Does Mobile Money Adoption and Credit Access Improve Innovation and Performance of Enterprises in Sierra Leone?
Djossou, Gbetoton Nadege
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.