THE IMPROVEMENT OF MSMEs' BUSINESS PERFORMANCE DURING THE COVID-19 PANDEMIC THROUGH FINANCIAL AND DIGITAL LITERACY

The pandemic has impacted the global economy, including MSMEs, especially in financial issues such as minimal revenue flow and inadequate financial management. On the marketing side, there has been a decrease in demand due to the implementation of social restrictions, which will affect the company’s existence. Therefore, MSMEs need to adapt by transforming to online marketing. Improved financial and digital literacy can enhance MSME performance. This study aims to determine the moderating effect of financial literacy and digital literacy among MSMEs in improving their business performance. A Quantitative research method with Partial Least Square (PLS) was used to analyze the data. The results show that financial management and digital marketing have a direct effect on MSMEs’ performance. Furthermore, financial literacy can moderate and improve the performance of MSMEs, whereas digital literacy cannot effectively moderate the implementation of digital marketing to improve MSMEs’ performance. This study implies that MSMEs must improve their financial behavior and decision-making during crises and enhance their knowledge and skills in managing digital marketing. JEL : L250, M310, G41.


INTRODUCTION
The economic sector is one of the sectors significantly affected by the Covid-19 pandemic.The Covid-19 pandemic, announced for the first time by the Indonesian government on March 2, 2020, caused various social problems.Policymakers and business actors have attempted to survive the pandemic to improve the economy.The International Monetary Fund, World Bank, and World Economic Forum estimate that the impact of the Covid-19 pandemic on the global economy will lead to contraction and decreased growth, ranging from -4.8% to -13.3% (Junaedi & Salistia, 2020).In the ICT Conference and Business Outlook 2022, several challenges faced by business entities in the pandemic era were mentioned, including (1) low economic growth and the need for improvement in the financial sector and (2) changes in consumer behavior regarding transactions and investments and increasing demand for digital direction (Putra, 2021).
As the largest economic sector in Indonesia, Micro, Small, and Medium Enterprises (MSMEs) have recorded negative impacts of the Covid-19 pandemic.A total of 2,600 MSMEs, or 87.5% of the total MSMEs in Indonesia, experienced a significant decline in sales during the pandemic (Athia, Rahayu, & Anwar, 2021).The decline in sales during this pandemic has The Improvement of MSMEs' Business Performance during the  implications for pressure on revenue, profit, and cash flow disruptions run by business actors.Therefore, improving the financial sector and digital marketing is allegedly a problem that requires immediate attention.
The business outlook description for 2022 above confirms research findings on MSMEs affected by Covid-19 who are experiencing financial problems due to declining market demand and financial problems faced by business owners.Financial problems can arise because of additional costs, lack of income generated during the pandemic, and improper financial management and debt (Athia et al., 2021).Remund (2010) suggested that financial decisions, especially in difficult times, should be wiser to increase the benefits obtained.Thus, sound financial management will affect businesses' future resilience and sustainability.
Individuals' financial decisions depend on their level of financial knowledge.Nobriyani & Haryono (2019) stated, "The better the financial knowledge, the better the financial management behavior."Ida & Dwinta (2010) stated that the knowledge factor affects financial management behavior.Poor business performance can result from improper financial management.MSMEs that manage and communicate their finances transparently and accurately have a positive impact on the development of their businesses (Ediraras, 2011).However, many MSMEs business actors still do not consider it necessary to apply the correct financial and accounting management rules in their business (Risnaningsih, 2017).The strong relationship between high financial literacy and sound financial management behavior was also demonstrated by Lo Prete (2021).Financial literacy will help business actors in budget planning, business fund savings planning, and basic knowledge of finance to achieve business financial goals.Consistently, findings suggest that financial and digital literacy are critical factors in building long-term financial inclusivity and resilience (Kass-Hanna, Lyons, & Liu, 2022).Although research has shown that financial knowledge, financial awareness, and the financial attitudes of business owners have an impact on financial performance (Eniola & Entebang, 2017), financial knowledge and awareness of business owners are not prerequisites for MSME performance.This was also found in the study by Eresia-Eke & Raath (2013), who did not find a statistically significant relationship between financial literacy and the business growth of MSMEs.
Covid-19 has changed people's behavior.Amankwah-Amoah, Khan, Wood, & Knight (2021) argued that Covid-19 is an excellent accelerator of existing global trends, which drives the adoption of digital technology and produces transformations in lifestyle, work patterns, and business strategies.The minimal situation and conditions during the pandemic encourage people to look for breakthroughs so that their life needs can still be met.This provides opportunities for business actors to take advantage of digital technology so that they can increase benefits in products and services, communicate with consumers, and facilitate distribution and transactions (Amankwah-Amoah et al., 2021;Baldassarre, Calabretta, Bocken, & Jaskiewicz, 2017;Casadesus-Masanell & Zhu, 2013).Digital transformation in people's lives has grown since the pandemic.In addition, the effectiveness and efficiency of its application are the main reasons why the digital economy has proliferated in the current era.
Arianto (2020) explained that most MSMEs owners have not been able to adopt digitalization in their businesses.This has an impact on decreasing sales and business existence.The main factor hindering the adoption of technology digitization and causing an impact that disrupts the growth and development of SMEs is the low literacy level in using technology.Sariwulan, Suparno, Disman, Ahman, & Suwatno (2020) concluded the importance of digital literacy that MSMEs actors must have in expanding their marketing networks and business development.Based on this research, the findings are that digital literacy has a substantial direct and indirect contribution to improving the performance of MSMEs.
This study explores how financial management and improvements in digital marketing can be optimized by MSME actors.The application of financial literacy and digital literacy is involved as a driving variable, which differentiates this study from other studies.Therefore, this study proposes increasing financial and digital literacy in implementing financial management and digital marketing by MSME actors.Practically, this study contributes to determining the extent to which MSME business owners carry out financial and digital marketing applications.This study refers to the concept and theory of business growth dynamics from Wickham (1998) and entrepreneurial skills developed by Davis & McClelland (1962).

