Understanding competitiveness in fintech: Examining the effects of innovativeness and competitive intensity

Abstract

This research explores how innovativeness and competitive intensity impact the competitiveness of fintech startups in Indonesia, with special attention to the moderating effect of competitive intensity. Grounded in the Resource-Based View (RBV) and Dynamic Capabilities Theory, the study seeks to examine how internal strategic capabilities and external competitive forces interact to influence firm competitiveness within the dynamic fintech landscape. Based on a survey of 144 fintech companies in Indonesia and analyzed using Partial Least Squares Structural Equation Modeling, the results confirm that innovativeness and competitive intensity are both significant predictors of firm competitiveness. Nevertheless, the analysis revealed that competitive intensity does not significantly moderate the relationship between innovativeness and competitiveness. This outcome implies that the positive effect of innovativeness on firm competitiveness persists irrespective of the degree of external market competition. The study enriches existing literature by offering empirical insights from the emerging fintech sector in Indonesia and underscores the enduring strategic value of innovation in maintaining competitiveness. Practical implications for fintech leaders and directions for future scholarly inquiry are also presented.