Issue

Vol. 12 No. 1 (2025): June

Date Log

Submitted
29 April 2025
Accepted
4 June 2025
Published
30 June 2025

Copyright (c) 2025 Siti Nuraini, Muhammad Ali Fikri, Ferdy, Tina Sulistiyani, Poppy Laksita Rini (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

CEO’s Financial Literacy and Technological Innovation: The Role of Risk Taking and Management Control Systems

https://doi.org/10.24252/minds.v12i1.56436
Siti Nuraini
Universitas Ahmad Dahlan, Indonesia
Muhammad Ali Fikri
Universitas Ahmad Dahlan, Indonesia
Ferdy Ferdy
Universitas Ahmad Dahlan, Indonesia
Tina Sulistiyani
Universitas Ahmad Dahlan, Indonesia
Poppy Laksita Rini
Universitas Ahmad Dahlan, Indonesia

Corresponding Author(s) : Siti Nuraini

[email protected]

Jurnal Minds: Manajemen Ide dan Inspirasi, Vol. 12 No. 1 (2025): June

Abstract

This study investigates how CEO financial literacy influences technological innovation in Indonesian MSMEs, with risk-taking and management control systems (MCS) as sequential mediators. The key contribution lies in advancing a dual-path mediation model that links individual financial competence to organizational innovation in emerging market contexts. Using PLS-SEM on data from 113 MSME CEOs across Java, findings reveal that CEO financial literacy directly promotes innovation, while risk-taking alone does not mediate this effect. However, MCS significantly mediates the relationship, and both variables jointly form a significant sequential path. These results highlight the importance of CEO financial literacy not only as a strategic resource but as a driver of internal capability development. For managers and policymakers, the findings emphasize that financial literacy must be paired with robust internal control systems to accelerate innovation and long-term competitiveness in MSMEs.

Keywords

CEO Financial Literacy Technological Innovation Risk-Taking Management Control System
Nuraini, S., Fikri, M. A., Ferdy, F., Sulistiyani, T., & Rini, P. L. (2025). CEO’s Financial Literacy and Technological Innovation: The Role of Risk Taking and Management Control Systems. Jurnal Minds: Manajemen Ide Dan Inspirasi, 12(1), 355–374. https://doi.org/10.24252/minds.v12i1.56436
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Author Biographies

Siti Nuraini, Universitas Ahmad Dahlan

Management Department

Muhammad Ali Fikri, Universitas Ahmad Dahlan

Management Department

Ferdy Ferdy, Universitas Ahmad Dahlan

Management Department

Tina Sulistiyani, Universitas Ahmad Dahlan

Management Department

Poppy Laksita Rini, Universitas Ahmad Dahlan

Management Department

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