An Empirical Study of the Effect of FinTech Infrastructure on Competitive Advantage and Performance

Abstract

The information management community typically manages FinTech infrastructure capabilities through networking systems, shared technical platforms, and databases, which primarily offer a shared IT capability base for the development of business applications. This study intends to investigate the impact of Fintech infrastructure on organizational performance and competitive advantage in the Jordanian banking sector from 2016 to 2021. To gain an advantage over competitors and improve performance, banks can use their own FinTech infrastructure capabilities.  The study also advances knowledge by showing how, in the context of the firm’s resource-based view (RBV) theory, FinTech infrastructure capabilities as a resource could lead to competitive advantage. In order to accomplish the study's goal, data from 16 Jordanian banks were gathered quantitatively using a questionnaire; the intended audience consisted of 853 managers of Jordanian banks. The empirical findings demonstrated that FinTech infrastructure capabilities have a favorable impact on the competitive advantage and performance by giving the bank reliable immediate knowledge support to address changing difficulties in the financial markets. Furthermore, the study advances knowledge by illuminating how, in the context of the resource-based view (RBV) Approach of an organization, FinTech infrastructural capabilities might generate competitive advantage. In order to collect data from 16 Jordanian banks—whose managers make up the targeted population—a quantitative technique using a questionnaire was used to fulfill the study's objectives. The empirical findings demonstrated that FinTech infrastructure capabilities have a positive effect on the bank's performance and competitive advantage by giving it reliable and prompt knowledge support to address changing financial industry concerns.