An Assessment of factors Influencing Mobile Phone Adoption: Case of Kenya's Socio-Economic Development

Abstract

Using theories of technology acceptance and technology transfer, we identified factors affecting the use of mobile phones in Kenya. We used a research model to describe factors that impact mobile use and formulated a series of hypotheses about them. We then surveyed mobile phone usage in Kenya and tested on the structural model to examine our hypothesized relationships. We looked at what factors strongly influence individuals' perceptions of the usefulness and ease of use of mobile Phones. Although extensive mobile phone adoption (high mobile phone levels per capita) may be necessary for seeding commercial and economic initiatives that depend heavily on mobile phones, such as m-commerce, it may not be sufficient. Firms conducting business in Kenya need to pay attention to the factors that explain individual mobile phones use because these factors will most likely determine the optimal market segmentation, business development and customer service strategies for leveraging m-commerce operations the region. For government units, the understanding of such factors would also be beneficial in aiding economic planning and commerce. From the data collected we explain how mobile phones may not just help create new jobs and new sources of revenue to the state but can also contribute to economic growth by widening markets, creating better information flow, lowering transaction costs, and becoming substitute for costly transportation that is lacking especially in rural areas. The results of the TAM survey based on the regression model with an R square of 0.273, show that there was substantial support that the participants who found mobile phone easy to use and useful tended to adopt and use them.