Digital Financial Literacy and Entrepreneurial Resilience of Women Entrepreneurs: A Moderated Model of Overconfidence
Article Sidebar
Main Article Content
Abstract
Resilience has been known as an essential element in sustaining women’s entrepreneurship in MSMEs in developing countries. This study aims to investigate the influence of digital financial literacy on entrepreneurial resilience and the impact of overconfidence in this relationship on female entrepreneurs in Indonesia. A total of 494 women entrepreneurs from MSME participated in this cross-sectional survey. Before examining the proposed relationships, CFA was used to evaluate the quality of the measurements. While controlling for demographic characteristics, the impacts of digital financial literacy, overconfidence, and their interactions are assessed using multiple regression analysis and the PROCESS Macro Ver. 4.2 for SPSS. The results emphasize the significance of digital financial literacy and overconfidence in enhancing the resilience of women entrepreneurs. Furthermore, the findings indicate that entrepreneurs with high overconfidence are more adept at leveraging their digital financial literacy to foster greater resilience.
Article Details
Section
Once the manuscript is accepted for publication, authors shall transfer the copyright to the publisher. If the submitted manuscript is not accepted for printing by the journal, the authors shall retain all their rights. The following rights on the manuscript are transferred to the publisher, including any supplementary materials and any parts, extracts or elements of the manuscript:
- the right to reproduce and distribute the manuscript in printed form, including print-on-demand;
- the right to print prepublications, reprints and special editions of the manuscript;
- the right to translate the manuscript into other languages;
- the right to reproduce the manuscript using photomechanical or similar means including, but not limited to photocopy, and the right to distribute these copies;
- the right to reproduce and distribute the manuscript electronically or optically using and all data carriers or storage media, and especially in machine readable/digitalized form on data carriers such as hard drive, CD-ROM, DVD, Blu-ray Disc (BD), Mini Disc, data tapes, and the right to reproduce and distribute the article via these data carriers;
- the right to store the manuscript in databases, including online databases, as well as the right to transmit the manuscript in all technical systems and modes;
- the right to make the manuscript available to the public or to closed user groups on individual demand, for use on monitors or other readers (including e-books), and in printable form for the user, either via the Internet, online service, or via internal or external networks.
Authors reserve the copyright to published articles and have the right to use the article in the same manner like third parties in accordance with the licence Attribution-Non-Commercial-Non-Derivate 4.0 International (CC BY NC ND). Thereby they must quote the basic bibliographic data of the source article published in the journal (authors, article title, journal title, volume, pagination).
References
Abdulla, F. S., & Ahmad, A. (2023). Challenges faced by women entrepreneurs of 21st century: Literature review. Journal of Management & Science, 21(1), 71–86. https://doi.org/10.57002/jms.v21i1.368
Anshika, & Singla, A. (2022). Financial literacy of entrepreneurs: A systematic review. Managerial Finance, 48(9/10), 1352–1371. https://doi.org/10.1108/MF-06-2021-0260
