DOES INDUSTRY SIZE INFLUENCE ADOPTION OF CASHLESS PAYMENT SYSTEMS AMONG PASSENGER SERVICE VEHICLES IN NAIROBI CITY COUNTY, KENYA?

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1 DOES INDUSTRY SIZE INFLUENCE ADOPTION OF CASHLESS PAYMENT SYSTEMS AMONG PASSENGER SERVICE VEHICLES IN NAIROBI CITY COUNTY, KENYA? DR. SEDINA BURKITT MISANGO P.O. BOX 3572, Nairobi ABSTRACT Countris can rport growth and dvlopmnt if thy ar abl to adopt tchnology that is bnficial to th citizns and th conomy. Among critical tchnologis that hav mrgd in Knya is us of cashlss paymnt systms in th Passngr Srvic Vhicls (PSVs) that is mant to crat fficincy, improv rvnu collction, nhanc tax collction and abov all promot rturn on invstmnt for th PSV ownr. This innovation has howvr not b adoptd much as thr is a govrnmnt policy in plac. Th purpos of th study was to find out th influnc of industry siz on adoption of th cashlss paymnt systm. Th rsarch usd mixd mthod approach by mploying us of xploratory rsarch dsign and dscriptiv rsarch dsign to xplor th xisting situation. Th population was 197 rgistrd PSV SACCOs in Nairobi. A sampl siz of 99 rspondnts (SACCO managrs) was slctd through systmatic random sampling. Th qustionnair was usd for data collction and data analyzd by us of dscriptiv statistics. Multipl rgrssion analysis was usd to dtrmin th rlationship btwn variabls and corrlation analysis was carrid out to dtrmin th xtnt of rlationship btwn variabls. Th ANOVA tst of significanc indicatd that thr was no significant influnc of industry siz (as shown by a p- valu of 0.274) on adoption of cashlss paymnt systm. Othr factors influncd its adoption such as: poor ntwork failur, faulty gadgts, lack of adoption structurs and us of multipl smart cards. Th rsarchr rcommnds that th govrnmnts to issu on card systm that can b usd across all mans of transport, improv information tchnology ntwork, crat public awarnss and nsur Matatu crw ar wll traind. Kywords: Cashlss paymnt systms, adoption, smart cards, Matatu, SACCO Copyright IJSSER 2017, All right rsrvd Pag 2226

2 BACKGROUND Th study sought to analyz th influnc of industry siz on adoption of cashlss paymnt systms among Passngr Srvic Vhicls (PSV s) in Nairobi. Th us of cashlss paymnt systms if adoptd would nsur fficint transport, nhanc srvic dlivry and hnc incras profits for various stakholdrs and ntrprnurs who hav vnturd into this businss. Th Matatu industry is on of th gratst incom arnrs in th country and contributs to 8.4% of th country s arnings aftr agricultur (30%) and manufacturing at 10.3% as indicatd by Economic Survy (2015). Cooprativ movmnts in Knya ar a major conomic forc for th country and hnc th nd for Matatus to blong to on sinc thy also contribut to almost 45% of th country s Gross Domstic Product (Intrnational Montary Fund, 2007). For a country to boast of improvmnt in th transport sctor, thr is nd to mploy modrn mthods and innovation in th industry. Howvr considrations ar takn into plac sinc most dvloping countris lack th capacity in trms of information tchnology (Gachanja, 2015). Som dvlopd citis such as: London, Tokyo, Singapor, Paris and Rom hav implmntd stat of th art modrn tchnology and systms in th transport sctor spcially in th us of - tickting and smart card paymnt systms as indicatd by Dkkrs and Ritvld (2007). In Europ for xampl, most countris hav an lctronic tickting systm for transport and improvd onlin booking as found out by Blyth (2004). Th difficulty howvr ariss whn companis and transit systms do not agr on th common form of -tickting that can b usd among svral mods of transport. Globally, mass transit agncis such as railway companis in Canada and Scotland; hav bn using stord valu prpaid cards for lctronic tickting sinc th 1970s as found out by Ezll (2010). By lat 80 s and in 1990s, this tchnology bgan changing from traditional magntic strip typ of applianc to innovativ smart cards. In London for xampl SquidCard.com, offrs a smart card bicycl program for rnting purposs. A study conductd by Blyth (2004), indicatd that smart card tickting is availabl in a numbr of Unitd Kingdom citis such as Glasgow, Abrdn, Chstr and Edinburg among othrs. African countris such as Rwanda hav trid to implmnt th us of cashlss paymnt systm sinc 2015 but with littl succss as found out by Bhan (2015). South Africa introducd th MUVO card for commutrs in 2014 but it did not quit pick up according to a rport by Lamikanra and Young (2015) in thir study on paymnt systms in Africa. Th cashlss paymnt systm in Knya is also not a nw concpt. It has bn in us sinc th 1970 s and as arly as 1980 s. Th public transport at th tim was run and managd by th govrnmnt undr th bus company, Knya Bus Srvic. Th company issud papr tokns that Copyright IJSSER 2017, All right rsrvd Pag 2227

