Integrating digital financial solutions into MSME business models: An assessment of MSME readiness for digital financial integration
Donald L. Montenegro
North Eastern Mindanao State University
DOI: https://doi.org/10.59429/vm.v3i1.15577
Keywords: digital financial solutions; MSME readiness; digital financial integration; operational efficiency; financial resilience
Abstract
The strategic integration of digital financial solutions is increasingly critical to the sustainability and competitiveness of Micro, Small, and Medium Enterprises (MSMEs), particularly in developing economies. This study assesses MSME readiness for digital financial integration across four dimensions— Digital capability, financial literacy, infrastructure, and organizational adaptability—And examines how readiness influences integration quality and business outcomes. Employing a mixed-methods design with a quantitative emphasis, survey data were collected from 189 MSMEs in Surigao del Sur, Philippines. Descriptive statistics, correlation analysis, and multiple regression were used to analyze relationships among readiness, integration depth, and outcomes. Results indicate a strong positive association between readiness and the extent of digital financial integration. MSMEs with higher readiness demonstrate significantly better business model improvements, operational efficiency, and financial resilience, while partial or fragmented integration yields only moderate gains. Findings underscore the importance of shifting from adoption metrics to integration quality and readiness diagnostics. Policy and managerial implications emphasize targeted capacity-building and infrastructure support to embed digital finance within core business processes and sustain MSME competitiveness.
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