IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2019i1p183-d301760.html
   My bibliography  Save this article

The Impact of Mobile Money on the Financial Performance of the SMEs in Douala, Cameroon

Author

Listed:
  • Frank Sylvio Gahapa Talom

    (Department of Entrepreneurship and Business Management, Faculty of Business and Management Sciences, Cape Peninsula University of Technology, Cape Town 7535, South Africa)

  • Robertson Khan Tengeh

    (Department of Entrepreneurship and Business Management, Faculty of Business and Management Sciences, Cape Peninsula University of Technology, Cape Town 7535, South Africa)

Abstract

Often financially excluded by the traditional banking system, small and medium-sized enterprises (SMEs) in many developing countries have found in mobile money services (MMS) a sustainable alternative. Despite its potential in propelling inclusive growth, the use and adoption of mobile money (MM) by SMEs has generally been low in developing countries, and one of the reasons has been limited data that supported its impact on financial performance. As a result, there was a need to investigate the impact of the mobile money payment and receipt services on the financial performance of the SMEs in Cameroon. This paper implemented a mixed research paradigm with data collected through the administration of a survey questionnaire and from one-on-one in-depth interviews. A sample of 285 SMEs responded to the survey, while 12 owners/managing directors were purposively selected to participate in the personal interviews. Version 25 of the Statistical Package for the Social Sciences (SPSS) software was used to analyse the quantitative data, while the qualitative data was analysed along themes. The results were, after that, triangulated for credibility reasons. The concluding findings indicated that the mobile money payment and receipt services contributed of the order of 73% of the total variance in the turnover of the SMEs in Douala after they had begun to use the technology. By confirming the positive relationship between the use of mobile money services and the financial performance of businesses, it is hoped that all the relevant stakeholders will see this as a possible solution to the financial challenges that SMEs face in developing economies.

