The impact of technological-organizational-environmental (TOE) factors on firm performance: merchant’s perspective of mobile payment from Thailand’s retail and service firms

Abstract

Purpose This study aims to identify the impact of mobile payment on firm performance by developing a model based on the technology, organization and environment framework (TOE framework) including relative advantage, complexity, compatibility, innovativeness, mobile payment knowledge, critical mass, competitive pressure and external support. Design/methodology/approach The data were collected from the retail and service firms in Bangkok, Thailand (n = 387). Multiple regression analysis was applied to test the proposed model and carried out in SPSS version 25. Findings The results indicated that the TOE factors, including relative advantage, innovativeness, mobile payment knowledge, critical mass, competitive pressures and external supports, can predict firm performance. While innovativeness is the strongest predictor of positive firm performance, on the other hand, critical mass is found to be negatively significant on firm performance. Practical implications This research suggests that firms that accept mobile payment can identify the positive impact on firm performance and it is important for payment service providers and the government to work closely with firms. Originality/value As some merchants still refuse to implement mobile payment services in their business, this current study seeks to understand the impact of mobile payment. However, not many studies are reported its impact in Southeast Asia. This study is probably the first in Thailand to examine the impact of mobile payment on firm performance in the retail and service firms.

Analysis of E-Commerce Adoption by SMEs Using the Technology - Organization - Environment (TOE) Model: A Case Study in Karawang, Indonesia

“…Rogers Everett (1995) describes compatibility as the extent to which an innovation is considered consistent with existing values, past experiences and adoption needs [23]. Therefore, when SMEs consider that e-commerce is compatible with their business, they will tend to continue to use it, which in turn benefits their business performance.…”

“…Relative advantage can be defined as the extent to which a business views the benefits of using e-commerce [23]. Relative advantege is the level of ecommerce consistency that can provide business benefits, this level of ecommerce consistency is related to innovation, so the extent to which ISSN: 2774-5406 http://ijstm.inarah.co.id innovation can offer many business benefits through increased efficiency [25].…”

“…Rogers Everett (1995) defines complexity as the difficulty of innovation to be understood and applied to achieve business goals, which requires more effort to find ways to use innovation [23]. According to Premkumar and Roberts (1999), it is assumed that, in this case, complexity has a negative impact on the adoption rate.…”

“…According to [23] Organizational context refers to the characteristics of the company and its resources, size, scope, and structure. [26] explained that the perceived cost is very important in the adoption of a technology.…”

“…According to [23] The environmental context relates to the industry or type of business and takes into account competitors, markets, government and external support. 1) Government Support Government support can be defined as initiatives and opportunities from the government to encourage adoption [25].…”