Does Mobile Money Adoption and Credit Access Improve Innovation and Performance of Enterprises in Sierra Leone?
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Date
2022-10
Authors
Djossou, Gbetoton Nadege
Novignon, Jacob
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Abstract
This study sought to unpack the impact of mobile money adoption and credit
constraints on product innovation and performance of Micro, Small and Medium scale Enterprises in Sierra Leone. We used the most recent Sierra Leone Enterprise
survey data conducted by the World Bank to monitor enterprises. To achieve the
objectives of the study, we used Ordinary Least Square and non-experimental
techniques (instrumental variable techniques). This allowed us to account for potential
endogeneity problems that may bias parameter estimates if not accounted for. Our
findings show that credit constraints significantly limited firms' ability to innovate,
and thereby their performance. We also found that the use of mobile money improved
innovation. We did not find any statistically significant gender-related variation in
the relationship.