FINANCIAL RESILIENCE MEDIATING FINANCIAL CAPABILITY AND BUSINESS SUSTAINABILITY AMONG FISHERY PRODUCT PROCESSING ENTERPRISES IN MADURA
DOI:
https://doi.org/10.70248/jakpt.v4i1.4739Keywords:
Financial Capability, Financial Resilience, Business Sustainability, Fisheries Product Processung MSMEs, PLS-SEMAbstract
Fishery product processing enterprises in coastal Madura face resource constraints, fluctuating cash flows, and financial pressures that may threaten long-term business sustainability. This study examines the effect of Financial Capability on Business Sustainability through the mediating role of Financial Resilience among fishery product processing enterprises in Madura. A quantitative cross-sectional design was employed using data from 70 business operators selected through purposive sampling in Pamekasan and Sumenep Regencies, analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that Financial Capability positively affects both Financial Resilience and Business Sustainability, and that Financial Resilience significantly mediates the relationship between them (β = 0.233; p = 0.038), indicating complementary partial mediation and demonstrating that Financial Capability strengthens Business Sustainability both directly and by enhancing enterprises’ capacity to withstand and recover from financial pressures. This study contributes to the literature by positioning Financial Resilience as a mechanism linking Financial Capability to multidimensional Business Sustainability in the relatively underexplored context of fishery product processing enterprises in coastal Madura.
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