FINTECH ADOPTION AND EMPLOYEE JOB PERFORMANCE: MEDIATING ROLE OF DIGITAL COMPETENCE AND MODERATING ROLE OF CORPORATE GOVERNANCE

Abstract

The rapid integration of financial technologies (FinTech) is reshaping organizational processes, particularly within the financial services sector, where digital platforms are increasingly leveraged to enhance efficiency and performance. However, the micro-level implications of FinTech adoption especially on employee job performance remain underexplored, particularly in developing economies. This study investigates how FinTech adoption influences employee job performance, with a specific focus on the mediating role of digital competence and the moderating role of corporate governance. Anchored in the Resource-Based View (RBV), the research conceptualizes FinTech systems as strategic technological resources, digital competence as a critical human capital capability, and corporate governance as an enabling organizational context. To empirically test these relationships, a quantitative, cross-sectional research design was employed. Data were collected from 321 employees working in financial institutions and FinTech-integrated banking sectors in Pakistan using a structured questionnaire. Measurement instruments were adapted from established scales, and data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4. The model demonstrated strong reliability, validity, and adequate explanatory power. The findings reveal that FinTech adoption has a significant positive effect on employee job performance. Moreover, digital competence partially mediates this relationship, indicating that the benefits of FinTech are maximized when employees possess strong digital skills. However, the hypothesized moderating role of corporate governance was not supported, suggesting that governance mechanisms in the current context may not effectively influence how FinTech adoption translates into individual performance outcomes. This study contributes to the growing literature on digital transformation by offering a nuanced, employee-centric understanding of FinTech adoption. It highlights the importance of developing digital competencies to optimize technological investments and highlights the need for more robust, context-sensitive governance frameworks. The findings hold practical implications for HR managers, policymakers, and organizational leaders navigating digital transitions in emerging markets.

Keywords: FinTech Adoption, Employee Job Performance, Digital Competence, Corporate Governance