Fintech Adoption, Financial Inclusion and Technological Infrastructure as Drivers of Sustainable Performance: An Integrated Perspective from Ecological Modernization and Resource-Based Theories

Abstract

Purpose – The study examines the role of fintech adoption, financial inclusion, and technological infrastructure in sustainable performance within the SMEs. Based on the Ecological Modernization Theory (EMT), the Resource-Based View (RBV), and the Triple Bottom Line (TBL), the paper investigates the hypothesis of the interdependence between modernization mechanisms and internal technological capabilities to contribute to better economic, environmental and social sustainability achievements.Study Design/methodology/approach – Quantitative research design was employed and the data which was gathered through the structured survey among SMEs was used. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to analyze the data to determine both measurement and structural models. The reliability, convergent and discriminant validities as well as multicollinearity analysis were performed before hypothesis testing was conducted. Findings – The findings reveal that the fintech adoption, financial inclusion, and technological infrastructure have a meaningful and positive impact on sustainable performance on its three dimensions. The effect of financial inclusion on social sustainability is relatively high, although technological infrastructure has a significant impact on environmental performance. The use of fintech yields positive results of uniform economic, environmental, and social impact. The results highlight the significance of digitalizing the preparation of infrastructures in line with digital finance projects to attain multidimensional sustainability. Research limitations/implications – The cross-sectional design suffers from a lack of causal inference and the perceptual measures can create bias in response. However, it goes a step further to integrate theory by placing technological infrastructure as one of strategic performances that play an important role in digital finance and sustainable performance. Practical implications – The policy makers and the SME managers are advised to enhance digital infrastructure and inclusive finance programs to achieve optimum sustainable development. Originality/value –The study also adds value to the literature by combining the perspectives of EMT, RBV, and TBL and provides a broad perspective on the manner in which the digital finance and infrastructural capabilities co-lead to sustainable performance in SMEs.

Keywords: Fintech Adoption; Financial Inclusion; Technological Infrastructure; Sustainable Performance; Triple Bottom Line; Ecological Modernization Theory; Resource-Based View; SMEs.