Transaction Costs and Project Performance Micro-Enterprises in Machakos County, Kenya
Keywords:
Transaction costs, project performance, Micro-enterprisesAbstract
Purpose: The purpose of the study was to establish the influence of transaction costs on project performance of micro-enterprises in Machakos County, Kenya.
Methodology: The study adopted a descriptive research design. Purposive sampling technique was used to select the sample for the study. Questionnaire was used for data collection as it was cost effective as opposed to other instruments. The research instruments were tested for reliability using the split half method. This was done by collecting data from 60 respondents. Data was verified and edited for completeness and consistency. Content analysis and descriptive analysis was employed. Regression analysis was applied to establish the relationship between the variables.
Results: The findings revealed that there was a negative Pearson correlation of -.279 (or -27.90%) between transaction costs and project performance implying that an increase in transaction costs reduces the level of project performance among the micro-enterprises. The results also revealed that transaction cost and project performance are negatively and significantly related (β=-0.091 p<0.002). From hypothesis testing the study found that transaction costs have a significant effect on project performance of micro-enterprises. In addition transaction costs have a significant effect on financial services technology innovation of micro-enterprises.
Unique contribution to theory, practice and policy: The study recommended that owners of micro enterprises should use mobile banking since it makes it easier for them to carry out their businesses operations. In addition use of internet banking makes it easier for owners of micro-enterprises to carry out their businesses operations. In addition, the study recommends that owners of micro enterprises should adopt use of internet banking since it does not require a lot of technical knowledge since it is simple to use hence convenient for business owners.
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