AN EXAMINATION OF THE EFECTS OF INTER-FIRM COOPETITION ON DIGITAL FINANCIAL INCLUSION: THE CASE OF SELECTED DIGITAL FINANCIAL SERVICES PROVIDERS (DFSPs)

Abstract

Background: This article explains the effect of inter-firm coopetition on digital financial inclusion. Studies on the effects of coopetitive relationships have mainly been focused on outcomes and benefits for the firm, but rarely considering its effects on social welfare. This paper provides an assessment of how the effects of inter-firm coopetition on firm performance affects digital financial inclusion. Digital financial services providers in Zambia are engaging in inter-firm coopetition as they seek value creation and market expansion (Fleming, 2018). The collaborative intervention theory was used to explain the relationship in this study.

Methods: The study employed a mixed method design to assess the effect of joint decisions and actions on society. Purposive sampling was used in identifying the sample. 32 respondents were surveyed and 6 key informants were interviewed. Quantitative and qualitative data were collected from a sample of 14 digital financial services providers (DFSPs) in Zambia. Quantitative data were analysed using SPSS, and qualitative data used Nvivo 12.

Results: The findings reveal that inter-firm coopetition has a significant effect on digital financial inclusion (β = 1.88; t-value = 10.131, Sig (p) <.001). The key informants, from the interviews, all confirmed the quantitative findings.

Conclusion: The use of inter-firm coopetition in firm performance improvements has resulted in improvements in the access of digital financial services for the poor.  DFSPs have jointly adopted DFS platforms which they use to penetrate previously untapped markets including far flung areas.

Keywords: INTER-FIRM COOPETITION, DIGITAL FINANCIAL SERVICES

DOI: 10.7176/RJFA/14-12-07

Publication date:June 30^th 2023