The Moderating Role of Technological Efficiency on the Relationship between Mobile Banking Accessibility and Financial Performance of SMEs in Kajiado County, Kenya
Main Article Content
Keywords
Mobile banking, technological innovation, technology acceptance model, financial performance
Abstract
Mobile banking is a financial service offered by banks, enabling customers to access their accounts and carry out various transactions using mobile devices like smartphones and tablets. The extent to which businesses benefit from this service, however, is influenced by several factors. One key factor is technological efficiency, which describes an SME’s ability to effectively use mobile banking platforms. SMEs with higher technological efficiency are more likely to fully capitalize on the advantages of mobile banking, while those with lower efficiency may face challenges in tapping into its full potential. Therefore, the study evaluated the moderating role of technological efficiency on the relationship between mobile banking accessibility and the financial performance of SMEs in Kajiado County, Kenya. The study was grounded by Technology Acceptance Model (TAM) developed by Davis in 1986. The study employed descriptive research design. Data was collected using a closed-ended, five-point Likert scale questionnaire, which was self-administered to a sample of 58 respondents, representing the entire population of registered SMEs in Kajiado County, Kenya. The collected data was analyzed both descriptively (using means and standard deviation) and inferentially (through correlation, regression). The results indicated that mobile banking accessibility was positively and significantly linked with financial performance (r=.751, p<.01). Also, the technological efficiency was also positively and significantly related to the financial performance with (r= .750, p < .01). Further, the results showed that mobile banking accessibility significantly predicts SME’s financial performance (β=0.109, p < 0.05) and this relationship is partially moderated by technological efficiency (β =.2483, p < .001). This indicates that the ability of mobile banking services to improve financial performance is strengthened when SMEs have higher levels of technological efficiency. The study recommends that SMEs in Kajiado County should invest in improving their technological capabilities to attain the benefits of mobile banking. This can be achieved through capacity-building programs such as training on digital literacy and the use of mobile banking platforms.
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Alex Koech , Department of Finance and Accounting, Umma University, P.O. Box 713, Kajiado, Kenya
Department of Finance and Accounting, Umma University, Kajiado, Kenya
Anne Sogomo , Department of Finance and Accounting, Umma University, P.O. Box 713, Kajiado, Kenya
Department of Finance and Accounting, Umma University, Kajiado, Kenya