Validation of the New Financial Product Development (NEPD) Model Based on Financial Management Behavior Toward Sustainable Development
Keywords:
Financial management behavior, Sustainable development, Financial innovation, NEPD model, Capital marketAbstract
This study aims to design and validate a New Financial Product Development (NEPD) model grounded in financial management behavior to promote sustainable development in Iran’s financial system. This mixed-method research employed grounded theory in the qualitative phase to identify the model’s core dimensions and structural equation modeling (SEM) in the quantitative phase to test hypothesized relationships. Semi-structured interviews were conducted with 19 financial and academic experts, and a questionnaire was distributed among 384 managers and investors in the capital market. Data were analyzed using Atlas.ti, SPSS, and SmartPLS. Path analysis results revealed that causal conditions (β = 0.644) exerted the strongest effect on the core phenomenon of new financial product development. Contextual (β = 0.324) and intervening conditions (β = 0.373) significantly influenced strategies, while strategies strongly affected outcomes (β = 0.762). Bootstrap results confirmed significant indirect effects, indicating that innovative strategies mediate the impact of institutional and managerial variables on sustainable outcomes. The validated model demonstrates that forward-looking financial management behavior, institutional capacity, and innovative strategies constitute the three essential pillars of sustainable financial development. The NEPD model integrates behavioral and institutional dimensions and offers a localized framework for enhancing financial innovation and sustainability in emerging financial markets.
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Copyright (c) 2025 Fatemeh Fallah, Shiba Masoumi, Seyed Ali Nabavi Chashmi, Kaveh Azinfar (Author)
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