Examining the effect of mobile money transfer (MMT) capabilities on business growth and development impact

Abstract

Mobile money transfer (MMT) has been one of the success stories of mobile phone services in developing countries, especially in the Sub-Saharan Africa (SSA) region. Studies into the impact of MMT capabilities on microenterprise in the region are still nascent and most have focused on MMT diffusion. The study specifically examines the effect of MMT capabilities on microenterprise growth and the subsequent effect on the well-being of microentrepreneurs, which in this study is referred to as ‘development impact’. The dynamic capability theory was used as a theoretical lens to develop a research model and three hypotheses to answer the research questions. The model was tested by using the survey methodology to collect data from 201 MMT microenterprise operating in Ghana, a Sub-Saharan Africa nation. Structural equation modeling was used to analyze the data. All the three hypotheses were confirmed. This paper offers both theoretical and managerial implications.