Bridging the Gap: Enhancing Financial Sustainability through Fintech Adoption, Financial Literacy, and the Mediating Role of Digital Leadership

Abstract

Purpose: This study aims to establish the interconnection between Digital Leadership, Financial literacy, financial sustainability, and fintech adoption, with a focus on how these constructs interact in an organizational setting, specifically regarding improving leadership and financial performance. Design/Methodology: This study applied a quantitative research design whereby a structured questionnaire was used to collect data from respondents in different business sectors. Regression analysis, alongside hypothesis testing using T-statistics and P-values, was used to determine the coefficients of the relationships between the constructs. Findings: The results indicate a significant positive correlation between the constructs. Financial Literacy increases both Digital Leadership and Financial Sustainability while Fintech Adoption largely raises Digital Leadership and has a moderate effect on Financial Sustainability. The research proves that high levels of Digital Leadership are strongly connected with levels of Financial Sustainability, thus proving the link between these two organizational constructs. Research Limitations/Implications: A cross-sectional study design did not capture the developmental processes of the constructs. Future research should consider longitudinal studies to observe changes and developments as organizations progress in their digital journeys. Studying these constructs in other industries may provide more information about how useful the models are in different settings.