Mobile Phones and Micro-Trading Activities – Conceptualizing The Link, Info

Abstract

Purpose – The purpose of this study is to investigate the impact of mobile phones on the micro-trading activities of traders in Ghana. The study aims to develop a conceptual model analyzing the impact of mobile phones on pre-trade, during-trade and post-trade activities.

Design/methodology/approach – A mixed methods approach consisting of a descriptive survey of 136 traders and a case study of two traders was adopted.

Findings – The findings suggest that traders primarily use mobile phones to monitor goods and pricing strategies, scheduling deliveries, and addressing inquiries and complaints in during-trade activities. Traders, including those with no formal education, also use mobile phones as calculators in post-trade activities. This innovative use of mobile phones is a function of their pre-knowledge which may have been developed through formal education and/or social networks. Improving information management through mobile phones directly or indirectly contributes to the economic empowerment of the trader.

Research limitations/implications – The paper proposes a conceptual framework that extends the transaction cost theory to consider transaction benefits and effects in micro-trading. The study develops four propositions which can guide future research.

Practical implications – The study provides practitioners with a “theoretically-inspired” framework which goes beyond examining design and adoption to identify needs and assess impact in mobiles for development initiatives.

Originality/value – The conceptual framework extends the work on transaction cost theory in information systems and may inform future research in mobile phones and micro-trading activities.