Impact of Blockchain Adoption, Regulatory Environment, and Institutional Investor Participation on FinTech Innovation
Abstract
This study investigates how blockchain integration, regulatory policies, and the participation of institutional investors impact fintech innovation in Jordanian fintech companies. A descriptive analytical approach was used to evaluate and summarize the effects of these factors on innovation in the sector. An electronic survey was conducted among 125 administrative personnel working in Jordan's fintech industry. The results indicate a strong presence of blockchain adoption, involvement of institutional investors, and overall fintech innovation in these companies. However, the regulatory landscape in Jordan's fintech sector was found to be moderate. Furthermore, the analysis reveals that both blockchain integration and the regulatory framework significantly influence fintech innovation, with a significance level of 0.05. In light of these findings, the study suggests the creation of strategies to promote blockchain adoption, aiming to enhance efficiency and innovation in the industry.
References
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[34] Wijayanti, H. T., & Sriyanto, S. (2025). Exploring the Impact of Fintech Innovation on Financial Stability and Regulation: A Qualitative Study. Golden Ratio of Finance Management, 5(1): 21-33. DOI:https://doi.org/10.52970/grfm.v5i1.423
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[2] Al-Ababneh, H. A., Alkhudierat, N. A., Barhoush, F. M. S., Almajali, A. H., Ibragimkhalilova, T., & Mugableh, M. I. (2025). Using blockchain and digital marketing to build trust in green projects. In E3S Web of Conferences (Vol. 614, p. 01016). EDP Sciences.
[3] Almusajin, F., AlDhmour, F., & Bugawa, A. (2023). Factors affecting intention to use blockchain technology in health records in Saudi Arabia: A case study of the Eastern Province. GJAT, 13(2): 1-28.
[4] Al-Tamimi, G. (2021). The concept of regulatory environment. Mawdoo3. https://mawdoo3.com/
[5] Banna, H., & Rana, M. S. (2023). Fostering economic prosperity through fintech-driven banking expansion and financial inclusion: Strategies and innovations. Reference Module in Social Sciences.
[6] Bhatnagr, P., Rajesh, A., & Misra, R. (2024). The impact of fintech innovations on digital currency adoption: A blockchain-based study in India. International Journal of Accounting & Information Management, 1(1).
[7] Bouabidah, L., & Zamouly, R. (2024). The regulatory environment and its impact on professional efficiency: A field study. Ma thesis, University of Tebessa, Algeria.
[8] Bryce, S. (2024). What is an organizational environment? - Definition & theory. Study.com. https://study.com/
[9] Cai, C. W. (2018). Disruption of financial intermediation by FinTech: A review on crowdfunding and blockchain. Accounting & Finance, 58(4): 965-992.
[10] Chen, J., & Ganti, A. (2024). Institutional investor: Who they are and how they invest. Investopedia. https://www.investopedia.com/
[11] Chen, M. A., Wu, Q., & Yang, B. (2019). How valuable is FinTech innovation? The Review of Financial Studies, 32(5): 2062-2106.
[12] Chen, Y. (2024). How blockchain adoption affects supply chain sustainability in the fashion industry: A systematic review and case studies. International Transactions in Operational Research, 31(6): 3592-3620.
[13] Fernandez-Vazquez, S., Rosillo, R., De La Fuente, D., & Priore, P. (2019). Blockchain in FinTech: A mapping study. Sustainability, 11(22), 6366.
[14] Friel, S., Schram, A., Frank, N., Arthur, M., Townsend, B., & Gajurel, H. (2024). Financialisation: A 21st century commercial determinant of health equity. The Lancet Public Health, 9(9): e705-e708.
[15] Jain, N. (2024). What is fintech innovation? Definition, innovations in fintech and how valuable is fintech innovation. Ideascale. https://ideascale.com/
[16] Kagan, J. (2024). Financial technology (Fintech): Its uses and impact on our lives. Investopedia. https://www.investopedia.com/
[17] Kaur, J., Kumar, S., Narkhede, B. E., Dabić, M., Rathore, A. P. S., & Joshi, R. (2024). Barriers to blockchain adoption for supply chain finance: The case of Indian SMEs. Electronic Commerce Research, 24(1): 303-340.
[18] Khamis, T. M. (2023). The impact of adopting blockchain technology on the quality of digital banking services: An applied study on commercial banks in Egypt. Scientific Journal of Business Research and Studies, 37(4): 437-521.
