Mobile Payments, Demographics and Firm Performance in Kenya
Keywords:
Demographics, Firm performance, Mobile payments
Abstract
Technological advancements have presented firms with an opportunity to use mobile payments to enhance their performance. This study explores the relationship between mobile payments and firm performance in Kenya. The moderating effects of demographics are also studied. Using primary data collected from 289 supermarkets based in Nairobi City County, we determine whether the use of mobile payment has enhanced firm performance as defined by profitability, operation costs, revenues and the number of customers served. Empirical results from logit regression analysis reveal that the use of a mobile to make payments in supermarkets directly impacts the performance of supermarkets. Additionally, consumer characteristics have a significant moderating effect on the relationship between mobile payments and profitability of supermarkets. We conclude that the use of mobiles to make payments in supermarkets in Kenya has acquired the requisite critical mass level to be in a position to influence revenues of these firms.
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References
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19. Khan, H. U., Musa, A., & Alshare, K. (2015). Factors Influence Consumers’ Adoption of Mobile Payment Devices in Qatar. International Journal of Mobile Communications, 13(4), 670-688.
20. Kirui, K. R., & Onyuma, S. O. (2015). Role of Mobile Money Transactions on Revenue of Microbusiness in Kenya. European Journal of Business and Management, 7(36), 63-67.
21. Kolodinsky, J. M., Hogarth, J. M., & Hilgert, M. A. (2004). The adoption of electronic banking technologies by US consumers. International Journal of Bank Marketing, 22(4), 238-259.
22. Krejcie, R. V., & Morgan, D. W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement.
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24. Lee, E., Eastwood, D. B., & Lee, J. (2004). A sample selection model of consumer adoption of computer banking. Journal of Financial Services Research, 26 (3), 263-275.
25. Lee, T. (2005). The impact of perceptions of interactivity on customer trust and transaction intentions in mobile commerce. Journal of Electronic Commerce Research, 6 (3), 165-180.
26. Lin, H., & Wang, Y. (2006). An examination of the determinants of customer loyalty in mobile commerce contexts. Information & Management, 43 (3), 271-282.
27. Liu, Y., Luo, J. & Zhang, L. (2021). The effects of mobile payments on consumer behavior. Journal of Consumer Behavior, 20, 512-520.
28. Lu, J., Yao, J. E., & Yu, C. (2005). Personal innovativeness, social influences and adoption of wireless Internet services via mobile technology. The Journal of Strategic Information Systems, 14 (3), 245-268.
29. Mahmood, I. P. (2016). The Palgrave Encyclopedia of Strategic Management. London: Palgrave Macmillan.
30. Monsuwe, T. P., Dellaert, B.G., & Ruyter, K.D (2004). What drives consumers to shop online? A literature reiew. International Journal of Service Industry Management. 15 (1) 102-121.
31. Oberlo. (2020). Mobile Commerce Sales in 2020. Retrieved from https://www.oberlo.com/statistics/mobile-commerce-sales
32. OBG. (2020). Optimism grows as Kenyan retailers adapt to change | Kenya 2018 | Oxford Business Group. Retrieved from https://oxfordbusinessgroup.com/overview/new-and-improved-optimism-grows-retailers-adapt-challenges
33. O'Dea, S. (2020a). Number of cellular subscriptions Kenya 2000-2018. Retrieved from http://www.statista.com/statistics/498385/number-of-mobile-cellular-subscriptions-in-kenya
34. O'Dea, S. (2020b). Mobile commerce transaction value by quarter in Kenya 2018-2019 | Statista. Retrieved from https://www.statista.com/statistics/1067531/quarterly-mobile-commerce-transaction-value-in-kenya/
35. Okazaki, S., & Mendez, F. (2013). Exploring convenience in mobile commerce: Moderating effects of gender. Computers in Human Behavior, 29(3), 1234-1242.
36. Okereke, D. (2017). Factors Driving Mobile Payment Adoption: Benefits, Challenges & Opportunities (Unpublished doctoral dissertation). University of South Wales, Newport.
