Mobile Money and its Users: A Firm-level Analysis with the TOE Framework

Thumbnail Image
Issue Date
Journal Title
Journal ISSN
Volume Title
Mobile money (MM) is a promising innovation on the African continent. This paper aims to research the diffusion process of mobile money services and uses the firm-level technology, organisation, and environment (TOE) framework to structure its findings. Kenya is used for analysis because the country is perceived frontrunner in MM usage. Main focus within the framework is on the organisational context as prior studies have overlooked its importance. Four firm characteristics: size, manager gender, family ownership, and firm location are hypothesised to have an effect on the likeliness to adopt a MM platform for firm usage. A logistic regression with firm-level data from the World Bank’s Enterprise Surveys is used to form several conclusions. Current MM adopters in Kenya seem to be smaller in size than non-adopters, nonetheless, firm size is not a significant predictor of the likelihood to adopt MM services. Alongside that, no difference was found between firms with male or female managers. Surprisingly, high levels of family ownership increase likeliness of adopting a MM platform as does being located in an urban area. With these results, service providers and policy makers in Africa can amend their offerings and regulations to best support further diffusion of mobile money.
Faculteit der Managementwetenschappen