Fintech Adoption and Business Resilience among Small and Medium Enterprises in the Digital Economy

Abstract

The digital economy has significantly changed the way small and medium enterprises (SMEs) manage financial activities, conduct transactions, interact with customers, and respond to business disruption. Fintech adoption provides SMEs with opportunities to improve transaction efficiency, financial accessibility, information visibility, operational flexibility, and business continuity; however, fintech adoption does not automatically result in stronger business resilience. This study aims to explore how SMEs adopt and utilize fintech as a strategic capability for strengthening business resilience in the digital economy. The study employed a qualitative multiple-case study involving 15–25 SME owners, managers, financial administrators, and fintech users selected through purposive sampling. Data were collected through semi-structured interviews, non-participant observation, digital business documentation, and financial management records. Data were analyzed through open coding, axial coding, selective coding, theme development, and cross-case comparison. The findings indicate that fintech adoption is driven by technological usefulness, relative advantage, organizational readiness, managerial support, digital competence, customer expectations, competitive pressure, and developments within the financial ecosystem. Fintech provides benefits through faster transactions, improved financial visibility, easier payment management, broader customer access, and alternative financial channels. More importantly, fintech contributes to business resilience when integrated with organizational capabilities that enable SMEs to adapt operations, respond to crises, maintain transaction continuity, access financial resources, and develop innovative business practices. The study proposes a conceptual pathway in which technology, organization, and environment influence fintech adoption, which subsequently strengthens digital capability and business adaptation, ultimately contributing to business resilience. The study highlights that fintech should be positioned not merely as a digital financial tool but as a strategic organizational capability supporting SME sustainability and resilience.