Antonijević, M., Domazet, I., Kojić, M., & Simović, V. (2024). Financial inclusion - A driving force for women’s entrepreneurship development. Journal of Women’s Entrepreneurship and Education, (3–4), 73–92. https://doi.org/10.28934/jwee24.34.pp73-92
Ariana, I. M., Wiksuana, I. G. B., Candraningrat, I. R., & Baskara, I. G. K. (2024). The effects of financial literacy and digital literacy on financial resilience: Serial mediation roles of financial inclusion and financial decisions. Uncertain Supply Chain Management, 12(2), 999–1014. https://doi.org/10.5267/j.uscm.2023.12.008
Awad, J., & Martín-Rojas, R. (2024). Enhancing social responsibility and resilience through entrepreneurship and digital environment. Corporate Social Responsibility and Environmental Management, 31(3), 1688–1704. https://doi.org/10.1002/csr.2655
Cardella, G. M., Hernández-Sánchez, B. R., & Sánchez-García, J. C. (2020). Women entrepreneurship: A systematic review to outline the boundaries of scientific literature. Frontiers in Psychology, 11, 1–18. https://doi.org/10.3389/fpsyg.2020.01557
Cheng, L. J., & Liao, C.-C. (2017). The drivers of entrepreneurial intention: The role of social capital and overconfidence. Contemporary Management Research, 13(2), 143–162. https://doi.org/10.7903/cmr.17589
Croitoru, G., Duica, M., Robescu, O., Radu, V., & Oprisan, O. (2017). Entrepreneurial resilience, factor of influence on the function of entrepreneur. In S. Hugues & N. Cristache (Eds.), Risk in Contemporary Economy (Vol. 18, pp. 193–216). LUMEN Proceedings. https://doi.org/10.18662/lumproc.rce2017.1.17
Daniels, L., & Minot, N. (2020). An introduction to statistics and data analysis using Stata : From research design to final report. SAGE Publications, Inc. https://study.sagepub.com/daniels1e
Demir, A., Pesqué-Cela, V., Altunbas, Y., & Murinde, V. (2022). Fintech, financial inclusion and income inequality: A quantile regression approach. The European Journal of Finance, 28(1), 86–107. https://doi.org/10.1080/1351847X.2020.1772335
Fatima, T., Bilal, A. R., Imran, M. K., & Sarwar, A. (2024). Action-oriented entrepreneurial training and career resilience: A serial mediation model. Journal of Organizational Change Management, 37(3), 504–528. https://doi.org/10.1108/JOCM-07-2023-0278
Fatma, E. Ben, Mohamed, E. Ben, Dana, L. P., & Boudabbous, S. (2021). Does entrepreneurs’ psychology affect their business venture success? Empirical findings from North Africa. International Entrepreneurship and Management Journal, 17, 921–962. https://doi.org/10.1007/s11365-020-00644-3
Feranita, N. V., Dwimahendrawan, A., & Asmuni. (2024). Determinants of digital technology adoption among women entrepreneurs. Journal of Women’s Entrepreneurship and Education, (1–2), 66–92. https://doi.org/10.28934/jwee24.12.pp66-92
Fitzsimmons, J. R., & Douglas, E. J. (2006). The impact of overconfidence on entrepreneurial intentions. In L. M. Gillin, J. Butler, A. Campbell, P. Davidsson, & H. Frederick (Eds.), Regional Frontiers of Entrepreneurship Research 2006: Proceedings of the 3rd Annual AGSE International Entrepreneurship Research Exchange (pp. 466–477). The Australian Graduate School of Entrepreneurship. https://eprints.qut.edu.au/214570/
Guerrero, M., & Walsh, G. S. (2023). How do entrepreneurs build a resilient and persistent identity? Re-examining the financial crisis impact. International Entrepreneurship and Management Journal, 1–35. https://doi.org/10.1007/s11365-023-00902-0
Hair Jr., J. F., Page, M., & Brunsveld, N. (2020). Essentials of business research methods (4th ed.). Routledge.
Hair Jr., J. F, Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning EMEA.
