The link between CEO’s financial literacy and technological innovation of cooperative unions

Abstract

The primary objective of this research was to explore the relationship between the financial literacy of CEOs and the technological innovation within cooperative unions located in the Bench Sheko and Sheka zones. An explanatory research design, complemented by a descriptive survey methodology, was employed for this study. Questionnaires were disseminated to all seven cooperative unions in the Bench Sheko and Sheka zones. The research identified the financial literacy of CEOs as the independent variable, which was assessed through their financial behavior, knowledge, and skills. Conversely, the technological innovation of the cooperative unions served as the dependent variable. The findings indicated that the financial behavior of CEOs positively and significantly influences the technological innovation of these unions in the specified zones.
Additionally, the research revealed that the financial knowledge of CEOs also has a significant and positive impact on the technological innovation of the cooperative unions in the Bench Sheko and Sheka zones. Lastly, it was determined that the financial skills of CEOs significantly and positively affect the technological innovation of the cooperative unions in these areas. Consequently, it is recommended that cooperative unions implement training programs for CEOs through university education and specialized initiatives, as such training is essential for enhancing decision-making processes and fostering innovation within the unions. Furthermore, the university in the study region should consistently organize financial literacy competitions, courses, and related events to advance the financial education of CEOs.