Mobile Banking Adoption, Technological Efficiency and Financial Performance of Small and Medium Enterprises in Kajiado County, Kenya
Despite the widespread availability and adoption of mobile banking technology, research on its specific impact on the financial performance of Small and Medium Enterprises (SMEs) is lacking. The effective utilization of mobile banking by SMEs to enhance financial performance and the factors influencing its effectiveness remain unclear. This study aimed at examining the relationship between mobile banking adoption and the financial performance and the moderational effect of Technological efficiency of SMEs in Kajiado county, Kenya. A descriptive research design was adopted targeted a population of fifty-eight (58) licensed SMEs in Kajiado County, Kenya. The study was guided by Technological Acceptance Model which is widely adopted theory for examining the behavioral intention of using computers by the users. Data was collected using self-administered, structured questionnaires and items were grounded on a five-point Likert scale with data analysis being done using descriptive and inferential statistics. The hypotheses of the study were tested using multiple regression models and Hayes process macro. The results showed that Mobile banking adoption significantly predicts SME’s financial performance (β=0.140, p < 0.05) and this relationship is partially mediated by Technological efficiency (β =.239, p < .001, CI=0.029, 0.112). Theoretically, the study supported the incorporation of the key Mobile banking adoption, and Technological Efficiency, where the outcome of the results indicated the significant relationship in achieving financial performance of SMEs. Finally there is need to undertake similar studies covering other geographical locations to make generalization of this study.
Al-Matari, E. M. (2022). Do corporate governance and top management team diversity have a financial impact among financial sector? A further analysis. Cogent Business & Management, 9(1), 2141093.
Arum, C., Fraser, H., Artenie, A. A., Bivegete, S., Trickey, A., Alary, M., ... & Strathdee, S. A. (2021). Homelessness, unstable housing, and risk of HIV and hepatitis C virus acquisition among people who inject drugs: a systematic review and meta-analysis. The Lancet public health, 6(5), e309-e323.
Berisha, G., & Pula, J. S. (2015). Defining Small and Medium Enterprises: a critical review. Academic Journal of Business, Administration, Law and Social Sciences, 1(1), 17-28.
Bernacki, M. L., Greene, J. A., & Crompton, H. (2020). Mobile technology, learning, and achievement: Advances in understanding and measuring the role of mobile technology in education. Contemporary Educational Psychology, 60, 101827
Bolenz, F., & Pachur, T. (2022). Exploring the structure of predecisional information search in risky choice. In Annual Meeting of the Cognitive Science Society (pp. 2297-2302). Retrieved from https://escholarship. org/uc/item/4fx494f9.
Busch, P. A., & McCarthy, S. (2021). Antecedents and consequences of problematic smartphone use: A systematic literature review of an emerging research area. Computers in human behavior, 114, 106414.
Chukwuere, J. E. (2021). Theoretical And Conceptual Framework: A Critical Part of Information Systems Research Process and Writing. Review of International Geographical Education Online, 11(9).
Efendi, D., & Kusuma, E. A. (2021). The role of the management accounting system and decision-making style on managerial performance. Jurnal keuangan dan
Perbankan, 25(1), 144-161.
Hanna, A. J., Turner, J. D., & Walker, C. B. (2020). News media and investor sentiment during bull and bear markets. The European Journal of Finance, 26(14), 1377-1395.
Jayawardhana, Y., Gunatilake, S. R., Mahatantila, K., Ginige, M. P., & Vithanage, M. (2019). Sorptive removal of toluene and m-xylene by municipal solid waste biochar: Simultaneous municipal solid waste management and remediation of volatile organic compounds. Journal of environmental management, 238, 323-330.
Jayeola, O., Sidek, S., Abdul-Samad, Z., Hasbullah, N. N., Anwar, S., An, N. B., ... & Ray, S. (2022). The mediating and moderating effects of top management support on the cloud ERP implementation–financial performance relationship. Sustainability, 14(9), 5688.
Johansson, E., Gustafsson, L. G., Berglund, S., Lindborg, T., Selroos, J. O., Liljedahl, L. C., & Destouni, G. (2015). Data evaluation and numerical modeling of hydrological interactions between active layer, lake and talik in a permafrost catchment, Western Greenland. Journal of Hydrology, 527, 688-703.
Ligon, E., Malick, B., Sheth, K., & Trachtman, C. (2019). What explains low adoption of digital payment technologies? Evidence from small-scale merchants in Jaipur, India. PloS one, 14(7), e0219450.
Maruping, L. M., & Matook, S. (2020). The evolution of software development orchestration: current state and an agenda for future research. European Journal of Information Systems, 29(5), 443-457.
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, 22(3), 1-11.
Mathew, S., Yella, A., Gao, P., Humphry-Baker, R., Curchod, B. F., Ashari-Astani, N., ... & Grätzel, M. (2014). Dye-sensitized solar cells with 13% efficiency achieved through the molecular engineering of porphyrin sensitizers. Nature chemistry, 6(3), 242-247.
Mwavali, A. (2021). A Framework for Cloud Computing Adoption by SMEs in Kenya. World Journal of Innovative Research, 10, 111-117.
Nickerson, C. (2022). Positivism in sociology: definition, theory & examples. Simply Psychology.
Okafor, A., Adeleye, B. N., & Adusei, M. (2021). Corporate social responsibility and financial performance: Evidence from US tech firms. Journal of Cleaner Production, 292, 126078.
Omar, M. A. (2021). Mobile money in Somalia: why mobile payment services in foreign currency replaces the Somali shilling as local currency? Study on EVC-plus in South and Central Somalia.
Paul Jr, M., Molua, E. L., Nzie, J. R. M., & Fuh, G. L. (2020). Production and supply of tomato in Cameroon: Examination of the comparative effect of price and non-price factors. Scientific African, 10, e00574.
Rathee, G., Balasaraswathi, M., Chandran, K. P., Gupta, S. D., & Boopathi, C. S. (2021). A secure IoT sensors communication in industry 4.0 using blockchain technology. Journal of Ambient Intelligence and Humanized Computing, 12, 533-545
Shaikh, A. A., Glavee-Geo, R., & Karjaluoto, H. (2021). How relevant are risk perceptions, effort, and performance expectancy in mobile banking adoption?. In Research Anthology on Securing Mobile Technologies and Applications (pp. 692-716). IGI Global.
Souiden, N., Ladhari, R., & Chaouali, W. (2021). Mobile banking adoption: a systematic review. International Journal of Bank Marketing, 39(2), 214-241.
Talom, F. S. G., & Tengeh, R. K. (2019). The impact of mobile money on the financial performance of the SMEs in Douala, Cameroon. Sustainability, 12(1), 183.
Tiwari, R., & Buse, S. (2020). Key issues in managing innovation in a Global and digital World: an introduction to the Festschrift in honor of Cornelius Herstatt. In Managing Innovation in a Global and Digital World: Meeting Societal Challenges and Enhancing Competitiveness (pp. 1-13). Springer Fachmedien Wiesbaden.
Zafar, A., & Mustafa, S. (2017). SMEs and its role in economic and socio-economic development of Pakistan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(4).