Effect of Mobile Phone-Based Digital Technologies on the Performance of Refugee Women-Led Micro, Small and Medium Enterprises in Kakuma Refugee Camp
DOI:
https://doi.org/10.51867/ajernet.4.2.77Keywords:
Micro, Small and Medium Enterprises (MSMEs),, Mobile Phone Based Digital Technologies, PerformanceAbstract
The contribution of Micro, Small, and Medium Enterprises (MSMEs) to economic development as well as the role of digital technology in MSME performance are underscored in many studies globally. MSMEs provide over 70% of employment, contribute to national revenue, and are considered key to increasing productivity. In Africa, MSMEs are also recognized for skill development and upward mobility in diverse geographic areas and economic sectors, provide livelihood and income for diverse segments of the labor force, and are the backbone of Africa’s economy as well as key to its most pressing development challenges. Despite the potential of MSMEs for economic growth, many face a myriad of challenges, both internal and external to the firm, that constrain their performance and ultimate survival. This is especially critical for refugee-owned enterprises. In light of the constraints, the utilization of digital technology has emerged as an important strategy to secure the growth, performance, and survival of MSMEs. The objective of this study was to examine the effect of mobile phone-based digital technologies on the performance of refugee women-led MSMEs in Kakuma Refugee Camp. Two theoretical frameworks underpinned this study: the Resource-Based View (RBV) proposed by Barney (1991) and the Technology Acceptance Model (TAM) theory proposed by Davis (1986). The study adopted an analytical cross-sectional survey design for primary data collection using questionnaires. The targeted population was sampled using a stratified simple random sampling technique. A total of 111 enterprises were surveyed using a questionnaire. Descriptive statistics were generated to give summaries and describe the sample characteristics, while inferential statistics comprised correlation and regression analysis. The study found that mobile phone-based technology was a significant predictor of performance (r = 0.501, p-value =0.000 < 0.05). The study recommends that mobile phone-based technology should be prioritized since it leads to an increase in sales and profits for a firm through improved mobile phone transactions.
References
Ahad, M. T. (2016). Exploring the usage of the mobile phones by SMEs in the achievement of Vision 2020 Goals. Journal of Mobile Technologies, Knowledge, and Society, 1-18.
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 171, 99-120.Bonsu, C & Sampong, F. (2022). The impact of information and communication technologies (ICT) on small and medium scale enterprises (MSMEs) in the Kumasi Metropolis, Ghana, West Africa. European Journal of Business and Management, 4(20), 152-158.
https://doi.org/10.1177/014920639101700108 DOI: https://doi.org/10.1177/014920639101700108
Cariolle, J. (2020). Digital spillovers and MSMEs' performance in Sub-Saharan Africa. FERDI Notes brèves/Policy briefs.
Chege, S. M., & Wang, D. (2020). The influence of technology innovation on SME performance through environmental sustainability practices in Kenya. Technology in Society, 60, 101210.
https://doi.org/10.1016/j.techsoc.2019.101210 DOI: https://doi.org/10.1016/j.techsoc.2019.101210
Chinomona, R. (2013). The fostering role of information technology on SMEs' strategic purchasing, logistics integration and business performance. Southern African Business Review, 17(1), 76-97.
Chowdhury, S. K & Wolf, S. (2017). Use of ICTs and the economic performance of MSMEs in East Africa (No. 2017/06). WIDER Discussion Paper.
Cole, S. A., Joshi, M., & Schoar, A. (2021). Heuristics on call: The impact of mobile phone-based business management advice. Available at SSRN 3971013.
https://doi.org/10.2139/ssrn.3971013 DOI: https://doi.org/10.2139/ssrn.3971013
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 1(3), 319-340.
https://doi.org/10.2307/249008 DOI: https://doi.org/10.2307/249008
Disse, S & Sommer, C. (2020). Digitalisation and its impact on MSME finance in Sub-Saharan Africa: Reviewing the hype and actual developments (No. 4/2020). Discussion Paper.
Donner, J. (2006). The use of mobile phones by microentrepreneurs in Kigali, Rwanda: Changes to social and business networks. Information Technologies & International Development, 3(2), pp-3.
https://doi.org/10.1162/itid.2007.3.2.3 DOI: https://doi.org/10.1162/itid.2007.3.2.3
Esselaar, S., Stork, C., Ndiwalana, A & Deen-Swarray, M. (2016). ICT usage and its impact on profitability of MSMEs in 13 African countries. In 2016 International Conference on Information and Communication Technologies and Development (pp. 40-47). IEEE.
Hart, M. & Roper, S. (2016). Boosting UK productivity with MSMES growth. Evidence Briefing. Economic and Social Research Council.