Halonen, S., & Virkkala, P. (2023). Entrepreneurial resilience in the micro and small business context – Systematic literature review. American Journal of Management, 23(4), 1–18. https://doi.org/10.33423/ajm.v23i4.6495
Hasan, R., Ashfaq, M., Parveen, T., & Gunardi, A. (2023). Financial inclusion – does digital financial literacy matter for women entrepreneurs? International Journal of Social Economics, 50(8), 1085–1104. https://doi.org/10.1108/IJSE-04-2022-0277
Hayes, A. F. (2018). Introduction to mediation, moderation, and conditional process analysis : A regression-based approach (2nd ed.). The Guilford Press. https://www.guilford.com/books/Introduction-to-Mediation-Moderation-and-Conditional-Process-Analysis/Andrew-Hayes/9781462549030
Hayward, M. L. A., Forster, W. R., Sarasvathy, S. D., & Fredrickson, B. L. (2010). Beyond hubris: How highly confident entrepreneurs rebound to venture again. Journal of Business Venturing, 25(6), 569–578. https://doi.org/10.1016/j.jbusvent.2009.03.002
Hazudin, S. F., Sabri, M. F., Ramli, N., & Burhan, N. A. S. (2023). Development of antecedent factors for Malaysian women’s entrepreneurial resilience framework: A fuzzy delphi method. Journal Women’s Entrepreneurship and Education, (3–4), 1–27. https://doi.org/10.28934/jwee23.34.pp1-27
Hedner, T., Abouzeedan, A., & Klofsten, M. (2011). Entrepreneurial resilience. Annals of Innovation & Entrepreneurship, 2(1), 1–4. https://doi.org/10.3402/aie.v2i1.6002
Hernández, M. D. F., Chambergo, E. J. S., Sir, V. M. V., Castillo, M. M. F., Cuadra, Y. M. L., del Pilar Contreras Portocarrero, J., Zúñiga, C. P. L. G., & Farroñán, E. V. R. (2024). Resilience as a key factor in the success of women-led entrepreneurship: A systematic literature review. Journal of Educational and Social Research, 14(3), 182–194. https://doi.org/10.36941/jesr-2024-0065
ICRW. (2019). Women entrepreneurs need more than capital: What do women’s businesses really need to grow and thrive? In International Center for Research on Women (ICRW) (Issue June). https://www.icrw.org/publications/women-entrepreneurs-need-more-than-capital/
Igartua, J.-J., & Hayes, A. F. (2021). Mediation, moderation, and conditional process analysis: Concepts, computations, and some common confusions. The Spanish Journal of Psychology, 24(e49), 1–23. https://doi.org/10.1017/SJP.2021.46
Ilieva, V., Brudermann, T., & Drakulevski, L. (2018). “Yes, we know!” (Over)confidence in general knowledge among Austrian entrepreneurs. PLoS ONE, 13(5), 1–15. https://doi.org/10.1371/journal.pone.0197085
Invernizzi, A. C., Menozzi, A., Passarani, D. A., Patton, D., & Viglia, G. (2017). Entrepreneurial overconfidence and its impact upon performance. International Small Business Journal: Researching Entrepreneurship, 35(6), 709–728. https://doi.org/10.1177/0266242616678445
Iram, T., Bilal, A. R., & Ahmad, Z. (2023). Investigating the mediating role of financial literacy on the relationship between women entrepreneurs’ behavioral biases and investment decision making. Gadjah Mada International Journal of Business, 25(1), 93–118. https://doi.org/10.22146/gamaijb.65457
Jennings, J. E., Rahman, Z., & Dempsey, D. (2023). Challenging what we think we know: Theory and evidence for questioning common beliefs about the gender gap in entrepreneurial confidence. Entrepreneurship: Theory and Practice, 47(2), 369–397. https://doi.org/10.1177/10422587221102108
Kamberidou, I. (2020). “Distinguished” women entrepreneurs in the digital economy and the multitasking whirlpool. Journal of Innovation and Entrepreneurship, 9(3), 1–26. https://doi.org/10.1186/s13731-020-0114-y
Kass-Hanna, J., Lyons, A. C., & Liu, F. (2022). Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa. Emerging Markets Review, 51. https://doi.org/10.1016/j.ememar.2021.100846
