Trust: mediator between mobile money adoption and usage and financial inclusion

2019 ◽  
Vol 16 (8) ◽  
pp. 1215-1237
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Ntayi
Keyword(s):  
Developing Countries ◽  
Mobile Network ◽  
Mobile Telephone ◽  
Partial Least Square ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Content Type ◽  
Mobile Money ◽  
The Relationship

Purpose Recently, a large body of research has been devoted on the role of trust in shaping different types of transactions, especially in rural financial development. Trust is a set of expectations shared by all those who engage in an exchange. Indeed, the “rule of the game” suggests that no trusting party in a transaction should act opportunistically. Consequently, this study aims to establish the mediating effect of trust in the relationship between mobile money adoption and usage and financial inclusion of MSMEs in developing countries with a specific focus on rural Uganda. Design/methodology/approach A quantitative survey-based study was used and responses obtained from 379 MSMEs located in northern Uganda were analysed using partial least square-PLS version 3.0. A semi-structured questionnaire was developed from scales and items used in previous studies referenced in internationally recognised journals to elicit responses from the MSMEs. Structural equation modelling was used to test the models to arrive at a final empirical model derived from the data. Findings The authors found evidence that trust enhances mobile money adoption and usage to increase the scope of financial inclusion of MSMEs in developing countries. Moreover, when individual effect was determined, trust also had significant and positive effect on financial inclusion. Thus, the study results imply that trust enhances mobile money adoption and usage to improve the level of financial inclusion of MSMEs in developing countries. Research limitations/implications The study used cross-sectional data to document the relationship between mobile money adoption and usage and financial inclusion and to establish the mediating effect of trust in the relationship. Future research could use relevant longitudinal data to verify other benefits of trust. Practical implications The results present trust as a significant factor for FINTECH financial services marketing and growth. Specifically, data privacy and effectiveness of the mobile telephone network is more likely to help consumers to bridge the gap between participation and non-participation on the mobile money platform. Customers’ data sent over the mobile network of providers should be protected from unnecessary access and usage by Mobile Network Operators (MNOs) staff and unauthorised persons and agents. Data protection protocols should be set by the MNOs to avoid unnecessary access and use of customers’ data. Originality/value Globally, Fintech scholars have examined the role of mobile money in promoting financial inclusion. However, there is insufficient evidence on the mediating effect of trust in the relationship between mobile money adoption and usage and financial inclusion, especially among rural MSMEs. This study invents a novel direction on the importance of trust in creating transaction efficiency by eliminating opportunism and fraud with in the Fintech ecosystem.

Mobile money adoption and usage and financial inclusion: mediating effect of digital consumer protection

2020 ◽  
Vol 22 (3) ◽  
pp. 157-176
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi
Keyword(s):  
Consumer Protection ◽  
Financial Services ◽  
Structural Equation ◽  
Partial Least Square ◽  
Financial Inclusion ◽  
Least Square ◽  
Mediating Effect ◽  
Content Type ◽  
Mobile Money ◽  
The Relationship

Purpose Drawing from the argument that mobile money services have a significant potential to provide a wide range of affordable, convenient and secure financial services, there have been rampant frauds on consumers of financial products over the digital financial platform. Thus, this study aims to establish the mediating effect of digital consumer protection in the relationship between mobile money adoption and usage and financial inclusion with data collected from micro small and medium enterprises (MSMEs) in northern Uganda. Design/methodology/approach To achieve the main objective of this study, a research model was developed to test for the mediating effect of digital consumer protection in the relationship between mobile money adoption and usage and financial inclusion. The data were collected from MSMEs and structural equation modelling in partial least square (PLS) combined with bootstrap was applied to analyze and test the hypotheses of this study. The direct and indirect effect of mobile money adoption and usage on financial inclusion was tested through digital consumer protection as a mediator variable. Findings The findings from the PLS-structural equation modelling (SEM) showed that mobile money adoption and usage has both direct and indirect effect on financial inclusion. Moreover, financial inclusion is influenced by both mobile money adoption and usage and digital consumer protection. Research limitations/implications The study used partial least square (PLS-SEM) combined with bootstrap confidence intervals through a formative approach to establish the mediating effect of the mediator variable. Hence, it ignored the use of covariance-based SEM and the MedGraph programme. Furthermore, data were collected from samples located in Gulu district, northern Uganda and specifically from MSMEs. This limits generalization of the study findings to other population who also use mobile money services. Practical implications Promoters of digital financial services, managers of telecommunication companies, and financial inclusion advocates should consider strengthening the existing digital consumer protection laws on the mobile money platform. A collaborative approach between the mobile network operators, financial institutions and regulators should tighten the existing laws against mobile money fraudsters and an efficient mechanism for recourse, compensation and remedy should be set up to benefit the victims of frauds and cybercrime on the Fintech ecosystem. Originality/value The current study gives a useful insight into the critical mediating role of digital consumer protection as a cushion for promoting financial inclusion through mobile phones over the Fintech that face great threat and risk from cyber insecurity.