Hatayama, M. (2018). ICTs and livelihood support of refugees and IDPs. Institute of Development.
Hounsell, B., & Owuor, J. (2018). Innovating mobile solutions for refugees in East Africa. Opportunities and barrier to using mobile technology and the internet in Kakuma refugee camp and Nakivale refugee settlement. Nairobi: Samuel Hall Consulting.
International Finance Corporation - IFC (2018). Kakuma as a Market Place: A consumer and market study of a refugee camp and town in northwest Kenya.
Kozlenkova, I.V., Samaha, S.A. & Palmatier, R.W. (2019). Resource-based theory in marketing. Journal of the Academy of Marketing Science, 421, 1-21.
Litondo, K. O. (2018). Influence of information and communication technologies on the sales amounts of micro and small enterprises: a case of mobile phone usage in the Kenyan informal sector. International Journal of Business Management and Economic Review, 1(4), 120-131.
Loku, A., & Loku, N. (2020). Internal factors affecting the performance of small and medium enterprises in Kosovo. Technium Soc. Sci. J., 11, 115.
https://doi.org/10.47577/tssj.v11i1.1376 DOI: https://doi.org/10.47577/tssj.v11i1.1376
Makee, K. B., Willy, M & Atandi, F. G. (2019). Effect of mobile phone transfer services on performance of micro and small enterprises: A case of Trans-Nzoia County, Kenya. International Journal of Academic Research in Business and Social Sciences, 4(11), 111.
https://doi.org/10.6007/IJARBSS/v4-i11/1276 DOI: https://doi.org/10.6007/IJARBSS/v4-i11/1276
Manji, F. (2019). Desk Review on Livelihoods and Self-Reliance for Refugees and Host Communities in Kenya. World Bank Group Report MasterCard and Western Union.
Mugalo, P. K. (2021). Effect of Mobile Phone Technology on Performance of Micro and Small-Scale Enterprises in Kakamega County (Doctoral dissertation, KeMU).
Mugenda, A., G. (2018). Social Science Research, Theory and Principles. Nairobi: Applied Research and Training Services Press.
Mutiso, M. G., & Reuben, M. J. (2021). Mobile payment and mobile money transfer on performance of micro, small and medium enterprises in Kenya
Muriithi, S. M. (2017). African small and medium enterprises (MSMEs) contributions, challenges and solutions. European Journal of Research and Reflection in Management Sciences, 5(1), 36-48.
Mwobobia, F. M. (2022). The challenges facing small-scale women entrepreneurs: A case of Kenya. International journal of business administration, 3(2), 112.
https://doi.org/10.5430/ijba.v3n2p112 DOI: https://doi.org/10.5430/ijba.v3n2p112
Perekwa, G. B., Prinsloo, T., & Van Deventer, J. P. (2016). The impact of mobile technology on micro and small enterprises in Zimbabwe in the post-hyperinflation economic era. The African Journal of Information Systems, 8(3), 3.
Rumanyika, J. D., & Galan, R. M. (2015, July). The dynamics of mobile phone technologies and the performance of micro and small enterprises in Tanzania. AP15Singapore Conference.
Sanghi, A., Onder, H., and Vemuru, V. (2016). "Yes" in My Backyard? The Economics of Refugees and Their Social Dynamics in Kakuma, Kenya. World Bank & UNHCR.
https://doi.org/10.1596/25855 DOI: https://doi.org/10.1596/25855
Shah, A. A., Mehmood, T., Hashmi, M. A., Shah, S. M & Shaikh, F. M. (2011). Performance of MSMEs in export growth and its impact on economy of Pakistan. International Journal of Business and Management, 6(7), 287.
https://doi.org/10.5539/ijbm.v6n7p287 DOI: https://doi.org/10.5539/ijbm.v6n7p287
UNHCR. (2017). MADE51A: New Initiative Bringing Market Access to Refugee Artisans. UNHCR. https://www.unhdesign-empowerment-refugee-artisans-made51-new.html
Yadewani, D., Duraipandi, O., Khor, L., Sefnedi, S., & Tio, L. (2023, August). The factors influencing SMEs performance with special reference to innovation and technology. In AIP Conference Proceedings (Vol. 2854, No. 1). AIP Publishing.
https://doi.org/10.1063/5.0165500 DOI: https://doi.org/10.1063/5.0165500
Zhu, J., & Wang, M. (2022). Analyzing the Effect of People Utilizing Mobile Technology to Make Banking Services More Accessible. Frontiers in Public Health, 10, 879342.
https://doi.org/10.3389/fpubh.2022.879342 DOI: https://doi.org/10.3389/fpubh.2022.879342
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Otieno Collins Onyango, Willis Otuya, Rosemary Nanyama

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.