Determinants of integrated challenger bank peer-to-peer lending platform adoption among malaysian MSMEs : Faiz Azizul a mediation and moderation model /

Faculty of Industrial Management

Thesis (Doctor of Philosophy) -- Universiti Malaysia Pahang Al Sultan Abdullah - 2026

Includes bibliographical references

Malaysian micro, small, and medium enterprises (MSMEs) continue to face a persistent financing gap despite high formal account ownership and strong national support for financial inclusion. Digital Banks and Peer-to-Peer (P2P) lending offer an alternative financing pathway, but their usefulness depends on whether MSME owners are willing to adopt them as credible business financing channels. Existing technology adoption studies have often treated Malaysian MSMEs as a single group, with limited attention to the institutional and market differences between Bumiputera and non-Bumiputera enterprises. This study examines the determinants of Integrated Challenger Bank Peer-to-Peer (CB-P2P) Lending Platform adoption among Malaysian MSMEs, comparing Bumiputera and non-Bumiputera owners using an extended Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) model that adds Perceived Risk as a negative predictor and positions Hedonic Motivation as both a direct predictor and a mediating variable. A quantitative cross-sectional survey of 398 Malaysian MSMEs (199 Bumiputera, 199 non-Bumiputera) was analysed using Partial Least Squares Structural Equation Modelling, with additional tests for endogeneity and cross-group comparison. Thirty-two hypotheses were tested, covering the core UTAUT2 predictors, the moderating effects of age, gender, and experience, the effect of Perceived Risk, and the mediating role of Hedonic Motivation. The results reveal two distinct adoption pathways. Bumiputera MSMEs adopt the platform through a more affective pathway: Facilitating Conditions and Hedonic Motivation significantly predicted their Behavioural Intention, and this Hedonic Motivation effect, together with its indirect effect through Facilitating Conditions, was significantly stronger than for non-Bumiputera MSMEs. Age and gender also moderated the Hedonic Motivation pathway within this group. Non-Bumiputera MSMEs, by contrast, adopt through a more utilitarian pathway shaped by Performance Expectancy and Perceived Risk, with age moderating the Performance Expectancy relationship and gender moderating the Price Value relationship. These findings suggest that one-size-fits-all adoption strategies are unlikely to work equally well across Malaysia's two largest MSME ownership groups. The study contributes to technology adoption literature by extending UTAUT2 to a hybrid financial technology context, clarifying the role of Perceived Risk, and showing how Hedonic Motivation can mediate adoption intention in MSME financing decisions. Practically, the findings support segment-specific adoption strategies for digital banks, P2P operators, policymakers, and financial inclusion programmes seeking to reduce Malaysia's MSME financing gap.