The Integration of Financial Literacy, Government Support, and User Innovativeness in Fintech Adoption and Its Association with Sustainability Performance

Despite growing evidence that financial technology (fintech) can enhance business performance, limited research has examined how institutional, behavioral, and human capital factors are jointly associated with fintech adoption and how such adoption is associated with multidimensional sustainability performance in developing countries. In particular, empirical evidence integrating the three dimensions of the Triple Bottom Line (TBL) economic, social, and environmental performance, within a single institutional, behavioral framework remains limited. Previous studies have largely examined the determinants of fintech adoption and sustainability outcomes separately. This study addresses this gap by integrating the Triple Bottom Line (TBL) framework with the Resource-Based Theory (RBT). Within this framework, financial literacy, government support, and user innovativeness are conceptualized as strategic organizational resources and capabilities associated with fintech adoption and sustainable business performance. Using a cross-sectional survey and purposive sampling, we collected data from owners and managers of MSMEs participating in Indonesia's MSME Enhancement Program across 19 cities and regencies in Java, Sumatra, and Bali in 2024. Of the 413 questionnaires distributed, 300 usable responses were obtained. The proposed hypotheses were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The results indicate that financial literacy and government support are each positively associated with user innovativeness. Furthermore, financial literacy, government support, and user innovativeness are each positively associated with fintech adoption, which, in turn, is positively associated with MSMEs' sustainability performance across the economic, social, and environmental dimensions of the TBL framework. This study contributes to the literature by providing one of the first integrated empirical examinations of RBT and TBL in the context of fintech adoption among MSMEs, thereby advancing theoretical understanding of how organizational resources are associated with sustainable digital transformation outcomes. For policymakers, financial institutions, and MSME stakeholders seeking to promote inclusive and sustainable fintech adoption in developing economies, the findings offer evidence-based implications and practical recommendations.