Strategic agility and digital orientation as drivers of FinTech capability and organizational performance

The emergence of Financial Technology (FinTech) has revolutionized the finance sector, emphasizing the necessity of an organization’s capabilities to enable digital transformation and innovation. A number of studies have identified the role of strategic agility, managerial digital orientation and innovation governance as critical components of an organization’s capacity to develop its ability to leverage FinTech. In this regard, this study assesses the relationship between strategic agility, managerial digital orientation and innovation governance with respect to the level of maturity of an organization’s FinTech capability. Furthermore, the study will investigate the impact of FinTech capability maturity on service innovation performance and organizational responsiveness among financial service organizations operating in Jordan. Based on dynamic capability theory and resource-based view (RBV), the study develops a theoretical model describing how various forms of managerial and strategic capabilities create value for organizations by enabling them to achieve higher levels of FinTech capability maturity. This study utilized a quantitative approach using partial least squares structural equation modeling (PLS-SEM) via smart PLS 4. Data were collected using purposive sampling from 255 senior managers, specialists in digital transformation, innovation managers and professionals in FinTech working in Jordan banks and financial institutions and FinTech organizations. These respondents have direct knowledge of organizational initiatives related to digital transformation. Results of the measurement model showed high reliability, convergent validity and discriminant validity. Results of the structural model showed that all three independent variables (strategic agility, managerial digital orientation and innovation governance) had positive significant effects on FinTech capability maturity. Additionally, results indicated that FinTech capability maturity has significant positive relationships with both service innovation performance and organizational responsiveness. Results from this study add to the body of knowledge regarding FinTech and digital transformation by illustrating the significance of managerial capabilities to financial institutions to advance their organizational FinTech capability maturity in emerging markets such as Jordan. The results also offer practical applications for policymakers, regulatory bodies and financial institutions who are seeking to enhance their competitive position through innovations that provide greater adaptability and digital competences in increasingly changing economic environments.