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Fintech Adoption Choices of Small Businesses: A Technology Organization Environment (TOE) Framework study

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  • Ashish Varma

Abstract

Financial technology or “FinTech†is an amalgam of the use of technology for financial transactions and processes. Fintech adoption for business processes by small businesses largely remains unexplored in the context of emerging markets. This study was conducted during late 2018 using a sample of 117 owner and managers of small businesses in India, for exploring the fintech adoption through the Technology Organization Environment (TOE) framework. The method applied for data analysis was partial least squares structural equation modeling (PLS-SEM). It was found that perceived direct benefits of fintech had a significant effect on fintech adoption. Counter-intuitively, the perceived cost of fintech adoption was not a significant factor in fintech adoption. These results have significant managerial and academic relevance for understanding fintech adoption agenda of small businesses in the emerging markets.

Suggested Citation

  • Ashish Varma, 2019. "Fintech Adoption Choices of Small Businesses: A Technology Organization Environment (TOE) Framework study," Accounting and Finance Research, Sciedu Press, vol. 8(2), pages 1-86, May.
    • Handle: RePEc:jfr:afr111:v:8:y:2019:i:2:p:86
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    References listed on IDEAS

    as
    1. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    2. D.H. Drury & A. Farhoomand, 1996. "Innovation Adoption of EDI," Information Resources Management Journal (IRMJ), IGI Global Scientific Publishing, vol. 9(3), pages 5-14, July.
    3. Jörg Henseler & Marko Sarstedt, 2013. "Goodness-of-fit indices for partial least squares path modeling," Computational Statistics, Springer, vol. 28(2), pages 565-580, April.
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    Cited by:

    1. Adrián Szilárd Nagy & Fitty Valdi Arie & Octavia Diana Monica Tuegeh & Beáta Bittner & Johan Reineer Tumiwa, 2025. "Fintech adoption for SMEs in different socioeconomic contexts: evidence from Hungary and Indonesia," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 11(1), pages 1-37, December.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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