Leveraging information systems for competitive advantage: a study of Islamic financial institutions’ innovativeness and agility for Fintech financing

Abstract

Purpose Financial technologies (Fintech) services have surpassed the digitalization of traditional services, and the financial industry is now focused on introducing and adopting innovative technologies to meet financial needs and customers’ requirements. This study aims to investigate the connection between Islamic financial institutions’ Information system’ quality, service quality, information quality for the adoption of Fintech Value Chain Financing. Design/methodology/approach Simple random sampling was used to collect data, which was subsequently analyzed using structural equation modeling to examine the complex relationships between variables. Findings Results show that IFIs’ system quality, services quality and innovativeness/agility do not directly influence adoption, but they are important factors when considered in conjunction with financial institutions’ competitiveness. The findings highlight the importance of leveraging service quality to improve operational processes, drive innovation and enhance competitiveness. Practical implications Policymakers and regulators can use the findings to develop policies that support Fintech adoption in the financial sector, enhancing their competitive advantage in the digital era. Originality/value To the best of the authors’ knowledge, this research is the first to provide direction on how financial institutions can leverage their financial competitiveness, innovation and agility with financial information systems to adopt Fintech more effectively.

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