MSME Business Performance
The significant challenges and opportunities for MSMEs during this pandemic show the need for efforts to improve the financial sector and superior digital direction.Measuring business performance is necessary to assess the extent to which entrepreneurs can achieve their business goals (Sebikari, 2019) and plan improvements in business operations (Sardana, 2008).In the traditional approach, financial size is used as the first measurement tool, which states that a company's goal is to generate profits and provide attractive returns for investors (Sardana, 2008).
The performance of the financial aspect is observed from the perspective of measuring financial ratios, including profitability, liquidity, activity, solvency, and other ratios.Meanwhile, non-financial aspects are measured by the market perspective, product value, and growth (Mulyadi, 2001).Tarutė & Gatautis (2014) identified the company's performance from two aspects, namely financial performance and strategic performance.From the opinion above, it can be seen that the dimensions often used in measuring company performance are market value growth, profitability, social performance, environmental performance, employee satisfaction, and customer satisfaction.
However, some opinions criticize performance measurement, focusing only on financial measurement and ignoring other aspects of company performance.Zulkiffli & Perera (2012) launched the opinion by Feng, et al. (2008), adding the measurement of the business performance domain by looking at the financial aspect and expanding it by looking at aspects of sales growth and market share expansion.The measurement of company performance is needed to determine the company's strengths and weaknesses and measure business growth and development.Therefore, measuring business performance that integrates the financial and non-financial aspects is necessary.Zulkiffli & Perera (2012) provided an overview of the tendency of most MSME owners to prefer and be willing to provide subjective performance data to maintain their confidentiality.The dimensions of MSME performance measures by looking at the ability of an entrepreneur to take advantage of existing business opportunities to increase his business.(Mulyadi, 2001;Tarutė & Gatautis, 2014;Feng et al., 2008in Zulkiffli & Perera, 2012)