3 wr lctronically gnratd through a strip that was magntic in natur (Wangalwa, 2015). This vntually improvd rvnu collction by th govrnmnt and latr adoptd by individual bus ownd companis. Th papr tokn systm of tickting was latr improvd by som sctor playrs such as: Doubl M bus srvic and City Hoppa according to Nyindo (2014). This also did not fully pick up and was not wll adoptd among th 14 satr Matatu (passngr srvic vhicls) Statmnt of th Problm Th transport sctor in Knya has bn charactrizd by many shortfalls according to Asingo (2004) that includ: inconsistnt fars, unncssary far hiks during pak hours, dishonst Matatu crw, inscurity and inadquat mans of transport among othrs. A study conductd by Ngui (2014), rportd that much as thr is a Traffic Act of 1975 to guid and control th transport sctor, many ownrs did not comply with th traffic rgulations du to comptition among PSVs in an ffort to rach bus stag bfor th othrs so as to gt nough clints. On 1 st Novmbr, 2010 rforms bgan undr th Ministry of Transport issuing a policy to stramlin Matatu oprations. All Public Transport Companis wr to join and b part of a Savings and Crdit Cooprativs (SACCOs) movmnt so as to control and monitor Matatu oprations. Th policy was issud undr th National Transport and Safty Authority Act (NTSA), Act No. 33 of Th authority was to ovrs th following: vhicl rgistration; licnsing; road safty, as wll as adoption of th cashlss paymnt systm among passngr srvic vhicls (National Transport and Safty Authority Act, 2014) so that all rvnu is wll monitord by th govrnmnt and th ownr gts his rturn on invstmnt. This dirctiv of th cashlss paymnt systm policy was not adhrd to sinc many Matatu oprators did not comply and did not fully undrstand its oprations. It is for ths rasons that th study was carrid out to find whthr industry siz influncs adoption of th cashlss paymnt systm and hnc com up with stratgis to nhanc its us in an ffort to promot ntrpris growth. RESEARCH OBJECTIVE Th objctiv was to analyz th influnc of industry siz on adoption of cashlss paymnt systm among Passngr Srvic Vhicls in Nairobi RESEARCH HYPOTHESIS H0 : Thr is no significant influnc of industry siz on implmntation of th cashlss paymnt systms among Passngr Srvic Vhicls in Nairobi Copyright IJSSER 2017, All right rsrvd Pag 2228