Suggested Citation

  • Frank Sylvio Gahapa Talom & Robertson Khan Tengeh, 2019. "The Impact of Mobile Money on the Financial Performance of the SMEs in Douala, Cameroon," Sustainability, MDPI, vol. 12(1), pages 1-17, December.
  • Handle: RePEc:gam:jsusta:v:12:y:2019:i:1:p:183-:d:301760
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/1/183/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/12/1/183/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ronald Baganzi & Antonio K. W. Lau, 2017. "Examining Trust and Risk in Mobile Money Acceptance in Uganda," Sustainability, MDPI, vol. 9(12), pages 1-22, December.
    2. International Monetary Fund, 2016. "Central African Economic and Monetary Community (CEMAC): Financial System Stability Assessment," IMF Staff Country Reports 2016/106, International Monetary Fund.
    3. Dylan Higgins & Jake Kendall & Ben Lyon, 2012. "Mobile Money Usage Patterns of Kenyan Small and Medium Enterprises," Innovations: Technology, Governance, Globalization, MIT Press, vol. 7(2), pages 67-81, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alfonso Siano & Lukman Raimi & Maria Palazzo & Mirela Clementina Panait, 2020. "Mobile Banking: An Innovative Solution for Increasing Financial Inclusion in Sub-Saharan African Countries: Evidence from Nigeria," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    2. Guma Ali & Mussa Ally Dida & Anael Elikana Sam, 2020. "Two-Factor Authentication Scheme for Mobile Money: A Review of Threat Models and Countermeasures," Future Internet, MDPI, vol. 12(10), pages 1-27, September.
    3. Murrar, Abdullah & Paz, Veronica & Yerger, David & Batra, Madan, 2024. "Enhancing financial efficiency and receivable collection in the water sector: Insights from structural equation modeling," Utilities Policy, Elsevier, vol. 87(C).
    4. Claude Bernard Lontchi & Baochen Yang & Kabir Musa Shuaib, 2023. "Effect of Financial Technology on SMEs Performance in Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    5. Dongyan Nan & Yerin Kim & Min Hyung Park & Jang Hyun Kim, 2020. "What Motivates Users to Keep Using Social Mobile Payments?," Sustainability, MDPI, vol. 12(17), pages 1-13, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abd Elrahman Elzahi Saaid Ali, 2016. "Beyond Traditional Microfinance: Financial Inclusion for Unbanked Kenyans," International Journal of Social Science Studies, Redfame publishing, vol. 4(8), pages 74-85, August.
    2. Robertson Khan Tengeh & Frank Sylvio Gahapa Talom, 2020. "Mobile Money as a Sustainable Alternative for SMEs in Less Developed Financial Markets," JOItmC, MDPI, vol. 6(4), pages 1-21, November.
    3. Sam Njinyah & Simplice A. Asongu & Sally Jones, 2022. "The role of mobile money adoption in moderating the influence of access to finance in firm performance," Working Papers of the African Governance and Development Institute. 22/075, African Governance and Development Institute..
    4. Wei-Lun Chang & Li-Ming Chen & Takako Hashimoto, 2022. "Cashless Japan: Unlocking Influential Risk on Mobile Payment Service," Information Systems Frontiers, Springer, vol. 24(5), pages 1515-1528, October.
    5. Asif Islam & Silvia Muzi & Jorge Luis Rodriguez Meza, 2018. "Does mobile money use increase firms’ investment? Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania," Small Business Economics, Springer, vol. 51(3), pages 687-708, October.
    6. Joanna Ejdys & Katarzyna Halicka, 2018. "Sustainable Adaptation of New Technology—The Case of Humanoids Used for the Care of Older Adults," Sustainability, MDPI, vol. 10(10), pages 1-24, October.
    7. Jean-Philippe Berrou & François Combarnous & Thomas Eekhout, 2017. "Les TIC : une réponse au défi du développement des micro et petites entreprises informelles en Afrique sub-saharienne ?," Working Papers hal-02148324, HAL.
    8. Steffi Sandra Singhe & Céline Louche, 2020. "The development of microfinance in Cameroon: Focus on regulation," Post-Print hal-02562588, HAL.
    9. Francisco Jesús Gálvez-Sánchez & Juan Lara-Rubio & Antonio José Verdú-Jóver & Víctor Meseguer-Sánchez, 2021. "Research Advances on Financial Inclusion: A Bibliometric Analysis," Sustainability, MDPI, vol. 13(6), pages 1-19, March.
    10. Joël Cariolle & David A Carroll, 2020. "Digital Technologies for Small and Medium Enterprises and job creation in Sub-Saharan Africa," Working Papers hal-03004583, HAL.
    11. Favourate Y. Mpofu, 2022. "Industry 4.0 in Financial Services: Mobile Money Taxes, Revenue Mobilisation, Financial Inclusion, and the Realisation of Sustainable Development Goals (SDGs) in Africa," Sustainability, MDPI, vol. 14(14), pages 1-24, July.
    12. Wenxiu (Vince) Nan & Minseok Park, 2022. "Improving the resilience of SMEs in times of crisis: The impact of mobile money amid Covid‐19 in Zambia," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(4), pages 697-714, May.
    13. Gary Cokins & Ionica Oncioiu & Mirela Cătălina Türkeș & Dan Ioan Topor & Sorinel Căpuşneanu & Carmen Adina Paștiu & Delia Deliu & Alina Nicoleta Solovăstru, 2020. "Intention to Use Accounting Platforms in Romania: A Quantitative Study on Sustainability and Social Influence," Sustainability, MDPI, vol. 12(15), pages 1-17, July.
    14. Muzamil Ahmad Baba & Zia ul Haq & Mohsina Dawood & Kumar Aashish, 2023. "FinTech Adoption of Financial Services Industry: Exploring the Impact of Creative and Innovative Leadership," JRFM, MDPI, vol. 16(10), pages 1-19, October.
    15. Emmanuel Kofi Penney & James Agyei & Eric Kofi Boadi & Eugene Abrokwah & Richmond Ofori-Boafo, 2021. "Understanding Factors That Influence Consumer Intention to Use Mobile Money Services: An Application of UTAUT2 With Perceived Risk and Trust," SAGE Open, , vol. 11(3), pages 21582440211, June.
    16. Mbithi George Mutiso & James Mwikya, 2021. "Mobile Financial Services and Mobile Commerce on Performance of Micro, Small and Medium Enterprises in Kenya: A Case Study of Kitengela, Kajiado County," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(09), pages 834-843, September.
    17. Dastane, Omkar & Goi, Chai Lee & Rabbanee, Fazlul, 2023. "The development and validation of a scale to measure perceived value of mobile commerce (MVAL-SCALE)," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    18. Tonuchi Emmanuel Joseph, 2020. "How to Improve Mobile Money Service Usage and Adoption by Nigerians in the Era of Covid-19," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(3), pages 31-52.
    19. Mahmoud, Zeinab, 2019. "Determinants of Mobile Money Adoption," 2nd Europe – Middle East – North African Regional ITS Conference, Aswan 2019: Leveraging Technologies For Growth 201742, International Telecommunications Society (ITS).
    20. Gaoyong Li & Xin Zhang & Ge Zhang, 2022. "To Use or Not to Use: It Is a Question—An Empirical Study on the Adoption of Mobile Finance," Sustainability, MDPI, vol. 14(17), pages 1-23, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2019:i:1:p:183-:d:301760. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.