MSME Financial Management
Financial management is one of the keys to the success of business continuity.Fundamentally, managing business finances includes activities to earn income, allocate expenses, and develop finances for business continuity.The Financial Services Authority in Septiana & Novitasari (2021) defined financial management as managing the money earned during the productive period to fulfill today's needs and wants.Meanwhile, we must prepare for future needs and wants.Theoretically, financial management is related to managing sources of funds, using finance in business, production decisions, marketing, personnel, financial implications for investment decisions, and total company performance (Abanis, 2013).
Good financial management must be considered carefully and wisely, especially during crises.The COVID-19 pandemic has caused financial pressure to dominate business actors.To improve business performance during the pandemic, owners must carry out the processes and stages of financial management so that their businesses can survive and thrive in difficult times.The stages of business financial management include planning (financial forecasting), implementation (planning and budgeting), and financial control (Mulyawan, 2015) in Rumbianingrum & Wijayangka (2018).

MSME Digital Marketing
All business actors must conduct marketing activities to convey their products and services to potential customers.With marketing activities, the benefits of a product are conveyed to targeted customers.Business actors can also take advantage of customers' needs.Effective marketing involves more than just selling as many products as possible.The marketing concept in today's era is more customer-focused than the previous one.Therefore, business actors need to direct their marketing activities to understand the needs and wants of potential customers, how they can be satisfied, how to deliver products that are better than their competitors, and how to create further customer needs (Lindawati, Hendri, & Hutahaean, 2020).
Online digital media facilities are often used in market development activities and for delivering consumer messages.According to Yaseen, Al-Adwan, & Al-Madadha (2019), companies vary in their adoption of digital marketing media depending on their size, goals, and business model.Digital marketing and social media provide opportunities for MSMEs to communicate directly between companies and their consumers online.Digital marketing activities that business actors can utilize include communicating products and company existence, expanding market share, attracting new customers, retaining customers, building customer relationships, improving delivery quality, reducing marketing costs, and making transactions or direct payments (Sudirman, 2020;Tolstoy, Nordman, & Vu, 2022;Yaseen et al., 2019) The industrial revolution 4.0 and covid-19 have accelerated technological adaptation in all aspects of life.The behavior of people who interact more and have activities in the virtual world is used by business actors to introduce and disseminate their products through online marketing.Some reasons for the convenience that cause business actors to switch to technology include reduced operating costs, reduced purchasing costs, expanded market share, and improved relationships with partners and customers (Hasan, Dzakiyyah, Kumalasari, Safira, & Aini, 2021;Wardhana, 2015).Online marketing ability is considered an essential characteristic that business actors must develop as an adaptive effort.Online marketing refers to a company's capacity to use Internet resources in implementing and enhancing online marketing activities (Tolstoy et al., 2022).
The impact of Internet usage, which has continued to proliferate, is significant in Indonesia.Therefore, this has implications for the use of digital marketing by many business actors.Hasan et al. (2021) mentioned several digital marketing models that are commonly used by businesses, including digital marketing through websites and social media through Facebook, Instagram, Youtube, Twitter, WhatsApp, and TikTok.Perumal, Krisnan, & Halim (2017) use social interaction and electronic markets (e-commerce), whereas Humaira, Syamsudin, & Isa (2020) and Putri & Sumitra (2020) add digital wallet applications as a pull factor in digital marketing as well as to facilitate transactions.
In marketing strategies, information technology aims to improve business performance through the speed, accuracy, and efficiency of exchanging large amounts of information.Wardhana (2015) stated that MSMEs with active online access to social media and who can enter e-commerce would enjoy significant business benefits in terms of increased sales and revenue, ease of access to suppliers and customers, and marketing costs.

