Trends and Practices of ICT Adoption for Enhancing Strategic Communication and Organizational Performance: Evidence from the Ethiopian Banking Sector.
No Thumbnail Available
Date
2024-02
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
This study examines the trends and practices of ICT adoption for enhancing strategic communication andorganizational performance in the Ethiopian banking sector. The study was conducted at three banks in Ethiopia:Dashen Bank, Awash Bank, and the Commercial Bank of Ethiopia. The research employed a comparative approach,where a total of 324 respondents participated in the study, with 116 from the government bank and 208 from privatebanks. Data were collected using a Google Form questionnaire, administered through Computer Assisted PersonalInterview (CAPI) of 306 and face to face interview with 18 respondents. The study assessed and compared the levelof ICT adoption and utilization for strategic communication using mean and Standard Deviation (SD) valuesbetween private and government-owned banks. The study measured three main variables of ICT adoption andstrategic communications as potential determinants, and organizational performance as outcome variablesdetermined using regression to determine the most significant determinant factor. The level of organizationalperformance was compared using mean comparisons between the private and public banking sectors. A structuralequation model and mediation analysis test were used, with statistical significance set at a p-value of <0.05 forhypothesis testing and model building procedures. Moreover, an exploratory mixed research design with both aqualitative approach was employed on 18 participants, selected purposefully and equally selected from each bank.Qualitative data analysis techniques were employed using MAXQDA software package to analyze the data, and theresults were interpreted and discussed in relation to the research questions and conceptual framework of the study.Using independent t-test quantitative analysis, the study's data analysis and discussion producedsignificant conclusions about ICT adoption, utilization, and its impact on organizational performanceand strategic communication in the Ethiopian banking industry. The study's data analysis and discussionrevealed important findings regarding ICT adoption, utilization, and its effect on strategic communication andorganizational performance in the Ethiopian banking sector. The study found that the satisfaction level of ICT
adoption and utilization was high, with an average score of about 75%, in both private and government banks. Thisindicates the comprehensive benefits of ICTs in banking operations. Organizational factors were identified assignificant determinants of ICT adoption in the banking sector. However, technological and environmental factorswere not found to be significant predictors of ICT adoption for strategic communication. Findings also indicatedthat ICT adoption was widely accepted and held at a similar degree and pattern among employees in private andpublic banks. The use of ICT for strategic communication was consistent in both types of banks. The study alsorevealed that organizational factors had an indirect influence on strategic communication, mediating 88% of the
overall effect. While technology and environment-related factors had indirect influences of 61% and 67%respectively, there was no evidence of mediation. Additionally, the study demonstrated that a one percent increase inthe score for strategic communication was associated with a 0.19 percent change in organizational performance.The average scores for organizational performance did not significantly differ between public and private banks,with scores of 76.2 (SD = 1.3) for public banks and 78.2 (SD = 1.0) for private banks. A one percent increase in thelevel of ICT adoption score led to a 0.34 increase in organizational performance. This total effect included a directinfluence coefficient of 0.27 and an indirect effect coefficient of 0.07. The use of ICT had a significantdirectinfluence, and strategic communication played a crucial role in enhancing organizational performance both directlyand indirectly. External and internal factors played a significant role in the adoption of ICTs for strategiccommunication in Ethiopian banks. Based on the findings of the study, the following general recommendations aresuggested for banks and the board of the bank and government in Ethiopia: by increase awareness of organizational
factors, emphasize ICT adoption practices, recognize the importance of strategic communication, and keep up withtechnology trends. Increase awareness of organizational factors: Banks should invest in creating awareness amongtheir employees regarding the impact of organizational factors on strategic communication and overallperformance. This will help align organizational practices with effective communication strategies. Effective
strategic communication is crucial in this process and to enhance organizational performance, modernizeoperations, and gain a competitive edge in the global banking sector, banks in Ethiopia should prioritize theadoption and utilization of ICTs to increase efficiency. The government can support banks by promoting ICT
adoption, strategic communication, and enhancing banking services for global competitiveness. Recognizing theimportance of strategic communication as a mediating factor, banks should invest in strategies that improvecommunication practices. It is also essential to keep up with technology trends by implementing the latesttechnologies demanded by the banking industry for launching ICT-based services, enabling the delivery ofinnovative and efficient customer services.
Keywords: Practices, ICT Adoption; Strategic Communication; Banking Sector; Organizational Performance
Description
Keywords
Practices, ICT Adoption, Organizational Performance