/jurnalpengurusan Thu, 04 Dec 2025 06:19:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/digital-financial-literacy-financial-inclusion-and-sme-performance-in-malaysia-evidence-from-threshold-regression/?utm_source=rss&utm_medium=rss&utm_campaign=digital-financial-literacy-financial-inclusion-and-sme-performance-in-malaysia-evidence-from-threshold-regression Mon, 17 Nov 2025 07:35:58 +0000 /jurnalpengurusan/?post_type=article&p=7889 This study examines the effect of digital financial literacy on firm performance among selected small and medium-sized enterprises (SMEs) in Malaysia. The level of digital financial literacy is measured as a percentage, based on firm’s understanding or knowledge, experience, awareness of potential risks, and skills. The level of financial inclusion for each firm, as the threshold variable, is calculated using a newly constructed firm-level  financial inclusion index. The relationship between digital financial literacy and firm performance is subsequently estimated using a cross-sectional threshold regression technique. The main findings reveal the digital financial literacy-performance nexus is contingent on the level of financial inclusion, indicating that digital financial literacy exhibits a non-monotonic positive effect on firm performance. The positive effect is evident at high and low levels of financial inclusion. These  findings should motivate policymakers in Malaysia to exert greater efforts to raise awareness of digital financial literacy as a means of supporting sustainable firm performance. The utilization of digital  plays a crucial role in mitigating  and facilitating SMEs’ access to , thereby enhancing firm performance.

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