Digital Financial Readiness and Sustainable Economic Resilience of MSMEs: The Mediating Role of Islamic Sustainable Business Practices (ISBP) in Medan City

Salman Munthe; Anggi Pratiwi Sitorus; Shintami Oktavia; Loranty Folia Simanjuntak

doi:10.59431/ijer.v6i3.894

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Digital Financial Readiness and Sustainable Economic Resilience of MSMEs: The Mediating Role of Islamic Sustainable Business Practices (ISBP) in Medan City

Salman Munthe, Anggi Pratiwi Sitorus, Shintami Oktavia, Loranty Folia Simanjuntak

View Author Affiliations

Salman Munthe: Universitas Negeri Medan, Indonesia
Anggi Pratiwi Sitorus: Universitas Negeri Medan, Indonesia
Shintami Oktavia: Universitas Negeri Medan, Indonesia
Loranty Folia Simanjuntak: Universitas Negeri Medan, Indonesia

DOI:

https://doi.org/10.59431/ijer.v6i3.894

Published:

September 28, 2026

Pages:

1108–1120

25

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12

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Abstract

Digital financial capability has become increasingly vital for the sustainability of micro, small, and medium enterprises (MSMEs). However, the contribution of this capability to resilience may depend on the governance and utilization of digital resources. This study investigates the impact of Digital Financial Readiness (DFR) on Sustainable Economic Resilience (SER), both directly and indirectly through Islamic Sustainable Business Practices (ISBP), among MSMEs in Medan City. A quantitative survey was conducted involving 320 MSME owners and managers selected through purposive sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with 5,000 bootstrap subsamples. The results indicate that DFR positively influences ISBP (β = 0.612, p < 0.001) and SER (β = 0.287, p < 0.001), while ISBP also has a positive effect on SER (β = 0.498, p < 0.001). Furthermore, ISBP significantly mediates the relationship between DFR and SER (indirect effect β = 0.305, p < 0.001), suggesting partial mediation. The model accounts for 59.6% of the variance in SER and demonstrates predictive relevance. These findings suggest that digital financial readiness enhances MSME resilience not only through improved financial and operational capabilities but also through Sharia-compliant, ethical, socially responsible, and environmentally sustainable business practices. The study offers context-specific implications for local government, financial institutions, and MSME development agencies in Medan City to integrate digital financial capacity building with Islamic sustainability-oriented business support.

Keywords

Digital Financial Readiness; Islamic Sustainable Business Practices; Sustainable Economic Resilience; MSMEs; Medan City

Author Biographies

Salman Munthe

Universitas Negeri Medan

Digital Business Study Program, Faculty of Economics and Business, Universitas Negeri Medan, Deli Serdang Regency, North Sumatra, Indonesia.

Anggi Pratiwi Sitorus

Universitas Negeri Medan

Digital Business Study Program, Faculty of Economics and Business, Universitas Negeri Medan, Deli Serdang Regency, North Sumatra, Indonesia.

Shintami Oktavia

Universitas Negeri Medan

Digital Business Study Program, Faculty of Economics and Business, Universitas Negeri Medan, Deli Serdang Regency, North Sumatra, Indonesia.

Loranty Folia Simanjuntak

Universitas Negeri Medan

Digital Business Study Program, Faculty of Economics and Business, Universitas Negeri Medan, Deli Serdang Regency, North Sumatra, Indonesia.

Article Identifiers

Article Title: Digital Financial Readiness and Sustainable Economic Resilience of MSMEs: The Mediating Role of Islamic Sustainable Business Practices (ISBP) in Medan City
DOI: 10.59431/ijer.v6i3.894
Publication Date: 2026-09-28

Journal: Indonesian Journal Economic Review (IJER)
Volume: 6
Issue: 3
Pages: 1108–1120

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Issue Information

Article Details

Volume:	6
Issue:	3
Year:	2026
Published:	2026-09-28
Pages:	1108–1120
Section:	Articles

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How to Cite

Munthe, S., Sitorus, A. P., Oktavia, S., & Simanjuntak, L. F. (2026). Digital Financial Readiness and Sustainable Economic Resilience of MSMEs: The Mediating Role of Islamic Sustainable Business Practices (ISBP) in Medan City. Indonesian Journal Economic Review (IJER), 6(3), 1108–1120. https://doi.org/10.59431/ijer.v6i3.894