Integrating and determining Fintech value chain financing: a perspective of Islamic financial institutions

Abstract

PurposeIn the current era of technological advancement, it is becoming essential for financial institutions to serve through financial technology (Fintech). This study aims to integrate Fintech with value chain in existing system of Islamic financial institutions (IFIs) and to determine the adoption of Fintech value chain financing (FVCF) by IFIs in the presence of mediators.Design/methodology/approachThis paper examines a conceptual model by performing a self-administration survey for 393 sample size. After the completion of data collection 263 suitable responses are used for analysis. The hypotheses are tested by applying algorithm, bootstrapping and blindfolding techniques.FindingsThe findings of structural model demonstrate that trust, information sharing (IS) and information and communication technology (ICT) are important for adoption of FVCF in the perspective of IFIs. Secondly, innovativeness is partially mediating the relationship of trust, IS and ICT for adoption of FVCF. Thirdly, competitiveness is fully mediating the relationship of trust, IS and ICT with agility for adoption of FVCF by IFIs.Research limitations/implicationsTheoretically, this research is developing a conceptual model that is providing a new way to integrate value chain partners. This study is demonstrating the sequential mediation for the adoption of FVCF. Practically, this research is giving meaningful insight to policymakers of IFIs by suggesting a way forward to adopt FVCF. However, there is need to know the perception of other stakeholders that may involve in FVCF.Originality/valueBecause there exists limited work in the context of integration and adoption of Fintech by organizations, this study is a pioneer that is taking the perspective of financial institutions for FVCF.