Entrepreneurial Innovation Spirit and Fintech Innovation: Moderating Effects of Financial Constraints

ABSTRACT

In recent years, fintech has experienced tremendous growth worldwide and has gained significant attention from researchers and policy makers to dig out the factors that drive fintech innovation within enterprises. Entrepreneurial spirit serves as a driving force behind various innovations. Recognizing its potential, the paper investigates the impact of entrepreneurial innovation spirit on fintech innovation, while considering the role of financial constraints in this relationship. Using a sample of Chinese A‐share listed enterprises from 2014 to 2022, and employing a panel regression model, the empirical outcomes reveal that entrepreneurial innovation spirit significantly enhances fintech innovation. This implies that entrepreneurial innovation spirit develops an aggressive and proactive approach while demonstrating a strong capability to bear risk, ultimately yielding innovative outcomes concerning fintech. Moreover, financial constraints significantly weaken the relationship among entrepreneurial innovation spirit and fintech innovation, inferring that financial constraints create barriers in the way of successful execution of entrepreneurial innovation spirit needed for achieving fintech innovation. The outcomes remain consistent after several robustness checks. The study adds to the existing body of knowledge by emphasizing the role of fostering entrepreneurial innovation spirit within an enterprise while also eliminating financial constraints in order to achieve the desired outcomes related to fintech. The study outcomes provide valuable practical implications for institutions and policy makers, emphasizing the need to develop entrepreneurial innovation spirit which is crucial for driving fintech innovation, along with managing financial constraints that hinder innovative outcomes.