Effects of Fintech Adoption and Green Transformational Leadership on Environmental Performance through Green Innovation

Abstract

This study examines the effects of fintech adoption and green transformational leadership on environmental performance, with green innovation serving as a mediating variable at the individual employee level. A quantitative approach with an explanatory research design was employed to investigate these relationships among employees of PT Shopee International Indonesia in Yogyakarta. Primary data were collected through questionnaires administered to 184 respondents selected using simple random sampling from a population of 340 employees. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0 to assess the measurement model, structural relationships, and mediation effects. The findings reveal that fintech adoption and green transformational leadership have positive and significant effects on both green innovation and environmental performance. Green innovation also has a positive and significant effect on environmental performance. Furthermore, mediation analysis demonstrates that green innovation significantly mediates the relationships between fintech adoption and environmental performance, as well as between green transformational leadership and environmental performance. These results indicate that the adoption of digital financial technologies and sustainability-oriented leadership enhances environmental performance by fostering employees' green innovation. The study highlights green innovation as a critical mechanism linking technological adoption and leadership practices to improved environmental outcomes. The findings contribute to the literature by providing evidence at the individual employee level within a digital e-commerce context, extending previous research that has predominantly focused on organizational-level analysis. Practically, the results suggest that organizations should strengthen fintech utilization, cultivate green transformational leadership, and encourage employee-driven green innovation to achieve sustainable environmental performance.