How can mobile phone usage affect micro and small enterprises' performance in Saudi Arabia?

Abstract

The use of mobile phones for business purposes has revolutionized various sub‐sectors of the economy, including micro and small enterprises in both Saudi Arabia, the context of this study, and other countries. This study uncovers how the use of mobile phones has affected the performance of micro and small enterprises in both monetary and nonmonetary terms. Using a survey instrument, data were collected from 300 micro and small enterprise owners across Saudi Arabia and then analyzed using SmartPLS. Among the major findings, we suggest that no direct correlation exists between mobile phone usage and micro and small enterprises' monetary performance. However, mobile phones were found to have a significant influence on the nonmonetary performance of micro and small enterprises. This study contributes to the literature on technology adoption and economic performance by providing further evidence of the relationship between mobile phones and micro and small enterprises' performance. These findings can help micro and small enterprise owners, telecommunications companies, policymakers in related authorities (such as the Ministry of Communication and Information Technology and the Ministry of Commerce) and academics to make informed decisions. Conclusions and recommendations are drawn, and priorities are proposed for continuing research.

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