Financial Literacy
Increasing financial literacy is believed to enable the development of MSMEs.With an understanding of financial literacy, MSME actors better understand the concept of financial products, carry out better financial planning and management, and can choose financial inclusion for business development (Chaidir, Suprapti, Arini, & Ismiwati, 2020).OECD/INFE (2016) defined financial literacy as a combination of skills related to understanding or knowledge, attitudes, and behaviors to make financial decisions in a better direction.Based on the above definition, financial literacy is measured by three components or indicators: 1).financial knowledge: basic knowledge of finance, financial management, credit and debt, savings and investment, and timely payment of obligations; 2).financial behavior: budgeting behavior, controlling money, investing; 3).financial attitude: attitude towards money and future planning.Financial literacy relates to financial management because a person's high knowledge, experience, and attitude will also make good financial management (Putri, 2020).

Digital Literacy
According to MediaSmarts (2018), digital literacy or e-literacy is a "multi-literacy" concept that refers to the ability to access, analyze, evaluate, and produce media.Digital literacy competencies can be classified according to three main principles: using, understanding, and creating.Using digital media represents the technical fluency needed to interact with computers and the Internet at the primary level (such as accessing a browser, web, email, and other digital media) and high-level skills (such as using online databases and cloud computing).Understanding is the ability to contextualize digital media critically so that it can determine the benefits and make the right decisions regarding the use of digital media.At the same time, creating is the ability to produce content and communicate effectively through digital media to interact with the intended audience using images, sound, video, and other digital formats.Digital literacy is temporary, with changes in time, behavior, facilities, and infrastructure (Belshaw, 2011).The world of media, technology, and information is so evolving that the digital skills required will vary from person to person, depending on their needs and circumstances.

RESEARCH METHODS
This research was developed with a quantitative approach that was carried out by forming a framework of thought first by looking at the theory and the results of previous research and then defining each variable appointed to obtain its measurement indicators.Subsequently, a series of tests were conducted to determine the relationship and nature.MSME owners who already had financial bookkeeping reports and used digital marketing in their businesses were purposively selected as research objects and units of analysis.The research area was limited to the cities of Batu and Malang due to time and cost constraints.
Sampling referred to the Lemeshow approach, which determines an unknown or infinite population.The sample size was calculated using the following formula (n = (Z1-α/2P(1-P))⁄d2) (Ogston, 1991) and was determined based on the above formula for 100 respondents.This research instrument was based on two independent variables: financial management and digital marketing.Each variable consisted of 9 and 10 questions, respectively; one dependent variable was the performance of MSMEs, with nine question items, and two moderating variables, namely financial literacy and digital literacy, each consisting of 11 and 10 questions, respectively.
The analysis technique used Partial Least Square (PLS), which, according to Wold (1985), is a method that does not require many assumptions to relate a set of independent variables to many dependent variables.In particular, PLS assumptions relate only to structural modeling and are not related to hypothesis testing.The suitability of the internal model was demonstrated by testing the R2 value generated by the model to measure the magnitudes of the observed and estimated parameters.A high Q2 value indicates a relevant predictive value.Conversely, a low Q2 value indicates that the model lacks relevant predictions (Sarstedt, Ringle, & Hair, 2017).

Characteristic of Respondents
The population of this study was MSMEs located in and around the cities of Batu and Malang.The study focused on productive MSMEs owned by individuals or business entities managed independently or in associations that employed employees.The business scale was measured by the number of workers MSMEs own.Micro-scale businesses are businesses that are run by individuals or have employees of less than ten people.Furthermore, small businesses are businesses run by individuals or business entities that employ 10 to 30 employees.Meanwhile, medium-scale businesses are businesses run by individuals or business entities with more than 30 to 300 employees (Kementerian Koperasi dan Usaha Kecil dan Menengah, 2015) Table 6 presents the classification of respondents based on gender, age, education level, duration of the business run, business scale, parties that carry out financial management, and parties that manage digital media.The respondents were dominated by female business owners (53%), and the rest were male (47%), with the most extensive age range being 36-50 years (47%).Most respondents had higher education at the undergraduate level (54%), with the majority of business experience being under five years (46%) and a micro-sized business (58%).For financial management, most respondents entrusted their business's financial affairs to be managed by themselves (62%), whereas, for digital media management, they left it to their staff (39%).

