DRIVING FINANCIAL SUSTAINABILITY IN SMES: FINTECH ADOPTION, ACCESS TO FINANCE, INNOVATIVE LEADERSHIP, AND FINANCIAL COMPETENCE

Abstract

This study examines the role of FinTech adoption in linking access to finance and sustainable innovative leadership to financial sustainable performance among small and medium-sized enterprises (SMEs). Drawing on Resource-Based View and financial theory, the study proposes a moderated mediation model in which FinTech adoption acts as a mediator, while financial competence serves as a moderating variable. A quantitative explanatory research design is employed using survey data collected from SME owners and managers. The data are analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test direct, mediating, and moderating relationships. The findings are expected to show that access to finance and sustainable innovative leadership positively influence FinTech adoption, which in turn enhances financial sustainable performance. Furthermore, financial competence is anticipated to strengthen the relationship between access to finance and FinTech adoption, indicating that managerial financial capability plays a critical role in leveraging financial resources into digital transformation. This study contributes to the literature by focusing specifically on financial sustainability and highlighting the importance of internal capabilities in maximizing the benefits of FinTech adoption. Practically, the findings provide insights for SMEs, policymakers, and financial service providers to promote digital financial inclusion and improve long-term financial performance.