How Mobile Banking Technology Affects Kenyan Performance: A Case of Mobile Phone Companies in Kenya

Abstract

Background of the Study According to the World Bank (2010), mobile banking is defined as the provision of banking services for the unbanked through the use of mobile devices such as mobile phones. Mobile banking is an innovation that combines telecommunication service providers and financial service providers to improve social and economic performance (World Bank, 2010). The technology advancement has brought new ways of doing things and new business models such as online banking, ecommerce and mobile banking which have played a key role in advancing social and economic performance (AL-Jabi, 2012). Unquestionably, mobile banking has had a very positive effect on societal, economic and organization performance (Zutt, 2010). World Bank (2014) report observed that around the world, mobile banking has had a rapid growth in developing nations as opposed to the developed nations. As a result, the growth of mobile banking in these economies is at a lower speed as compared to most developing nations. Africa has been noted to have an exponential development in the mobile banking business, with most countries opting mobile banking to enhance achievement of economic goals as well as enhance social growth (World Bank, 2014; GSMA, 2014). Rouse and Daellebach (2009) argued that for a firm to advance its performance, it must comprehend and ascertain its technological resources that will improve its performance. The study established that a firm's intangible technological resources results to improved performance and that they aid the firm in formulating and implementing strategies that can improve effectiveness and efficiency of the firm. Barney and Hesterly (2010) advanced that intangible technology resources are more sustainable than tangible resources which can be acquired and duplicated by competitors. In addition, Kenneth, Anderson and Eddy (2010) pointed out that a firm has an advanced performance when it has the capability of maintaining VRIN resources for a number of years. Technology as an Intangible resource is able to produce superior performance since they are valuable, rare, inimitable and non-substitutable (Njoroge (2015), Gamero, Patricinio, Enrique & Jose, 2011; Costa, Cool & Dierick, 2013). Njoroge, Muathe and Bula (2015) indicated that for a long time, technology has been identified as the key for commencing novel activities through risk-taking and firm proactively which results in a firm's higher performance than competitors. Firms that focus on technological advancement through innovation research and development generate above average performance (Paladino, 2009; Merlo and Auh, 2009 and Tajeddini, 2010). Firms that employ technology are known for superior performance because they believe in acquisition of new technologies for product innovation, research and development which enables the firm to produce unique products which are hard to copy (Altindag, Zehir and Acar,