Reimaging the mobile money ecosystem and financial inclusion of MSMEs in Uganda: Hedonic motivation as mediator

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
Francis Yosa ◽  
Joseph Mpeera Ntayi
Keyword(s):  
Financial Services ◽  
Mobile Telephone ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Future Research ◽  
Content Type ◽  
Mobile Money ◽  
Measurement Models ◽  
User Friendly ◽  
The Relationship

PurposeMobile money is a service in which the mobile phone is used to access financial services. Thus, the mobile money platform should be user-friendly with hedonic features that are attractive and pleasurable to the users. The main purpose of this paper is to establish the mediating effect of hedonism in the relationship between mobile money adoption and usage and financial inclusion of micro small and medium enterprises (MSMEs) in Uganda.Design/methodology/approachThis study reports interesting findings by using data obtained from MSMEs located in northern Uganda. The structural equation and measurement models were generated in analysis of moment structures (AMOS) to answer the hypotheses of this study.FindingsThe findings suggest that including hedonism in the model improves mobile money adoption and usage by 12.7 percentage points in order to promote financial inclusion of MSMEs in Uganda. Hedonism is found to affect mobile money adoption and usage, which in turn influences financial inclusion.Research limitations/implicationsThis study used cross-sectional data to document the mediating effect of hedonism in the relationship between mobile money adoption and usage and financial inclusion. The study analyzed mobile money adoption and usage, hedonism, and financial inclusion from the MSMEs owners' perspective. Future research could use relevant longitudinal data to verify multiple benefits of hedonism in enhancing mobile money adoption and usage as well as other potential digital financial technologies.Practical implicationsThis study categorically informs mobile telephone network operators and inventors of mobile money applications to invest more in developing pleasurable and user-friendly mobile money features that can attract more users. The digital financial services' application developers should design user-friendly mobile money applications that suit the needs of all users. This requires careful understanding of diverse attractive features of mobile money services.Originality/valueThis study offers direction to developers of mobile money applications to design pleasurable and user-friendly mobile money platform with features, which are attractive to the different users. Particularly, it highlights the role of hedonic motivation in promoting adoption and use of mobile money technology to increase the scope of financial inclusion of MSMEs in a developing country like Uganda. Indeed, the novelty in this paper is grounded on a blend of financial technology and psychology to promote financial inclusion in under developed economies.

scholarly journals The Nexus Between Learning Orientation, TQM Practices, Innovation Culture, and Organizational Performance of SMEs in Kuwait

10.28945/4743 ◽  
2021 ◽  
Vol 16 ◽  
pp. 147-172
Author(s):  
Fahad Sawaean ◽  
Khairul A. M. Ali
Keyword(s):  
Developing Countries ◽  
Organizational Performance ◽  
Partial Least Square ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Learning Orientation ◽  
Innovation Culture ◽  
The Relationship ◽  
Moderating Role

