As the ready-made garments (RMG) segment of Bangladesh leaps toward sustainability, the integration of Fintech offers a promising pathway to drive circular economy practices and innovation. This paper explores the antecedents affecting the Fintech acceptance, which in turn impact on circular economy practices in Bangladesh’s RMG sector, with a mediation analysis of employee digital literacy (EDL) and green technology innovation (GTI). 353 responses were accumulated from RMG employees with a structured questionnaire following pilot research. The conceptual model was analyzed using a two-phase structural equation modeling-artificial neural network (SEM-ANN) method. The results indicate that top management support (TMS) and employee digital literacy (EDL) significantly and positively influence Fintech adoption (FA), which subsequently impacts circular economy practices (CEP). Mediation analysis reveals that EDL fully mediates the effects of perceived ease of use (PEOU) and compatibility (COMP) on FA, while partially mediating the relationship between TMS and FA. Furthermore, GTI partially mediates the link between FA and CEP in the RMG sector. The study offers a novel perspective and contributes to existing literature by using SEM-ANN approach to provide an inclusive analysis of the factors driving Fintech adoption and its influence on sustainability. Based on the study conclusions, policymakers and industry leaders can emphasize the significance of capitalizing on digital literacy and green technology to enhance sustainability efforts within the RMG sector.
Akter et al. (Tue,) studied this question.