THE ROLE OF FINTECH ADOPTION IN ACHIEVING SUSTAINABLE PERFORMANCE: MEDIATING EFFECT OF DIGITAL TRANSFORMATION AND MODERATING ROLE OF TRANSFORMATIONAL LEADERSHIP

Authors

  • Sadia Saeed* MS Scholar, Department of Management Sciences, Mohammad Ali Jinnah University Karachi.
  • Sohni Rajar Ph.D. Scholar, Institute of Business Administration, University of Sindh Jamshoro.
  • Haji Ahmed Assistant Professor, Department of Commerce, University of Sindh Laar Campus Badin.
  • Iftikhar Ahmed Ph.D. Scholar, Department of Management Sciences, Comsats University, Islamabad.

Abstract

Organizations particularly in emerging economies are under increasing pressure to align technological innovation with long-term environmental and social goals. This study investigates how FinTech adoption influences sustainable performance, examining the mediating role of digital transformation and the moderating influence of transformational leadership within the context of mid-to-large-scale firms in Pakistan. Grounded in Dynamic Capabilities Theory (DCT), the study conceptualizes FinTech adoption and digital transformation as higher-order capabilities that enable firms to sense, seize, and transform in response to dynamic environmental conditions. A quantitative, cross-sectional research design was employed, with data collected through structured questionnaires from 315 managers across financial services and technology sectors. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test the hypothesized relationships. The results reveal a significant and positive direct relationship between FinTech adoption and sustainable performance, indicating that firms leveraging digital financial tools are better positioned to achieve environmental, social, and economic objectives. Furthermore, digital transformation significantly mediates this relationship, suggesting that FinTech’s contribution to sustainability is most effective when embedded within broader organizational transformation strategies. However, the hypothesized moderating effect of transformational leadership on the link between FinTech adoption and digital transformation was not supported, implying that leadership style may not universally enhance technology-driven change. These findings contribute to the growing body of literature on digital sustainability by offering empirical evidence from a developing country context and highlight the importance of integrating technological capabilities with systemic transformation efforts to drive sustainable outcomes.

Keywords: FinTech Adoption, Sustainable Performance, Digital Transformation, Transformational Leadership

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Published

2025-07-28

How to Cite

Sadia Saeed*, Sohni Rajar, Haji Ahmed, & Iftikhar Ahmed. (2025). THE ROLE OF FINTECH ADOPTION IN ACHIEVING SUSTAINABLE PERFORMANCE: MEDIATING EFFECT OF DIGITAL TRANSFORMATION AND MODERATING ROLE OF TRANSFORMATIONAL LEADERSHIP. Journal of Management Science Research Review, 4(3), 112–144. Retrieved from https://www.jmsrr.com/index.php/Journal/article/view/67

Issue

Vol. 4 No. 3 (2025): Journal of Management Science Research Review

Section

Articles