Determinants, Barriers and Strategies of Digital Transformation Adoption in a Developing Country Covid-19 Era

Kingsley Ofosu-Ampong


Baldwin University College, Accra – North, Ghana

Cite: Ofosu-Ampong K. Determinants, Barriers and Strategies of Digital Transformation Adoption in a Developing Country Covid-19 Era. J. Digit. Sci. 3(2), 67 – 83 (2021). https://doi.org/10.33847/2686-8296.3.2_5

Abstract. The purpose of this paper is to examine the determinants and strategies of digital transformation adoption (DTA) in a developing country context through the lens of price value, hedonic motivation, inherent innovativeness and technology readiness. The study also investigates the impact of COVID-19 on banks in Ghana from the managers’ perspectives and provide possible solutions for banks’ successful transitioning and uptake of digital transformation in a post COVID-19 era. The study was carried out using a mixed-method approach from banks in Ghana. The findings of the study revealed that customers’ technology acceptance and adoption of innovation is fraught with challenges. At the same time, employees/banks struggled to adjust to new technologies during the COVID-19 pandemic. Further, the findings indicate that price value, inherent innovativeness and technology readiness were the significant factors in DTA. Conversely, hedonic motivation was an insignificant factor in a developing country context. The paper concludes with a conceptual model for emergency digital transformation to respond to future pandemics.

Keywords: Digital transformation, Determinants, Manager’s perspective, Covid-19 banking, Developing countries, Strategies.

