The present study aims to identify and analyze critical factors influencing FinTech adoption and its impact on the performance of Small and Medium Enterprises (SMEs). FinTech technologies serve as innovative tools for facilitating financial processes and improving access to banking services, playing a pivotal role in the growth and sustainability of SMEs. However, the adoption of these technologies faces barriers such as lack of awareness, security concerns, and inadequate infrastructure.

This research employs the Technology-Organization-Environment (TOE) framework and the Theory of Reasoned Action (TRA) to examine FinTech adoption. The study population consists of senior and middle managers (financial and sales managers) of small and medium-sized manufacturing units located in Tehran's industrial towns. Given the unlimited population size, Cochran's formula was used to determine the sample size—a widely recognized method in social science and management research for its accuracy in estimating samples for large and unknown populations. With a 95% confidence level, the sample size was determined to be 384 respondents. Data was collected through a questionnaire comprising two sections: demographic information and questions related to key variables.

Partial Least Squares Structural Equation Modeling (PLS-SEM) was conducted using Smart PLS software for data analysis. The results revealed that relative advantage, compatibility, organizational readiness, managerial support, competitive pressure, consumer pressure, and government support have a significant positive impact on FinTech adoption, whereas perceived risk acts as an inhibiting factor. Furthermore, FinTech adoption directly enhances the performance of SMEs.