PLS Analysis with Moderating Variables
Before analyzing the data, the indicators used in the study must first be tested through the outer model by examining the results of composite reliability, Average Variance Extracted, and discriminant validity.This test aims to analyze the composite reliability and Average Variance Extracted-AVE.Discriminant validity tests how well the latent construct differs from the other constructs.A phenomenon is considered measurable if it has high discriminant validity.A construct is considered valid if the AVE root value is compared with the correlation value between latent variables.The AVE root must be greater than the correlation between the latent variables.
The measurement results of the outer model analysis are presented in Tables 7 and 8, respectively.Based on Table 7, all constructs had outer loading values > 0.70, all composite reliability values > 0.70, and AVE reliability values > 0.50.Thus, the indicators used in this study were found to be valid, reliable, and variable.The validity of the indicators comprising the latent variable can be measured using discriminant validity.The criterion for excellent discriminant validity output is Heterotrait Monotrait Ratio (HTMT) <0.90.Therefore, the discriminant validity was considered good.Table 8 shows that the output value is <0.90.Thus, all the indicators were valid.The path analysis coefficient image above can be described in detail the direct effect of each independent variable construct on the dependent variable.The output results in Table 9 show that all variables have a positive relationship.Based on the p-value, financial management, digital marketing, and financial literacy have a significant effect on MSME business performance (p-value <0.05).Meanwhile, digital literacy has no statistically significant effect (p-value>0.05) on the business performance of MSMEs.Therefore, for moderating effect (1), it is concluded that financial literacy can positively moderate the influence of financial management on MSME business performance.Meanwhile, the moderating effect (2), namely, digital literacy, has not been able to statistically moderate the influence of digital marketing on MSME business performance.
The other test output on the model is performed by looking at the R-square value, which is the better-fit test of the model and aims to predict the strength of the model.R2 values of 0.75, 0.50, and 0.25 indicate that the model is robust, moderate, and weak (Sarstedt, et.al., 2017).Criteria for R2 values of 0.67, 0.33, and 0.19 as strong, moderate, and weak.The obtained result of the adjusted R2 value was 0.759, indicating that all independent variables simultaneously had a 75.9% impact on the dependent variable.Therefore, this research model's goodness of fit value can be interpreted as quite strong.
After measuring the significance of the relationship between variables, the magnitude of the influence between variables with the effect size or f-square must also be considered (Wong, 2013).If the F 2 value is 0.02, it is considered to have a very small or negligible effect (Sarstedt et al., 2017).A value of 0.15 is considered to have a moderate effect, while a value of 0.35 is considered to have a significant effect.

The Effect of Financial Management and Digital Marketing on MSME Performance
Several empirical studies confirm that the performance of MSMEs targeted by business actors includes two types of performance, namely financial performance and strategic (operational) performance.Financial management and digital marketing are believed to improve MSMEs' performance and business continuity (Tarutė & Gatautis, 2014).
The respondents' answers regarding financial management indicated that most business owners have recorded, reported, and utilized finances for their businesses.However, this situation The Improvement of MSMEs' Business Performance during the  is not optimized with financial planning and development (investment) for long-term business predictions.It was proven in previous research that the ongoing Covid-19 pandemic made the financial situation of MSMEs vulnerable because their long-term financial capacity did not support their business continuity (Athia et al., 2021).It shows that MSMEs actors need to be aware of the importance of providing funding sources and long-term financial forecasting.
Money is the most crucial resource in business management, especially in critical situations; cash is king.Unfortunately, many business actors cannot plan investments to face the risks of a crisis.Income during the pandemic is disrupted and significantly reduced.While the need for business and necessities of life will remain even do not receive income.
Digital marketing helps overcome disruptions in financial flows during a pandemic and helps business people increase sales effectively and efficiently (Athia et al., 2021;Octavina & Rita, 2021;Wardhana, 2015).The benefits of digital marketing that business owners perceive are expanding market share, saving costs, and obtaining customer reviews and feedback immediately (Yaseen et al., 2019b).Covid-19 has become a significant accelerator in the global trend toward modern technology.Thus, digitalization can be an effective strategy to weather the storm and help companies emerge from the crisis in more resilient conditions (Amankwah-Amoah et al., 2021).

