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The role of financial literacy in enhancing firm’s sustainable performance through Fintech adoption: a moderated mediation analysis

Imdadullah Hidayat-ur-Rehman (MIS Department, Faculty of Business Administration, University of Tabuk, Tabuk, Saudi Arabia)

International Journal of Innovation Science

ISSN: 1757-2223

Article publication date: 4 July 2024




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.


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.


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.


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.



Hidayat-ur-Rehman, I. (2024), "The role of financial literacy in enhancing firm’s sustainable performance through Fintech adoption: a moderated mediation analysis", International Journal of Innovation Science, Vol. ahead-of-print No. ahead-of-print.



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