Digital transformation: acceptance and use of technology among microfinance institutions in developing country: an application of UTAUT2 mode

Financial institutions have been using technology as a strategic tool to expand their outreach and ensure their business sustainability for a decade. In fact, use of technology has effect on the operational performance of any organization. It also makes it possible to offer new products, improve customer services and expand outreach. This study examined digital transformation through acceptance and use of new technology among microfinance institutions employees in Ethiopia. A self-administrative questionnaire was used to obtain survey data from twelve microfinance institutions (MFIs). Employees of MFIs participated in the survey using simple random sampling technique. Structural equation modelling with the help of AMOS was performed to evaluate study hypotheses. The result of this study showed that performance expectancy, effort expectancy and social influence had positive effect on employees’ behavioral intention to accept and use technology. Similarly, facilitating conditions were directly affected user behavior to accept and use technology. Furthermore, employees' behavioural intention to accept and use technology mediated the relationship between performance expectancy, effort expectancy and social influence with user behaviour. In general, this study provides valuable insights for managers, stakeholders and policy makers to understand digital transformation through acceptance and use of technology among employees of MFIs in Ethiopia. © 2023, The Author(s), under exclusive licence to Bharati Vidyapeeth's Institute of Computer Applications and Management.