Factors influencing mobile commerce acceptance and adoption in South Africa

Magan, Bhavesh
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ABSTRACT The potential for growth in the South African knowledge economy and contribution to the overall gross domestic product (GDP) of the country is primarily dependent on the growth and development of Internet based services, as the Internet has provided businesses with potential opportunities to explore customer interactions, through both Electronic Commerce (E-Commerce) and Mobile Commerce (M-Commerce). The adoption rate of E-Commerce in South Africa has been found to be slow compared to other developing countries, despite the significant growth in the Internet and mobile penetration rate. This study considers the extension of the Technology Acceptance Model (TAM) to include factors such as M-Commerce as an alternative to E-Commerce, cost and trust, in order to investigate the factors that influence a user’s acceptance of M-Commerce. Furthermore, key factors that influence the adoption of the service are explored as part of the study. The theoretical model developed was empirically tested using survey data collected from the targeted population. Confirmatory factor analysis assessed the validity and reliability of the model developed, post which the structural equation modeling (SEM) technique was implemented to evaluate the influence of the causal factors. The key findings of the analysis indicated that M-Commerce as an alternative to E-commerce, perceived usefulness and cost had a significant to moderate influence on the behavioural intention to use M-Commerce. These results were in line with theory reviewed, with the exclusion of the trust and subjective norms factors that were seen to have a negative and non-significant influence respectively on the acceptance of the M-Commerce service - contrary to the theory reviewed. The implications of these findings highlight the significant factors that both individuals and businesses can exploit in order to improve the endorsement of the M-Commerce service within the South African context. Notwithstanding, the study also highlights the need for an exploration of other areas relating to MCommerce, which may be considered for future research initiatives.
M.B.A. Thesis
Consumer behavior, Banks and banking, Mobile, Electronic commerce, Mobile communication systems -- South Africa.