FinTech, SMEs Efficiency and National Culture: Evidence from OECD Countries

Abbasi, Kaleemullah; Alam, Ashraful; Du, Anna; Huynh, Toan Luu Duc

FinTech, SMEs Efficiency and National Culture: Evidence from OECD Countries

Abbasi, Kaleemullah; Alam, Ashraful; Du, Anna; Huynh, Toan Luu Duc

Authors

Kaleemullah Abbasi

Ashraful Alam

Dr Anna Du A.Du@napier.ac.uk
Associate Professor

Toan Luu Duc Huynh

Abstract

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.

Citation

Abbasi, K., Alam, A., Du, A., & Huynh, T. L. D. (2020, April). FinTech, SMEs Efficiency and National Culture: Evidence from OECD Countries. Presented at International Conference on the Contemporary Issues in Finance, Trade and Macroeconomy (ICOFINT '20), Istanbul, Turkey

Presentation Conference Type	Conference Paper (published)
Conference Name	International Conference on the Contemporary Issues in Finance, Trade and Macroeconomy (ICOFINT '20)
Start Date	Apr 4, 2020
End Date	Apr 5, 2020
Online Publication Date	Apr 5, 2020
Publication Date	Apr 5, 2020
Deposit Date	Nov 30, 2022
Book Title	International Conference on the Contemporary Issues in Finance, Trade and Macroeconomy (ICOFINT '20)
Keywords	FinTech, SMEs, Firm efficiency, Culture
Public URL	http://researchrepository.napier.ac.uk/Output/2967892
Publisher URL	https://www.icofint.com/pdf/icofint2020program.pdf