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FinTech, SME efficiency and national culture: Evidence from OECD countries

Abbasi, Kaleemullah; Alam, Ashraful; Du, Min�(Anna); Huynh, Toan Luu Duc


Kaleemullah Abbasi

Ashraful Alam

Toan Luu Duc Huynh


Small and Medium Enterprises (SMEs) play a vital role in an economy; therefore, it is important to study the avenues that contribute towards their viability. As a result, we examine the impact of financial technologies (FinTechs) on SME efficiency. Using the Generalized Method of Moments methodology and 1,617 SME firms from 22 OECD countries during the period 2011–2018, we find that FinTechs are positively associated with SME efficiency. Interesting results emerge when we incorporate culture. Masculine societies positively moderate the link between FinTechs and SME efficiency. We also find that individualistic and long-term oriented cultures negatively affect the association between FinTechs and SME efficiency. Our findings have multiple implications. This study suggests the need for countries to introduce policies supporting FinTech startups in order to improve SME efficiency. Moreover, if the SME managers aim to achieve higher firm efficiency, then adopting FinTechs may act as a mechanism to attain this objective. Further, it may be important to consider both FinTechs and culture when evaluating cross-border investments.

Journal Article Type Article
Acceptance Date Nov 6, 2020
Online Publication Date Nov 19, 2020
Publication Date 2021-02
Deposit Date Dec 10, 2021
Journal Technological Forecasting and Social Change
Print ISSN 0040-1625
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 163
Article Number 120454
Keywords FinTech, SMEs, Firm efficiency, Culture
Public URL