Digital Financial Literacy and Economic Sustainability in Homestay Businesses in India: A Three-Way Interaction Model

This study aims to explore the relationship between the digital financial literacy of homestay business owners and economic sustainability. A conceptual model is developed by integrating three primary constructs—performance expectancy, effort expectancy, and facilitating conditions—from the unified theory of acceptance and use of technology (UTAUT) with digital financial literacy and FinTech use by homestay business owners. Further, the effect of FinTech use on economic sustainability is examined through the interaction between facilitating conditions and financial inclusion. Data were collected from Southern India, and hypothesized relationships were tested after checking the measurement properties of the survey instrument. The findings indicate that (i) the digital financial literacy of homestay business owners is a precursor to FinTech use, which, in turn, is positively associated with economic sustainability; (ii) digital financial literacy interacting with performance expectancy (first moderator) and effort expectancy (second moderator) significantly influenced FinTech use; and (iii) FinTech use interacting with facilitating conditions (first moderator) and financial inclusion (second moderator) increased economic sustainability. The three-way interactions in this study provide insights into the boundary conditions that increase FinTech use and economic sustainability, particularly in the context of homestay businesses. The proposed digital financial literacy and FinTech adoption model contributes to the information technology adoption research by extending the UTAUT, in which performance expectancy and effort expectancy play a vital role in FinTech adoption by homestay business owners. The three-way model developed and tested, to the best of our knowledge, is the first of its kind in the Indian context and hence makes a pivotal contribution to the advancement of the UTAUT model through its application to homestay business owners. The implications for theory and practice are discussed.