The Effect of Cash Flow Management Capability, Digital Payment Adoption, and Financial Resilience on Business Growth among Retail MSMEs in Bandung City

Vollständiger Abstract

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Micro, small, and medium enterprises (MSMEs) in the retail sector face increasing challenges in achieving sustainable growth due to financial management limitations, rapid digital transformation, and market uncertainty. This study aims to examine the effect of cash flow management capability, digital payment adoption, and financial resilience on business growth among retail MSMEs in Bandung City. A quantitative research approach was employed using a survey method involving 125 retail MSME owners and managers. Data were collected through a structured questionnaire measured using a five-point Likert scale and analyzed using Statistical Package for the Social Sciences (SPSS) version 25. The data analysis involved validity testing, reliability testing, classical assumption testing, multiple linear regression analysis, t-test, F-test, and coefficient of determination analysis. The results indicate that cash flow management capability, digital payment adoption, and financial resilience have positive and significant effects on business growth. Among these factors, financial resilience demonstrates the strongest contribution, indicating that the ability of MSMEs to adapt and maintain financial stability plays an important role in supporting business development. The findings highlight that strengthening internal financial capabilities and accelerating digital payment adoption are essential strategies for improving MSME competitiveness and sustainability. This study contributes to the MSME management literature by providing empirical evidence regarding the importance of integrated financial capability, digital transformation, and resilience in promoting business growth within urban retail MSMEs.