Purpose: The aim of this study is to investigate factors that influence investment in mutual funds by individual investors in a developing economy. Drawing insights from the theory of planned behaviour, the study identified and tested the effect of awareness, attitude, financial literacy and preference for other competing investments on intention to invest in mutual funds by individual investors. Design/Methodology/Approach: Data was collected from 280 respondents in Zambia. Data was analysed using correlations and hierarchical regression models. Findings: The study reveals that awareness and attitude towards mutual funds significantly influence intention to invest in mutual funds. Surprisingly, financial literacy and preference for other investments do not significantly affect an individual investor’s intention to invest in mutual funds. Implications/Originality/Value: This study contributes to the financial services marketing literature by increasing understanding of individual investors’ investment decisions and drivers that influence intention to invest in mutual funds in Zambia. The study recommends that mutual funds marketers should invest more in building awareness and positive attitude towards investment in mutual funds in order to develop retail demand. Also, investment companies and financial services marketing policy makers should carefully consider their financial literacy programmes as the study reveals that financial literacy and competing investments are not significant drivers.
Globally, SMEs play a vital role in a country's economic growth through employment creation, contributing to GDP and fostering competition and innovation. However, these SMEs face a plethora of challenges which threaten their stability and continued existence. Worldwide, mortality rate of SMEs is high, with the situation in Zambia being no different. The case is worse among SMEs suppliers in the Zambian mining sector, whose sole dependency is on the mines. These SMEs risk failure to obtain regular business contracts due to competitive pressures with international suppliers, possible mine closures, low mining activities and unstable international market prices. Scholars suggest that SMEs can improve their relative competitiveness and sales performance by enhancing their visibility and building customer relations through adoption of social media platforms such as Facebook. Surprisingly, there has been inconclusive findings, some reveal a positive relationship, others a negative one while others suggest a zero relationship between social media (Facebook) adoption, relative competitiveness and sales performance. In light of the mixed findings, this study seeks to examine this in the context of SME suppliers in the Zambian Mining sector where research on the subject is non-existent. Mixed method approach of data collection will be employed. Findings of this study will help decision making among SME managers and policy makers.
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