The Impact of Digital Transformation on Financial Security Perceptions and Fraud Resilience in SMEs: A Structural Equation Modeling Approach

Authors

  • Krishna Ashutoshbhai Vyas School of Management, R K University, Rajkot, Gujarat, India.
  • Tulsi Raval Department of Commerce, Smt. KSN Kansagara Mahila College, Rajkot, Gujarat, India.

DOI:

https://doi.org/10.55220/2304-6953.v14i2.760

Keywords:

Cybersecurity, Digital transformation, Emerging economies, Financial security, Fraud resilience, SEM, SMEs.

Abstract

This study investigates the influence of digital transformation (DT) on financial security perceptions (FSP) and fraud resilience (FR) among small and medium-sized enterprises (SMEs) in India. Drawing on a sample of 206 SME decision-makers, a structural equation modeling (SEM) approach was used to assess the proposed relationships. The findings confirm that DT positively impacts both FSP and FR, with financial security acting as a partial mediator in enhancing fraud resilience. The model demonstrates strong explanatory relevance and good overall fit. These results underscore the critical role of strategic digital adoption in reinforcing SMEs' financial systems and preparedness against fraud. The study offers practical implications for SME leaders, policymakers, and technology providers aiming to build secure and resilient digital enterprises in emerging markets.

Published

2025-11-19

How to Cite

Vyas, K. A., & Raval, T. (2025). The Impact of Digital Transformation on Financial Security Perceptions and Fraud Resilience in SMEs: A Structural Equation Modeling Approach. International Journal of Independent Research Studies, 14(2), 29–35. https://doi.org/10.55220/2304-6953.v14i2.760

Issue

Vol. 14 No. 2 (2025)

Section

Articles