37. Oliveira, T., Thomas, M., Baptista, G., & Campos, F. (2016). Mobile payment: Understanding the determinants of customer adoption and intention to recommend the technology. Computers in Human Behavior, 61, 404-414.
38. Onyango, R., Ongus, I. W., Awour, M. F., & Nyamboga, C. (2014). Impact of adoption and use of mobile phone technology on the performance of micro and small enterprises in Kisii Municipality Kenya. World Journal of Computer Application and Technology,, 2(2), 34-42.
39. Osafo-Kwaako, P., Zouaoui, Y., Singer, M., & White, O. (2018). Mobile money in emerging markets:The business case for financial inclusion. Retrieved from McKinsey & Company website: https://www.mckinsey.com
40. Riquelme, H. E., & Rios, R. E. (2010). The moderating effect of gender in the adoption of mobile banking. International Journal of Bank Marketing, 28(5), 328-341.
41. Sulaiman, A., Jaafar, N. I., & Mohezar, S. (2007). An overview of mobile banking adoption among the urban community. International Journal of Mobile Communications, 5(2), 157-168.
42. Suri, T. (2017). Mobile Money. The Annual Review of Economics, 9, 497-520.
43. Taouab, O., & Issor, Z. (2019). Firm Performance: Definition and Measurement Models. European Scientific Journal ESJ, 15(1).
44. Teo, A., Tan, G. W., Ooi, K., Hew, T., & Yew, K. (2015). The effects of convenience and speed in m-payment. Industrial Management & Data Systems, 115 (2), 311-331.
45. Wan, W. W., Luk, C., & Chow, C. W. (2005). Customers' adoption of banking channels in Hong Kong. International Journal of Bank Marketing, 23(3), 255-272.
46. Williamson, O. (1979). Transaction-cost economics: The governance of contractual relations. Journal of Law and Economics, 22, 233-261.
47. Yeh, H. (2020). Factors in the Ecosystem of Mobile Payment Affecting its Use: From the Customers' Perspective in Taiwan. Journal of theoretical and applied electronic commerce research, 15(1), 57-79.
48. Zouaghi, F., Sanchez-Garcia, M., & Hirsch, S. (2017). What drives firm profitability? A multilevel approach to the Spanish agri-food sector. Spanish Journal of Agricultural Research, 15 (3), 90-117.
2. Amoroso, D. L., & Hunsinger, D. S. (2009). Understanding consumers’ acceptance of online purchasing. Journal of Information Technology Management, 100 (1) 15-41.
3. Bandura, R., & Ramanujam, S. R., (2021). Developing inclusive digital payment systems. Center for Strategic &International Studies. Available: https://www.csis.org/analysis/developing-inclusive-digital-payment-systems
4. Brynjolfsson, E., & McAfee, A. (2012). Big Data: The Management Revolution. Available: http:/hbr.org/2012/10/big-data-the-management-revolution/ar
5. Coombes, M., Storey, D., Watson, R., & Wynarczyk, P. (1991). The Influence of Location upon Profitability and Employment Change in Small Companies. Urban Studies, 28(5), 723-734.
6. DeBaillon, L., & Rockwell, P. (2005). Gender and student-status differences in cellular telephone use. International Journal of Mobile Communications, 3(1), 82.
7. Demombynes, G., & Thegeya, A. (2012). ‘Kenya’s Mobile Revolution and the Promise of Mobile Savings’ (Policy Research Working Paper No WPS5988.). World Bank.
8. Edwards, J. R., & Lambert, L. S. (2007). Methods for integrating moderation and mediation: A general analytical framework using moderated path analysis. Psychological Methods, 12, 1-22.
9. Elliott, R. (2019). Mobile Phone Penetration Throughout Sub-Saharan Africa - GeoPoll. Retrieved from https://www.geopoll.com/blog/mobile-phone-penetration-africa/
10. Garrett, J. L., Rodermund, R., Anderson, N., Berkowitz, S., & Robb, C. A. (2014). Adoption of Mobile Payment Technology by Consumers. Family and Consumer Sciences Research Journal, 42 (2), 358-368.