[19] Khan, S., Ullah, A., Liu, Y., Kashif, M. (2025). Examining the blockchain and green innovation technologies on sustainability (ESG): the moderating role of global financial integration. Journal of Sustainable Finance & Investment, 15(1): 145-181. DOI: https://doi.org/10.1080/20430795.2024.2441204
[20] Khatwani, R., Mishra, M., Bedarkar, M., Nair, K., & Mistry, J. (2023). Impact of blockchain on financial technology innovation in the banking, financial services, and insurance (BFSI) sector. Journal of Statistics Applications and Probability, 12(1): 181-189.
[21] Kumari, A., & Devi, N. C. (2022). The impact of FinTech and blockchain technologies on banking and financial services. Technology Innovation Management Review, 12(2): 1-11.
[22] Mahna, S. (2023). What is blockchain technology and how does it relate to cryptocurrencies? Mawdoo3. https://mawdoo3.com/
[23] Marstein, K. E. H. (2019). Improve auditing and privacy of electronic health records by using blockchain technology. Ma thesis, The University of Bergen, Norway.
[24] Navaretti, G. B., Calzolari, G., Mansilla-Fernandez, J. M., & Pozzolo, A. F. (2018). Fintech and banking. Friends or foes? Friends or foes.
[25] Papaioannou, G. J., & Karagozoglu, A. K. (2017). The mechanics of the issuance process: Institutional versus retail investors. Underwriting Services and the New Issues Market.
[26] Rabbani, M. R., Khan, S., & Thalassinos, E. I. (2020). FinTech, blockchain, and Islamic finance: An extensive literature review. International Journal of Economics and Business Administration, 8(2): 65-86.
[27] Rahim, M. J., Islam, M. J., Nath, S. D., Rahim, M. I. I., & Yeasir, A. (2024). Blockchain adoption in sustainable supply chains: Opportunities, challenges, and sustainability impacts across sectors. Annals of Human Resource Management Research, 4(2): 153-180.
[28] Ramachandran, T., & Stella, M. (2022). Behavioural intention towards cryptocurrency adoption among students: A fintech innovation. Journal of Positive School Psychology, 1(1): 5046-5053.
[29] Ramzy, T. A. (2024). The impact of block chains on the objectives and components of cost accounting: Applied study. Journal of Financial and Business Studies, 1(2): 414-433.
[30] Samuvel, D. K., & Pradeep, A. (2022). A study on the impact of fintech on the banking industry. International Journal of Advanced Research in Science, Communication and Technology, 2(1): 78-83.
[31] Shah, M. A. (2025). The Impact of FinTech on Entrepreneurial Intentions Among Young Indian Entrepreneurs Using Crowdfunding, Blockchain, and Mobile Payments. In Models, Strategies, and Tools for Competitive SMEs, 325-340. DOI: https://doi.org/10.4018/979-8-3693-4046-2.ch015
[32] Steward, W. (2024). What is an organizational environment? - Definition & theory. Study.com. https://study.com/
[33] Wei, L., & Chengshu, W. (2024). Company ESG performance and institutional investor ownership preferences. Business Ethics, the Environment & Responsibility, 33(3): 287-307.
[34] Wijayanti, H. T., & Sriyanto, S. (2025). Exploring the Impact of Fintech Innovation on Financial Stability and Regulation: A Qualitative Study. Golden Ratio of Finance Management, 5(1): 21-33. DOI:https://doi.org/10.52970/grfm.v5i1.423
[35] Zhang, T., Jia, F., & Chen, L. (2024). Blockchain adoption in supply chains: Implications for sustainability. Production Planning & Control, 1-24.
[36] Zou, Y., & Wang, M. (2024). Does environmental regulation improve energy transition performance in China? Environmental Impact Assessment Review, 104(1), 107335.
[37] Clarity Guides & Documentation. (2024). What is a regulated environment. Data Apex. https://www.dataapex.com/
Published
2025-06-30
How to Cite
ALMESTAREHI, Ahmad Abdel Rahim; AL-ABABNEH, Hassan Ali; MALKAW, Eyad Mohammad.
Impact of Blockchain Adoption, Regulatory Environment, and Institutional Investor Participation on FinTech Innovation.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 16, n. 2, p. 263-278, june 2025.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/8922>. Date accessed: 07 july 2025.
doi: https://doi.org/10.14505/tpref.v16.2(34).01.
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