FINANCIAL INNOVATION AND ORGANIZATIONAL PERFORMANCE OF SELECTED SMALL SCALE MANUFACTURING FIRMS IN DELTA STATE

Abstract

Financial innovation and organizational productivity of selected small-scale manufacturing firms in Delta State, Nigeria. The study investigated the effect of financial innovation on the organizational productivity of selected small-scale manufacturing firms in Delta State. Specifically, the study examines the effect of automated teller machines on the organizational productivity of selected small-scale manufacturing firms in Delta State, assesses the effect of mobile banking technology on the organizational productivity of selected small-scale manufacturing firms in Delta State, examines the effect of crowdfunding on the organizational productivity of selected small-scale manufacturing firms in Delta State, and investigates the effect of point-of-sale on the organizational productivity of selected small-scale manufacturing firms in Delta State. The study reviewed relevant conceptual, theoretical, and empirical literatures. The study was anchored on the financial innovation diffusion theory. This study adopted a descriptive survey research design. The population of the study comprised 2090 employees of the selected small-scale manufacturing firms in Delta State, Nigeria. The sample size for the study is 408 using the Borg and Gall (1973) formula. A questionnaire was employed as the main instrument of data collection. The instrument was both face and content validated. The reliability of the instrument was achieved through the application of test re-rest and the application of Cronbach’s alpha. Simple percentages and means were used to answer the research questions, while multiple regression was used to test the hypotheses. The result of the study indicates that automated teller machines, mobile banking, crowdfunding, and point-of-sale have a positive and significant effect on the organizational productivity of selected small-scale manufacturing in Delta State. The study concludes that financial innovation has a positive and significant effect on the organizational productivity of selected small-scale manufacturing firms in Delta State. Among the recommendations is that small-scale manufacturing in Delta State should put adequate security mechanisms in place to forestall fraudulent practices, invest in ATMs that are easy to use, reliable, work with speed, guarantee privacy, and have affordable charges, and ones that allow customers to make deposits and withdrawals. Mobile banking technology should embark on an intensive awareness campaign and sensitization of the citizenry on the effect of mobile banking on small-scale manufacturing firms in Delta State and their customers.