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Does Ethnocentrism Affect Consumers’ Buying of Local Products? Linking Financial Innovation, Local Product Competition and Firm Performance
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Date
2025
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Abstract
This chapter examines digitalized enterprises, focusing on ethnocentric consumer orientation, financial innovation, and product competitiveness as drivers of improved business performance. Consumers’ ethnocentric preference for domestically produced products leads to the domestic economy, ethnocentrism, and demand for financial innovation. Product market competitiveness is crucial for enterprises in a turbulent and challenging environment, motivating organizations to implement local product effectiveness, green finance, and digital innovation. Green technology-related factors and competitiveness have attracted the attention of scholars because these aspects affect product competition and organizational performance. Organizational challenging environment and digital financial innovation directives help improve the enterprise's performance. This paper explores the mediational influence of financial innovation on the connection between local L-PMC (product competition) and sustainable organizational performance. We have incorporated the data of digitalized enterprises listed with the Pakistan Stock Exchange that use financial innovation, local product competition, and digital finance to measure organizational profitability. We have applied the GMM model (Generalized-Method of Moment) to the data outcomes of the chosen model. This study reported the dataset of digitalized enterprises based on the data observations of six years and ran the analysis tests to draw study results. This study reports on descriptive outcomes and other statistical tests and extracts desired results. The findings revealed that digitalized financial innovation, technological advances, and a firm's local product competitiveness help improve business performance positively, leading to profitability. These factors increase local employees' productivity, reduce operational costs, and enhance a firm's competitive advantages. A digitalized industry can strengthen the link between local product competitiveness and digitalized financial innovation and improve organizational performance. Industries manufacturing digital and competitive local products play a vital role in financial progress through financial and digital innovation. Findings exhibit that location and region-oriented business policies help promote digital financial innovation and green technology implications. The outcomes contribute to the knowledge of green technology and financial innovation, which is helpful for economic growth. This framework measures the influence of local product competition and digitalized financial innovation on organizational performance.