Determinants of ICT Adoption for Strategic Communication: Evidences from Selected Banks in Addis Ababa

Abstract

The purpose of this study was to determine the level and determinants of Information and Communication Technology (ICT) adoption for strategic communication in the banking sector in Addis Ababa, Ethiopia. The study employed comparative research design on two privately owned banks and one government bank. Data were collected from 306 respondents, from which 110 were from government bank and 196 from private banks. The tool was designed on Google Form to gather information from respondents using Computer Assisted Personal Interview (CAPI). The level of ICT adoption and use for strategic communication were assessed and compared using mean and Standard Deviation (SD) values between private and government owned banks. A structural equation model (with p-value<0.05) was also used to carry out the analysis. The result of the study indicated that the satisfaction level of ICT adoption and utilization were high (average score of about 75%) and were analogous in both private and government banks drawing implications to the comprehensive uses of ICT's benefits. Furthermore, the study also revealed that organizational factor was one of the determinants for ICT adoption in the banking sector. However, neither technological nor environmental factors were found to be significant predictors of ICT adoption for strategic communication. Therefore, banks in Ethiopia should invest more in creating awareness on the constraining and enabling role of organizational factors that affect strategic communication in bank's performance in Ethiopia.