Effects of a Technological-Organizational-Environmental Factor on the Adoption of the Mobile Payment System and Its Reverse Impact on Small and Medium-Sized Enterprises

Effects of a Technological-Organizational-Environmental Factor on the Adoption of the Mobile Payment System and Its Reverse Impact on Small and Medium-Sized Enterprises

In recent years, the mobile payment system has not only changed the payment pattern but also improves the performance of small and medium-sized enterprises (SMEs) and individuals quality of life by saving their energy, reduced the risk of taking cash, and enable them to give more time to businesses and do international business. In addition, with the current advancement in the internet as well as the digital transformation, the SMEs are being forced to adopt mobile payment systems (MPS). The purpose of this study is to investigate the effects of technological-organizational-environmental (TOE) determinants on the adoption of MPS and its impact on SMEs' firm performance operating in Ghana. This research employed a closed-ended questionnaire to collect data from January 2020 - April 2020. This study used a structural equation modeling approach using SmartPLS 3.0 version 3.2.8 for path analysis of 145 responses. The findings of the study include the statistically significant effects of technological (relative advantage and compatibility), organizational (top management support and employees readiness), and environmental (social influence and competitive pressure) factors on the adoption of MPS. Furthermore, this study also proved the positive and statistically significant effect of MPS on SMEs' performance. This study demonstrated that the TOE factor explains 70% variations in the adoption of MPS and 49.9% variation in SME performance only defined by adoption of MPS.