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The study examines how process/organizational innovation and R&D spending mediate the relationship between financial performance and the resource dependence theory in Fintech, providing insights into effective innovation strategies for achieving sustainable financial performance.

Data from 191 financial firms in Taiwan was collected from annual reports using the Taiwan Economic Journal (TEJ), a financial information provider. Content analysis was used to measure innovation activities and financial performance, with process and organizational innovation defined. R&D expenditures were also collected and used in statistical analysis to explore the relationship between variables.

This study on the financial services industry shows that process innovation and R&D expenditure positively impact firm performance, while organizational innovation may have a negative short-term effect but could have long-term benefits.

Limitations of this study include vulnerability to spurious effects and the use of data from only listed financial service firms. Future research should use more short-term performance data and include unlisted firms in the financial services industry to extend the study’s coverage.

This study extends resource dependence theory to financial services and explores the effects of process and organizational innovation on firm performance. Results show that internal process management boosts performance, while external collaboration with startups enhances Fintech innovation and efficiency, with positive short-term effects. The study highlights the importance of interacting with external organizations to access resources and improve performance in financial services.

While previous research has demonstrated the positive effects of digital business strategies on operational efficiency, financial performance and value creation, little is known about how such strategies influence innovation performance. To address the gap, this paper aims to investigate the impact of a firm’s digital business strategy on its innovation performance.

Drawing on the dynamic capability view, this study examines the mechanism through which a digital business strategy affects innovation performance. Data were collected from 215 firms in China and analyzed using multiple regression and structural equation modeling.

The empirical analysis reveals that a firm’s digital business strategy has positive impacts on both product and process innovation performance. These impacts are partially mediated by knowledge-based dynamic capability. Additionally, a firm’s digital business strategy interacts positively with its entrepreneurial orientation in facilitating knowledge-based dynamic capability. Moreover, market turbulence enhances the strength of this interaction effect. Therefore, entrepreneurial-oriented firms operating in turbulent markets can benefit more from digital business strategies to enhance their knowledge-based dynamic capabilities and consequently improve their innovation performance.

This study contributes to the understanding of how a firm’s digital business strategy interacts with entrepreneurial orientation in turbulent markets to shape knowledge-based dynamic capability, which in turn enhances the firm’s innovation performance.