Aim/Purpose: This paper aimed to examine the impact of learning orientation on organizational performance of small and medium enterprises (SMEs) via the mediating role of total quality management (TQM) practices and the moderating role of innovation culture. Background: SMEs’ organizational performance in developing countries, particularly in Kuwait, remains below expectation due to increasing competition and inadequate managerial practices that negatively impact their performance. Although several studies had revealed a significant effect of learning orientation on SMEs’ performance, the direct impact of learning orientation on their performance is still unclear. Thus, the link between learning orientation and organizational performance remains inconclusive and requires further examination. Methodology: This study adopted a quantitative approach based on a cross-sectional survey and descriptive design to gather the data in a specific period. The data were collected by distributing a survey questionnaire to the owners and Chief Executive Officers (CEOs) of Kuwaiti SMEs using online and on-hand instruments with 384 useable data obtained. Furthermore, the partial least square-structural equation modeling (PLS-SEM) analysis was performed to test the hypotheses. Contribution: This study bridged the significant gap in the role of learning orientation on SMEs’ performance in developing countries, specifically Kuwait. In this sense, a conceptual model was introduced, comprising a learning orientation, TQM practices, innovation culture, and organizational performance. In addition, this study confirmed the significant influence of TQM practices and innovation culture as intermediate variables in strengthening the relationship between learning orientation and organizational performance, which has not yet been verified in Kuwait. Findings: The results in this study revealed that learning orientation had a significant impact on organizational performance of SMEs in Kuwait. It could be observed that TQM practices play an important role in mediating the relationship between learning orientation and performance of SMEs, as well as that innovation culture plays an important moderating role in the same relation. Recommendations for Practitioners: This study provided a framework for the decision-makers of SMEs on the significant impact of the antecedents that enhanced the level of organizational performance. Hence, owners/CEOs of SMEs should improve their awareness and knowledge of the importance of learning orientation, TQM practices, and innovation culture since it could significantly influence their performance to achieve success and sustainability when adopted and managed systematically. The CEOs should also consider building an innovation culture in the internal environment, which enables them to transform new knowledge and ideas into innovative methods and practices. Recommendation for Researchers: The results in this study highlighted the mediating effect of TQM practices on the relationship between learning orientation (the independent variable) and organizational performance (the dependent variable) of SMEs and the moderating effect of innovation culture in the same nexus. These relationships were not extensively addressed in SMEs and thus required further validation. Impact on Society: This study also influenced the management strategies and practices adopted by entrepreneurs and policymakers working in SMEs in developing countries, which is reflected in their development and the national economy. Future Research: Future studies should apply the conceptual framework of this study and assess it further in other sectors, including large firms in developing and developed countries, to generalize the results. Additionally, other mechanisms should be introduced as significant antecedents of SMEs’ performance, such as market orientation, technological orientation, and entrepreneurial orientation, which could function with learning orientation to influence organizational performance effectively.

Analyzing the relationship between financial literacy and financial inclusion by microfinance banks in developing countries: social network theoretical approach

2020 ◽  
Vol 40 (11/12) ◽  
pp. 1257-1277
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Developing Countries ◽  
Social Network ◽  
Research Design ◽  
Financial Literacy ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Cross Sectional ◽  
Content Type ◽  
The Poor ◽  
The Relationship

PurposeThe main purpose of this study is to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.Design/methodology/approachThe study adopted a cross-sectional research design and data were collected from the poor who resides in rural Uganda. Structural equation modelling (SEM) through analysis of moment structures (AMOS) was used to analyze the data. Bootstrap approach with 5,000 samples was run to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.FindingsThe results showed that social network significantly and positively mediate the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. In addition, financial literacy also has a direct significant and positive effect on financial inclusion. Overall, the findings suggest that the presence of social network fully mediate the effect of financial literacy on financial inclusion of the poor by microfinance banks in developing countries.Research limitations/implicationsThis study adopted a cross-sectional research design and data were collected using a semi-structured questionnaire. Future studies could adopt longitudinal research design to establish the dynamic characteristics of the samples under study over time. Besides, this study collected data from only poor households who were clients of microfinance banks located in rural Uganda. It ignored the other section of the population who were not the poor. Therefore, future studies could use the other section of the population who are clients of commercial banks.Practical implicationsThe advocates of financial literacy and managers of microfinance banks in developing countries should ensure using existing local structures such as community and village associations to conduct financial literacy training. The village associations help in mobilizing members who are close-knit based on the existing societal ties that can be used as a channel for disseminating vital financial literacy information. Indeed, financial literacy workshops, seminars, and business clinics can be easily conducted to individuals who are members of the village associations.Originality/valueThis paper integrates social network theory in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. Social network acts as a conduit through which financial knowledge and skills flow to increase the scope of financial inclusion of the poor in developing countries.

