The rapid convergence of financial technologies (FinTech) and sustainability imperatives has redefined the operational landscape of modern banking institutions, particularly in emerging economies. As global organizations strive to meet Environmental, Social, and Governance (ESG) standards, understanding how digital tools such as FinTech contribute to sustainable performance has become a critical research priority. However, existing literature often examines FinTech adoption and sustainability in isolation, failing to explore the mechanisms through which digital innovation is transformed into sustainable outcomes. This study addresses this gap by investigating the mediating role of digital transformation in the relationship between FinTech adoption and sustainable performance, while also examining the moderating effects of transformational leadership and regulatory support. Grounded in the Dynamic Capabilities Theory, this research employed a cross-sectional, quantitative design targeting managerial-level employees in commercial banks across Pakistan. Data were collected through a structured questionnaire, with responses analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate the hypothesized relationships. Measurement models demonstrated high internal consistency, convergent validity, and discriminant validity across all constructs. The findings reveal that FinTech adoption significantly enhances sustainable performance and that digital transformation serves as a significant mediating mechanism in this relationship. However, contrary to theoretical expectations, the moderating roles of transformational leadership and regulatory support were not statistically significant. These results suggest that while technological adoption and internal transformation are crucial drivers of sustainability, contextual and institutional factors such as leadership and regulation may not uniformly enhance this process in all settings.
Mushtaq et al. (Sat,) studied this question.
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