Effect of Organization Capabilities on the Growth of Fintech Providers in Kenya

Abstract

Purpose: The Fintech industry has become a central service sector that has revolutionized financial services provision and fostered financial inclusion. However, the revolutionary nature of the various Fintech firms has resulted in their operations being unclear as their conduct in the market remains unsupervised. Further the Fintechs fail in diversifying their products and services thus limiting their growth within the country. This research sought to establish the effect of organization capabilities on the business growth of fintech providers in Kenya. The specific objectives of the research sought to establish the effect of resource capabilities, marketing capabilities, leadership capabilities and technological capabilities on the business growth of fintech providers in Kenya. The survey was grounded on the dynamic capabilities theory. Methodology: The study used a descriptive cross-section research design with study population drawn from the association of Fintech providers in Kenya. There are a total of 63 firms that was considered in the study with the three senior managers from each of the firm considered as the respondent. The research utilized random sampling in selecting the 189 participant. Data collection was carried out using a structured questionnaire with drop and pick method applied in the study. The research data was analyzed using descriptive, correlation and regression analysis. Findings: The study established that there is a statistically significant relationship between organization capabilities and the business growth of fintech providers in Kenya (R2 = .487, Sig = .000). The findings of the first objective revealed that there was a positive and significant effect of resource capabilities on business growth of fintech providers in Kenya (coefficient β1 = .448, sig = .000<.05). Analysis of the second objective revealed that there was a positive and significant effect of marketing capabilities on business growth (β2 = .049, sig = .001<.05). The results of the third objective revealed that there was a positive and significant effect of leadership capabilities on business growth (β3 = .139, sig = .004<.05). Regression for the fourth variable showed that there was no significant effect of technological capabilities on business growth of Fintech Providers (β4 = .007, sig = .1936>.05). Unique Contribution to Theory, Practice and Policy: Based on the conclusions, the study recommends that the government should develop and maintain robust technology infrastructure that enables fintech providers to innovate and integrate advanced technologies. The study also recommends that fintech firms should continue to encourage open feedback and communication to build strong, collaborative teams. The study further recommends that firms should enhance social media marketing efforts to broaden market reach and engage with potential customers by investing in digital marketing tools.