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

Main Article Content

Beatrice Kitigin
Michael Korir
Kefa Chepkwony

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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How to Cite
Kitigin, B., Korir, M., & Chepkwony, K. (2021). E-Banking Technology Characteristics and Performance of Micro and Small Enterprise in Kenya: A Moderated Mediation Model of Adoption and Innovative Behavior. SEISENSE Journal of Management, 4(1), 13–30. https://doi.org/10.33215/sjom.v4i1.480
Section
Business Management

References

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Rawashdeh, A. (2015). Factors affecting adoption of internet banking in Jordan. International Journal of Bank Marketing.

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.

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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.

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.

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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Cespiva, R. B. (2018). Factors Influencing the Decision to Adopt a Digital Identity: A Correlational Study. Capella University.

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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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Hayes, A. F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach: Guilford publications.

Hughes, M., & Morgan, R. E. (2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial marketing management, 36(5), 651-661. DOI: https://doi.org/10.1016/j.indmarman.2006.04.003

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.

Iqbal, U., Gan, C., & Nadeem, M. (2020). Economic policy uncertainty and firm performance. Applied Economics Letters, 27(10), 765-770. DOI: https://doi.org/10.1080/13504851.2019.1645272

Kingshott, R. P., Sharma, P., & Chung, H. F. (2018). The impact of relational versus technological resources on e-loyalty: A comparative study between local, national and foreign branded banks. Industrial marketing management, 72, 48-58. DOI: https://doi.org/10.1016/j.indmarman.2018.02.011

Liedholm, C. E., & Mead, D. C. (2013). Small enterprises and economic development: the dynamics of micro and small enterprises: Routledge. DOI: https://doi.org/10.4324/9780203354735

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MacKinnon, D. (2012). Introduction to statistical mediation analysis: Routledge. DOI: https://doi.org/10.4324/9780203809556

Mafabi, S., Munene, J. C., & Ahiauzu, A. (2015). Creative climate and organisational resilience: the mediating role of innovation. International Journal of Organizational Analysis. DOI: https://doi.org/10.1108/IJOA-07-2012-0596

Martín-de Castro, G., Delgado-Verde, M., Navas-López, J. E., & Cruz-González, J. (2013). The moderating role of innovation culture in the relationship between knowledge assets and product innovation. Technological Forecasting and Social Change, 80(2), 351-363. DOI: https://doi.org/10.1016/j.techfore.2012.08.012

Marvel, M. R., Wolfe, M. T., & Kuratko, D. F. (2020). Escaping the knowledge corridor: How founder human capital and founder coachability impacts product innovation in new ventures. Journal of Business Venturing, 35(6), 106060. DOI: https://doi.org/10.1016/j.jbusvent.2020.106060

Masocha, R., & Dzomonda, O. (2018). Adoption of Mobile Money Services and the performance of small and medium enterprises in Zimbabwe. Academy of Accounting and Financial Studies Journal.

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.