Purpose- Although previous papers have attempted to explore the determinants of financial inclusion, few studies have interrogated the role of innovativeness in financial addition. This study examines the moderating role of entrepreneur innovativeness on the relationship between strategic orientation and financial inclusion
Design/Methodology - We used two indicators to measure financial inclusion; digital financial inclusion scale and traditional financial inclusion scale. Three proxies were used to measure strategic orientation; learning orientation, market orientation, and technology orientation. Survey data obtained from 634 women entrepreneurs was used, and the hypothesis was tested using moderated regression analysis.
Findings - The empirical results supported the hypothesis that innovative entrepreneur moderates the relationship between strategic orientation and financial inclusion. In particular, the results indicated that at higher levels of entrepreneur innovativeness, learning orientation has a stronger effect on financial inclusion. Similarly, the results also indicated that at high levels of entrepreneur innovativeness, technology orientation affects financial inclusion. In contrast with the other findings showing a positive moderating effect, at higher levels of entrepreneur innovativeness, the impact of market orientation on financial inclusion is low.
Practical Implications - The findings are useful to the government and practitioners for designing policies and training programs geared to increasing the level of financial inclusion among women Small and Medium Enterprises.
The aim of the paper was to establish firm characteristics on financial inclusions; evidence from women owned enterprises in Kenya. This study employed positivism approach while adopting an explanatory survey research. The target population of study comprised 8000 women owned SMEs in the North Rift Region Economic Bloc Counties. Cluster sampling was employed to group SMEs in seven Counties, while simple random was used to select a sample size of 723. Using multiple regression model the findings revealed a negative and significant effect of firm age on financial inclusion and firm size has a positive and significant effect on financial inclusion. These results are useful in informing policies around educating women SMEs. Government of Kenya has invested enormous resources into SMEs growth. Therefore, these results will be used to package the literacy education geared on factors that contribute highest to financial inclusion. From the findings of the study, older SMEs are encouraged to keep up to date of the trends in business
The main purpose of the study was to determine the effect of entrepreneur innovativeness on financial inclusion among women operated enterprise. The study used positivism approach in explanatory design. Using a survey of 723 women owned enterprises the study used multiple regression framework to test the hypotheses that entrepreneur innovativeness does not have effect on financial inclusion. The variable proxies were obtained from literature review and indices were constructed to measure them. Findings showed that entrepreneur innovativeness emerged as a strong predictor of financial inclusion of women operated enterprises in rural areas. Specifically, the analysis revealed that female entrepreneurs who are innovative are more likely to be financially included. Based on the findings, adopting modern financial technologies such as Mpesa, agency banking, credit cards are more likely to improve financial inclusions among women owned enterprises. Therefore, the study has attempted to contribute to financial innovation theory building through establishment of relationship innovation and financial inclusion. The main contribution of the study was on establishing the pivotal role of entrepreneur innovation as an enabler of financial inclusion. In addition, policy recommendations and areas for further study by finance scholars have been suggested.
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