Academic literature on the topic 'M-PESA'

Kenya’s M-Pesa has arguably become the most recognizable symbol of mobile money globally. The success of M-Pesa can be partially attributed to Safaricom’s continuous product innovation. However, few studies have examined the role of M-Pesa employees (called agents) in the adaptation of M-Pesa. To address this gap, we explore the role of M-Pesa agents in Kenya’s mobile money ecosystem by using observations and interviews with agents in Western Kenya. Drawing on technology adaptation and using literature, we explore the role of M-Pesa agents as innovators and facilitators of mobile money services. Findings suggest that although Safaricom expects agents to follow certain protocols, agents revealed that they push back on these expectations by bending corporate procedures to align with the social, economic and cultural realities of their customers. As such, they play a key role in the innovation and adoption process, and arguably, have contributed to the long-term success of M-Pesa.

Subject area Change Management. Study level/applicability Postgraduate business courses, including MBA courses in change management and human resource management. Case overview This case study emphasises how important it is for organisations operating in today's turbulent and rapidly changing business environment to have an emergent approach to change. It focuses on the dilemmas faced by Hemmanth Singh, the newly appointed Managing Executive responsible for Mobile Commerce at Vodacom South Africa. Singh is responsible for the execution of the new strategy into financial services, the relaunch of M-Pesa into the South African market being the immediate task. The case sets the context for the relaunch of M-Pesa, and the reader is introduced to some of the limitations and challenges experienced by the company when trying to replicate a successful business model from one market to another, especially after an unsuccessful initial launch. Expected learning outcomes After reading and analysing the information contained in the case study and appendices, students should be able to evaluate the critical role that leadership needs to play when introducing and implementing a change initiative at an organisation that is stimulated by evolving external market conditions; understand the importance of adopting an emergent approach to change in current operating conditions; identify the factors that contribute to or hinder the creation and sustainability of an adaptive culture within an organisation; and appreciate the challenges of attempting to replicate a successful business model from one market into another. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

In the beginning of the twenty-first century, C. K. Prahalad launched a new business proposition named as “Base of the Pyramid” (BOP). In such type of business, Multinational Companies (MNCs) look for new opportunities of profits helping to meet the poor’s unmet needs in developing countries. However, MNCs significant involvement in BOP business has been losing momentum due to the challenges MNCs have been faced in developing BOP businesses. This study intended to recall Prahalad’s original BOP proposal explaining the success of a BOP innovation developed by an MNC in Kenya: M-PESA, a mobile money service. About 70% of Kenya’s adult population has M-PESA accounts and M-PESA’s monthly transactions account for 30% of Kenyan GDP. How did a multinational company develop the successful BOP innovation M-PESA in Kenya? Our study intends to explain how the British multinational Vodafone employed successful Base of the Pyramid principles of innovation in Kenyan M-PESA. Indeed, there is a gap of studies about the Prahalad’s principles of innovation for developing BOP products. Therefore, this research analyzed Prahalad’s BOP proposal, including his twelve principles of innovation to develop BOP products, by comparing such proposal with Karnani’s framework for fighting poverty. Karnani is regarded as the main critic against the Prahalad’s BOP proposal. Most of Prahalad’s BOP principles of innovation were identified in M-PESA in Kenya (eleven out of the twelve principles). However, Karnani’s framework explained better the factors that influenced successful BOP innovation in Kenyan M-PESA than Prahalad’s proposal. Furthermore, this study pointed out two key points that explained the success of M-PESA innovation in Kenya that they were not included neither in Prahalad’s nor in Karnani’s proposals: social intrapreneurship made by MNCs employees, and supportive role of government in developing BOP businesses. Therefore, such topics deserve more attention from the BOP literature in order to advance this field.

Purpose The purpose of this paper is to integrate established information systems theories (post-acceptance model (PAM) and task-technology fit (TTF)) to model and test determinants of user continuance intention within Kenya toward a proliferated mobile money service called M-pesa. Design/methodology/approach A positivist method informed the design of the study. A survey instrument was developed and administered amongst M-pesa users in Kenya, yielding 618 responses. Selection of users followed a systematic sampling technique. Afterwards, structural equation modelling (SEM)-partial least squares (“SEM-PLS”) was used to examine the measurement and structural model of the study. Findings The results revealed an unexpected finding that TTF’s utilization has a stronger path coefficient than PAM’s satisfaction in predicting user continuance intention toward M-pesa. This is contrary to most extant literature reports that satisfaction is the dominant predictor of usage continuance. Also, unexpected, the results revealed a lack of significant influence between the PAM’s post-usage usefulness (PUU) and satisfaction. Again, the relationship between PUU and satisfaction in most extant studies is reported as significant. Originality/value The study suggests that saliency order of determinants of user continuance intention could differ within the developing world and developed world.