Relationship of Fintech Innovation with Green Growth Sustainability Moderated by Blockchain Smart Contracts Among Small and Medium Sized Enterprise in Selangor, Malaysia

Puteri Aina Megat, Mursyidatul Najwa Khairudin, Nur Jalilah Haniffah, Ganesan Paramasivam
International Journal of Economics and Business Administration, Volume XII, Issue 3, 51-81, 2024
DOI: 10.35808/ijeba/853

Abstract:

Purpose: The purpose of this study is to investigate the adoption of financial technology on the green growth and sustainability of SMEs. The root issue is that despite the increasing attention of fintech exposure in business markets, Malaysian businesses are hesitant to fully adopt this emerging technology. This study aims to bridge the gap between the potential of fintech innovations and their practical implementation by adopting two theoretical approaches: 1) Research-based view model for green growth 2) Extended version of the technology acceptance model for the fintech dimension. Design/Methodology/Approach: The research adopts a quantitative method using a cross-sectional survey design with a five-point Likert scale questionnaire. Data was collected from 247 decision-makers representing SMEs in Selangor, Malaysia, and the sampling technique uses stratified random sampling. The data were analyzed using SPSS and Smart-PLS. Findings: Fintech factors of green financing and green investment significantly influence the green growth sustainability, while cryptocurrency is not significant towards it. Interestingly, the finding on the moderator role of blockchain smart contracts does not play a role in moderating all the fintech factors toward green growth sustainability. Practical Implication: The direct relationship of green financing and green investment is driving the future innovation toward green growth sustainability, particularly for SMEs, but cryptocurrency gives a different insight on it. On the other hand, integrating blockchain smart contracts as the moderator for the fintech dimension does not allow the businesses to move toward green sustainability. It is essential for companies to provide platforms by offering knowledge and awareness about this technology. Aside from this, the study provides empirical implications for SMEs green growth sustainability using fintech platforms. Originality value: The research findings reveal that the moderating effect of blockchain smart contracts was insignificant in driving green sustainability outcomes for SMEs. This innovation did not support green growth sustainability to enhance transparency and increase the accountability into the environmental claims. It challenges the technology-centric view and emphasizes the importance of contextual factors, regulatory frameworks, and holistic sustainability strategies for SMEs.


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