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

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  • Puteri Aina Megat
  • Mursyidatul Najwa Khairudin
  • Nur Jalilah Haniffah
  • Ganesan Paramasivam

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.

Suggested Citation

  • Puteri Aina Megat & Mursyidatul Najwa Khairudin & Nur Jalilah Haniffah & Ganesan Paramasivam, 2024. "Relationship of Fintech Innovation with Green Growth Sustainability Moderated by Blockchain Smart Contracts Among Small and Medium Sized Enterprise in Selangor, Malaysia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 51-81.
  • Handle: RePEc:ers:ijebaa:v:xii:y:2024:i:3:p:51-81
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    References listed on IDEAS

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    More about this item

    Keywords

    Fintech; Green Growth Sustainability; Green Investment; Green Financing; Cryptocurrency; Blockchain Smart Contracts.;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • K24 - Law and Economics - - Regulation and Business Law - - - Cyber Law

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