Determinants of Fintech Adoption among MSMEs: Integrating TAM Constructs, Financial Literacy, Government Support, Trust, and User Innovativeness

Abstract

Purpose – This study examines the determinants of fintech adoption among Micro, Small, and Medium Enterprises (MSMEs) in Indonesia by extending the Technology Acceptance Model (TAM) with financial literacy, government support, trust, and user innovativeness. It also examines the effects of financial literacy and government support on user innovativeness..Method – A quantitative explanatory design was employed using survey data from 335 MSME owners and managers participating in the 2024 MSME Enhancement Program across 19 cities and regencies in Java, Sumatra, and Bali. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).Findings – Financial literacy and government support significantly enhance user innovativeness. Fintech adoption is significantly influenced by financial literacy (β = 0.126, p = 0.042), government support (β = 0.131, p = 0.009), trust (β = 0.344, p < 0.001), and user innovativeness (β = 0.256, p < 0.001). In contrast, perceived usefulness and perceived ease of use do not significantly influence fintech adoption.Research implications – The findings suggest that behavioral, institutional, financial, and trust-related factors are more influential than traditional TAM constructs in explaining fintech adoption among Indonesian MSMEs. Policymakers should strengthen financial literacy, innovation-oriented support, and digital ecosystems, while fintech providers should prioritize trust and security.Originality – This study extends TAM by integrating financial literacy, government support, trust, and user innovativeness into a unified framework, demonstrating the importance of contextual and behavioral factors in explaining fintech adoption among MSMEs in a developing-country context.