Title: The nexus of PESTLIED factors and P2P lending: evidence from Vietnam

Authors: Nguyen-Quynh-Nhu Ngo; Tien-Ngoc Hoang; Ngoc-Thao Nguyen; Huyen-Thuong Ha Thi

Addresses: Faculty of Finance and Banking, Ton Duc Thang University, Ho Chi Minh City, Vietnam ' School of Business and Economics, Duy Tan University, Da Nang City, 550000, Vietnam ' Faculty of Business Administration, Ton Duc Thang University, Ho Chi Minh City, 700000, Vietnam ' Faculty of Accounting, Ton Duc Thang University, Ho Chi Minh City, 700000, Vietnam

Abstract: This paper aims to investigate the impact of macro factors following the PESTLIED model on peer to peer (P2P) lending services in Vietnam. Applying the partial least squares-structural equation modelling (PLS-SEM) method with analysing 352 qualified responses from April to June, 2023, the findings show the direct effects and indirect effects of these factors on P2P lending practice in Vietnam. The legal, international, environmental, and demographic factors promote the use of P2P lending, whereas economic factors tend to limit P2P lending activities. Moreover, social factors positively influence political, economic, and technological factors, whereas legal factors encourage the remaining macroeconomic factors and have the most positive impact on technology and internationalisation factors. The paper also finds the mediating role of environmental and demographic factors in promoting P2P lending under the influence of legal factors. However, economic factors act as the mediating role in limiting P2P lending under the influence of social factors.

Keywords: P2P lending; Vietnam; political factor; economic factor; social factor; technological factor; legal factor; international factor; environmental factor; demographic factor.

DOI: 10.1504/JGBA.2023.141424

Journal for Global Business Advancement, 2023 Vol.16 No.4, pp.470 - 498

Received: 03 Mar 2024
Accepted: 19 May 2024
Published online: 12 Sep 2024 *

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