Search results

This paper aims to assess the impact of digital financial innovation on financial system development in Common Market for eastern and Southern Africa (COMESA). This paper evaluates the dynamic relationship between digital financial innovation measures and financial system development using time series data from COMESA countries for the period 1997–2019.

A dynamic autoregressive distributed lag model (ARDL) was adopted and the mean group (MG), pooled mean group (PMG) and dynamic fixed effect (DFE) of the model were estimated to evaluate the short- and long-run impact. In addition, the dynamic generalized method of moments (DGMM) was adopted for a robustness check. The Hausman test results show PMG to be the most consistent and efficient estimator, while the coefficient of lagged dependent variable of different GMM is less than the fixed effect coefficient, and, as such, suggests system GMM is the most suitable estimator. Data for the study were sourced from World Bank Development Indicator (WDI, 2020), World Governance Indicator (WGI, 2020) and World Bank Global Financial Development Database (GFD, 2020).

The result shows that digital financial innovation significantly impacts financial system development in the long run. As such, the evidence revealed that automated teller machines (ATMs), point of sale (POS), mobile payments (MP) and mobile banking are significant and contribute positively to financial system development in the long run, while mobile money (MM) and Internet banking (INB) are insignificant but exhibit positive and inverse relationship with financial development respectively. Further investigation revealed that institutional quality and a stable macroeconomic environment including their interactive term are significantly imperative in predicting financial system development in the COMESA region.

Researchers recommend a cohesive and conscious policy that would checkmate the divergence in the short run and suggest a common regional innovative financial strategy that could be pursued to incentivize technology transfer needed to promote financial system development in the long run. More so, plausible product and process innovations may be adapted to complement innovative institutions in the different components of the COMESA financial system.

Digital financial innovation services if well managed increase the inherent benefits in financial system development.

To the best of the authors’ knowledge, this paper presents new background information on digital financial innovation that may stimulate the development of the financial system, particularly in the COMESA region. It also exposes the relevance of digital financial innovation, institutional quality and stable macroeconomic environment as well as their interactive effect on COMESA financial system development.

This paper aims to examine the impact of knowledge management functions (acquisition, integration and utilization) on digital financial innovation through the moderating role of managers’ demographic characteristics (age, sex, education, experience and position) in commercial banks operating in Lebanon.

To accomplish this aim, a conceptual framework based on knowledge-based theory and literature review was developed the data for this research was collected through a self-administered questionnaire with 181 respondents. The target respondents were managers of commercial banks in Lebanon.

The empirical findings of the study suggest that the practice of knowledge management functions practice has a positive and significant relationship with digital financial innovation. The findings also provide support for the moderating effect of only two demographic characteristics of bank managers; experience and position on the relationship between knowledge management and digital financial innovation in commercial banks in Lebanon.

The managers of commercial banks in Lebanon and similar countries could use the study findings to better understand the practices of knowledge management in the banks and also the skills acquired or existing in the individuals working in their organizations and is also helpful to enhance their level of digital financial innovations.

This study has investigated the unexplored impact of knowledge management on digital financial innovation via moderating role of managers' demographic characteristics among commercial banks operating in Lebanon as a developing country.

There are uncertainties concerning how innovators can successfully venture into disruptive innovations and how incumbents can react to the emergence of such innovations. Disruptive digital innovations, which use information technology to disrupt business contexts and can evolve rapidly to either successes or failures, have unique challenges. The literature has largely remained silent concerning these. Also, existing studies often focus on innovations originating in developed economies and just on successful cases. There is a lack of comparative focus on successful and failure cases emerging across economies. The purpose of this paper is to fill these gaps.

This paper assesses the evolution of disruptive digital innovations in various contexts through a financial management-motivated conceptual framework. Contrary to existing works, this paper focuses on both successful and failure cases and regards the influence of various stakeholders further to innovators and incumbents to explain the successes or failures of the innovation.

There are some common success factors for disruptive digital innovation. These include an inherent focus on social value, alignment to financiers' interests and rivals' actions and strategic collaborations to create a synergy effect.

