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.
Highlights
Worldwide, micro and small enterprises (MSEs) contribute to employment, regional development, and innovation. Haseeb, Lis, Haouas, and WW Mihardjo (2019) argue that MSEs are crucial to the economic stability of any country
The study purposed to know if the indirect relationship between e-banking technology characteristics and MSE performance through e-banking technology adoption was moderated by innovative behavior
Results of correlation shows that all variables were positively linked with MSE performance with e-banking technology having the highest relationship with r = .905, p < .01, followed by e-banking technology adoption with r = .799, p < .01, while innovative behavior had the lowest but positive association with r = .679 p
Summary
Micro and small enterprises (MSEs) contribute to employment, regional development, and innovation. Haseeb, Lis, Haouas, and WW Mihardjo (2019) argue that MSEs are crucial to the economic stability of any country. MSEs are considered the main economic drivers in both advanced and transitioning economies. They have a meaningful role to play in all economies in economic growth, poverty reduction, and job creation(Urbano, Aparicio, & Audretsch, 2019). In the UK, MSEs employ 67 percent of the workforce and account for more than 99 percent of businesses in most EU member states, 67 percent of jobs, and 59 percent of GDP (Haseeb et al, 2019). By 2013, the MSE sector had employed 6.4 million people, yielding up to 84% of total jobs, and contributed 18.4 percent of GDP (Liedholm & Mead, 2013)(. A national economic survey study by the Central Bank of Kenya reveals that MSEs account for 98 percent of all Kenyan businesses. The sector contributes 87 percent of all new jobs created and employs 77 percent of the workforce (Said & Kaplelach, 2019)
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