11. GSMA (2020). “The mobile Economy Sub-Saharan Africa 2020.” Accessed on 6th July 2021. Available:https://www.gsma.com/mobileeconomy/wpcontent/uploads/2020/09/GSMA_MobileEconomy2020_SSA_Eng.pdf
12. GSMA (2019). "2018 State of the Industry Report on Mobile Money". Retrieved from https://www.gsma.com/mobilefordevelopment/resources/2018-state-of-the-industry-report-on-mobilemoney/
13. Government of Kenya (2021). Finance Act, 2021. Government Printer.
14. Hamza, A., & Shah, A. (2014). Gender and mobile payment system adoption among students of tertiary institutions in Nigeria. New Media and Mass Communication. doi:10.7176/nmmc/89-02
15. Harelimana, J. B. (2018). Impact of Mobile Banking on Financial Performance of Unguka Microfinance Bank Ltd, Rwanda. Journal of Harmonized Research in Management, 4(1), 26.
16. Islam, A., Muzi, S., & Meza, J. L. (2016). Does Mobile Money Use Increase Firms’ Investment? (7890) Retrieved from World Bank Group website: http://documents1.worldbank.org/curated/en/491931479153921241/pdf/WPS7890.pdf
17. Jumba, J., & Wepukhulu, J. (2019). Effect of Cashless Payments on the Financial Performance of Supermarkets in Nairobi County. International Journal of Academic Research in Business and Social Sciences, 9(3). doi:10.6007/ijarbss/v9-i3/5803
18. Kakwa, P. A. (2012). Mobile phone usage by micro and small scale enterprises in Semi-Rural Ghana. International Review of Management and Marketing 2(3): 156-164, 2(3), 156-164.
19. Khan, H. U., Musa, A., & Alshare, K. (2015). Factors Influence Consumers’ Adoption of Mobile Payment Devices in Qatar. International Journal of Mobile Communications, 13(4), 670-688.
20. Kirui, K. R., & Onyuma, S. O. (2015). Role of Mobile Money Transactions on Revenue of Microbusiness in Kenya. European Journal of Business and Management, 7(36), 63-67.
21. Kolodinsky, J. M., Hogarth, J. M., & Hilgert, M. A. (2004). The adoption of electronic banking technologies by US consumers. International Journal of Bank Marketing, 22(4), 238-259.
22. Krejcie, R. V., & Morgan, D. W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement.
23. Laura, F. I. (2014). Impact of mobile money usage on microenterprise evidence from Zambia.
24. Lee, E., Eastwood, D. B., & Lee, J. (2004). A sample selection model of consumer adoption of computer banking. Journal of Financial Services Research, 26 (3), 263-275.
25. Lee, T. (2005). The impact of perceptions of interactivity on customer trust and transaction intentions in mobile commerce. Journal of Electronic Commerce Research, 6 (3), 165-180.
26. Lin, H., & Wang, Y. (2006). An examination of the determinants of customer loyalty in mobile commerce contexts. Information & Management, 43 (3), 271-282.
27. Liu, Y., Luo, J. & Zhang, L. (2021). The effects of mobile payments on consumer behavior. Journal of Consumer Behavior, 20, 512-520.
28. Lu, J., Yao, J. E., & Yu, C. (2005). Personal innovativeness, social influences and adoption of wireless Internet services via mobile technology. The Journal of Strategic Information Systems, 14 (3), 245-268.
29. Mahmood, I. P. (2016). The Palgrave Encyclopedia of Strategic Management. London: Palgrave Macmillan.
30. Monsuwe, T. P., Dellaert, B.G., & Ruyter, K.D (2004). What drives consumers to shop online? A literature reiew. International Journal of Service Industry Management. 15 (1) 102-121.