Innovators can cause effective digital disruption by focusing on social and financial values. Success can also largely depend on strategic partnerships rather than actions by an individual entity. Thus, venturing and managing disruptive digital innovation is not an isolated but a social process.

This paper recommends propositions for innovators and incumbents to venture into and confront disruptive digital innovations effectively. Its originality lies in focusing on both successful and failure cases, unexplored in literature, to develop the propositions.

The purpose of this study is to discuss the role of central bank digital currency (CBDC), Fintech and cryptocurrency for financial inclusion and financial stability.

This study used critical discourse analysis to identify the benefits and risks of CBDC, Fintech and cryptocurrency for financial inclusion and financial stability.

Fintech, CBDC and cryptocurrency can increase financial inclusion by providing an alternative channel through which unbanked adults can access formal financial services. CBDC and Fintech services have the potential to preserve financial stability, while cryptocurrency presents financial stability risks that can be mitigated through effective regulation. This paper also identified some problems of CBDC, Fintech and cryptocurrency for financial inclusion and financial stability. This paper offered some insight about the future of financial inclusion and the future of financial stability.

Although CBDC, Fintech or cryptocurrency can extend financial services to unbanked adults and offer cost-efficient advantages, there are risk considerations that need to be taken into account when using CBDC, Fintech and cryptocurrency to increase financial inclusion and to preserve financial stability.

The literature has not identified the combined role of CBDC, Fintech and cryptocurrency for financial inclusion and financial stability. To the best of the author’s knowledge, this paper is the first paper to assess the combined role of CBDC, Fintech and cryptocurrency for financial inclusion and financial stability.

This study aims to examine and validate the impact of marketing knowledge management (MKM) (assets and capabilities) on business performance (BP) via the mediating role of the digital financial innovation in Jordanian commercial banks.

Based on a literature review, recourses-based theory, knowledge-based theory and financial innovation theory, an integrated conceptual framework has been developed to guide the study. A quantitative survey approach was used, and the data was collected from 336 managers and employees in all 13 Jordanian commercial banks using online and in hand instruments. Structural equation modeling was used to analyze and verify the study variables.

The main findings revealed that the MKM had a significant positive influence on BP. Digital financial innovation acted as a partial mediators in this relationship.

This paper contributes to theory by filling a gap in the literature regarding the role of MKM assets and capabilities in commercial banks operating in developing countries such as Jordan. It empirically examines and validates the role of digital financial innovation as mediators between MKM and BP.

The eNaira is the central bank digital currency of Nigeria. People who are interested in the eNaira and financial inclusion will seek information about eNaira and financial inclusion. Their interest in information about eNaira and financial inclusion will make it easier for them to adopt the eNaira and embrace other financial inclusion innovations such as FinTech and cryptocurrency. This paper investigates the determinants of interest in eNaira and financial inclusion information.

The data were analyzed using descriptive statistics, correlation analysis and ordinary least squares (OLS) regression. The study also used the GMM and 2SLS regression methods for robustness.

Using interest over time data, the findings of this study reveal that interest in financial technology (FinTech) and eNaira information are significant positive determinants of interest in financial inclusion information. Also, interest in financial inclusion is a significant positive determinant of interest in eNaira information. Furthermore, interest in FinTech information has a positive and significant correlation with interest in financial inclusion information. There is also a significant positive correlation between interest in central bank digital currency information and interest in FinTech information. The implication of the findings is that interest in information about new financial innovations, such as FinTech and eNaira, can stimulate interest in information about financial inclusion.

The literature has not examined the determinants of interest in eNaira and financial inclusion information yet.

The purpose of this paper is to examine the effect of digital financial innovation on financial depth and economic growth in Kenya.

The study utilized autoregressive distributed lag (ARDL) model, which is preferable over other time series methods as the model allows application of co-integration tests to time series with different integration orders and is flexible to the sample size including small and finite.

The main findings of this paper are as follows: first, there is evidence of a positive relationship between digital financial innovation and financial depth with the strongest impact emanating from Internet usage and mobile financial services and the lowest impact from bank branches; second, the results reveal a significant positive impact of financial depth on economic growth consistent with the supply-leading finance theory.