4 H1: Thr is significant influnc of industry siz on implmntation of th cashlss paymnt systms among Passngr Srvic Vhicls in Nairobi LITERATURE REVIEW According to Chau and Hu (2001), th tchnology accptanc modl (TAM) is a widly usd thory in information systm fild and prsnts a thortical contribution towards undrstanding tchnology adoption. TAM aims to xplain how th usr can slct a givn tchnology and adopt it in thir day to day us. It also dfins how th consumr of a givn srvic uss an innovation to improv prformanc or fficincy ovr tim (Chuttur, 2009). Th thory clarifis that whn usrs ar introducd to a nw tchnology, a numbr of factors influnc thir adoption dcision; and th usr will only adopt an innovation that is bnficial, asy to us and on that will improv his or hr job prformanc. Th ntrprnurial function is to spar had innovation and manag conomic dvlopmnt through crativ idas which can thn b passd down to socity (Swdbrg, 2007). Th ntrprnur in this study is on who idntifis th cashlss paymnt systms and gos ahad to nsur it is adoptd so as to caus positiv chang and improv srvic dlivry, track financial procsss and minimiz loss to invstors. Th govrnmnt through various agncis such as Googl Knya, Equity bank and Knya Commrcial bank cam up with smart cards which wr to b usd for cashlss paymnt systms as found out by Ngui (2014). Th innovation was to tak advantag of th rip markt conditions in th transport sctor which was lacking ordr and fficincy spcially in th paymnt systm Th ntrprnur who is an innovator nds to b supportd as thy com up with nw products and idas. Th Govrnmnt of Knya supports ntrprnurs in many ways and rcognizs that thy nd to b dvlopd so as to b abl to contribut to th conomy in th bst way possibl. Th govrnmnt has don this through various ways such as introducing ntrprnurship ducation in schools and making it a compulsory cours in univrsitis and institutions of highr larning (World Bank, 2011). Sinc us of transport industry is bnficial to both usrs and ownrs, nw innovations hav to b mployd in th industry so that spd of movmnt is nabld as wll as rducd cost of doing businss. For this rason, th invstor who is an ntrprnur must gt valu for thir mony and rturn on invstmnt. Th ntrprnur who is also a businss ownr should s th bnfits of tchnology and innovation first hand so as to sll th ida to othrs in th industry as pointd out by Barny (2004). H xplains that transport tchnology adoption and implmntation cultivats organizational capabilitis that nabl th firm to outprform so as to rmain rlvant and satisfy Copyright IJSSER 2017, All right rsrvd Pag 2229

5 th customr hnc raping in form of profits and growth. Howvr, adoption of innovation alon will not b of bnfit to an organization sinc it is widly usd in vry sctor of socity at th momnt. It only bcoms usful if is mbddd into organizational procsss is it thn xpctd to offr sustainabl bnfits. Effcts of tchnology in th transport sctor as idntifid by Blyth (2004) includ: Dvlopmnt of nw srvics; improvd conomy; nw managmnt styls; fficint srvics; satisfid ownrs and satisfid customrs among othrs. Th dissmination of transport tchnology will thrfor opn up nw opportunitis for th dvlopmnt of nw rols spcially in incrasd ntrprnurship in th industry. Thir main purpos is to giv addd valu to its functions through gratr fficincy and information transparncy (World Bank, 2011). Tchnology is of paramount importanc spcially in th transport industry which will nsur fastr schduling of srvics and fastr dlivris as xplaind by Chowdhury and Sadk (2003) in thir study on intllignt transport systms. A study carrid out by Krairit, Choomongkol, & Krairit, (2004), also found out that smart cards usd in th transport sctor rquirs th us of a card or a dvic that allows trips to b dductd onc thy tak plac. This introduction of lctronic paymnt systm for th purchas of tickts may srv as th initial stag on which to incorporat nw advancs and improv prformanc (Pojani & Stad, 2015). Thy furthr say that in ordr for adoption to b a succss, it is ncssary to combin th rang of factors that intract and compris th systm such as social aspcts and managmnt control. Th as and convninc of purchas affordd by smart cards will attract mor passngrs sinc th passngr will us lss mony in th long run; bcaus th bst cost for a givn trip is calculatd pr distanc as dscribd by Chakirov and Erath (2011). Th tim for boarding is minimizd, th customr gts fficint srvics sinc th tickts can b purchasd in advanc, th businss ownr gts rturn on invstmnt, whil th govrnmnt is abl to gt it tax sinc th smart cards can rlay on tim dduction instantly onlin. Anothr form of -tickting is th Mobil tickting which is basically a virtual form of tickt that is hld on cllular phons, tablts or prsonal digital assistants (PDAs) and can b ordrd and obtaind from any location such as shopping stors or tlcommunication outlts (Ezll, 2010). E-tickting maks th intgration mthod asir to carry through bcaus it can manag a mor complx pric and far systm as dscribd by Graham and Mully (2012). In addition, th systm can includ ruls for transfr rights in ordr to b mor attractiv. In Knya for xampl, -tickting was introducd in th Matatu sctor though customrs buying tickts in advanc and swapping thm on lctronic gadgts as assistd by Matatu conductors or drivrs (Wangalwa, 2015). A study don by th Europan Commission (2007) found out that long-distanc journys can b mad chapr by intgration and flxibility in mods of transport. Copyright IJSSER 2017, All right rsrvd Pag 2230

