E-Banking Technology Characteristics and Performance of Micro and Small Enterprise in Kenya: A Moderated Mediation Model of Adoption and Innovative Behavior

Beatrice Kitigin; Michael Korir; Kefa Chepkwony

doi:10.33215/sjom.v4i1.480

Authors

Beatrice Kitigin
Beatricekitigin@gmail.com
Moi University, Kenya
Michael Korir Moi University, Kenya
Kefa Chepkwony Moi University, Kenya

Keywords:

E-banking, Adoption, Innovative behavior, Kenya, Small to medium enterprises

Abstract

Purpose- The study investigated the indirect effect of innovative behavior on the relationship between e-banking technology characteristics and micro and small enterprises (MSE) performance through e-banking technology adoption in Kenya.

Design/methodology: The study employed an explanatory research design and a multistage sampling technique to collect cross-sectional data using a self-administered questionnaire. The sample size of 455 MSEs was drawn from a target population of 5915 in Vihiga County, Kenya.

Findings-The study findings showed a complementary mediation of e-banking technology adoption on the relationship between e-banking technology characteristics and MSE performance. Additionally, innovative behavior moderated the association between e-banking technology adoption and MSE performance but did not moderate the relationship between e-banking technology characteristics and e-banking technology adoption. Further, innovative behavior moderates the indirect relationship between e-banking technology characteristics and MSE performance via e-banking technology adoption. This effect was much more substantial, with a higher level of innovative behavior.

Practical Implications- These findings underscored the need for policy reviews for government, county, and private sector on e-banking technology adoption and MSE performance in Kenya.

Originality/value- The study's findings bring vital knowledge concerning the indirect effect of e-banking technology adoption and innovative behavior on the study variables.

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