E-Banking Technology Characteristics and Performance of Micro and Small Enterprise in Kenya A Moderated Mediation Model of Adoption and Innovative Behavior
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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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References
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Chong, A. Y.-L. (, 2013). Mobile commerce usage activities: The roles of demographic and motivation variables. Technological Forecasting and Social Change, 80(7), 1350-1359.
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Eid, R., & Agag, G. (2020). Determinants of innovative behavior in the hotel industry: a cross-cultural study. International Journal of Hospitality Management, 91, 102642.
Elechi, A., & Rufus, A. (2016). Cashless Policy in Nigeria and its Socio-Economic Impacts. Public Policy and Administration Research,(6), 10, 16-22.
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Nel, H.-A. (2017). Know-Your-Customer measures: mitigating money-laundering risks in mobile banking transactions. North-West University (South Africa), Potchefstroom Campus.
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Singhraul, B. P., & Garwal, Y. S. (2018). Cashless Economy Challenges and Opportunities in India. Pacific Business Review International, 10(9), 54-63.
Somekh, B., & Lewin, C. (2011). Theory and methods in social research: Sage.
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Wang, Y., & Zhang, X. (2009). Operationalization of corporate entrepreneurship and its performance implications in China. Journal of Chinese Entrepreneurship.
Wu, B., & Chen, X. (2017). Continuance intention to use MOOCs: Integrating the technology acceptance model (TAM) and task technology fit (TTF) model. Computers in Human Behavior, 67, 221-232.
Yamane, T. (1967). Elementary sampling theory.
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Zhao, X., Lynch Jr, J. G., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197-206.
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Durodolu, O. O. (2016). Technology acceptance model as a predictor of using information system'to acquire information literacy skills. Library Philosophy and Practice.
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Hussein, M. I. (2017). A mixed methods approach to investigate the electronic banking websites service quality: The case of Egypt. Cardiff Metropolitan University.
Igudia, P. O. (2017). A Qualitative Evaluation of the Factors Influencing the Adoption of Electronic Payment Systems (SMEs) by SMEs in Nigeria. European Scientific Journal, ESJ, 13, 31. DOI: https://doi.org/10.19044/esj.2017.v13n31p472
InterMedia. (2013). Mobile Money in Tanzania: Use.
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Migdadi, M. M., Zaid, M. K. S. A., Al-Hujran, O. S., & Aloudat, A. M. (2016). An empirical assessment of the antecedents of electronic-business implementation and the resulting organizational performance. Internet research. DOI: https://doi.org/10.1108/IntR-08-2014-0203
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Mwaniki, D., Kinyanjui, M., & Opiyo, R. (2017). Towards Smart Economic Development in Nairobi: Evaluating Smart City Economy Impacts and Opportunities and Challenges for Smart Growth Smart Economy in Smart Cities (pp. 749-790): Springer.
Nashold Jr, D. B. (2020). Trust in Consumer Adoption of Artificial Intelligence-Driven Virtual Finance Assistants: A Technology Acceptance Model Perspective. The University of North Carolina at Charlotte.
Nel, H.-A. (2017). Know-Your-Customer measures: mitigating money-laundering risks in mobile banking transactions. North-West University (South Africa), Potchefstroom Campus.
Rawashdeh, A. (2015). Factors affecting adoption of internet banking in Jordan. International Journal of Bank Marketing. DOI: https://doi.org/10.1108/IJBM-03-2014-0043
Rogers, E. M. (1995). Diffusion of Innovations: modifications of a model for telecommunications Die diffusion von innovationen in der telekommunikation (pp. 25-38): Springer.
Said, F. H., & Kaplelach, S. (2019). Mobile Banking Innovation and Financial Performance of Selected Commercial Banks in Kenya. Journal of Finance and Accounting, 3(3), 228-254.
Sarooghi, H., Libaers, D., & Burkemper, A. (2015). Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors. Journal of Business Venturing, 30(5), 714-731. DOI: https://doi.org/10.1016/j.jbusvent.2014.12.003
Saunders, M., Lewis, P., & Thornhill, A. (2012). Research methods for business students (6. utg.). Harlow: Pearson.
Saunders, M. N., & Lewis, P. (2012). Doing research in business & management: An essential guide to planning your project: Pearson.
Schumpeter, J. A. (1949). Economic history and entrepreneurial history. Essays: Joseph Schumpeter. New Brunswick, NJ: Transaction Publishers.
Sepasgozar, F. M. E., Ramzani, U., Ebrahimzadeh, S., Sargolzae, S., & Sepasgozar, S. (2020). Technology acceptance in e-governance: A case of a finance organization. Journal of Risk and Financial Management, 13(7), 138. DOI: https://doi.org/10.3390/jrfm13070138
Singhraul, B. P., & Garwal, Y. S. (2018). Cashless Economy Challenges and Opportunities in India. Pacific Business Review International, 10(9), 54-63.
Somekh, B., & Lewin, C. (2011). Theory and methods in social research: Sage.
Urbano, D., Aparicio, S., & Audretsch, D. (2019). Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned? Small Business Economics, 53(1), 21-49. DOI: https://doi.org/10.1007/s11187-018-0038-0
Wang, Y., & Zhang, X. (2009). Operationalization of corporate entrepreneurship and its performance implications in China. Journal of Chinese Entrepreneurship.
Wu, B., & Chen, X. (2017). Continuance intention to use MOOCs: Integrating the technology acceptance model (TAM) and task technology fit (TTF) model. Computers in Human Behavior, 67, 221-232. DOI: https://doi.org/10.1016/j.chb.2016.10.028
Yamane, T. (1967). Elementary sampling theory.
Yang, Q., Pang, C., Liu, L., Yen, D. C., & Tarn, J. M. (2015). Exploring consumer perceived risk and trust for online payments: An empirical study in China’s younger generation. Computers in Human Behavior, 50, 9-24. DOI: https://doi.org/10.1016/j.chb.2015.03.058
Zhao, X., Lynch Jr, J. G., & Chen, Q. (2010). Reconsidering Baron and Kenny: Myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197-206. DOI: https://doi.org/10.1086/651257
Zikmund, W., Babin, B., Carr, J., & Griffin, M. (2012). Business Research Methods (9th International ed.). South-Western College Publishing.