FinTech Adoption and SME Conflict Resilience in -Affected Economies:The Mediating Role of Digital Financial Inclusion and the ModeratingEffect of Political Uncertainty in Palestine

Abstract

FinTech has emerged as a game-changer, increasing financial accessibility and improving organizational flexibility among small and medium-sized firms (SMEs), Despite increased interest in FinTech adoption  little research has looked at how FinTech helps SMEs recover in conflict-ridden and institutionally fragile settings, This research attempts to close this void by examining the link between FinTech uptake and SME resiliency in Palestine, a country plagued by political instability and financial constraints that pose significant hurdles to corporate survival. Drawing on the Resource-Based View  Dynamic Capabilities Theory  the Technology–Organization–Environment framework  and Organizational Resilience Theory, the study develops and tests an integrated model in which digital financial inclusion serves as a mediating mechanism while political uncertainty acts as a moderating factor, Data were collected from Palestinian SMEs operating across various sectors and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that FinTech adoption significantly enhances SME resilience by strengthening access to financial resources increasing operational flexibility  and improving adaptive capacity, Digital financial inclusion partially mediates this relationship whereas political uncertainty influences the magnitude of resilience outcomes, The study extends the literature on FinTech and organizational resilience by providing evidence from a conflict-affected economy and highlighting the mechanisms through which digital financial technologies support business sustainability, The findings offer valuable implications for policymakers, regulators, and SME managers seeking to promote resilience through digital financial transformation.