Driving financial performance: The role of FinTech, innovation, and compliance in Jordanian Retail

Abstract

This research examines what happens to financial performance of Jordanian retail businesses after they use FinTech solutions together with innovation and regulatory compliance and investigates operational efficiency and customer satisfaction as intervening variables. The research analysed 291 firms which were chosen from among the full sample of 1,200 retail entities registered with the Jordanian Chamber of Commerce by using PLS-SEM methodology. The research analysed survey results to verify that financial performance of businesses demonstrates considerable growth when using FinTech solutions combined with innovation practices and regulatory requirements. Research confirmed that operational efficiency and customer satisfaction serve as intermediary factors connecting financial performance indicators because they strengthen key performance functions. Financial managers can use this research to obtain specified guidelines for FinTech solution investments that drive innovation within regulatory frameworks. Such FinTech implementations require policymakers to develop regulatory frameworks for their effective implementation. The study creates unique value through its assessment of Jordan's emerging market conditions to explore FinTech solution adoption alongside the resulting performance impact. This research enhances understanding of FinTech adoption in emerging markets through a unified framework that combines multiple constructs while offering actionable recommendations for both businesses and policymakers.