Nyangenya Japheth Teya

Department Of Commerce and Economic Studies

Jomo Kenyatta University of Agriculture and Technology, P.O BOX 6200-00200,

Nairobi - Kenya.

Kenneth Lawrence Wanjau

School of Business, Karatina University, P.O Box 1957 10101 Karatina

Willy Muturi,

School of Business, Jomo Kenyatta University of Agriculture and Technology,

P.O BOX 6200-00200, Nairobi - Kenya.

CITATION: Nyangenya J T, Wanjau L K., & Muturi W. (September, 2016), Configuration approach of the relationship between process innovation and financial technology on performance of licensed capital market intermediaries in Kenyan securities market: International Journal of Economics and Finance (IJEF), VOLUME 2 (IX), 334-351. ISSN 2105 6008.

Abstract

The performance of Kenyan securities market is influenced by a number of factors the main ones among them being process innovation and financial technological capabilities of  licensed capital market intermediaries. The major role that the securities markets have played, and continues to play in many economies is that they promote a culture of thrift, or saving.The performance of a securities market of an economy is of interest to various parties including investors, capital markets, securities market, the public, government, licensed capital market intermediaries among others.However, there have beenpaucity of empirical research in this area and licensed capital market intermediaries have a weak understanding of process innovations, financial technological capabilities and its control measures. The purpose of this study was to determine the moderating effect of financial technological capabilities on process innovations and performance of licensed capital market intermediaries in Kenyan securities market. To better understand this relationship, this paper was guided by exploratory and cross-sectional survey approach design. Using the hierarchical and moderated multiple regression (MMR) analyses, the theoretical models and hypotheses in this paper were tested based on empirical data gathered from 97 licensed and approved capital market intermediaries in Kenyan Securities markets. The results revealed that financial technological capabilities significantly moderated the relationship between institutional innovations issues and performance of licensed capital market intermediaries in Kenya. This unique process innovations suited to the Kenyan securities markets should be developed to improve and encourage performance.

Keywords: Process innovation, Financial Technology, DU Pont, Licensed Capital Market Intermediaries, Securities Market

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