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Revealing the potential of FinTech innovation through knowledge assets: a study of firm financial performance

Mushahid Hussain Baig (School of Economics and Management, Southwest Jiaotong University, Chengdu, China)
Jin Xu (School of Economics and Management, Southwest Jiaotong University, Chengdu, China and Service Science and Innovation Key Laboratory of Sichuan Province, Southwest Jiaotong University, Chengdu, China)
Faisal Shahzad (Department of Management Sciences, COMSATS University Islamabad, Attock Campus, Islamabad, Pakistan)
Rizwan Ali (School of Economics and Management, Southwest Jiaotong University, Chengdu, China)

International Journal of Innovation Science

ISSN: 1757-2223

Article publication date: 28 February 2024

275

Abstract

Purpose

This study aims to investigate the association of FinTech innovation (FinTechINN) and firm performance (FP) by considering the role of knowledge assets (KA) as a causal mechanism underlying the FinTechINN – FP association.

Design/methodology/approach

In this study, the authors consider panel data of 1,049 Chinese A-listed firm and construct a structural model for corporate FinTech innovation, knowledge assets and firm performance while considering endogeneity issues in analyses over the period of 2014–2022. The modified value added intellectual capital (VAIC) and research and development (R&D) expenses are used as a proxy measure for knowledge assets, considering governance and corporate performance measures.

Findings

According to the findings of this study FinTech innovation (FinTechINN) has a positive significant effect on firm performance. Particularly; the findings disclose that FinTech innovations has a link with knowledge assets, FinTech innovations indirectly affects firm performance, and the association between FinTech innovation and firm performance is partially mediated by knowledge assets (MVAIC and R&D expenses).

Originality/value

Rooted in the dynamic capability and resource-based view, this study pioneers an empirical exploration of the association of FinTech innovation with firm performance. Moreover, it introduces the novel dimension of knowledge assets (on firm-level), acting as a mediating factor with in this relationship.

Keywords

Acknowledgements

This study was supported by grants from National Natural Science Foundation of China (72171197), Natural Science Foundation of Sichuan Province of China (2023NSFSC0364).

Declaration of Interest: none.

Citation

Baig, M.H., Xu, J., Shahzad, F. and Ali, R. (2024), "Revealing the potential of FinTech innovation through knowledge assets: a study of firm financial performance", International Journal of Innovation Science, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJIS-09-2023-0204

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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