Institutional intervention in technology innovation: the struggle to increase mobile payment adoption
Digital Policy, Regulation and Governance
ISSN: 2398-5038
Article publication date: 5 January 2022
Issue publication date: 11 February 2022
Abstract
Purpose
Platform-driven business models have witnessed a significant proliferation in emerging economies. Such initiatives bring cost-effective services to a larger section of the population, given the reach of mobile phones. Drawing insights from the institutional theory and theories on the multisided platform, this paper aims to examine the impact of institutional intervention and platform competition on the initial adoption and continuance intention of platform-based payment services.
Design/methodology/approach
The research model is empirically developed through a unique single-case study covering the high-value banknote demonetization in India that was initiated in November 2016. The research is primarily based on archival data and is supported by a limited number of interviews.
Findings
The research finds that institutional interventions (in multiple forms) have increased people’s eagerness to use mobile payment. Supportive institutional environment and common citizen’s increased eagerness for mobile payment usage resulted in the emergence of multiple mobile payment platforms. Moreover, competition among multiple payment platforms positively impacts the continuance intention of users to use mobile payments.
Originality/value
The research supplements the present understanding of the technology adoption challenges. The study highlights that the relative success of technology adoption cannot be attributed only to the users’ economic or technological motives, as embodied in the adoption models. Carefully designed interventions by the institutions can reduce users’ inertia in using new technology and positively influence the emergence of multiple platform-based service providers.
Keywords
Acknowledgements
The authors are grateful to Professor Harry Bouwman of Delft University of Technology (The Netherlands), whose valuable advice and review helped to improve an initial version of this article. The authors are also grateful to the anonymous reviewers whose valuable advice helped improve the quality of this article.
Citation
Mukhopadhyay, S. and Upadhyay, P. (2022), "Institutional intervention in technology innovation: the struggle to increase mobile payment adoption", Digital Policy, Regulation and Governance, Vol. 24 No. 1, pp. 74-92. https://doi.org/10.1108/DPRG-01-2021-0002
Publisher
:Emerald Publishing Limited
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