Keith, T. Z. (2019). Multiple regression and beyond: An introduction to multiple regression and structural equation modeling (3rd ed.). Routledge. https://doi.org/10.4324/9781315162348
Kipkosgei, F. (2022). Perceived entrepreneurial stress and entrepreneurial resilience; The mediating role of the well-being of entrepreneurs and moderating role perceived online social support. Merits, 2(1), 1–17. https://doi.org/10.3390/merits2010001
Korber, S., & McNaughton, R. B. (2018). Resilience and entrepreneurship: A systematic literature review. International Journal of Entrepreneurial Behaviour and Research, 24(7), 1129–1154. https://doi.org/10.1108/IJEBR-10-2016-0356
Kotsios, P. (2023). Business resilience skills for SMEs. Journal of Innovation and Entrepreneurship, 12(37), 1–22. https://doi.org/10.1186/s13731-023-00304-0
Koudstaal, M., Sloof, R., & van Praag, M. (2015). Are entrepreneurs more optimistic and overconfident than managers and employees? In Tinbergen Institute Discussion Paper. https://papers.tinbergen.nl/15124.pdf
Kraft, P. S., Günther, C., Kammerlander, N. H., & Lampe, J. (2022). Overconfidence and entrepreneurship: A meta-analysis of different types of overconfidence in the entrepreneurial process. Journal of Business Venturing, 37(4). https://doi.org/10.1016/j.jbusvent.2022.106207
Kromidha, E., & Bachtiar, N. K. (2024). Developing entrepreneurial resilience from uncertainty as usual: A learning theory approach on readiness, response and opportunity. International Journal of Entrepreneurial Behaviour and Research, 30(4), 1001–1022. https://doi.org/10.1108/IJEBR-11-2022-1025
Lee, J., & Wang, J. (2017). Developing entrepreneurial resilience: Implications for human resource development. European Journal of Training and Development, 41(6), 519–539. https://doi.org/10.1108/EJTD-12-2016-0090
Li, R., & Qian, Y. (2020). Entrepreneurial participation and performance: The role of financial literacy. Management Decision, 58(3), 583–599. https://doi.org/10.1108/MD-11-2018-1283
Margaça, C., García, J. C. S., & Sánchez, B. H. (2023). Psychological capital and entrepreneurship: A systematic literature review of a growing research agenda. Intangible Capital, 19(2), 276–295. https://doi.org/10.3926/ic.2196
Nur, T., Ege, İ., & Topaloğlu, E. E. (2023). The moderator role of managerial overconfidence in the relationship between R&D volatility and firm value: An application in Borsa Istanbul. Akademik Araştırmalar ve Çalışmalar Dergisi, 15(28), 1–11. https://doi.org/10.20990/kilisiibfakademik.1232263
Panjaitan, R., Hasan, M., & Vilkana, R. (2022). Sophisticated technology innovation capability: Entrepreneurial resilience on disaster-resilient MSMEs. Serbian Journal of Management, 17(2), 375–388. https://doi.org/10.5937/sjm17-39294
Pappas, M. A., Drigas, A. S., Papagerasimou, Y., Dimitriou, H., Katsanou, N., Papakonstantinou, S., & Karabatzaki, Z. (2018). Female entrepreneurship and employability in the digital era: The case of Greece. Journal of Open Innovation: Technology, Market, and Complexity, 4(2), 1–15. https://doi.org/10.3390/4020001
Pruett, M. (2023). Confidence and character: The future of women’s entrepreneurship education? Journal Women’s Entrepreneurship and Education, (Special Issue), 1–15. https://doi.org/10.28934/jwee23.pp1-15
Putra, A. T., Inanna, Tahir, T., Mustari, & Hasan, M. (2023). Analysis of financial literacy and digital literacy on the sustainability of micro, small and medium enterprises (MSMEs). International Journal of Asian Business and Management, 2(6), 977–992. https://doi.org/10.55927/ijabm.v2i6.6978
Ramlall, I. (2017). Applied structural equation modelling for researchers and practitioners: Using R and Stata for behavioural research. Emerald Group Publishing Limited.
