THE ROLE OF FINTECH ADOPTION IN DRIVING ORGANIZATIONAL SUSTAINABILITY: MEDIATING EFFECTS OF GREEN FINANCE AND CSR

Abstract

In the evolving financial ecosystem, financial technology (FinTech) has significantly reshaped traditional financial practices by enhancing accessibility, operational efficiency, and sustainability-driven innovations. Concurrently, global attention towards sustainable development, particularly the United Nations Sustainable Development Goals (SDGs), has emphasized the importance of green finance and Corporate Social Responsibility (CSR) as pivotal instruments for fostering environmental and social sustainability. Despite the increasing relevance of these domains, limited empirical research has explored the integrated effects of FinTech adoption, green finance, and CSR on organizational sustainability, particularly within developing economies like Pakistan. This study aims to address this gap by investigating how FinTech adoption influences organizational sustainability through the mediating roles of green finance and CSR. Employing Institutional Theory as the guiding framework, this research conceptualizes FinTech adoption as a strategic response to shape sustainable business practices. A quantitative, cross-sectional methodology was employed, targeting senior managers from 279 small and medium-sized enterprises (SMEs) within Pakistan’s manufacturing sector. Data were collected using a structured questionnaire with validated scales and analyzed through SPSS, applying regression-based mediation analyses. The findings reveal that FinTech adoption significantly enhances organizational sustainability. Moreover, CSR and green finance partially mediate this relationship, indicating that FinTech’s contribution to sustainability is maximized when aligned with CSR practices and green financial initiatives. The study confirms that technology, when strategically embedded within social responsibility frameworks and green financial pathways, substantially advances sustainability outcomes. This research contributes to the growing discourse on sustainable financial innovation by offering an integrated model that elucidates the complex interplay between FinTech, CSR, green finance, and sustainability, specifically within developing country contexts.