Background: Digital investment services have expanded retail participation in Indonesia's capital market, but easier market access does not necessarily produce more rational investor behavior. Psychological tendencies continue to shape individual choices, and prior evidence remains inconsistent regarding whether financial literacy can restrain those tendencies.
Objective: This research examines the relationship between an aggregate behavioral-bias construct and investment decisions, the direct role of financial literacy, and the extent to which financial literacy changes the behavioral-bias relationship among retail investors in a digital investment setting.
Methods: A quantitative explanatory design was applied to 300 retail investors who used digital investment platforms. The proposed direct and interaction relationships were estimated using Partial Least Squares Structural Equation Modeling (PLS-SEM).
Results: Behavioral biases were positively associated with investment decisions, while financial literacy also showed a positive direct relationship. The interaction coefficient was negative and significant, indicating that higher financial literacy reduces the strength of the association between behavioral biases and investment decisions.
Conclusion: Financial knowledge supports more informed investment judgment and can moderate behavioral influence, although it does not remove psychological tendencies entirely. Investor education should therefore integrate financial competence with awareness of common behavioral biases.
Duduh Sujana, Nugraha Nugraha, Dismam Dismam et al.· Inkubis Jurnal Ekonomi dan B...· 0 citations
Financial sustainability is a decisive condition for small and medium-sized enterprises (SMEs) because it determines whether firms can maintain liquidity, generate stable profitability, absorb shocks, and finance growth. Drawing on Dynamic Capability Theory and the Resource-Based View, this study examines how managerial capability contributes to SME financial sustainability through product innovation and how access to finance strengthens the innovation-sustainability relationship. The research used a quantitative survey design involving 350 SME owners and managers in West Java, Indonesia, selected through purposive sampling. Data were collected using a structured seven-point Likert questionnaire and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that managerial capability has a strong positive effect on product innovation (beta = 0.727; t = 19.755; p < 0.001), product innovation positively affects financial sustainability (beta = 0.411; t = 4.876; p < 0.001), and managerial capability directly improves financial sustainability (beta = 0.231; t = 5.422; p < 0.001). Product innovation significantly mediates the effect of managerial capability on financial sustainability (indirect effect = 0.299; t = 5.742; p < 0.001), while access to finance positively moderates the effect of product innovation on financial sustainability (beta = 0.218; t = 3.108; p = 0.002). The findings support a Dynamic Capability-Based Financial Sustainability Model for SMEs, suggesting that managerial capability becomes financially meaningful when translated into innovation and supported by adequate financial access. The study contributes to strategic management, entrepreneurship, and SME sustainability literature by clarifying the capability-innovation-finance mechanism through which SMEs improve long-term financial viability in an emerging economy context.
Keywords: managerial capability; product innovation; access to finance; financial sustainability; SMEs; dynamic capability; PLS-SEM
Duduh Sujana, N. Nugraha, D. Disman et al.· Jurnal Ilmiah Manajemen Kesa...· 0 citations
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