Financial literacy and environmental dynamism: The moderating role of digital financial capability on the performance of women-owned SMEs in Calapan City, Oriental Mindoro, Philippines

This study investigated the factors affecting the business performance of women-owned Small and Medium Enterprises (SMEs) in Calapan City, specifically examining the roles of financial literacy, dynamic business environment, financial capability, and digital financial capability. Utilizing a quantitative descriptive-correlational research design, data were gathered from 75 women-owned SMEs through a self-structured survey questionnaire. Data analysis was conducted using PROCESS Model 1 to determine both the direct and moderating effects of the variables. The results revealed that financial literacy and the dynamic business environment do not have statistically significant direct effects on SME performance, suggesting that neither financial knowledge alone nor environmental shifts guarantees improved business outcomes. Furthermore, financial capability was found to have no significant moderating effect on the relationship between financial literacy and performance. However, Digital Financial Capability emerged as a significant moderator of the relationship between a Dynamic Business Environment and SME Performance (p < .05). This indicates that women entrepreneurs who effectively leverage digital financial tools are better equipped to respond to market volatility, technological advancements, and competitive pressures. These findings highlight the critical role of digital proficiency in enhancing the resilience and sustainability of women-led enterprises. Consequently, the study proposes the "Womentum Program for Women of Calapan," a digital financial literacy training framework designed to empower women entrepreneurs with the practical digital competencies necessary to thrive in a dynamic economy.