DIGITAL TRANSFORMATION AND SUSTAINABILITY: IS PEER-TO-PEER LENDING A SOLUTION?

Yen Efawati; Rinawati Rinawati

doi:10.37641/riset.v8i1.2754

Authors

Yen Efawati Adhirajasa Reswara Sanjaya University https://orcid.org/0000-0002-1229-0848
Rinawati Rinawati Adhirajasa Reswara Sanjaya University

DOI:

https://doi.org/10.37641/riset.v8i1.2754

Keywords:

Digital Transformation, Peer-to-Peer Lending, Financial Literacy, Business Sustainability, Micro and Small Businesses

Abstract

In emerging economies, understanding the interplay between digital transformation, peer-to-peer lending (P2P), and financial capability in shaping the sustainability of micro and small enterprises (MSEs) remains limited. This study examines how digital transformation influences business sustainability through a moderated-mediation model, with P2P lending as the mediator and financial literacy as the moderator. Drawing on the Resource-Based View (RBV) and the knowledge-based view, digital transformation is seen as a strategic intangible capability that enables firms to adapt and innovate. Using a quantitative approach, data were collected from 385 MSE owners in the greater Bandung area and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM). Results show that digital transformation significantly enhances both P2P lending adoption and business sustainability. However, P2P lending, both directly and indirectly, does not contribute to sustainability unless supported by high financial literacy. In addition, financial literacy strengthens the indirect effect of digital transformation through P2P lending. Theoretically, this study integrates RBV and fintech perspectives within a moderated mediation framework. In practice, it highlights the need for MSEs to align digital adoption with financial capability development to ensure that fintech lending effectively contributes to long-term sustainability.

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Author Biography

Yen Efawati, Adhirajasa Reswara Sanjaya University

She is a lecturer in the Department of Magister Management at Adhirajasa Reswara Sanjaya University, Bandung, West Java, Indonesia. She holds a doctorate in Management from Universitas Pendidikan Indonesia. In addition, she joined the Asosiasi Ahli Administrasi Indonesia as editor of the International Journal of Administration, Business & Organization (IJABO) and the author of scientific books and articles.

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