6 Industry factors such as numbr of organizations within a particular sctor hav bn found to b important factors to tchnology adoption and implmntation. Industry siz and structur can ithr quickn or impd innovation adoption as indicatd by Russll and Hoag (2004) in thir study of factors affcting adoption of nw tchnology and attituds towards adoption. Thy furthr obsrvd that larg organizations with cntralizd structurs wr mor likly to adopt nw tchnologis fastr than thos which wr dcntralizd. Williams (2006) concurrd with ths findings and furthr pointd out that larg industris facilitat fastr and mor fficint adoption than on that is small or dcntralizd bcaus top managrs can adopt tchnologis vn whn th othr junior mploys ar rsistanc to chang. Russll and Hoag (2004) notd that much as larg organizations hav th machinry to adopt innovation, th cntralization approach tnds to b vry intimidating to mploys bcaus dcision-making authority rsts with snior managmnt and othr lvls of mploys ar lft out. This form of intimidation can lad to dlayd implmntation and adoption procss. Employ mpowrmnt in th organization should thrfor b ncouragd so that thy can b innovativ. According to Williams (2006), th largr th organization, th mor financial and stabl it is to tackl complx assignmnts hnc th as with which to accpt and adopt a givn tchnology but this may not b so for an industry. Larg organizations ar wll quippd with rsourcs and ar also willing to invst in nw tchnologis; hnc it is asy to absorb any associatd risks that com with th innovation. Thy ar abl to mobiliz adquat financial rsourcs rquird for implmnting innovations whil facilitating training of rlvant prsonnl who can handl th changs. Larg industris or organizations hav an additional advantag of conomis of scal and th ability to gnrat in-hous spcialists as xplaind by Curri (2006) in his study on dtrminants of EDI adoption in th transportation industry but diffrnt policis in diffrnt organizations may dlay th procss. Howvr according to Russll and Hoag (2004), smallr upcoming firms ar positiv to nw innovations bcaus of th flxibl managmnt styls of th firms and lss buraucracy du to ability to larn. Small organizations can mor radily adapt to changs in th tchnology, manufacturing procsss, and markt forcs than largr firms. Much as smallr firms lack sufficint financial rsourcs, thy tnd to b mor crativ, allow mploy participation, ar timly, rsponsiv, and lss buraucratic thrfor having gratr incntiv to adopt and intgrat according to Oluoch (2012). Th transport sctor in Knya is a good xampl of a larg industry run by th NTSA undr th Road Transport Act 2013; th sction is hadd by a Prmannt Scrtary and dputizd by an Copyright IJSSER 2017, All right rsrvd Pag 2231

7 assistant (Knya Economic Survy, 2015). Th Sctor also has Managmnt Councils or committs that harmoniz functions of all bodis and industry ky playrs. Th ministry has furthr dvolvd som of th srvics undr th County Transport Managmnt Committs in vry County to run and coordinat th affairs of th Dpartmnt of Transport as indicatd by Gachanja (2015), in his study mitigating road traffic congstion in th mtropolitan ara. Du to th larg industry siz, thr ar many sctions that ar rsponsibl for policy formulation concrning traffic rgulations and innovations, thrfor nsuring thos sound policis passd to usrs ar wll thought out. This can howvr caus dlay du to a lot of involvmnt from many sctions and buraucracy. RESEARCH DESIGN AND METHODOLOGY Th study mployd a mixd mthod approach to gathr information through xploratory rsarch dsign and dscriptiv rsarch dsign. Exploratory rsarch dsign was an attmpt to gathr information so as to connct rlvant idas and com up with an xplanation on stat of th cashlss paymnt systm (Kothari &Gard, 2014). Dscriptiv rsarch dsign lookd at intractions btwn vnts and occurrncs so that it cratd sufficint undrstanding of th subjct mattr to b abl to draw conclusions with sufficint accuracy and infr th rsarch findings (Ldy & Ormrod, 2010). Th dsign also dtrmins to xplain if what is bing obsrvd might b xplaind by a currntly xisting thory, as indicatd by Coopr and Schindlr (2003). Th targt population in this cas was Matatu SACCOs (197 in numbr) SACCO managrs (National Transport and Safty Authority, 2015). Th study adoptd systmatic random sampling by picking vry 2 nd SACCO managr from a list of rgistrd SACCOs in Nairobi giving a total numbr of 99 managrs. Th study mployd th us of qustionnairs to collct data. Quantitativ data was analyzd through mixd cntral tndncy and masurs of disprsion. Th qualitativ data was analyzd through th slction of concpts, catgoris and thms. Multipl rgrssion analysis hlpd to prdict th valu of Y ach givn valu of X and Corrlation was usd to analyz th xtnt of th rlationship btwn th variabls. Th Information gnratd was prsntd in th form of graphs and tabls. DATA ANALYSIS Analysis of quantitativ data was don by us of SPSS (Statistical Packag for th Social Scincs) to analyz findings. Quantitativ data was analyzd in th form of frquncis and prcntags and prsntd in form of tabls and charts as indicatd blow. Numbr of SACCOs pr rout Copyright IJSSER 2017, All right rsrvd Pag 2232

