Financial resilience through organisational readiness: Mediating role of digital financialinnovation and digital financial literacy, and moderating role of financial inclusion
DOI:
https://doi.org/10.33152/jmphss-10.3.10Keywords:
Financial Inclusion, Digital Financial Innovation, Organisational Readiness, Digital Business Strategy , Digital Financial Literacy, Financial ResilienceAbstract
In developing countries like Pakistan, digital financial innovation and financial literacy are essential for improving financial resilience. Enhancing financial resilience helps developing nations build sustainable companies that are protected from economic vulnerabilities, thereby contributing directly to sustainable development goal SDG 9 (Industry, Innovation, and Infrastructure) by fostering technological upgrading and to SDG 1 (No poverty) by strengthening access to financial services that protect vulnerable populations from economic shocks. However, a lack of readiness for digital transformation leaves firms facing significant challenges, including operational inefficiencies, slower adoption of innovation, reduced customer engagement due to cybersecurity risks, poor data management, and long-term success. This research investigates the role of organisational readiness in enhancing financial resilience, with digital financial literacy and digital financial innovations as mediating factors. The study also investigates the moderating role of digital business strategy and financial inclusion. Using Structured Equation Modelling (SEM), the digital adoption and transformation of firms to improve financial resilience are analysed. The authors find that organisational readiness has a significant positive impact on digital financial innovation. A similar impact of organisational readiness is observed for digital financial literacy, but not for change valence. Thus, the findings support the mediating impacts. Similarly, financial inclusion moderates the relationship of organisational readiness and digital financial innovations and digital financial literacy. Organisations and policymakers can develop appropriate strategies and allocate resources for technology adoption and transformation to build financial resilience and avoid risks.
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