Financing the future: The role of fintech, leadership, and financial competencies in driving sustainable firm performance

This study employs the theoretical lenses of Ecological Modernization Theory (EMT) and the Resource-Based View (RBV) perspective to examine how access to finance (AF) and the association of sustainable innovative leadership (SIL) affect sustainable performance within firms. This study explores the mediating role of FinTech adoption (FTA) and the moderated mediation role of financial competencies (FC) in the Pakistani SME sector. Survey data from 350 SME executives were analyzed through Partial Least Squares-Structural Equation Modeling (PLS-SEM). The results indicated that AF and SIL are positively related to a firm's sustainable performance through FTA. Furthermore, FC positively moderates the relationship between AF, FTA, and the firm's sustainable performance. Findings show that AF, SIL, FTA, and FC are fundamental resources that are associated with sustainable performance in all three domains: Environmental (ESP), social (SSP), and financial (FSP) performance. These findings aim to equip SME management and policymakers with a robust practical framework for the execution of FinTech and improvement in internal and external controls, as well as managerial financial competencies. This will improve firms' access to finance and inform capacity-building programs, enabling policymakers to craft targeted FinTech regulatory frameworks.