Determinants of user continuance intention towards mobile money services : the case of M-pesa in Kenya

Includes bibliographical referencesThe turn of the millennium witnessed the uptake and proliferation of mobile technology in developing regions. This occurrence has provided a medium for mobile telecommunication vendors within the region to create and offer services that are now accessible across socio-economic classes. A notable case of a widely adopted mobile technology-enabled service in the developing world is a mobile money service in Kenya called M-pesa. Since its inception, M-pesa has witnessed a mass adoption which has generally been attributed to prior lack of access by majority of individuals' in the country to affordable regulated financial services. M-pesa's presence has now been anticipated to afford a larger population the initial opportunity to harness economic benefits such as: increase money circulation, increase employment opportunities, facilitate social capital accumulation, facilitate savings, and promote financial autonomy, amongst others. Also, M-pesa based transactions in Kenya are reported to exceed those of western union globally. Whilst M-pesa presently vaunts large user adoption numbers, it is the first of its kind in the region to amass such achievement. Further, historically: products and services of similar nature to M-pesa have been unsustainable. A case of M-pesa's demise would have dire implication for the Kenyan economy and 30% of the households in the country that rely on it for remittances. To understand this phenomenon, extant studies have examined the drivers of adoption of this service but have slacked in subsequent investigations to understand user continuance with the service. As such, the information systems literature cautions that initial adoption of technology, although crucial, does not guarantee sustained use. Therefore it is imperative to investigate drivers of continuance. In general, extant research has not focused on investigations of user continuance intention in Africa. In response, this thesis presents an African based study on the determinants of user continuance intention towards M-pesa. Specifically, the purpose of this study was to i) identify and discuss factors from the literature that are most likely to influence user continuance intention towards M-pesa, (ii) develop a research model that is grounded in theory, (iii) test the model within the sample context to identify the antecedents and determinants of user continuance intention towards M-pesa in Kenya. A broad, critical review of the relevant literature provided basis for hypothesized relationships between the identified factors. A formal survey of users of M-pesa in Kenya comprised the phase of data collection and resulted in a usable data set of (n=434). The data collected from the respondents within Kenya was relied upon to test the hypotheses. The survey instrument used to measure the study's constructs was developed via a process of literature review, expert pre-testing, pilot testing, and statistical validation. Partial Least Square and Artificial Neural Network analyses were used to examine the study's measurement and structural model comprising variables of : behavioural beliefs (post-usage usefulness, confirmation, satisfaction), control-beliefs (utilization and flow), object-based beliefs (perceived task-technology fit, system quality, information quality, and service quality), and attitudinal belief (trust). Collectively, the afore-listed ten independent variables and one dependent variable (continuance intention) comprised the study's model. Four of the independent variables (utilization, satisfaction, flow, and trust) were hypothesized to directly determine continuance intention. Of these four, all emerged as determinants of continuance intention. However, trust emerged as the strongest determinant, subsequently, utilization, flow, and satisfaction respectively. The result was unexpected, as satisfaction (a behavioural belief) has been presented in the extant literature as the dominant determinant of continuance intention but does not hold a consistent predictive strength in a developing world. Its predictive power was diluted by trust, utilization, and flow amongst the Kenyan sample. The study's model revealed an R² of 0.334. The analyses demonstrated that user continuance intention is determined by factors across object, control, attitudinal, and behavioural beliefs. The unexpected finding of the rankings of predictive strength of the factors turns a new leaf and introduces areas of further inquiry in future studies. The study concludes with realized contributions to theory and important guidelines for current and future technology-enabled service vendors in developing regions

Factors influencing the usage of mobile money services in Ghana

The ambiguity and convenience of mobile phones has brought about new values and opportunities that no one foresaw in the delivery of financial services. It has brought about significant changes and sustainable growth as well as economic opportunities for the unbanked population and the emerging countries. According to the financial inclusion insights (FII), digital bank account in Ghana is more common than any other FII country in Africa including Kenya and Tanzania. Nevertheless, mobile money has not reach same penetration as that of their counterpart in Kenya and Tanzania. Mobile money in Ghana has been remittance/fund transfer focused, limiting the use of it for other financial transactions such as savings and payments of goods and services. The main objective of the research is to investigate the critical factors influencing the full adoption of mobile money platform and its auxiliary services in Ghana by adopting the Unified Theory of Acceptance and Use of Technology (UTAUT) model. The model predicted that performance expectancy (PE) and social influence (SI) significantly affect behavioural intention to use mobile money in Ghana. The study applied both quantitative and qualitative research methods. Questionnaires and interviews were used as primary data and then analysed using SPSS. The findings revealed that performance expectancy, social influence, and the fact that Ghana is not a cashless economy remain the major factors limiting m-money usage in Ghana. Ghanaian consumers however are willing to use m-money but there exist significant impediments towards the adoption and use of m-money in Ghana

Priming the Pump: The Case for a Sector Based Approach to Impact Investing

The impact investing sector, while still in its infancy, has made remarkable progress in building awareness that business can generate a positive social impact. Although individual firms remain the essential innovators and building blocks of social change, they are means to a broader end of creating innovations that can touch the lives of hundreds of millions. It is time now to evolve the conversation, and our resource commitments in the direction of sparking, nurturing, and scaling these new industry sectors that are the true promise of the impact investing industry. What is readily apparent according to this report is that no one organization, or one type of organization, can do this alone. Success does not depend upon perfect coordination or a grand plan. After all, we are talking about innovation, which requires experimentation, learning, and serendipity. But success does require a determined, thoughtful, and frequently collaborative effort by those who believe that the power of markets and the inspiration of entrepreneurs can be tapped to create opportunity and a brighter future for billions

Creating Shared Value in India: How Indian Corporations Are Contributing to Inclusive Growth While Strengthening Their Competitive Advantage

Leading companies are finding new ways to accelerate growth and increase competitive advantage through innovative business models that meet societal needs at scale. These companies are "creating shared value" by using their core business processes and practices to enhance the competitiveness of companies while improving social and environmental conditions. The concept of Creating Shared Value (CSV) was introduced by the co-founders of FSG, Harvard Business School professor Michael Porter and senior fellow at the Harvard Kennedy School Mark Kramer, in several Harvard Business Review articles (most recently in January/February 2011). FSG's research in India has identified a number of highly innovative examples of shared value. In this paper, we highlight these examples and call on corporations, especially our largest ones, to lead the charge toward a strategy for growth that benefits all our citizens