Muhammad Tanveer
The role of technological innovation as a key part of corporate strategy has become increasingly prominent in the literature. There is a lack of empirical research examining the role of FinTech adoption in firms’ sustainable performance through internal transformation processes and strategic capabilities. The present study is based on the Resource-Based View (RBV) and the Dynamic Capabilities framework (DC); it suggests a theoretical model that evaluates the mediating role of Digital Transformation (DT) and the moderating role of the Dynamic Capabilities (DC) on the association between FinTech Adoption (FTA), and Firm Sustainable Performance (FSP). Primary data were collected on a sample of 277 companies based in Riyadh Saudi Arabia and then apply to Partial Least Squares Structural Equation Modeling (PLS-SEM) to establish the test hypothesized relationships. Findings demonstrate that there is a strong positive relationship between FinTech adoption and digital transformation, and that the concluding has a downstream constructive influence on the sustainable performance regarding economic, social, and environmental aspects. Furthermore, DC become an important positive moderator, which intensifies the influence of DT on sustainable performance; companies with strong adaptive and reconfiguring capabilities obtain better sustainability results of their DT activities. Combining the concept of FTA and DC into the unified strategy of sustainability, this work contributes to the theoretical discourse and can be applied in practice by organizations who want to use digital technologies in an attempt to achieve sustainable development in contemporary markets.