{"title":"The role of financial literacy in enhancing firm’s sustainable performance through Fintech adoption: a moderated mediation analysis","authors":"Imdadullah Hidayat-ur-Rehman","doi":"10.1108/ijis-03-2024-0056","DOIUrl":null,"url":null,"abstract":"\nPurpose\nThis study aims to explore the intricate relationship between financial literacy, digital transformation, Fintech adoption, competitiveness and sustainable firm performance, particularly focusing on how financial literacy empowers firms in the evolving digital landscape. Leveraging technological innovation systems (TIS) and resource-based view (RBV), this research suggests a model that incorporates these concepts, focusing on the moderating role of financial literacy in essential interactions.\n\n\nDesign/methodology/approach\nThis study employed a survey-based methodology, collecting data from employees across five major Pakistani banks. The survey yielded 426 responses, from which 387 valid ones were selected for analysis. The analysis utilized partial least squares-structural equation modeling (PLS-SEM), complemented by the Hayes Process Model for moderated mediation analysis. This approach ensured robust examination of the relationships between the constructs of the proposed model.\n\n\nFindings\nThe study's findings validate that digital transformation significantly enhances sustainable performance, with Fintech adoption and competitiveness acting as crucial mediators. Financial literacy is highlighted as a key moderator, influencing the effects of digital transformation on Fintech adoption and competitiveness, although its direct impact on sustainable performance is less pronounced. This comprehensive analysis underscores the complex interplay among these factors in driving sustainable performance in the banking sector.\n\n\nOriginality/value\nThis research enriches the theoretical and practical comprehension of how digital transformation and Fintech integration, underpinned by financial literacy, bolster sustainable business outcomes. It sheds light on the synergy between technology, strategy and organizational success, offering key insights for the banking industry's navigation through the digital era's challenges.\n","PeriodicalId":44643,"journal":{"name":"International Journal of Innovation Science","volume":null,"pages":null},"PeriodicalIF":3.0000,"publicationDate":"2024-07-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Innovation Science","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/ijis-03-2024-0056","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
This study aims to explore the intricate relationship between financial literacy, digital transformation, Fintech adoption, competitiveness and sustainable firm performance, particularly focusing on how financial literacy empowers firms in the evolving digital landscape. Leveraging technological innovation systems (TIS) and resource-based view (RBV), this research suggests a model that incorporates these concepts, focusing on the moderating role of financial literacy in essential interactions.
Design/methodology/approach
This study employed a survey-based methodology, collecting data from employees across five major Pakistani banks. The survey yielded 426 responses, from which 387 valid ones were selected for analysis. The analysis utilized partial least squares-structural equation modeling (PLS-SEM), complemented by the Hayes Process Model for moderated mediation analysis. This approach ensured robust examination of the relationships between the constructs of the proposed model.
Findings
The study's findings validate that digital transformation significantly enhances sustainable performance, with Fintech adoption and competitiveness acting as crucial mediators. Financial literacy is highlighted as a key moderator, influencing the effects of digital transformation on Fintech adoption and competitiveness, although its direct impact on sustainable performance is less pronounced. This comprehensive analysis underscores the complex interplay among these factors in driving sustainable performance in the banking sector.
Originality/value
This research enriches the theoretical and practical comprehension of how digital transformation and Fintech integration, underpinned by financial literacy, bolster sustainable business outcomes. It sheds light on the synergy between technology, strategy and organizational success, offering key insights for the banking industry's navigation through the digital era's challenges.
期刊介绍:
The International Journal of Innovation Science publishes fundamental and applied research in innovation practices. As the official journal of the International Association of Innovation Professionals (IAOIP), the journal is a forum for the exchange of advanced knowledge in innovation, including emerging technologies and best practices, tools and techniques, metrics, and organization design and culture; as well as the stakeholder engagement, change management, and leadership skills required to ensure innovation succeeds. Areas of Coverage: -Innovation processes, methods, techniques- Individual''s role in Innovation- Improvements in HR, marketing, finance, or other disciplines that enable innovation- Innovation practices in specific industries or countries- Innovation centers, incubators, labs...- Regional or national economic development/policies related to innovation- Innovation competency, skills- Innovation conventions, competitions, or training- Innovation for entrepreneurs-Regional impacts on innovation- Growing innovationthrough university programs- Attracting innovative companies and entrepreneurs