Mobile Phone Ecosystems and the Informal Sector in Developing Countries – Cases from Jamaica

Abstract

This study investigates the role of the ICT ecosystem within the informal business sectors of rural and urban Jamaica, relying on an exploratory collective case study methodology to highlight the differences in how the use of mobile phones have facilitated and enhanced entrepreneurial opportunities for business operators existing in the informal economy. The findings of the study confirm existing research about the socio-economic benefits of ICTs but also highlight specific characteristics related to informal ICT ecosystems. For example, we found that there was a close-knit set of entrepreneurs who were motivated by competition between one another but who would still engage in mutual learning and information sharing. These ecosystems also entail a system of social hierarchy among the actors, although there is potential for mobility. Finally, we note that our findings suggest a potential reconsideration of definitions of the informal sector that emphasize low-skilled labour.

IT for the informal sector in developing countries: A broader perspective

“…The rapid proliferation of IT in the last decade or so, combined with the increasing potential benefits of such technologies on individuals, organizations, and society, demands that academic research in the IS/IT area analyzes the nature, role, and intensity of the consequences of use of such technologies on the informal sector. It is often hoped that technology support for the informal sector can bring in the much‐needed increase in efficiency (Johnson & Thakur, ). However, the dominant focus of research in this area has been on the use, adaptation, and effects of mobile phones as communication devices.…”

Communication technology, capabilities and livelihoods

“…Interviewee Details for M-Pesa Users ...........................................................................181 Table 4. Interviewee Details for M-Pesa Agents .........................................................................182 finance (Diga, 2013;Duncombe, 2011;Fuchs & Elder, 2013;Johnson & Thakur, 2015;Rashid, 2017).…”

“…A fundamental ingredient of ICTD is development impact (Heeks, 2012), or the ability of ICTs to improve the lives of users (Johnson & Thakur, 2015). Implementation of ICTDs project is a complex undertaking because such projects touch several sectors of a country -the political, cultural, economic and infrastructural.…”

“…Research suggests that access to ICTs like the mobile phone can have a significant effect on reducing poverty. In contrast to the developed world where the Internet is the ICT of choice for many, mobile phones are more accessible to many people who depend on small scale enterprises to improve their lives (Johnson & Thakur, 2015). More than any other sector, the mobile phone has had an impact on the small-scale informal sector of developing economies.…”

“…The informal sector refers to the small businesses owned by private individuals (Opiyo & K'Akumu, 2006). Johnson and Thakur's (2015) exploratory case study to understand the usefulness of ICTs in boosting small-scale enterprises in the informal sector in rural and urban Jamaica found that new mobile phones influenced the operations of such businesses. Mobile phones facilitated interpersonal networking of business people in the informal sector by improving the interactions between buyers and sellers, the network operator, mobile phone operators and the phone card vendors.…”