Digital transformation and sustainable performance: the roles of FinTech, financial inclusion and competitiveness

Purpose This study examines how digital transformation and FinTech adoption influence firms' sustainable performance through financial inclusion, with competitiveness acting as a moderating factor. Drawing on technological innovation systems and the resource-based view, it clarifies how digital capabilities and inclusive financial practices translate into sustainability outcomes within competitive banking environments. Design/methodology/approach A quantitative, cross-sectional survey design was employed. Survey data were collected between December 2023 and January 2024 from employees of five leading commercial banks in Pakistan. Out of 437 responses, 392 valid questionnaires were analysed using partial least squares structural equation modelling to assess the measurement model, test direct and indirect relationships and evaluate moderating effects. Findings The proposed model explains 68.4% of the variance in sustainable performance. Digital transformation positively influences sustainable performance, FinTech adoption and financial inclusion. FinTech adoption strengthens financial inclusion and contributes to sustainable performance, while financial inclusion emerges as a central mechanism driving sustainability outcomes. Competitiveness strengthens the effects of digital transformation and financial inclusion on sustainable performance but does not amplify the FinTech–performance link. Practical implications The findings offer guidance for bank managers and policymakers on aligning digital strategies and inclusive financial initiatives to enhance sustainable performance under competitive pressure. Originality/value This study contributes to the literature by empirically integrating technological innovation systems and the resource-based view within a moderated mediation framework. It provides evidence from an emerging market context and demonstrates how competitiveness conditionally enhances sustainability gains derived from digital transformation and inclusion strategies.