Financial Inclusion and Turnaround Time of Micro, Small and Medium Enterprises in Southwest Nigeria
DOI:
https://doi.org/10.47672/ije.2902Keywords:
Financial Inclusion; Internal Process; Turnaround Time; Service Delivery Speed; Waiting TimeAbstract
Purpose: The purpose of this study was to determine the effect of financial inclusion on the turnaround time of MSMEs in Southwest Nigeria. The theoretical foundation for the study was guided by Technology Acceptance Model (TAM). This is due to the integral relationship between financial inclusion and technological adoption in any economy.
Materials and Methods: The study employed survey research design. Using structured questionnaires and multistage sampling technique, data were collected from MSMEs and Deposit Money Banks and analysed with descriptive statistics and Partial Least Square-Structural Equation Modeling (PLS-SEM) used for inferential analysis.
Findings: Descriptive findings revealed that financial inclusion significantly improves the speed of service delivery to customers. Empirical findings revealed that financial inclusion positively and significantly impacts MSMEs' turnaround time (β = 0.512, t = 14.023, P<0.000), a proxy for internal business process. The study found that usage of financial services had the greatest impact on turnaround time, followed by service quality. In conclusion, financial inclusion was found to improve service delivery speed, reduce customer waiting time, and enhance operational efficiency.
Unique Contribution to Theory, Practice and Policy: Based on the findings from the study, TAM was found to be highly relevant in shaping strategies aimed at enhancing financial inclusion for MSMEs with attendant implications on their performance. In practice, the study is of important implications for MSMEs in Nigeria, as it helps enterprises understand the relationship between financial inclusion and turnaround time, highlighting its role in improving the speed of service delivery to customers. The study recommends the development of policies by governments and financial institutions that will boost MSMEs’ access to efficient digital payment platforms in order to enhance smooth and efficient business transactions. Policy makers should mainstream the adoption of automated and diverse payment systems by MSMEs into financial inclusion policies through trainings and work
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