Mindful consumption of second-hand clothing: the role of eWOM, attitude and consumer engagement

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jihad Mohammad ◽  
Farzana Quoquab ◽  
Nur Zulaikha Mohamed Sadom
Keyword(s):  
Indirect Effects ◽  
Structural Equation ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Direct And Indirect Effects ◽  
Consumer Engagement ◽  
Content Type ◽  
The Relationship

PurposeThis study aims to examine the direct and indirect effects of electronic word of mouth (eWOM) on mindful consumption behaviour (MCB) in a sustainable clothing purchase context. In addition, it examines the mediating effect of “consumer engagement” and “attitude towards second-hand clothes”.Design/methodology/approachThe data were gathered through a self-administered questionnaire survey from Malaysian consumers who had experience in purchasing second-hand clothes. A total of 175 complete and useable questionnaires were obtained, which were then analysed by using the structural equation modelling-partial least square (SEM-PLS) technique.FindingsThe results of this study indicate support for the direct effect of eWOM on consumers' attitude towards second-hand clothes, consumer engagement and consumers’ MCB. The results also supported the relationship between consumer engagement and MCB, but the link between attitude and mindful consumption (MC) was not supported. Furthermore, the study confirmed the mediating effect of consumer engagement between eWOM and consumers’ MCB but did not support the mediating effect of attitude towards second-hand clothes.Originality/valueThis study is amongst the pioneers to elucidate MCB in the context of sustainable clothing. It examines the direct and indirect effects of eWOM on MCB, which has not been tested in the past literature. The mediating effects of consumer engagement and attitude towards second-hand clothes on the relationship between eWOM and MCB are also comparatively new links.

Digital financial innovations in the twenty-first century

2019 ◽  
Vol 36 (3) ◽  
pp. 185-203 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
Pierre Yourougou ◽  
John C. Munene
Keyword(s):  
Developing Countries ◽  
Moderating Effect ◽  
Financial Inclusion ◽  
Content Type ◽  
Mobile Money ◽  
Financial Innovations ◽  
Tax Exemptions ◽  
Transaction Taxes ◽  
Transaction Tax ◽  
The Relationship

Purpose Premised on the assertion that financial digitalization is currently the panacea and game changer in delivering progress towards the sustainable development goals (SDGs) through universal financial inclusion, especially in developing countries, the purpose of this paper is to establish the moderating effect of transaction tax exemptions in the relationship between mobile money adoption and usage and financial inclusion. Design/methodology/approach A semi-structured questionnaire was used to collect data from 379 micro, small and medium enterprises (MSMEs), which use mobile money services drawn from the Northern District of Gulu in Uganda to provide responses for this study. The predictive relevancy and the effect size of the model were determined by running partial least square algorithm through structural equation model (SEM) with 5,000 bootstrap samples in SmartPLS-SEM 3.0. Findings The findings indicated that all the latent variables of transaction tax exemptions showed significant and positive impact on mobile money adoption and usage to advance financial inclusion in developing countries. Moreover, when combined together, the overall SEM predictive model revealed a significant moderating effect of transaction tax exemptions in the relationship between mobile money adoption and usage and financial inclusion. This implies that transaction tax exemptions on digital financial innovations such as the mobile money services can stimulate economic growth through increased level of financial inclusion labeled as the main enabler in achieving the SDGs by the year 2030. Research limitations/implications Whereas data were collected from users of mobile money services, the samples were drawn specifically from MSMEs’ owners located in the Northern District of Gulu in Uganda. Thus, users located in other districts were not included in the sample for this study. Similarly, this study limited itself to only financial services offered through the mobile money platform. It ignored other digital financial channels such as the internet and electronic banking. Practical implications Going forward, in order to improve the economic well-being of households at the “bottom of the pyramid,” governments in developing countries should embrace the significant role of transaction tax exemptions in promoting digital financial innovations such as the mobile money services for increased level of financial inclusion. The governments in developing countries where mobile money has greatly spurred financial inclusion should not only reduce the existing transaction taxes on mobile money services but scrap it off in order to champion progressive increase in the level of universal financial inclusion prescribed as a key enabler in eliminating global poverty, especially in developing countries. Originality/value This study hints on the moderating effect of transaction tax exemptions in the relationship between mobile money adoption and usage and financial inclusion. The paradox in the current trends on transaction taxes on mobile money services, especially in developing countries remain a dearth in the nascent global FINTECH ecosystem.