8 Th managrs indicatd that thr wr svral SACCOs oprating in on rout as shown on figur 1 blow; such that ach rout at last had 1-5 SACCO at any on givn tim. Thr wr 1-3 SACCOs oprating in on rout as indicatd by 32.6% rspondnts, 3-5 SACCOs (33.7%), 5-7 SACCOs as indicatd by 18.5%, abov 7 SACCOs (5.4%) whil 5.4% did not indicat thir opinion and 4.3% wr not sur of th numbr of SACCO. This was an indication of high volum of SACCOs in on givn rout. p r c n t a g n u m b r % 33.70% 18.50% 5.40% 5.40% 4.30% 1-3 SACCOs 3-5 SACCOs 5 to 7 Abov 7 Not indicatd Not sur Numbr of Routs Suprvisd by Managrs Figur 1: Numbr of SACCOs pr rout Th study found out that 51.1% of th managrs suprvisd on rout pr SACCO (tabl 6.1), 23.9% managd two routs, and 13% managd thr routs undr th sam SACCO whil 5.4% of managrs managd mor than thr routs at any on tim. Tabl 1: Numbr of routs pr SACCO Frquncy Prcnt Cumulativ Prcnt on two Thr Mor than thr Not indicatd Total Numbr of Matatus pr SACCO Th study sought to find out th numbr of Matatus in on givn SACCO and stablishd th following on tabl 2 blow: 42.4% of th rspondnts managd 1-5 Matatus in ach SACCO, 20.7% managd 5-10 Matatus and som comprising of 23.9% managd mor than tn Matatus. Copyright IJSSER 2017, All right rsrvd Pag 2233

9 This is an indication that th industry siz is big and compriss of an stimation of 1,600 Matatus on avrag in Nairobi alon. A similar comparison is givn on figur 6.2 blow graphically to show th comparisons for bttr undrstanding. Tabl 2: Numbr of Matatus pr SACCO Frquncy Prcnt Cumulativ Prcnt Mor than Othrs Not indicatd Cant spcify Total p r c n t a g n u m b r % 20.70% 23.90% 3.30% 6.50% 3.30% 1-5 matatus5 to 10 Abov 10 OthrsNot indicatdnot sur Numbr of matatus pr Managr Numbr of Trips pr Matatu Figur 2: Numbr of Matatus pr SACCO Managr Th study sought to know how many trips ach Matatu mad on avrag and th managrs indicatd th following as shown on tabl 3 blow. Majority of th Matatus mad abov 4 trips pr day. 43.5% mad abov 4 trips, 34.8% mad btwn 2-3 trips and 4.3% mad 1-2 trips. This was an indication of a busy industry if wll managd can gnrat good rvnu. Copyright IJSSER 2017, All right rsrvd Pag 2234

