A Contextualized Innovation Framework for Fintech Adoption in Emerging Market SMEs

Jovin R. B1* and Arockia Rajasekar2
1Research Scholar, Department of Commerce, St. Joseph College, Bharathithasan University, Trichy, Tamil Nadu, India.
2Assistant Professor, Department of Commerce, St. Joseph College, Bharathithasan University, Trichy, Tamil Nadu, India.
*Corresponding Author Email: shobaedwindec27@gmail.com
Keywords: FinTech Adoption, SMEs, Digital Transformation, Emerging Markets, Contextualized Innovation Framework (CIF), Institutional Trust, Cybersecurity, Digital Maturity, India
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Abstract

Financial technology's quick development promises to give small and medium-sized businesses (SMEs) more growth potential, efficiency, and inclusivity. However, adoption in emerging nations is still uneven and frequently superficial, limited by contextual constraints rather than technological availability. This study presents and validates a Contextualized Innovation Framework (CIF), which reorients FinTech adoption around three interlocking dimensions: institutional trust, infrastructural readiness, and cognitive perception. This represents a significant departure from the cognitive limitations of the Technology Acceptance Model (TAM). The study, which is based on empirical research with SMEs in Tamil Nadu, a region that is indicative of India's digital transformation, shows that adoption happens as a phased process of digital maturity that is influenced by systemic barriers and facilitators rather than as a one-or-the-other. Results show that while digital literacy acts as a direct enabler rather than a background condition, institutional legitimacy and cybersecurity assurance frequently trump perceived utility in promoting or preventing adoption. Policymakers and FinTech companies can create tiered, context-sensitive interventions that transition SMEs from transactional digitization to strategic financial empowerment by using the CIF's innovative, practical lens. This paradigm offers a scalable model for inclusive digital transformation throughout the Global South by prioritizing stages over individual decisions and structure over sentiment.

Citation

Jovin. R.B and Arockia Rajasekar “A Contextualized Innovation Framework for Fintech Adoption in Emerging Market SMEs” International Journal of Business and Economics Research (IJBER) e-ISSN: 2455-3921; 12.1 (2026): 1-24

DOI: https://doi.org/10.5281/zenodo.19496592

License

© 2026 The Author(s). Published by Dr. BGR Publications. The authors retain copyright of this article. This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

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