Fintech adoption for SMEs in different socioeconomic contexts: evidence from Hungary and Indonesia

Abstract The incorporation of financial technology (FinTech) into contemporary business development has emerged as a critical factor for small medium enterprises (SMEs), which contribute to their viability. In light of the significant collaboration between Hungary and Indonesia, this research endeavors to delve into unexplored dimensions pertaining to the potential of fintech in bolstering the operational resilience of SMEs within the contexts of these developed and developing economies, using the technology-organization-environment (TOE) framework. Specifically, this study aims to investigate how the adoption of digital financial services can facilitate inclusive economic growth and foster entrepreneurial activities in both Hungary and Indonesia. The research adopts a quantitative methodology, employing statistical hypothesis testing and regression analysis to achieve its objectives. A sample of 349 participants, with 164 representing Hungary and 185 representing Indonesia, was purposively selected by scientific criteria to examine the patterns of FinTech adoption within the SME industry. The results show that when partial least squares–structural equation modeling (PLS-SEM) is used to examine the direct effect of TOE on fintech adoption, technological factors and environmental factors have a significant effect on fintech adoption, whereas organizational factors have no significant effect on fintech adoption. Further results from the PLS-MGA method used to investigate group differences show that Hungary–Indonesia significantly differ in terms of the impact of technological factors on fintech adoption; in the organizational context of fintech adoption, Indonesia has a stronger relationship than Hungary does, and in terms of environmental factors, Indonesia has a stronger relationship because, compared with Hungary, Indonesia has a higher level of trust in the government. The findings of this research are highly important, serving as a noteworthy reference point for assessing the collaborative efforts between the two countries in enhancing SMEs through the adoption of fintech.