10 Tabl 3: Numbr of Trips pr Matatu Frquncy Prcnt Cumulativ Prcnt Abov Not indicatd Not sur Total Familiarity with Cashlss Paymnt mod Information on figur 3 blow indicats that th passngrs wr familiar with th cashlss paymnt systm as indicatd by 72.8% of managrs. 25% wr not familiar with th systm and 2.2% wr did not indicat thir opinions. p r c n t a g n u m b r % 25% 2.20% Familiar Not familiar Not indicatd Us of Cashlss Paymnt Systm Figur 3: Familiarity with cashlss paymnt systm Th study sought to find out whthr th SACCOs actually usd th cashlss paymnt mod at any on givn tim and got th following rsponss. Th SACCOs that usd th cashlss paymnt systm in th bginning but stoppd wr 26.1%, whil 17.4% usd it on and off in 2014 and 56.5% nvr usd th cashlss paymnt systm at all as indicatd on tabl 4 blow. Th SACCOs that did not us th systm wr rprsntd by th highst numbrs than thos that usd th systm. This is an indication that th systm did not quit pick up dspit a policy bing in plac to nsur adoption. Copyright IJSSER 2017, All right rsrvd Pag 2235

11 Tabl 4: Us of Cashlss Paymnt Systm Frquncy Prcnt Cumulativ Prcnt No Total Rasons for non-us of th Systm Th rspondnts wr rquird to giv rasons for not using th cashlss paymnt systm and gav svral rasons. Som rasons for non-us of th cashlss paymnt systm as indicatd on tabl 5 blow: passngrs found it cumbrsom (26.1%); machins wr rcalld back bcaus thy wr faulty (25%); passngrs and commutrs wr caught unawars and wr not willing to larn about th systm (23.9%), thr wr no pnaltis for non-us (3.3%), passngrs wr not convrsant with th systm (1.1%), cards wr faulty (16.3%), and 4.3% did not indicat thir opinion. A graphical rprsntation is givn to show th various rsponss for non-us of th systm on figur 4.8 blow Tabl 5: Rasons for non-us of th Systm Frquncy Prcnt Cumulativ Prcnt Not convrsant with systm th systm Not wll taught No pnaltis for non-us Passngrs found it cumbrsom Machins wr rcalld Not indicatd Cards wr faulty Total Rasons for us of Cashlss Paymnt Systm Th rspondnts gav th following rasons for th us of cashlss paymnt systm as indicatd on tabl 6 blow such as: us of cash was fastr and mor convnint to customrs. Th customr or Matatu crw (in this cas th tout) did not hav to wait for ntwork to pick up so as to swip th card. Th managrs xprssd dissatisfaction with th us of machins sinc machins kpt Copyright IJSSER 2017, All right rsrvd Pag 2236

12 hanging du to ntwork failur as rprsntd by 20.7%. Thy howvr indicatd that us of cashlss systm could b convnint if wll managd sinc thy will not b arguing about rturn of chang with customrs or customrs ovr bargaining for srvics as indicatd by 12% of th rspondnts. Th machins would also nsur accountability of mony rcivd as indicatd by 16.3% of th managrs. Th transactions will b rlayd straight to th systm and th ownr can b abl to trac bus far collctd during th work priod. Th managrs wr howvr not happy with th numrous dductions mad by th banks upon rcipt of cash (12%). Th ldgr fs chargd by banks for us of cashlss systm wr high; givn that ach transaction was rflctd and chargd for. Ths lssnd th profits mad and th ownr was not gtting sufficint profit from th capital invstd. Tabl 6: Rasons for us of cashlss paymnt systm Frquncy Prcnt Cumulativ Prcnt Fastr No arguing with customr Accountability No accountability Mony was dductd by bank Not indicatd Not sur Total Dscriptiv information on us of Cashlss Paymnt Systm Tabl 7 blow givs dscriptiv information on th influnc of industry siz on cashlss paymnt systm and indicats th following rsults using a scal of 1-5 (1- bing strongly agr, 2- agr, 3- nutral, 4 disagr and 5 - strongly disagr): Passngrs wr not comfortabl with th cashlss paymnt systm and disagrd that thy wr comfortabl with th paymnt systm rprsntd by a man of 4.09 and SD of showing minimal variations. This was du to th inconvninc of using svral cards; manwhil th Matatu wr awar of th systm and wr willing to tak prsonal initiativ to train passngrs; managrs disagrd that thy wr using th systm, giving grat impact of rjction with a man of 4.21 and SD of showing minimal variation from rsponss. Th managrs indicatd that thy wr not abl to cop with th us of th machins and tchnology (man of 3.33 and SD of 1.039); indicating thy wr not sur. Thy gav rasons such as poor ntwork and faulty gadgts for non-adoption; thy howvr wr not in agrmnt that th SACCO is willing to improv srvic dlivry and ducat th Copyright IJSSER 2017, All right rsrvd Pag 2237

