Harnessing digital transformation and FinTech for green innovation and environmental sustainability: empirical evidence

Purpose This empirical research aims to analyze the impact of digital transformation and financial technology (FinTech) adoption on green innovation and how these factors contribute to enhancing environmental performance within the context of manufacturing firms in Jordan. The study is grounded in the dynamic capabilities view and the natural resource-based view as theoretical foundations. Design/methodology/approach Data were gathered from 153 managers of Jordanian manufacturing firms through a cross-sectional survey. Partial least-squares structural equation modelling (PLS-SEM) was used to analyze the data and validate the proposed theoretical model. Findings The findings indicate that digital transformation and FinTech adoption have a positive impact on green innovation. The results also reveal that environmental performance is positively and significantly influenced by digital transformation, FinTech adoption, and green innovation. Research limitations/implications This study adopts a cross-sectional design, with data collected at a single point in time from manufacturing firms in Jordan. The use of cross-sectional data constrains the ability to capture the dynamic and evolving nature of digital transformation and FinTech, which are inherently continuous processes. Practical implications The findings suggest that firms should invest in digital transformation and FinTech solutions to support green innovation and improve environmental performance. Policymakers can facilitate this process by strengthening digital infrastructure and providing regulatory and financial support for sustainable digital initiatives. Originality/value This research contributes to the existing literature by examining how digital transformation and FinTech can be leveraged to foster green innovation, thereby improving environmental performance in the context of an emerging economy.