The Effect of Financial Literacy and Digital Literacy on MSME Performance
This study shows that financial and digital literacy play a role in business actors' business management.Interestingly, financial literacy seems to be more influential than digital literacy in improving MSMEs' business performance.
The situation that occurred in the era of the COVID-19 pandemic forced business actors to be able to manage and make maximum use of finances.With their financial literacy, business actors can effectively manage their finances and make wise policies so that their businesses can continue to operate (Rumbianingrum & Wijayangka, 2018).Moreover, financial literacy is important for encouraging behaviors that build financial resilience, such as using money, choosing financial inclusion, and considering debt and risk management (Kass-Hanna et al., 2021).
Although digital marketing is recognized as successful in improving the performance of MSMEs, as explained above, in this study, digital literacy did not have a significant influence on the improvement of SMEs' business performance.It is suspected that this is due to them not independently managing digital marketing in their MSMEs.Most MSMEs owners delegate digital marketing to staff, relatives or family, and third parties (Table 6).Respondents reported that their businesses grew due to implementing specific digital marketing practices.This also occurs in research conducted by Eresia-Eke & Raath (2013), which demonstrated that the literacy level of MSME owners does not have an impact on their business growth.

The Role of Financial Literacy in Moderating the Effect of Financial Management on MSME Performance
This study shows that financial literacy can moderate the improvement of business actors' financial management in improving MSME business performance.The effect of moderation is seen in the indicators of the financial attitude of MSME actors who play a role in encouraging MSME financial management behavior.Many MSME actors still lack solid motivation to improve their financial capabilities (Humaira & Sagoro, 2018).They feel their business performance is quite good because they can continue operating without budget planning and financial control.If this perspective persists, MSMEs will not be able to compete in the market due to declining financial performance.
When they understand financial literacy well, business actors know that managing money includes making, using, and developing money.Therefore, financial literacy is used as a guide in carrying out the three financial activities well.With a good understanding, business actors can interpret that financial management is not enough to record and report but also needs to be understood using money based on a priority scale by measuring its benefits.It is necessary to carry out financial development as a preventive effort to face crisis conditions (Indrayani, 2020).
The better the financial literacy obtained by business actors, it is believed that they can improve their financial behavior.Financial literacy plays a vital role so that finances are on track.Under challenging conditions, business actors are ready with financial backups so they do not find problems related to their finances.In addition, business actors can also appropriately determine the source of funds and the time and know the plans and targets to be achieved in the future (Kass-Hanna et al., 2021).Thus, financial literacy is applied to ensure that every decision will impact current and future financial performance.

