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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Over the last decade the world has become more digitalized and mobile. This digitalization
brought about by the advancement in technology has affected all sectors of the economy
which the small and medium enterprise sector is not an exception. As a result of this, business
organisations world over have sought for ways of improving their business operations through
improved technologies in order to serve their customers better. Consequently, the advent of
Electronic commerce has assisted business organisations in achieving this desired goal. E-
Commerce refers to online transactions- buying and selling of goods and/or services over
electronic medium especially the internet (Yeo & Huang 2003). It consists of all commercial
transactions mediated by digital technologies such as landline telephone, electronic mails,
mobile-phones and internet which takes place over electronic networks.
As conceived by some schools of thought, Mobile-commerce is an extension of E-commerce
to mobile phones. Therefore, M-commerce involves an emerging set of applications and
services people can access from their Web enabled mobile devices (Sadeh, 2002). According
to this definition, m-commerce represents a subset of all e- commerce, including both
business-to-business and business to consumer. M- Commerce uses the internet for purchasing
goods and services as well as sending and receiving messages using hand- held wireless
devices. Some other schools of thought think it is another new channel after the internet, since
Mobile phones itself provides an easier way to access the internet as it brings about flexibility
and speed in its operations, thereby facilitating improvement in its operations leading to
substantial cost savings as well as increased efficiency and competitiveness. Generally, m-
commerce refers to any transaction with a monetary value that is conducted via a mobile
12
telecommunications network, thus enabling Wireless web applications users with Internet
enabled cell- phones undertake and carry out several kinds of transactions.
One of the fastest developments in mobile commerce has been made in Africa where the
inadequate bank infrastructures have encouraged financial firms to make use of mobile phones
rather than other E-commerce devices. One of the major characteristics that made M-
commerce
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