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Mediating Effects of Financial Innovations between Behavioral Factors and Financial Inclusion of Micro Enterprises in Kenya

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  • Gladys ByegonORCID iD verified by the author (show author details)

    Gladys Byegon

    Moi University, Kenya, Kenya

    0000-0002-1880-4539

    Corresponding author

    • Dr. Josephat Cheboi (show author details)

      Dr. Josephat Cheboi

      Moi University, Kenya, Kenya

      • Dr. Ronald Bonuke (show author details)

        Dr. Ronald Bonuke

        Moi University, Kenya, Kenya

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        Byegon, G., Cheboi, J., & Bonuke, R. (2019). Mediating Effects of Financial Innovations between Behavioral Factors and Financial Inclusion of Micro Enterprises in Kenya. SEISENSE Journal of Management, 2(6), 49-64. https://doi.org/10.33215/sjom.v2i6.227

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        Abstract

        Purpose: Understanding the mediating role of the adoption of financial innovations on the relationship behavioral factors and utilization of formal financial services was the main aim of this research.   The behavioral factors examined were self-control, confidence and social proof. The study is premised on behavioral finance theories.

        Design/Methodology: The positivist approach and explanatory research designs were adopted to understand the relationships between the variables under investigation. A sample of 486 owners/managers of licensed micro-enterprises in Nairobi, Kenya were selected using stratified random sampling technique. Primary data was collected through a structured questionnaire. Hypotheses were tested using Hayes and Zhao approach for mediation analysis.

        Findings: The results showed that financial innovations mediated the relationship between each of the behavioral factors and financial inclusion, that is; self- control (β =.0941, ρ= .00), confidence; (β = .1019, ρ = .00) and social proof (β = .1036, ρ = .00). 

        Practical implications: The study has brought into fore the mediating role of financial innovations on the relationship between the three behavioral factors and financial inclusion. Thus, practitioners are encouraged give due attention to behavioral factors and financial innovations in policy formulation and programs geared towards optimal utilization of financial services.

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        Copyright (c) 2019 Gladys Byegon, Dr. Josephat Cheboi, Dr. Ronald Bonuke

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        This work is licensed under a Creative Commons Attribution 4.0 International License.

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        Vol. 2 No. 6 (2019): SEISENSE Journal of Management View Issue

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        2025-122026-11

        Article history

        1. ReceivedSeptember 10, 2019
        2. AcceptedNovember 6, 2019
        3. Published November 20, 2019

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