13 public if on card systm was in us as shown by a man of 3.42 sinc thy rmaind mainly nutral and SD of Th findings imply that passngrs non-us of th systm and lack of us by Matatu crw is on of biggst challngs in th non-adoption of th cashlss paymnt systm among PSVs. Tabl 7: Dscriptiv statistics of industry siz on us of cashlss paymnt systm N Minimum Maximum Sum Man Std. Dviation Skwnss Statistic Statistic Statistic Statistic Statistic Statistic Statistic Std. Error Passngrs ar comfortabl Matatu crw awar of systm Matatus currntly us nw systm Matatus abl to cop with th cashlss mod Passngrs bing traind on systm Making ffort to improv and ducat usrs Making ffort to satisfy usrs Valid N (listwis) 92 Sourc: Primary Data (2016) Othr Industry factors influncing Adoption of Cashlss Paymnt Systm Whn rspondnts wr askd what othr factors affctd implmntation and adoption of th systm thy gav th following rasons as indicatd on figur 4 blow: Passngrs (26.1%) said th systm was cumbrsom du to carrying many cards whil on transit; th managrs rprsntd by 22.8% indicatd that thr wr too many smart cards for a givn PDQ machin causing inconvninc to both usrs and travlrs; 12% said machins wr faulty with poor ntwork whil on transit; customrs wr not wll traind or mad awar by th govrnmnt (6.5%); most saying th chang was abrupt, thr was corruption on procurmnt of machins and th govrnmnt was not willing to mak th systm asir du to mistrust btwn govrnmnt, SACCOs and banks which thy said gav thm gadgts that wr not wll rsarchd on (8.7%); th vndors of machins wr unlawfully slctd to offr th machins for sal; 9.8% of rspondnts said SACCOs wr not consultd on th tchnology adoption and hnc rad mischif from th govrnmnt in its introduction. Banks wr also not wll quippd to handl th machins as dscribd by 3.3% of rspondnts. Copyright IJSSER 2017, All right rsrvd Pag 2238

14 p r c n t a g n u m b r % 2.20% 26.10% 22.80% 12% 04.30% 3.30% 8.70% 6.50% 9.80% Figur 4: Othr industry factors influncing adoption Statistical analysis Rgrssion analysis was usd to prdict th valu of Y which is th dpndnt variabl for ach givn valu of X. It is th statistical tool that was applid to dtrmin th influnc of industry siz on adoption of th cashlss paymnt systm. Corrlation was usd to analyz th dgr of rlationship btwn th industry siz and adoption of cashlss paymnt systm. Corrlation matrix of Industry Siz on Adoption Th rsult on tabl 8 blow indicats th corrlation matrix btwn th lmnts of industry siz (numbr of Matatus, numbr of routs) and adoption systm is slightly ngativ in natur. According to th rsult, thr is a ngativ influnc of magnitud and rspctivly. This infrs that as th numbr of Matatus incras in a givn rout, th adoption of cashlss systm dcrass Copyright IJSSER 2017, All right rsrvd Pag 2239

15 Tabl 8: Corrlation Matrix of industry siz on adoption of systm Systm adoption Numbr of routs Systm adoption Parson Corrlation Sig. (2-taild) Numbr of routs Parson Corrlation Numbr Matatus Sig. (2-taild) Numbr of Matatus Parson Corrlation Sig. (2-taild) Corrlation is significant at th 0.01 lvl (2-taild) Rgrssion analysis of Industry Siz on Adoption Th study conductd rgrssion analysis to stablish th rlationship btwn th study variabls as indicatd on tabl 9 blow. Cofficint of dtrmination xplains th xtnt to which changs in th dpndnt variabl (adoption of cashlss paymnt systm) can b xplaind by th chang in th indpndnt variabls (industry siz). Th information on indicats that adjustd R squar of 0.07 mans that th variabls studid contribut to 0.7% of th factors that influnc th adoption of th cashlss paymnt systm and hnc othr factors contribut to 99.3% of th adoption procss. Sinc th R is 0.169, a conclusion can b mad that industry siz is positivly corrlatd with th adoption of systm but th rlationship is wak sinc R is clos to 0. Tabl 9: Modl Summary of industry siz on adoption Std. Error of th Modl R R Squar Adjustd R Squar Estimat a a. Prdictors: (Constant), numbr of Matatus, numbr of routs ANOVA rsults of Industry Siz on Adoption From th ANOVA rsults on tabl 10 blow, th p-valu is maning th lvl of influnc of industry siz and adoption of cashlss paymnt systm (numbr of PDQ machins) is not Copyright IJSSER 2017, All right rsrvd Pag 2240

