FINTECH ADOPTION AS A DRIVER OF SUSTAINABLE PERFORMANCE: EXPLORING THE MEDIATING ROLE OF INNOVATION CAPABILITY AND THE MODERATING ROLE OF ETHICAL LEADERSHIP]

Authors

  • Asma Mushtaq* University of Balochistan, Quetta.
  • Kashif Akbar Phd Scholar, Department of Industrial Engineering, University of Padua, Italy
  • Dr. Muhammad Nabeel Ashraf, Assistant Professor, Department of Management Sciences, National University of Modern Languages, Karachi
  • Ali Gul Computer Science Department University of Balochistan, Quetta.

Abstract

The strategic integration of FinTech has emerged as a critical enabler of sustainable performance, particularly in developing economies. While prior research has explored the individual roles of technology adoption, innovation, and leadership, limited attention has been given to their interrelated impact on sustainability outcomes. Grounded in the Resource-Based View (RBV), this study aims to examine the direct effect of FinTech adoption on sustainable performance, the mediating role of innovation capability, and the moderating role of ethical leadership in this relationship. The study adopts a quantitative, cross-sectional design using structural equation modeling (SEM) to test a moderated mediation framework. Data were collected from 457 senior- and mid-level managers working in FinTech-integrated financial institutions in Pakistan through a structured questionnaire. Validated measurement scales and stratified random sampling ensured empirical robustness. The results provide strong support for the positive impact of FinTech adoption on sustainable performance. Innovation capability was found to partially mediate this relationship, highlighting its role as a conduit for translating technological investments into sustainable outcomes. Contrary to expectations, ethical leadership did not significantly moderate the relationship between FinTech adoption and sustainable performance, suggesting that leadership ethics alone may be insufficient to amplify the impact of digital transformation on sustainability. These findings contribute to the theoretical integration of digital innovation and sustainability through the RBV lens and offer practical implications for managers seeking to align technology adoption with long-term environmental and social objectives. The study also invites future research into context-specific leadership dynamics in digitally evolving sectors.

Keywords: FinTech Adoption, Sustainable Performance, Innovation Capability, Ethical Leadership

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Published

2025-08-06

Issue

Vol. 2 No. 4 (2025): Journal of Management & Social Science

Section

Articles

How to Cite

FINTECH ADOPTION AS A DRIVER OF SUSTAINABLE PERFORMANCE: EXPLORING THE MEDIATING ROLE OF INNOVATION CAPABILITY AND THE MODERATING ROLE OF ETHICAL LEADERSHIP]. (2025). Journal of Management & Social Science, 2(4), 28-45. http://www.rjmss.com/index.php/7/article/view/204