Journal article
Understanding the diffusion and adoption of digital finance innovation in emerging economies: M-Pesa money mobile transfer service in Kenya
- Abstract:
- The growth of digital financial innovations in emerging economies varies across countries with Kenya’s mobile money transactions leading in Africa. Empirical evidence is lacking to describe from a system perspective the major factors attributing to this. Among the major money mobile transfer innovations, M-Pesa has recorded a tremendous impact since its launch in 2007. Consequently, this paper uses M-Pesa as a case study to understand the determinants of the success of digital financial innovations in an emerging economy. The analysis is applied at the level of technological innovation system (TIS), a framework that has provided useful insights into the functions that need to be stimulated for the successful deployment of innovative technologies. The analysis exposes key systemic functions that characterize M-Pesa rapid diffusion in Kenya. The study finds that TIS framework can be applied to explain the diffusion and uptake of a new technology. However, local adaptation process attracts critical coordination aspects, significant learning and localized capabilities attributed to M-Pesa rapid expansion. These aspects are not explicitly articulated in the TIS literature. The study concludes with policy recommendations towards stimulation of key functions that may support diffusion of digital financial innovations in emerging economies.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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- Files:
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-
(Preview, Accepted manuscript, pdf, 724.4KB, Terms of use)
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- Publisher copy:
- 10.1080/2157930x.2019.1570695
Authors
- Publisher:
- Routledge
- Journal:
- Innovation and Development More from this journal
- Volume:
- 10
- Issue:
- 1
- Pages:
- 67-87
- Publication date:
- 2019-01-31
- Acceptance date:
- 2019-01-31
- DOI:
- EISSN:
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2157-9318
- ISSN:
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2157-930X
- Language:
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English
- Keywords:
- Pubs id:
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pubs:967782
- UUID:
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uuid:27286a94-1ee4-49ff-ac97-737f1fb59d93
- Local pid:
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pubs:967782
- Source identifiers:
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967782
- Deposit date:
-
2019-02-01
- ARK identifier:
Terms of use
- Copyright holder:
- Informa UK Limited, trading as Taylor & Francis Group
- Copyright date:
- 2019
- Rights statement:
- Copyright © 2019 Informa UK Limited, trading as Taylor & Francis Group.
- Notes:
- This is the accepted manuscript version of the article. The final version is available online from Routledge at https://doi.org/10.1080/2157930X.2019.1570695
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