DIGITAL FINANCIAL LITERACY AND FINTECH ACCESS DRIVING SUSTAINABLE SMEs PERFORMANCE THROUGH GREEN INNOVATION AND ENTREPRENEURIAL AGILITY

Abstract

This study investigates the impact of digital financial literacy and access to FinTech services on the sustainable performance of SMEs in Pakistan, with a particular focus on the mediating roles of entrepreneurial agility and green innovation. Thus, drawing on resource-based view and dynamic capabilities theory, the research proposes and tests a dual-mediator model using partial least squares structural equation modeling (PLS-SEM) on data collected from 350 SMEs through a structured survey. The findings reveal that both digital financial literacy & access to FinTech services significantly boost sustainable performance, with entrepreneurial agility and green innovation acting as partial mediators. Notably, digital financial literacy demonstrates a stronger and more consistent indirect effect compared to FinTech access, emphasizing the critical role of human capital in leveraging digital tools for sustainability outcomes. The results offer important theoretical contributions by bridging gaps in the FinTech and sustainable entrepreneurship literature and provide practical implications for SME policymakers, digital finance providers, and sustainability advocates aiming to build resilient & future-ready enterprises in emerging economies.