AN ASSESSMENT OF ENTREPRENEURIAL ORIENTATION, FINTECH, AND FIRM PERFORMANCE: A MEDIATION ANALYSIS USING CB-SEM APPROACH

Abstract

In this competitive global environment, entrepreneurship has become the pressing factor for business managers and policy makers. Now a days, conceptualization of entrepreneurship has shifted to a more robust concept, called entrepreneurial orientation where managers thinks and initiate innovative plans to reap better performance. This research aimed to investigate direct impact of entrepreneurial orientating on firm performance in commercial banking industry of Pakistan. In addition, this research has tapped the mediation and moderation effects of financial technology and financial literacy. In achieving the research objective, study has used positivist research philosophy and made a cross-sectional research design. The nature of this research is quantitative and primary data was collected by using adopted and modified survey instruments. The target population of this study was (N=368) top managers of commercial banking industry of Pakistan. The quantitative outcomes were drawn by using a multivariate statistical tool, structural equation modelling (SEM). The results of this research documented that entrepreneurial orientation has positive and significant impact of firm performance. The direct of EO and FP is also mediated by financial technology (Fin-Tech). Results of SEM reported that fin-tech mediates the relationship between EO and FP. Furthermore, study has also traced the moderating effect of financial literacy (FL) on the relationship of EO and FP. Based on statistical outcomes it is concluded in this study that top managers of banking firms do take initiatives to avail Fin-Tech for enhancing firm performance and this relationship can be interactive (moderated) if managers are involved to made them more financial literate.           

Keywords: Entrepreneurial Orientation, Financial Technology, Financial Literacy, Firm Performance, Structural Equation Modelling.