BOOSTING ORGANIZATIONAL PERFORMANCE THROUGH FINTECH INTEGRATION AND CIRCULAR ECONOMY PRACTICES IN PAKISTAN

Abstract

Purpose: This study examines the influence of fintech adoption on the innovation performance and sustainability performance of manufacturing small and medium-sized enterprises (SMEs) in Pakistan. It further investigates the mediating role of circular economy practices in these relationships.

Design/methodology/approach: The study applies a quantitative, cross-sectional survey design. Data were collected from 299 managers of manufacturing SMEs in Pakistan through purposive sampling. The data were analyzed using SPSS version 25 and partial least squares structural equation modeling (PLS-SEM).

Findings: The findings indicate that fintech adoption has a positive effect on circular economy practices, innovation performance, and sustainability performance. Circular economy practices also show positive effects on innovation performance and sustainability performance, supporting their role as an important mechanism through which fintech adoption contributes to improved SME outcomes.

Practical implications: The study provides practical guidance for SME managers and policymakers by showing that fintech adoption, when combined with circular economy practices, can strengthen innovation capability and sustainability outcomes in resource-constrained manufacturing environments.

Originality/value: This study extends the literature by integrating fintech adoption and circular economy practices in a single framework and by examining their combined influence on both innovation and sustainability performance in Pakistani manufacturing SMEs.