The Impact of FinTech Adoption on Environmental Performance: The Mediation Role of Green Dynamic Capability and Green Innovation

Abstract

Environmental sustainability is increasingly viewed as a key priority for organizations striving to align economic growth with ecological responsibility. As digital technology continues to evolve rapidly, financial technology (FinTech) has emerged as a significant enabler of efficient financial services, improved information transparency, and optimized resource allocation. However, limited research has explored the organizational mechanisms through which FinTech adoption (FA) enhances environmental performance (ENP). To fill this gap, the present research investigates the impact of FA on ENP by exploring the mediating effects of green dynamic capability (GDC) and green innovation (GI). A conceptual framework integrating these constructs is developed and empirically tested using a hybrid analytical approach. Specifically, Partial Least Squares Structural Equation Modeling (PLS-SEM) is employed to evaluate the hypothesized relationships and mediating effects among the constructs. Subsequently, Artificial Neural Network (ANN) analysis is applied to assess the predictive strength and relative importance of the significant determinants identified in the PLS-SEM stage. FA exerts both direct and indirect positive effects on ENP, with GDC and GI acting as mediating pathways. Furthermore, ANN analysis shows that GDC exerts the strongest influence on ENP, followed by GI and FA. By integrating PLS-SEM and ANN, this research offers a more in-depth analytical perspective than single-method approaches and provides deeper insights into how FA facilitates organizational environmental sustainability.