Business Administration

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Browsing Business Administration by Subject "Financial inclusion"

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    Digital micro credit, age and gender on financial inclusion of small-scale traders in Chuka township, Tharaka Nithi county, Kenya.
    (Chuka University, 2025) Odira, David Otieno
    The motivation for the research stemmed from the recognition that while digital microcredit is widely promoted as a tool for poverty reduction and economic empowerment, its actual impact on financial inclusion remains uncertain. This study examined the relationship among Digital Micro Credit, age and gender on the Financial Inclusion of small-scale traders in Chuka township, Tharaka Nithi County. Understanding this relationship is critical for designing financial systems that support marginalized groups and foster equitable economic participation. The study was guided by the Theory of Financial Innovation and the Technology Acceptance Theory. A descriptive cross-sectional research design was adopted, targeting a population of 2,374 small-scale traders in Chuka Township. Using stratified and simple random sampling procedures, a sample of 182 traders was determined through Cochran’s formula. Data were collected using structured questionnaires, whose content validity was confirmed through expert review, while reliability was established using Cronbach’s Alpha, yielding an overall coefficient of 0.757, which was within acceptable thresholds. A pilot test involving 18 traders was carried out in Chogoria market to refine the instrument. Both descriptive and inferential statistical techniques were employed. Descriptive results revealed that a majority (54.7%) of respondents were female, while most traders (61.3%) were aged between 26–45 years. The average duration in business was 6–10 years, indicating considerable trading experience. Most respondents (68.5%) reported frequent use of digital loan platforms such as M-Shwari and KCB-MPesa, mainly for business restocking and emergency needs. Inferential analysis using Ordinary Least Squares (OLS) regression showed that digital microcredit alone had a positive but statistically insignificant effect on financial inclusion (β = 0.112, p > 0.05), leading to the retention of the null hypothesis (H01). However, age significantly moderated this relationship (β = 0.214, p < 0.05), with middle-aged traders (36–55 years) showing higher inclusion levels than younger groups. Similarly, gender significantly moderated the relationship (β = 0.198, p < 0.05), indicating that male traders benefitted more from digital microcredit services compared to female counterparts. The combined moderating effects of age and gender were statistically significant (R² = 0.063, F = 3.98, p < 0.05), confirming that demographic factors jointly shape financial inclusion outcomes. The study concludes that expanding digital microcredit access is necessary but insufficient as a stand-alone driver of financial inclusion. Theoretically, the study contributes to the literature by showing that digital innovations alone do not automatically close inclusion gaps, as their effectiveness depends on user characteristics and contextual factors. Practically, the findings highlight the importance of tailoring financial products to demographic realities while strengthening supporting services. Future research should investigate additional determinants of financial inclusion, adopt mixed-methods approaches, and assess long-term impacts of digital microcredit across diverse settings.
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    Effect of strategic innovations on the performance of savings and credit cooperative societies in Nairobi city county, Kenya
    (Chuka University, 2025-10) Bundi, Moses Kimanthi
    Strategic innovation is crucial for long-term success. Savings and Credit Cooperatives (SACCOs) in Kenya are instrumental in Gross domestic product (GDP) growth and uplifting the livelihoods of the people through job creation, poverty eradication by enhancing financial inclusion. Despite having a huge potential for growth, SACCOs in Nairobi City County have witnessed a decline in performance. While most of the SACCOs in Nairobi City County have started adopting various innovations, it is apparent from the performance that they are yet to harness well on these innovation strategies to improve their performance. Strategic innovation is a strategic management tool that can influence organizational performance, enhance competitiveness, adaptability and long-term sustainability. Anchored in the strategic management perspective, this study examined the effect of strategic innovations on performance of SACCOs in Nairobi City County. The specific objectives were to examine the effect of product innovation, process innovation and marketing innovation on performance and the moderating effect of SACCO size on the relationship between strategic innovation and performance. This study was anchored on Schumpeter theory of innovation, dynamic capability theory and resource based view. Descriptive research design was adopted with a population of 177 SACCOs in Nairobi City County. The study adopted a census technique and the respondents were 177 chief executive officers or their equivalent in the SACCOs. Data was collected using a closed-ended questionnaire and a data collection sheet. Data was analyzed using descriptive and inferential statistics and with the aid of Statistical Package of Social Sciences version 28.0. Cronbach’s alpha was used to test reliability. Construct validity was tested using regression analysis. The content validity was done through research supervisors who checked if the research instrument captures all the relevant aspects to answer the research questions. The pilot study involved 18 respondents from 18 SACCOs in Kiambu County which constitute ten percent of the targeted chief executive officers. Simple and multiple regression analysis was done to establish the relationship between variables. Correlation analysis was used to test the strength of the relationship between variables. Data was presented using tables and figures. T-test and F- test was used to test hypothesis at 5% significance level. The results of the study indicate that product innovation was statistically insignificant (β=-0.051, P-value=0.541>0.05). The results of the study indicate that process innovation and marketing innovation were statistically significant (β=0.634, P-value=0.000<0.05, β=0.548, P-value=0.000<0.05) respectively. The results of the study indicate that the interaction effect between strategic innovation and SACCO size was statistically significant (β=0.279, Pvalue=0.016<0.05). Savings and Credit Cooperatives are encouraged to adopt modern technologies and efficient systems that streamline operations, reduce costs, and improve service delivery. SACCOs should strengthen marketing efforts by embracing digital platforms, targeted campaigns, and member engagement strategies to increase visibility and attract new members. SACCO managers should continuously improve internal operations by adopting technology-driven process innovations such as automated loan processing systems, mobile banking applications, and real-time data management tools. Furthermore, policy makers should develop and implement flexible guidelines that support digital transformation, such as e-banking, automated loan systems, and electronic record management, without imposing excessive compliance burdens.