The Influence of Accountability, Transparency, and Human Resource Competence on the Financial Performance of MSMEs in the Digital Economy Era in Sumenep Regency

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are a strategic sector in strengthening the regional economy, including in Sumenep Regency. However, challenges in financial management that are not fully accountable and transparent remain an obstacle in improving financial performance. This study aims to analyze the influence of accountability, transparency, and human resource (HR) competence on the financial performance of MSMEs in the digital economy era. The research method used is a quantitative approach with Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis using SmartPLS software. Data were obtained from 80 respondents of MSMEs in Sumenep Regency who were selected purposively. The results show that financial accountability, transparency of financial reports, and HR competence have a positive and significant effect on MSME financial performance, with an R² value of 0.716. HR competence is the variable with the most dominant influence. This study emphasizes the importance of financial governance based on accountability and transparency, as well as improving HR competence to strengthen the competitiveness of MSMEs in the digital era.

Keywords: Accountability, Transparency, Human Resources Competence, Financial Performance, MSMEs