The Role of Digital Literacy in Moderating the Effect of Digital Marketing on MSME Performance
Many studies argue that digital literacy is essential in adopting new technology, information, and communication (ICT).Knowledge of digital technology can increase ICT use and strengthen ICT adoption behavior (Techataweewan & Prasertsin, 2018;Trinugroho, Pamungkas, Wiwoho, Damayanti, & Pramono, 2022).In contrast to the research results above, this study shows that digital literacy does not have a moderating effect on the implementation of digital marketing.
The basic level of digital literacy, namely accessing, creating, and using digital media, has been believed to improve digital marketing.Moreover, a higher level of digital literacy provides higher application capabilities.However, as revealed by Belshaw (2011), the world of information technology is growing so rapidly that a person's digital literacy skills must be improved continuously.
Due to old age barriers, limited infrastructure, and lack of digital understanding, MSMEs actors who cannot improve their digital literacy can ask for help or take advantage of outside sources.The success rate of digital marketing is due to the habit of using technology (media experience).Yu, Lin, & Liao (2017) illustrated that although digital literacy is good if it is rarely used, it can make business actors incapable of adopting information technology.The inability of digital literacy to improve MSME performance can be highlighted in MSME digital marketing management behavior.Many MSME players only optimize their digital marketing initiatives, but this is not developed or further updated in the long term.It causes digital literacy to be less effective in improving the performance of MSMEs.
In another case, Yu et al. (2017) highlighted the increasing adoption behavior of information technology due to the role of social behavior in its users.People will easily understand new technology when they get socialization encouragement from others, get feedback, and have discussions with one another.In cases like this, more than digital literacy is needed to determine the success of digital marketing management.

CONCLUSION, SUGGESTION, AND LIMITATION
This study shows that proper financial management and digital marketing have proven to improve MSMEs' business performance, which decreased during the COVID-19 pandemic.Therefore, financial literacy is needed to determine the behavior and attitudes of MSME actors in managing their finances in times of crisis.However, digital literacy cannot improve digital marketing management to improve MSMEs' performance.
MSME actors must conduct short to long-term financial planning to improve their business performance.They must be able to prioritize the use of money by measuring its benefits and must invest as a preventive measure to deal with crisis conditions.In addition, business actors need good financial literacy to improve their behavior and attitudes in making financial policies challenging.
Another result confirms that applying digital marketing can help MSMEs increase financial flows that have decreased during the Covid-19 period.With the implementation of digital marketing, MSME actors interact more closely with customers and their stakeholders without being limited by distance or time.However, the digital literacy in this study did not contribute to improving the implementation of digital marketing.This is due to digital marketing management, which is mostly transferred to other parties, and media experience and digital marketing implementation, which are not regularly improved.Therefore, digital literacy cannot be the main factor in determining the success of digital marketing implementation.
The results of the study have implications that financial literacy and digital literacy need to be considered by MSME owners in improving their business performance.The lesson is that MSMEs owners can prepare for crises with good financial literacy.Additionally, good financial literacy helps reduce the effects and consequences of financial mismanagement.In contrast, digital literacy needs to be improved and developed periodically, following the social developments that occur in society.Weaknesses in the skills and knowledge possessed by business actors can be overcome by employing people with competence in that field.
The limitation of this research is the limited number of respondents in the local area, which may restrict the generalization of the findings to other areas with different respondent characteristics.Furthermore, the data in this study were only collected at one point in time, resulting in a lack of depth in the study.Future research can develop qualitative research methods or conduct a longitudinal study.

Figure 1
Figure 1.Research FrameworkFigure1represents a visualization of the frame of mind in researching the influence of financial management, digital marketing, financial literacy, and digital literacy on MSME business performance.H1: Financial management has a positive and significant impact on MSMEs' business performance.H2: Digital marketing has a positive and significant impact on MSMEs' business performance.H3: Financial literacy has a positive and significant impact on MSMEs' business performance.H4: Digital literacy has a positive and significant impact on MSMEs' business performance.H5: Financial literacy moderates the effect of financial management on MSMEs' business performance.H6: Digital literacy moderates the effect of digital marketing on MSMEs' business performance.

Financial
test concluded that all items or indicators met the validity and reliability requirements, and there was no multicollinearity between the indicators.The next stage involved analyzing the inner model to examine the significance and strength of the relationship to the proposed hypotheses.

Figure 2 .
Figure 2. Interpretation of the Inner Model (p-value of loading factor and path coefficient)

Table 3 . Operational Definition of MSME Digital Marketing Variables
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Table 7 . Composite Reliability and AVE result
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Table 10 . Result F-Square (F 2 ) F-Square
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