E-Banking Technology Characteristics, Innovative Behaviour and E-Banking Technology Adoption in Vihiga County, Kenya
Technological transformation is gradually shaping the operations of micro and small enterprise sector. The call for e-banking technology adoption has emerged as a result of challenges associated with transactions such as bills payment, funds transfer, deposits, payments of suppliers, receiving payments and maintaining business relationships. Given e-banking technology characteristics, past studies have sought to look into it in relation to e-banking technology adoption. However, to fill the existing gap, the study used innovative behaviour to moderate the link between the study variables. The main objective was to assess the moderating effect of innovative behaviour on relationship between E-banking technology characteristics and E-banking technology adoption in Vihiga County, Kenya. Specifically, the study evaluated the effect of e-banking technology characteristics on e-banking technology adoption; the moderating effect of innovative behaviour on e-banking technology characteristics and e-banking technology adoption. As guided by diffusion of innovation theory, positivism research paradigm and explanatory research design, 5915 MSEs were targeted. Using multi-stage sampling technique, data from 455 Micro and Small Enterprises (MSEs) was analyzed. The findings indicated that there is a significant relationship between e-banking technology characteristics and e-banking technology adoption (β=.798, p=.000 with 64.5% prediction. The moderating variable, innovative behaviour, had an insignificant relationship between e-banking technology characteristics and e-banking technology adoption. Based on these results, it is recommended that the government and the policy makers should formulate regulatory requirements to make entrepreneurs switch from cash to e-banking technology. This will in turn change the mind-set of the entrepreneurs to see technology adoption as a positive move towards enterprise performance. It is expected that the findings of the study should form a basis for policy reviews for government, county and private sector on e-banking technology characteristics and e-banking technology adoption.
Aladwani, A. M. (2001). Online banking: a field study of drivers, development challenges, and expectations. International journal of information management, 21(3), 213-225.
Ashourizadeh, S., Chavoushi, Z. H., & Schøtt, T. (2014). People’s confidence in innovation: a component of the entrepreneurial mindset, embedded in gender and culture, affecting entrepreneurial intention. International Journal of Entrepreneurship and Small Business, 23(1-2), 235-251.
Bayero, M. A. (2015). Effects of Cashless Economy Policy on financial inclusion in Nigeria: An exploratory study. Procedia-Social and Behavioral Sciences, 172, 49-56.
Blattman, C., Fiala, N., & Martinez, S. (2014). Generating skilled self-employment in developing countries: Experimental evidence from Uganda. The Quarterly Journal of Economics, 129(2), 697-752.
Borland, A. M., Barrera Zambrano, V. A., Ceusters, J., & Shorrock, K. (2011). The photosynthetic plasticity of crassulacean acid metabolism: an evolutionary innovation for sustainable productivity in a changing world. New Phytologist, 191(3), 619-633.
CBK, C. (2010). Bank supervision annual report: Central Bank of Kenya Nairobi.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS quarterly, 319-340.
Dess, G., & Lumpkin, G. (2005). Entrepreneurial orientation as a source of innovative strategy. Innovating strategy process, 1, 3-9.
Gikandi, J. W., & Bloor, C. (2010). Adoption and effectiveness of electronic banking in Kenya. Electronic commerce research and applications, 9(4), 277-282.
Halim, H. A., Ahmad, N. H., Ramayah, T., & Hanifah, H. (2014). The growth of innovative performance among SMEs: Leveraging on organisational culture and innovative human capital. Journal of Small Business and Entrepreneurship Development, 2(1), 107-125.
Haroon Hafeez, M., Shariff, M., Noor, M., & Mad Lazim, H. (2012). Relationship between entrepreneurial orientation, firm resources, SME branding and firm’s performance: is innovation the missing link? American Journal of Industrial and Business Management, 2(04), 153-159.
Karjaluoto, H., Koenig‐Lewis, N., Palmer, A., & Moll, A. (2010). Predicting young consumers' take up of mobile banking services. International Journal of Bank Marketing.
Khalifa, M., & Cheng, S. K. (2002). Adoption of mobile commerce: role of exposure. Paper presented at the Proceedings of the Annual Hawaii International Conference on System Sciences.
Kiwanuka, R. N., & Machethe, C. (2016). Determinants of smallholder farmers’ participation in Zambian dairy sector’s interlocked contractual arrangements. Journal of Sustainable Development, 9(2), 230-245.
Kole, E. (2000). Connecting Women from Developing Countries to the Internet: Searching for an.
Laoye, J. (2011). Benefits of cashless economy by experts. Retrieved online at http://www. zumalist. com on the, 10.
Lee, C. M., & Swaminathan, B. (2000). Price momentum and trading volume. the Journal of Finance, 55(5), 2017-2069.
Liedholm, C. E., & Mead, D. C. (2013). Small enterprises and economic development: the dynamics of micro and small enterprises: Routledge.
Lin, H.-F. (2011). An empirical investigation of mobile banking adoption: The effect of innovation attributes and knowledge-based trust. International journal of information management, 31(3), 252-260.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of management Review, 21(1), 135-172.
Masinge, K. (2011). Factors influencing the adoption of mobile banking services at the Bottom of the Pyramid in South Africa. University of Pretoria.
Neuman, W. L. (2014). Basics of social research: Pearson/Allyn and Bacon.
Nutley, S., Davies, H., & Walter, I. (2002). Conceptual synthesis 1: learning from the diffusion of innovations. St Andrews: Research Unit for Research Utilisation, Department of Management, University of St Andrews.
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.
Rogers, E. M. (2003). Diffusion of innovations/everett m. rogers. NY: Simon and Schuster, 576.
Rogers, E. M., & Singhal, A. (2003). Empowerment and communication: Lessons learned from organizing for social change. Annals of the International Communication Association, 27(1), 67-85.
Sivabalan, P., Booth, P., Malmi, T., & Brown, D. A. (2009). An exploratory study of operational reasons to budget. Accounting & Finance, 49(4), 849-871.
Sohail, M. S., & Al-Jabri, I. M. (2014). Attitudes towards mobile banking: are there any differences between users and non-users? Behaviour & Information Technology, 33(4), 335-344.
Soininen, J. S., Puumalainen, K., Sjögrén, H., Syrjä, P., & Durst, S. (2013). Entrepreneurial orientation in small firms–values-attitudes-behavior approach. International Journal of Entrepreneurial Behavior & Research.
Tidd, J. (2006). A review of innovation models. Imperial College London, 16.
Tobbin, P., & Kuwornu, J. (2011). Adoption of mobile money transfer technology: structural equation modeling approach. European Journal of Business and Management, 3(7), 59-77.
Wang, L., Rau, P.-L. P., & Salvendy, G. (2011). Older adults' acceptance of information technology. Educational Gerontology, 37(12), 1081-1099.
Waterman, H., Marshall, M., Noble, J., Davies, H., Walshe, K., Sheaff, R., & Elwyn, G. (2007). The role of action research in the investigation and diffusion of innovations in health care: the PRIDE project. Qualitative Health Research, 17(3), 373-381.
Wolfe, R. A. (1994). Organizational innovation: Review, critique and suggested research directions. Journal of management studies, 31(3), 405-431.
Woodward, R. (2009). The organisation for economic co-operation and development (OECD): Routledge.