Diffusion and adoption of bank financial innovation in Zimbabwe: An external factor analysis

Diffusion and adoption of an innovation are as equally critical as the creation of the innovation for without them, the innovation becomes redundant. The level of technology in developing countries reflects the pace at which technology diffuses within countries. Transfer, adoption and adaption of knowledge to low income countries, therefore, constitute an important issue for economic growth and global development. Developing countries, being net adopters of innovations, face a number of “external” factors which act as barriers or enhancers of diffusion of innovation. This notwithstanding, studies on innovation adoption/diffusion carried out in Zimbabwe are mostly concentrated on the demand side, focusing on end-user behaviour, ignoring “external” and supply side factors. This paper extends beyond the end-user adoption analysis to look at effects of cross-country flow of innovation (cross country diffusion), internal regulation, macroeconomic factors and supply side factors on diffusion of financial innovations in Zimbabwe. Case studies and examples reviewed in this study clearly demonstrate that for Zimbabwe, determinants of diffusion of financial innovation are indeed beyond end-user attributes.