Beyond FinTech Adoption: The Mediating Role of Financial Sustainability in Enhancing Firm Performance among Pakistani Firms

Abstract

This research explores the relationship of Digital Financial Literacy (DFL), Financial Sustainability (FS), Environmental Sustainability Commitment (ESC), and its impact on Financial Performance (FP) among firms operating in Pakistan. A total of 210 employees working in the manufacturing, services, IT and FinTech industries were selected, and data was collected and analyzed with the help of PLS-SEM. The results show that DFL (β = 0.266, p < 0.05) and ESC (β = 0.289, p < 0.05) significantly improve financial sustainability. The effect of FinTech Adoption on financial sustainability is, however, not significant (β = 0.031, p = 0.726). Financial sustainability has a positive impact on financial performance and is a strong enabler of it. The results indicate that financial results cannot just be obtained through technology, but also through digital skills and sustainable practices.