This study explores the factors influencing the adoption and growth of mobile payment (m-payment) ecosystems in the Gulf Cooperation Council (GCC), a region where fintech capabilities remain underdeveloped. The focus is on the competencies of m-payment service providers and their role in sustaining ecosystem growth.
A qualitative, multi-case study approach was employed to understand the capability maturity of service providers in creating value. Data were collected through semi-structured interviews with 24 stakeholders, including founders, employees, merchants and customers.
The study develops an integrated framework grounded in Dynamic Capabilities Theory and positions the Technology–Organization–Environment (TOE) model as a precursor to dynamic capability development. The proposed framework explains how technological, organizational and environmental conditions enable or constrain service providers' ability to develop and deploy dynamic capabilities across different stages of their life cycle.
The framework provides m-payment service providers with a capability-development roadmap by showing how resources and ecosystem conditions become important across different stages of growth. The findings also highlight how regulators, incubators, banks and technology partners can support provider capability development through clearer regulatory pathways, structured sandbox and incubation support, strategic partnerships and interoperable payment infrastructure.
This research makes four theoretical contributions. First, it extends Dynamic Capabilities Theory (Teece et al., 1997) by identifying four micro-level capability-building processes specific to fintech service providers: Leverage, Strategize, Mobilize and Configure. Second, it introduces a novel integration of the TOE framework as an antecedent to dynamic capability development – a linkage not previously theorized or applied to the fintech startup literature. Third, it contributes a lifecycle perspective on capability maturity, demonstrating that different processes are prioritized at different stages of a provider's growth. Fourth, it grounds these contributions in the underrepresented GCC fintech context. Unlike existing adoption models, which focus on consumer behavior, this framework examines the supply side of the m-payment ecosystem, offering insights that cannot be derived from TAM, UTAUT or related frameworks.
