Determinants of mobile application adoption among micro-entrepreneurs

Abstract

Background: Since the onset of the global pandemic, unemployment has increased to new levels. As a consequence, the need to stimulate economic growth through the development of the micro-enterprise sector has become a central vehicle to decrease unemployment and stimulate economic growth. The problem, however, is that despite the potential benefits of digitisation, the micro-enterprise sector has been unable to effectively integrate information and communication technologies (ICTs) into the fabric of their operations.

Objectives: The objective of this study was to investigate the factors that influence the adoption and use of mobile applications for micro-enterprise operations in South Africa.

Method: A quantitative methodology using a survey design was used to collect data from a sample of entrepreneurs, with 221 responses.

Results: Performance expectancy (PE) and effort expectancy (EE) positively influence the micro-entrepreneurs’ behavioural intention (BI) to adopt and use mobile applications, while social influence (SI) has no impact on the same. Facilitating conditions (FC) and BI are the strongest determinants of mobile application adoption and use for micro-enterprise operations.

Conclusion: All the constructs of the unified theory of acceptance and use of technology (UTAUT) model showed a satisfactory level of reliability and discriminant validity, which was confirmed by testing the measurement model against two competing models. The UTAUT model is a good predictor of the intention to adopt and use mobile applications for micro-enterprise operations.

Contribution: The findings provide parameters to develop a focussed strategy to catalyse the adoption and subsequent use of mobile applications among micro-entrepreneurs. It further informs initiatives to close the gap of a known reluctance in using technology among micro-enterprises.