The results of the study imply a need for investment in technology-enabling infrastructure for digital financial services (DFS) and a redesign of strategies to avoid further financial exclusion of low-income earners due to the unaffordability of digital devices and financial and digital illiteracy.

The study is original and important for policymakers as the study provides insights on the components of financial innovation that are growth-enhancing in Kenya, considering that some aspects of innovation can be growth-retarding as was demonstrated during the global financial crisis.

As an effective tool to promote rational resource allocation and facilitate the development of green management practices such as enterprise digital innovation, the green credit policy has recently gained extensive attention. The purpose of this paper is to analyze the relationship between green credit policies and the digital innovation of enterprises, and to further explore the mechanism of action between them and their boundary conditions.

Based on micro-level data on Chinese firms from 2007 to 2019, this paper constructs a difference-in-differences (DID) model to investigate the impact and intrinsic mechanisms of green credit policies on firms' digital innovation and its boundary conditions, with the help of a quasi-natural experiment, i.e. the Green Credit Guidelines.

Green credit policies inhibit digital innovation and fail to compensate for innovation. The analysis of the mechanism shows that the implementation of green credit policies has a negative impact on digital innovation by increasing the financing constraints faced by firms, and has also a crowding-out effect on R&D investment, resulting in a disincentive to digital innovation. Further analysis reveals that the negative impact of green credit policies on digital innovation is more pronounced in state-owned enterprises, enterprises without financially experienced executives, and in the eastern regions of China.

This study provides empirical evidence to understand the effectiveness and mechanism of influence of green credit policies on enterprise digital innovation, providing also a basis to further improve green credit policies.

Despite the growing importance of digital innovation conceptualized as innovative digital solutions that enable digital transformation of businesses across industries, empirical study of factors related to digital innovation is still scant, creating a knowledge gap. To fill this gap, this paper aims to examine the effect of digital orientation and digital capability on digital innovation, and also the mediating effect of digital innovation on the link between organizational performance and digital orientation as well as digital capability.

This study tests a new conceptual framework using a survey data of 105 small to medium-sized IT firms in Malaysia and employing structural equation model (SEM) analysis from partial least square (PLS) approach.

The results show that digital orientation and digital capability have positive effect on digital innovation and also that digital innovation mediates the effect of technology orientation and digital capability on financial and non-financial performance.

The findings encourage the firms to take the opportunity of emerging digital technologies and digitalization trend in industries by being committed toward embracing new digital technologies and upgrading their digital capabilities to become innovation leaders and also to boost firms’ performance.

This study is one of the first studies that explain how emerging digital technologies can be leveraged to create innovative digital products and services and subsequently boost their business performance. It also fills the literature gaps related to driving factors of digital innovation and mediating role of digital innovation on the link between its driving factors and performance.

Digital innovation requires organizations to reconfigure their information technology infrastructure (ITI) to cultivate creativity and implement fast experimentation. This research inquiries into ITI generativity, an emerging concept demoting a critical ITI capability for organizational digital innovation. More specifically, it conceptualizes ITI generativity across two dimensions—namely, systems and applications infrastructure (SAI) generativity and data analytics infrastructure (DAI) generativity—and examines their respective social and technical antecedents and their impact on digital innovation.

This research formulates a theoretical model to investigate the social and technical antecedents along with innovation outcomes of ITI generativity. To test this model and its associated hypotheses, a survey was administered to IT professionals possessing knowledge of their organization's IT architecture and digital innovation performance. The dataset, comprising responses from 140 organizations, was analyzed using the partial least squares technique.

Results reveal that both dimensions of ITI generativity contribute to digital innovation performance, with the effect of DAI generativity being more pronounced. In addition, SAI and DAI generativities are driven by social and technical factors within an organization. More specifically, SAI generativity is positively associated with the usage of a digital application services platform and IT human resources, whereas DAI generativity is positively linked to the usage of a data analytics services platform, data analytics services usability and data analytics human resources.

This research contributes to the literature on digital innovation by introducing ITI generativity as a crucial ITI capability and deciphering its role in digital innovation. It also offers useful insights and guidance for practitioners on how to build ITIs to achieve better digital innovation performance.