DefinePK

Abstract

The adoption of financial technology by micro, small, and medium enterprises enhances their operational efficiency, improves financial accessibility, and financial inclusion in developing economies. The factors scrutinized for fintech adoption in this research are categorized into technology, organization, and environment context, including relative advantage, complexity, compatibility, top management support, organization readiness, readiness of trading partners, competitive pressure, and standard uncertainty. Primary data was gathered by disseminating a self-administered structured survey, and the responses were analyzed. The findings of the study reveal that all three elements of the TOE model positively influence fintech adoption, with the organization component being the highest predictor among the three. The research findings validate that TOE factors contribute significantly towards fintech adoption among Pakistani MSMEs. This research intends to enrich the literature on firm-level adoption, an underexplored area, especially in the context of developing and underdeveloped countries. The conclusions drawn from this study provide imperative insights for the government, policymakers, and fintech firms.