The influence of indigenous culture practices in augmenting the hybrid payment system: a case study of distributor-retailer dyads in Pakistani small and medium enterprises

Purpose The study aims to understand that despite operating on a hybrid payment system (HPS) that combines manual and electronic transactions, developing countries still manage their transactions successfully. The study broadens the relationship between culture and payment system beyond the established theoretical models and gives a new perspective on the relationship between culture and payment system by highlighting the support of the local indigenous culture to the HPS. Design/methodology/approach The paper opted to use the interpretive case study methodology using 12 in-depth semi-structured interviews to collect data from the distributors-retailers’ dyads, in the marble industry of Khyber Pakhtunkhwa (KPK), Pakistan. Findings The findings shed light on the role of the indigenous cultural practice of Pakhtunwali in augmenting the HPS. The findings elaborate on how the limitations of the HPS are overcome with the help of the indigenous cultural practice of Pakhtunwali. Practical implications The study will help the managers and owners of small firms facing the challenge of technology constraints to usefully use indigenous cultural practices in their payment system. Originality/value This study makes a valuable contribution to the existing literature on Culture and information systems in general and particularly in culture and payment systems, focusing in particular on the interplay between Pakhtunwali, an indigenous cultural practice and the HPS. To the best of the authors’ knowledge, this is the first study to examine the role of Pakhtunwali in supporting the HPS in small and medium enterprises in Pakistan.