Leadership Is a Driving Factor: Financial Technology Effect in Rural Bank Performance

The study examined the mediating roles of adaptive leadership in the relationship between financial technology innovation and rural bank performance. A survey-based research approach was applied, and the hypotheses were tested using a sample of 305 respondents. A measurement model was employed to evaluate the validity and reliability of the scales used in the study. Partial least squares structural equation modeling (PLS-SEM) was used to analyze the hypothesized relationships and test the mediation effects. The empirical findings support the hypothesized relationship between both financial technology innovation and the director’s individual performance on rural bank performance. Adaptive leadership was found not to mediate the association between financial technology innovation and rural bank performance. The research highlights the importance of financial technology innovation and individual director performance in enhancing rural bank performance. Furthermore, the findings support the notion that developing financial technology innovation is crucial for fostering adaptive leadership. Additionally, adaptive leadership contributes to strengthening director individual performance, which ultimately drives overall performance improvements in rural banks. The integration of these variables offers new empirical insights. It expands the understanding of rural bank performance, highlighting how internal capabilities can be optimized to improve organizational outcomes in this under-researched sector.