Fintech impact on sustainability of the Small and Medium Enterprises in the Triveneto area

Abstract

Recognizing drivers that speed up growth while preserving ecological sustainability and promoting social responsibility is among the primary challenges that Small and Medium Enterprises (SMEs) face nowadays. Moreover, the implementation of sustainability initiatives often faces barriers and limitations related to the context, as SMEs frequently encounter financial constraints. This obstacle can be primarily attributed to information gaps between enterprises and banking institutions, resulting in credit denials. Fintech solutions emerge as crucial tools in bridging the financing gap caused by information asymmetries. By utilizing advanced information processing and collection, Fintech facilitates smoother financial transactions while also enhancing oversight of enterprise operations and investments, thereby promoting improved sustainable management. In this study, we integrate the Ecological Modernization Theory (EMT) with the Practice-Based View (PBV) and the Dynamic Capabilities Theory (DCT) to explore the impact of Fintech adoption on organizational performance and circular economy practices. Through a structured questionnaire, we collected data from a representative sample of SMEs in the Triveneto region of Northeast Italy across a variety of productive sectors in order to evaluate our conceptual model. We carefully examined respondents' understanding of Fintech tools and the relationship between Fintech and sustainability within their operations. Our study employs a multivariate regression technique for the purpose of evaluating the hypotheses. The results offer valuable knowledge into how Fintech adoption can improve competitiveness, performance, and sustainability, filling a current gap in the literature for the Italian SMEs context. Enterprises and stakeholders may benefit from our findings by integrating technological advancements and human capital to reduce adverse environmental impacts.