THE IMPACT OF FINANCIAL INNOVATIVE TECHNOLOGY IN SME EVOLUTION: FINANCIAL MANAGEMENT ACTS AS A MEDIATOR

Purpose: The study intends to determine the influence of financial innovation adoption on SMEs' financial management and sustainability. The research further aims to investigate the relationship between SMEs' financial management and the adoption of digital technology and enhanced capital accessibility. Design/methodology/approach: A five-point Likert scale questionnaire containing 650 papers was distributed by the researchers. Out of the 650 questionnaire responses that were gathered from SME owners and entrepreneurs in the Tamil Nadu regions of Tiruppur, Salem, and Coimbatore, 432 were determined to be valid. In this investigation, the statistical programs AMOS (v.23) and SPSS (v.25) were employed. To test the intricate interaction in the proposed model, structural regression analysis and structural equation modeling were employed. Findings: The findings of the investigation demonstrated that innovative financial technology and SMEs' sustainability and financial management are positively correlated. Financial innovation is an invaluable resource for SMEs' financial management as it provides a mediator in the favorable correlation between financial innovation and SME sustainability. Practical implications: This report provides SME owners with insightful knowledge regarding financial innovation in SMEs. The technology that may facilitate the expansion and sustainability of SMEs, especially digital lending platforms and fintech, is employed by SME entrepreneurs in pursuit of this research. Originality/value: The influence of SMEs adopting cutting-edge technology has been examined in this research. Thus, the study finalizes that innovative technologies and SMEs' sustainability establish a significant and beneficial hyperlink.