16 significant; hnc accpt th null hypothsis that thr is no significant influnc of industry siz on adoption of th cashlss paymnt systms among Passngr Srvic Vhicls in Nairobi Tabl 10: ANOVA Rsults of industry siz on adoption of systm Sig. Modl Sum of Squars df Man Squar F 1 Rgrssion b Rsidual Total a. Dpndnt Variabl: systm adoption b. Prdictors: (Constant), numbr of Matatus, numbr of routs Rgrssion Cofficints of Industry Siz on Adoption of Systm Th data findings prsntd on tabl 11 blow indicat that taking all othr indpndnt variabls at zro, a unit incras in numbr of routs lads to a incras in adoption of th cashlss paymnt systm; a unit incras in numbr of Matatus lads to a dcras in adoption procss. Th incras is quit minimal in natur not indicating significant chang in th adoption of th cashlss paymnt systm. Tabl 11: Rgrssion Cofficints of industry siz on adoption of systm Standardizd Unstandardizd Cofficints Cofficints Modl B Std. Error Bta t Sig. 1 (Constant) Routs Matatus Dpndnt Variabl: numbr of PDQs machins bought DISCUSSION On th analysis of industry siz influnc on adoption of cashlss paymnt systm among passngr srvic vhicls, th study found out that th factors of industy siz wr not significant. In this study, majority of th rspondnts wr mal agd btwn 31 and 40 yars Copyright IJSSER 2017, All right rsrvd Pag 2241

17 indicating that managrs wr matur and most wll ducatd with 94.55% having attaind a minimum of O lvl ducation. This shows that th rspondnts undrstood th subjct mattr of th study and gav rliabl data. Th study stablishd that all managrs wr familiar with th policy to adopt that cashlss paymnt systm but othr factors othr than industry siz may hav influncd its inability to tak off. Thrfor th rsults do not agr with Russll and Hoag (2004) who found out in thir study that larg industris ar likly to adopt a givn tchnology du to capacity to own stat of th art machinry and quipmnt. Th factors mntiond includd: passngrs found it cumbrsom (81.5%), poor ntwork whn using machins, faulty machins and lack of a standardizd smart card for us. CONCLUSION Basd on th findings, th study concluds that industry siz is a not a major factor in dtrmination or influnc of th implmntation of th cashlsshlss paymnt systm. Sinc th p-valu is it mans th lvl of influnc of industry siz and implmntation of cashlss paymnt systm is not significant; hnc accpt th null hypothsis that thr is no significant influnc of industry siz on implmntation of cashlss paymnt systm. Howvr th mor th numbr of matatus undr on managr th lss h is willing to ffctivly implmnt th cashlss paymnt systm. RECOMMENDATIONS Th rsarchr rcommnds th nd to brak th industry into managabl sizs and aras and put ach ara undr ara managrs to nsur fficincy and implmntation. Howvr othr factors mntiond in th study play a major rol in systm implmntation hnc th nd to addrss thm. Ths includ: making us of on card systm for transport, ducating th passngrs on importanc of innovation adoption and collaboration of SACCOs and th govrnmnt. FUTURE RESEARCH Th following aras hav bn suggstd: Th ntir country should b considrd so as to find out why th adoption of cashlss paymnt systm is not taking plac much as th fact that any innovation that bgins in th capital city is automatically adoptd. Howvr this could not b th cas bcaus othr ntrprnurial factors could b a limiting factor for adoption spcially in othr countis. A rsarch should b carrid out to captur th viws of th Matatu crw namly: th drivrs and th touts who ar th main Copyright IJSSER 2017, All right rsrvd Pag 2242

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