The Role of Financial Information Quality on MSMEs' Performance in using E-Commerce Platforms: The Mediating Role of User Satisfaction

The rapid expansion of online commerce has transformed business operations, especially for Micro, Small, and Medium Enterprises (MSMEs). Platforms like Shopee and Lazada serve not just as digital marketplaces but as drivers of growth and empowerment for Filipino MSMEs. Despite the benefits offered by e-commerce platforms and their functionalities, the accuracy and reliability of their financial data remain a significant concern for MSMEs. Thus, this study investigates how these variables impact the performance of MSMEs in the Philippines. Employing a descriptive-causal approach, researchers conducted a quantitative analysis to determine the MSMEs' satisfaction with financial data provided by selected e-commerce sites and its subsequent influence on business performance. Partial Least Squares-structural equation modeling (PLS-SEM) was used to examine the relationships between these variables. Researchers used non-probability purposive sampling, gathering responses from 70 participants through self-administered questionnaires distributed throughout online groups to gather collective data for this study. The results of the study indicate that all the relationships between the independent and dependent variables are all statistically significant. Furthermore, the study highlights user satisfaction as a mediator between financial data quality and net benefits. These findings underscore the critical role of financial data quality and user satisfaction in shaping the performance of MSMEs on platforms like Shopee and Lazada.