“I buy green products, do you…?”

2019 ◽  
Vol 14 (1) ◽  
pp. 89-112 ◽  
Author(s):  
Azila Jaini ◽  
Farzana Quoquab ◽  
Jihad Mohammad ◽  
Nazimah Hussin
Keyword(s):  
Well Being ◽  
Partial Least Square ◽  
Mediating Effect ◽  
Purchase Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Hedonic Value ◽  
Personal Norm ◽  
The Relationship

Purpose In recent years, consumers are moving toward purchasing green cosmetics instead of chemical one. Plenty of cosmetics products are banned globally due to the usage of poisonous substances such as triphenyl phosphate and petroleum. As such, it is needed to shift the conventional purchase behavior to green purchase behavior (GPB) to reduce the negative impact on the environment and health. This study aims to investigate the factors that affect GPB in the context of cosmetics products purchase. Additionally, this study examines the moderating role of electronic word-of-mouth (eWOM) in influencing such green behavior. Design/methodology/approach This study used value-belief-norm (VBN) theory and elaboration likelihood model as a theoretical basis. By using judgmental sampling techniques, a total of 318 usable responses were gathered through online survey. The structural equation modeling approach using partial least square (SmartPLS, version 3.7) technique was used to test the study hypotheses. Findings Results reveal that altruistic value and hedonic value both positively affect pro-environmental beliefs, which eventually affect consumers’ personal norms. It is found that hedonic value has a greater influence on pro-environmental belief than altruistic value. Additionally, personal norm also exerts significant influence on GPB. Data also support the mediating role of pro-environmental belief and personal norm. Moreover, the multidimensional eWOM moderates the relationship between personal norm and GPB. Practical implications The findings from this study provide valuable insights for marketers, academicians and practitioners about the drivers of consumers’ green cosmetics purchase behavior. It will enable marketers to develop better strategies for the green market segment. Social implications The study findings also contribute to the social aspects by understanding consumers’ purchase behavior toward green cosmetics products. It ultimately promotes to consider a healthier lifestyle and to be concerned about environmental well-being. Originality/value This study is the first to introduce the eWOM as a moderator in the VBN theory. Moreover, this study contributes to the existing body of knowledge in the field by examining few new linkages; more specifically, considering pro-environmental belief as to the mediator between “hedonic value and personal norm,” as well as the mediating effect of personal norm in the relationship between “pro-environmental belief and GPB.” Moreover, this is a pioneer study to consider eWOM as a multidimensional construct rather than unidimensional, which is new in green marketing literature.

Market orientation, innovation capability and business performance

2014 ◽  
Vol 9 (2) ◽  
pp. 134-152 ◽  
Author(s):  
Juho-Petteri Huhtala ◽  
Antti Sihvonen ◽  
Johanna Frösén ◽  
Matti Jaakkola ◽  
Henrikki Tikkanen
Keyword(s):  
Market Orientation ◽  
Business Performance ◽  
Partial Least Square ◽  
Mediating Effect ◽  
Innovation Capability ◽  
Content Type ◽  
Economic Upturn ◽  
Economic Boom ◽  
The Relationship

Purpose – The paper aims to examine the role of market orientation (MO) and innovation capability in determining business performance during an economic upturn and downturn. Design/methodology/approach – The data comprise two national-level surveys conducted in Finland in 2008, representing an economic boom, and in 2010 when the global economic crisis had hit the Finnish market. Partial least square path analysis is used to test the potential mediating effect of innovation capability on the relationship between MO and business performance during economic boom and bust. Findings – The results show that innovation capability fully mediates the performance effects of a MO during an economic upturn, whereas the mediation is only partial during a downturn. Innovation capability also mediates the relationship between a customer orientation and business performance during an upturn, whereas the mediating effect culminates in a competitor orientation during a downturn. Thus, the role of innovation capability as a mediator between the individual market-orientation components varies along the business cycle. Originality/value – This paper is one of the first studies that empirically examine the impact of the economic cycle on the relationship between strategic marketing concepts, such as MO or innovation capability, and the firm's business performance.

Could CSR improve the financial performance of developing countries’ firms? Analyses of mediating effect of intangible resources

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Mediating Effect ◽  
Social Dimension ◽  
Content Type ◽  
Intangible Resources ◽  
The Impact

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.

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