Designing and Explaining the Structural Model of Factors Affecting Digital Financial Innovation Using a Structural Equation Modeling Approach
Keywords:
Pattern design, digital financial innovation, data-driven theoryAbstract
This study aimed to design and explain the structural model of factors influencing digital financial innovation using a structural equation modeling (SEM) approach. The research followed an exploratory mixed-methods design. In the qualitative phase, semi-structured interviews were conducted with 18 financial and accounting experts selected via snowball sampling until theoretical saturation was reached. Thematic data were analyzed using the grounded theory method through open, axial, and selective coding, which resulted in 18 main categories. A 93-item questionnaire was developed based on the extracted categories and verified for reliability and validity. In the quantitative phase, the questionnaire was distributed to 385 capital market professionals, and the model was evaluated using LISREL 8.80 and SmartPLS 3.0. Confirmatory factor analysis (CFA) showed that all measurement models achieved acceptable or excellent model fit indices. The standard path coefficients for causal conditions, context, intervening conditions, strategies, and outcomes were all above 0.30, and t-values exceeded 1.96, indicating statistical significance. The proposed model demonstrated strong construct validity and good explanatory power for digital financial innovation determinants. The final structural model effectively explains the formation of digital financial innovation. The three core categories—“adoption capability,” “ICT infrastructure,” and “digital literacy and awareness”—emerged as central to the model. Other components were organized into five contextual groupings: causal conditions, background, intervening factors, strategies, and outcomes, all showing statistically significant relationships with the core constructs.
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