Circular Fashion Digitalization:
Financial Literacy and Cash Flow Optimization in Bugis Clothing Rental Services in Watampone
DOI: https://doi.org/10.70184/p7080z73
digital financial literacy;, circular fashion;, digitalization;, cash flow optimization;, Bugis traditional clothing.
Abstract
Purpose: This study examines the effects of digital financial literacy on cash flow optimization and circular fashion digitalization. It also investigates the mediating role of circular fashion digitalization among Bugis traditional clothing MSMEs in Watampone, Indonesia.
Research Method: A quantitative survey was conducted involving 85 MSME operators selected through purposive sampling. Data were collected using a five-point Likert-scale questionnaire and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4.0.
Results and Discussion: Digital financial literacy significantly improved cash flow optimization (β = 0.475; p < 0.001) and circular fashion digitalization (β = 0.355; p = 0.001). However, circular fashion digitalization did not significantly affect cash flow optimization (β = 0.115; p = 0.431) or mediate the relationship between digital financial literacy and cash flow optimization (β = 0.041; p = 0.490). Field observations further revealed that none of the surveyed MSMEs had implemented digital financial record-keeping.
Implications: Digital financial literacy training and digital bookkeeping assistance should precede the implementation of advanced circular fashion systems. Local governments should provide gradual assistance and adequate digital infrastructure.
Originality: This study integrates digital financial literacy, circular fashion digitalization, and cash flow optimization within the under-researched context of Bugis traditional clothing MSMEs.
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