Artificial Intelligence Adoption and Organizational Performance of Fintechs in Kenya. A case of MPESA Africa.
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Date
2024
Authors
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Journal ISSN
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Publisher
Daystar University, School of Business and Economics
Abstract
In the Kenyan FinTech sector, AI is pivotal in assessing many aspects that directly affect the organizational performance of this sector. This study aimed to bridge several existing gaps by examining the influence of AI adoption, on Fintech organizational performance using the case of M-Pesa Africa. It determined the application of AI technologies by M-Pesa Africa, evaluated the organizational performance of M-Pesa Africa and investigated the effect of AI technologies on the organizational performance of M-Pesa Africa. The anchor theory was the Dynamics capabilities theory. The Technology Acceptance Theory focused on AI technology adoption while the Performance Theory underpinned the organizational performance. The study utilized mixed methods research design specifically the concurrent triangulation design. The population comprised of 91 Fintechs in Kenya. Target population consisted of the 225 employees of M-Pesa Africa. Stratified random sampling was used to select the sample size of 140 respondents. Data collection involved closed-ended questionnaires and guided interviews. A pre-test on 14 respondents was conducted. On validity testing, content and construct validity was applied. Respondent background information was analyzed using frequencies and tables, while inferential statistics like correlation and multiple linear regression determined relationships between the variables. The study found that M-Pesa Africa has strategically integrated various AI technologies to enhance its operational efficiency and customer interactions. It also established that M-Pesa Africa has experienced significant improvements in organizational performance through the adoption of AI technologies. Further, there was revelation that AI technologies have had a significant positive effect on the organizational performance of M-Pesa Africa. The regression analysis findings indicated that the AI technologies adopted significantly enhanced organizational performance at M-Pesa Africa. Chatbots show a positive impact with a coefficient of 0.199 and a p-value of 0.012, machine learning has a coefficient of 0.263 and a p-value of 0.009, and natural learning processes have the strongest effect with a coefficient of 0.336 and a p- value of 0.000. All effects are statistically significant, highlighting the crucial role of AI adoption in improving organizational performance at M-Pesa Africa. The study recommends that M-Pesa Africa should focus on expanding the capabilities of the AI technologies to capitalize and maximize their full potential.
Description
MASTER OF BUSINESS ADMINISTRATION in Strategic Management
Keywords
Kenyan FinTech sector, Organizational Performance, Artificial Intelligence
Citation
Amenya, I. (2024). Artificial Intelligence Adoption and Organizational Performance of Fintechs in Kenya. A case of MPESA Africa. Daystar University, School of Business and Economics.