable growth among micro, small, and medium-sized enterprises (MSMEs) in Jember City. Method: The research employed a quantitative approach with a correlational design, involving 150 MSME respondents selected through purposive sampling, and utilized structured questionnaires based on a Likert scale. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate both the measurement and structural models, including hypothesis testing and mediation analysis. Results: The results indicate that digital payment systems significantly enhance financial governance, which partially mediates the relationship between digital payment adoption and the sustainable growth of MSMEs. Novelty: These findings suggest that integrating digital payment technologies with effective financial governance mechanisms contributes to improved operational transparency, accountability, and long-term business sustainability, thereby offering theoretical, practical, and policy implications for MSMEs and relevant stakeholders.

Item Type:	Article
Uncontrolled Keywords:	Digital Payment Systems, Financial Governance, Sustainable Growth, MSMEs, Jember City, Technology Adoption, Agency Theory, Stakeholder Theory
Subjects:	H Social Sciences
Depositing User:	admin eprints
Date Deposited:	02 Jul 2026 04:02
Last Modified:	02 Jul 2026 04:02
URI:	http://eprints.umsida.ac.id/id/eprint/16742

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