The impact of mobile telephony services on performance outcomes of micro-businesses in developing economies: with evidence from micro-business communities in Afghanistan and Cameroon

Abstract

This thesis reports on a study conducted to investigate the relationship between the integration of mobile telephony services into micro-business processes and perceived enhanced business performance in a developing economy context, with detailed evidence drawn from a sample of 210 micro-businesses in Afghanistan and Cameroon. The research conceptualises, operationalises, and empirically tests an eclectic research model which integrates theory from the literature on the adoption and use of information and communication technologies (ICTs), on information economics, on strategic management, on entrepreneurship, and on small business growth and business performance. The research data was collected through a questionnaire, and call data extracted from the mobile phone activity-logs of micro-business owner-managers. This data was supplemented by the use of carefully-chosen photographs. The collected data was analysed using Structural Equation Modelling Techniques (SEM) with the help of AMOS 17 and SPSS statistical packages. The study also used Latent Visual Data Analysis (LVDA) to corroborate the statistical outcomes of this analysis. The results of this study identified the ‘integration of mobile telephony services into micro-business operations’, the ‘entrepreneurial competence of micro-business owner-managers’ and the ‘micro-business environment’ as having a direct influence on perceived enhanced business performance because of their potential to enable substantial cost savings, provide greater integration of the internal and external environments of the business, increase operational flexibility and reduce information asymmetries. The results also identified that ‘micro-business environments’ in Afghanistan and Cameroon tend to have a negative relationship with enhanced business performance if not moderated by the use of mobile telephony services. Finally, given the importance of micro-businesses in stimulating economic growth in developing economies and their relatively high failure rates, and because of the fact that many micro-businesses perceive that the cost of mobile telephony services are ‘high-to-very high’, this research provides greater opportunity for a discussion of the kinds of intervention strategies that could be used to improve the business integration of mobile telephony services and could therefore enhanced business performance