Open AccessFintech Adoption Choices of Small Businesses: A Technology Organization Environment (TOE) Framework study
Author(s) -
Ashish Varma
Publication year - 2019
Publication title -
accounting and finance research
Language(s) - English
Resource type - Journals
eISSN - 1927-5994
pISSN - 1927-5986
DOI - 10.5430/afr.v8n2p86
Subject(s) - structural equation modeling , fintech , business , context (archaeology) , marketing , emerging markets , relevance (law) , sample (material) , financial services , industrial organization , finance , paleontology , statistics , chemistry , mathematics , chromatography , political science , law , biology
Financial technology or “FinTech” is an amalgam of the use of technology for financial transactions and processes. Fintech adoption for business processes by small businesses largely remains unexplored in the context of emerging markets. This study was conducted during late 2018 using a sample of 117 owner and managers of small businesses in India, for exploring the fintech adoption through the Technology Organization Environment (TOE) framework. The method applied for data analysis was partial least squares structural equation modeling (PLS-SEM). It was found that perceived direct benefits of fintech had a significant effect on fintech adoption. Counter-intuitively, the perceived cost of fintech adoption was not a significant factor in fintech adoption. These results have significant managerial and academic relevance for understanding fintech adoption agenda of small businesses in the emerging markets.