Assessing the Effect of FinTech on Environmental and Financial Performance via CSR Initiatives: A Case Study of Mashhad Waste Management Organization

Abstract
Introduction
Today, one of the primary challenges facing societies is environmental protection and the management of natural resources. With rapid population growth and industrial development, issues such as pollution, waste generation, and climate change have become serious threats to both the environment and human health. In this context, various organizations and institutions have recognized that the use of financial technology (FinTech) can serve as an effective solution for the optimal and sustainable management of resources, as well as for mitigating negative environmental impacts. Accordingly, investigating the impact of FinTech on the environmental and financial performance of the Mashhad Waste Management Organization is an urgent necessity. This study not only contributes to improving the current situation but may also represent an effective step toward achieving sustainable development and resource optimization, thereby enhancing social welfare and citizens’ quality of life. Given the importance of this subject, further research is required on the impact of FinTech on local management, particularly in the fields of recycling and waste management. Such research can contribute to a better understanding of the complex dynamics among technology, the environment, and social responsibility across various domains, ultimately leading to more effective decision-making structures. The results of this research could be directly beneficial to the managers of the Mashhad Waste Management Organization by providing policy recommendations such as implementing blockchain platforms for waste budget transparency, digital reward systems for source segregation, and the financing of biogas projects through FinTech. Such measures could lead to cost reduction, increased revenue, pollution mitigation, and an improvement in Mashhad’s standing in urban sustainability indices.
Objective
The main research question is as follows: What is the impact of FinTech on environmental and financial performance, considering the mediating role of corporate social responsibility (CSR) initiatives in the Mashhad Waste Management Organization? Accordingly, this research may provide solutions for improving the management of the financial resources of the Waste Management Organization through the use of modern financial technologies.
Research Method
This study is applied in terms of purpose and survey-based and descriptive in terms of methodology. The statistical population includes senior managers as well as accounting and finance experts in Mashhad Municipality and the Waste Management Organization. Given the relatively limited size of the statistical population, Klein’s rule of thumb was used to determine the sample size. This method suggests that, in structural equation modeling studies, the sample size may be set at five to ten times the number of questionnaire items. Since the questionnaire consisted of 20 items, at least 100 questionnaires needed to be distributed. Through the researcher’s follow-up efforts, 125 usable questionnaires were obtained. Non-random convenience sampling was employed, and the questionnaires were distributed both in printed form and online. Once the required number of questionnaires had been reached, the sampling process was stopped. The questionnaire used in this study was based on a five-point Likert scale and was adopted from Yuan (2025). The data were analyzed using structural equation modeling and PLS software. The mediation hypotheses were tested using the bootstrapping method.
Results
The results of factor analysis and Cronbach’s alpha indicated the validity and reliability of the measurement instrument. The overall model fit index was 0.10, which was considered acceptable. Statistical analysis showed that all research hypotheses were confirmed at the 95% confidence level.
Conclusion
According to the findings, FinTech improves environmental and financial performance, as well as social responsibility measures, in the MAP Organization. The implementation of an integrated and smart payment system for waste services is proposed through the creation of a mobile application or web platform through which citizens can electronically pay all costs related to waste management, such as fees and specific service charges. The use of blockchain technology to enhance transparency in the recycling supply chain is also proposed through the establishment of a system for recording and tracking recycled materials from the source (households/units) to final processing and recycling centers. In addition, the development of microfinancing and crowdfunding platforms for sustainable projects may be beneficial through the creation of a platform in which citizens or small investors can directly invest in innovative projects related to waste management and the circular economy. Such applications could include projects such as home composting, small recycling workshops, or the development of applications related to waste separation. The use of FinTech in financial sectors around the world is still at an early stage. Moreover, removing technical and legal barriers to the use of FinTech may be beneficial for all industries, including the waste management sector.