31. Oberlo. (2020). Mobile Commerce Sales in 2020. Retrieved from https://www.oberlo.com/statistics/mobile-commerce-sales
32. OBG. (2020). Optimism grows as Kenyan retailers adapt to change | Kenya 2018 | Oxford Business Group. Retrieved from https://oxfordbusinessgroup.com/overview/new-and-improved-optimism-grows-retailers-adapt-challenges
33. O'Dea, S. (2020a). Number of cellular subscriptions Kenya 2000-2018. Retrieved from http://www.statista.com/statistics/498385/number-of-mobile-cellular-subscriptions-in-kenya
34. O'Dea, S. (2020b). Mobile commerce transaction value by quarter in Kenya 2018-2019 | Statista. Retrieved from https://www.statista.com/statistics/1067531/quarterly-mobile-commerce-transaction-value-in-kenya/
35. Okazaki, S., & Mendez, F. (2013). Exploring convenience in mobile commerce: Moderating effects of gender. Computers in Human Behavior, 29(3), 1234-1242.
36. Okereke, D. (2017). Factors Driving Mobile Payment Adoption: Benefits, Challenges & Opportunities (Unpublished doctoral dissertation). University of South Wales, Newport.
37. Oliveira, T., Thomas, M., Baptista, G., & Campos, F. (2016). Mobile payment: Understanding the determinants of customer adoption and intention to recommend the technology. Computers in Human Behavior, 61, 404-414.
38. Onyango, R., Ongus, I. W., Awour, M. F., & Nyamboga, C. (2014). Impact of adoption and use of mobile phone technology on the performance of micro and small enterprises in Kisii Municipality Kenya. World Journal of Computer Application and Technology,, 2(2), 34-42.
39. Osafo-Kwaako, P., Zouaoui, Y., Singer, M., & White, O. (2018). Mobile money in emerging markets:The business case for financial inclusion. Retrieved from McKinsey & Company website: https://www.mckinsey.com
40. Riquelme, H. E., & Rios, R. E. (2010). The moderating effect of gender in the adoption of mobile banking. International Journal of Bank Marketing, 28(5), 328-341.
41. Sulaiman, A., Jaafar, N. I., & Mohezar, S. (2007). An overview of mobile banking adoption among the urban community. International Journal of Mobile Communications, 5(2), 157-168.
42. Suri, T. (2017). Mobile Money. The Annual Review of Economics, 9, 497-520.
43. Taouab, O., & Issor, Z. (2019). Firm Performance: Definition and Measurement Models. European Scientific Journal ESJ, 15(1).
44. Teo, A., Tan, G. W., Ooi, K., Hew, T., & Yew, K. (2015). The effects of convenience and speed in m-payment. Industrial Management & Data Systems, 115 (2), 311-331.
45. Wan, W. W., Luk, C., & Chow, C. W. (2005). Customers' adoption of banking channels in Hong Kong. International Journal of Bank Marketing, 23(3), 255-272.
46. Williamson, O. (1979). Transaction-cost economics: The governance of contractual relations. Journal of Law and Economics, 22, 233-261.
47. Yeh, H. (2020). Factors in the Ecosystem of Mobile Payment Affecting its Use: From the Customers' Perspective in Taiwan. Journal of theoretical and applied electronic commerce research, 15(1), 57-79.
48. Zouaghi, F., Sanchez-Garcia, M., & Hirsch, S. (2017). What drives firm profitability? A multilevel approach to the Spanish agri-food sector. Spanish Journal of Agricultural Research, 15 (3), 90-117.
Published
2021-11-30
How to Cite
Njenga, A. K., Litondo, K., & Mwabu, G. (2021). Mobile Payments, Demographics and Firm Performance in Kenya. European Scientific Journal, ESJ, 17(38), 58. https://doi.org/10.19044/esj.2021.v17n38p58
Section
ESJ Social Sciences
Copyright (c) 2021 Adrian Kamotho Njenga, Kate Litondo, Germano Mwabu
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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