Ravikumar, T., Suresha, B., Prakash, N., Vazirani, K., & Krishna, T. A. (2022). Digital financial literacy among adults in India: Measurement and validation. Cogent Economics & Finance, 10(1), 1–21. https://doi.org/10.1080/23322039.2022.2132631
Salamouris, I. S. (2013). How overconfidence influences entrepreneurship. Journal of Innovation and Entrepreneurship, 2(8), 1–6. https://doi.org/10.1186/2192-5372-2-8
Santoro, G., Bertoldi, B., Giachino, C., & Candelo, E. (2020). Exploring the relationship between entrepreneurial resilience and success: The moderating role of stakeholders’ engagement. Journal of Business Research, 119, 142–150. https://doi.org/10.1016/j.jbusres.2018.11.052
Seraj, A. H. A., Alzain, E., & Alshebami, A. S. (2022). The roles of financial literacy and overconfidence in investment decisions in Saudi Arabia. Frontiers in Psychology, 13, 1–12. https://doi.org/10.3389/fpsyg.2022.1005075
Simon, M., & Shrader, R. C. (2012). Entrepreneurial actions and optimistic overconfidence: The role of motivated reasoning in new product introductions. Journal of Business Venturing, 27(3), 291–309. https://doi.org/10.1016/j.jbusvent.2011.04.003
Singh, R. P. (2020). Overconfidence: A common psychological attribute of entrepreneurs which leads to firm failure. New England Journal of Entrepreneurship, 23(1), 25–39. https://doi.org/10.1108/NEJE-07-2019-0031
Suleiman, A., Dewaranu, T., & Anjani, N. H. (2022). Creating informed consumers: Tracking financial literacy programs in Indonesia (Policy Paper, No. 49; Center for Indonesian Policy Studies (CIPS)). https://www.econstor.eu/bitstream/10419/251313/1/CIPS-PolicyPaper49.pdf
Sutrisno, Cakranegara, P. A., Hendrayani, E., Jokhu, J. R., & Yusuf, M. (2022). Positioning women entrepreneurs in small and medium enterprises in Indonesia – food & beverage sector. Enrichment: Journal of Management, 12(5), 3873–3881. https://doi.org/10.35335/enrichment.v12i5.964
Szerb, L., & Vörös, Z. (2021). The changing form of overconfidence and its effect on growth expectations at the early stages of startups. Small Business Economics, 57(1), 151–165. https://doi.org/10.1007/s11187-019-00297-9
Teece, D. J. (2017). Dynamic capabilities and (digital) platform lifecycles. In J. Furman, A. Gawer, B. Silverman, & S. Stern (Eds.), Entrepreneurship, Innovation, and Platforms (Advances in Strategic Management) (Vol. 37, pp. 211–225). https://doi.org/10.1108/S0742-332220170000037008
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)
Tumba, N. J., Onodugo, V. A., Akpan, E. E., & Babarinde, G. F. (2022). Financial literacy and business performance among female micro-entrepreneurs. Investment Management and Financial Innovations, 19(1), 156–167. https://doi.org/10.21511/imfi.19(1).2022.12
Xia, Q., Xie, Y., Hu, S., & Song, J. (2024). Exploring how entrepreneurial orientation improve firm resilience in digital era: Findings from sequential mediation and FsQCA. European Journal of Innovation Management, 27(1), 96–122. https://doi.org/10.1108/EJIM-12-2021-0593
Yadav, M., & Banerji, P. (2023). A bibliometric analysis of digital financial literacy. American Journal of Business, 38(3), 91–111. https://doi.org/10.1108/ajb-11-2022-0186
Yang, Y., & Danes, S. M. (2015). Resiliency and resilience process of trepreneurs in new venture creation. Entrepreneurship Research Journal, 5(1), 1–30. https://doi.org/10.1515/erj-2013-0076
Zhang, X., Liu, D., & Chen, J. (2024). Managerial overconfidence and corporate resilience. Finance Research Letters, 62(2). https://doi.org/10.1016/j.frl.2024.105087
Zhao, H., & Wibowo, A. (2021). Entrepreneurship resilience: Can psychological traits of entrepreneurial intention support overcoming entrepreneurial failure? Frontiers in Psychology, 12, 1–12. https://doi.org/10.3389/fpsyg.2021.707803