Digital Governance, Financial Literacy, and Economic Resilience of Islamic Micro, Small, and Medium Enterprises in Indonesia
Irsad Andriyanto

UIN Sunan Kudus

Abstract

The rapid advancement of digital financial technologies has transformed governance practices among Islamic micro, small, and medium enterprises in Indonesia, creating both opportunities and challenges for socially responsible and resilient business ecosystems. Despite growing adoption of digital payment systems, Islamic accounting applications, and electronic commerce platforms, how governance mechanisms and social responsibility principles moderate this digital transition remained underexplored. This study empirically examined the interrelationships among digital governance, social responsibility orientation, Islamic financial literacy, and technology adoption among sharia-based enterprises in Indonesia, and their collective impact on economic resilience.
A survey-based quantitative approach was employed, with data collected from owners and managers of Islamic micro, small, and medium enterprises in Central Java, Indonesia. Structural Equation Modeling was applied to test the proposed hypotheses. The findings revealed that governance quality and social responsibility orientation significantly moderated the relationship between digital technology adoption and enterprise economic resilience, while Islamic financial literacy served as a key mediating variable. Enterprises with stronger governance practices and higher social responsibility awareness demonstrated greater adaptive capacity in navigating digital financial ecosystems.
This study contributed to the literature by offering an integrated framework bridging digital interconnectivity, social capital, and governance responsibility within an Islamic economics context. The findings carry practical implications for policymakers and Islamic financial regulators in designing inclusive digital governance strategies that strengthen the social and economic fabric of Muslim communities in Indonesia and beyond.

Keywords: digital governance, economic resilience, financial literacy, Islamic enterprises, technology adoption

Topic: Responsible Digital Entrepreneurship: Fostering Sustainable Business Ecosystems through Innovation and Ethical Governance (Digital Entrepreneurship- Sustainable Ecosystems- Business Innovation)