References
  1. Matt, C., Hess, T., Benlian, A.: Digital transformation strategies. Business & Information Systems Engineering57(5), 339-343(2015).
  2. Wessel, L., Baiyere, A., Ologeanu-Taddei, R., Cha, J., Blegind-Jensen, T.: Unpacking the difference between digital transformation and IT-enabled organisational transformation. Journal of the Association for Information Systems22(1), 102-129 (2021).
  3. Avgerou, C.: The significance of context in information systems and organisational change. Information systems journal11(1), 43-63(2001).
  4. Curran, J. M., Meuter, M. L.: Encouraging existing customers to switch to self-service technologies: put a little fun in their lives. Journal of Marketing Theory and Practice15(4), 283-298(2007).
  5. Cohen, B. Amorós, J.E., Lundy, L.: The generative potential of emerging technology to support startups and new ecosystems. Business Horizon. 60(2017).
  6. Chung, T. T. R., Liang, T. P., Peng, C. H., Chen, D. N., Sharma, P.: Knowledge creation and organisational performance: moderating and mediating processes from an organisational agility perspective. AIS Transactions on Human-Computer Interaction11(2), 79-106 (2019).  
  7. Choudhury, S. R.: How technology helped Asian countries cope in the coronavirus pandemic. CNBC Online (2020). https://www.cnbc.com/2020/05/13/coronavirusmckinsey-says-technology-helping-asia-cope-better.html, last accessed 2021/05/13.
  8. Alalwan, A. A., Dwivedi, Y. K., Rana, N. P., Lal, B., & Williams, M. D.: Consumer adoption of Internet banking in Jordan: Examining the role of hedonic motivation, habit, self-efficacy and trust. Journal of Financial Services Marketing20(2), 145-157 (2015).
  9. Slade, E.L., Dwivedi, Y.K., Piercy, N.C., & Williams, M.D.: Modeling consumers’ adoption intentions of remote mobile payments in the United Kingdom: extending UTAUT with innovativeness, risk, and trust. Psychology & Marketing32(8), 860-873(2015).
  10. Al Mansoori, K. A., Sarabdeen, J., & Tchantchane, A. L.: Investigating Emirati citizens’ adoption of e-government services in Abu Dhabi using modified UTAUT model. Information Technology & People. 31 (2), 455-481 (2018).
  11. Guggemos, J., Seufert, S., Sonderegger, S.: Humanoid robots in higher education: Evaluating the acceptance of Pepper in the context of an academic writing course using the UTAUT. British Journal of Educational Technology51(5), 1864-1883(2020).
  12. Kitsios, F., Giatsidis, I., Kamariotou, M.: Digital Transformation and Strategy in the Banking Sector: Evaluating the Acceptance Rate of E-Services. Journal of Open Innovation: Technology, Market, and Complexity7(3), 204(2021).
  13. Manrai, R., Goel, U., & Yadav, P.D.: Factors affecting adoption of digital payments by semi-rural Indian women: extension of UTAUT-2 with self-determination theory and perceived credibility. Aslib Journal of Information Management. 73 (6), 814-838(2021).
  14. Terrar, D.: What is Digital Transformation? Available online: http://www.theagileelephant.com/what-is-digitaltransformation/ (accessed on 2021/08/10).
  15. Duchek, S.: Organisational resilience: a capability-based conceptualisation. Business Research13(1), 215-246 (2020).
  16. Krasonikolakis, I., Tsarbopoulos, M., Eng, T. Y.: Are incumbent banks bygones in the face of digital transformation? Journal of General Management46(1), 60-69(2020).
  17. Lotriet, R., Kokotwane Dltshego, K.: An assessment of perceptions concerning digital transformation at a South African commercial bank-a case of Anthropocene denial for the economy?0 Tydskrif vir Geesteswetenskappe60(3), 687-707(2020).
  18. Mărăcine, V., Voican, O., Scarlat, E.: The Digital Transformation and Disruption in Business Models of the Banks under the Impact of FinTech and BigTech. In Proceedings of the International Conference on Business Excellence; Walter de Gruyter GmbH: Berlin, Germany, 2020; pp. 294–305.
  19. KamalulAriffin, N.S., Khalid, S. N.A., Wahid, N.A.: The barriers to the adoption of environmental management practices in the hotel industry: a study of Malaysian hotels. Business Strategy Series.14, 106-117(2013).
  20. Vikneswaran, N., Anantharajah, S.A.: Green makeover for our hotels? Q. DOE Update Environment Development and Sustainability. 2, 10–12 (2012).
  21. Estrella-Ramon, A., Sánchez-Pérez, M., Swinnen, G.: How customers’ offline experience affects the adoption of online banking. Internet Research. 26 (5),1072-1092 (2016).
  22. Diener F, Špacek M.: Digital Transformation in Banking: A Managerial Perspective on Barriers to Change. Sustainability 13, 2032 (2021).
  23. KPMG Ghana Report: Economic Impact of COVID – 19 on Ghana’s banking industry (2020).https://assets.kpmg/content/dam/kpmg/gh/pdf/gh-KPMG-Advisory-Economic-Impact-of-COVID-19-on-Ghana%E2%80%99s-Banking-Industry.pdf, last accessed 2021/06/09.
  24. Venkatesh, V., Thong, J. Y. L. and Xu, X. (2012). Consumer acceptance and use of information technology: Extending the unified theory of acceptance and use of technology. MIS Quarterly, 36(1), 157-178.
  25. Parasuraman, A.: Technology Readiness Index (TRI) a multiple-item scale to measure readiness to embrace new technologies. Journal of Service Research, 2(4), 307-320(2000).
  26. Massey, A.P., Khatri, V., Montoya‐Weiss, M.M.: Usability of online services: The role of technology readiness and context. Decision Sciences38(2), 277-308(2007).
  27. Lin, J.S.C., Hsieh, P.L. The influence of technology readiness on satisfaction and behavioral intentions toward self-service technologies. Computers in Human Behavior23(3), 1597-1615(2007).
  28. Erdoğmuş, N., Esen, M.: An investigation of the effects of technology readiness on technology acceptance in e-HRM. Procedia-Social and Behavioral Sciences24, 487-495 (2011).
  29. Creswell, J. W.: Research design: qualitative, quantitative, and mixed methods approaches (5th ed.). Los Angeles: SAGE. (2018).
  30. Miles, M.B., Huberman, A.M.: Qualitative Data Analysis: An Expanded Sourcebook, SAGE Publications, Thousand Oaks, CA. (1994).
  31. Bank of Ghana.: The 2019 banking industry fraud report. https://www.bog.gov.gh/wp-content/uploads/2020/08/SUMMARY-OF-2019-FRAUD-REPORT.pdf, last accessed 2021/07/3.
  32. Ngai, C.S., Lee, W.M., Ng, P.P., Wu, D.D.: Innovating an integrated approach to collaborative eLearning practices in higher education: The case study of a corporate communication e-platform. Studies in Higher Education, 44(11), 1990–2010 (2018).
  33. Morrison, D.: E-learning strategies: How to get implementation and delivery right first time. England: John Wiley & Sons Ltd. (2003).
  34. Zainuddin, N., Tam, L., McCosker, A.: Serving yourself: value self-creation in health care service. Journal of Services Marketing, 30(6), 586-600 (2016).
  35. Shankar, A., Kumari, P. (2016).  Factors affecting mobile banking adoption behavior in India. The Journal of Internet Banking and Commerce21(1).
  36. Payne, E.H.M., Dahl, A.J., Peltier, J.: Digital servitisation value co-creation framework for AI services: a research agenda for digital transformation in financial service ecosystems. Journal of Research in Interactive Marketing. 15 (2), 200-222(2021).
  37. Moro, S., Cortez, P., Rita, P.: Business intelligence in banking: A literature analysis from 2002 to 2013 using text mining and latent Dirichlet allocation. Expert Systems with Applications42(3), 1314-1324(2015).
  38. Gerald, E., Obianuju, A., Chukwunonso, N.: Strategic agility and performance of small and medium enterprises in the phase of Covid-19 pandemic. International Journal of Financial, Accounting, and Management2(1), 41-50(2020).
  39. Ismail, M. H., Khater, M., Zaki, M.: Digital business transformation and strategy: What do we know so far. Cambridge Service Alliance10(2017).
  40. Chanias, S., Myers, M. D., & Hess, T.: Digital transformation strategy making in pre-digital organisations: The case of a financial services provider.’ Journal of Strategic Information Systems, 28, 17–33 (2019).
  41. Shih CF, Venkatesh A.: Beyond adoption: Development and application of a use-diffusion model. Journal of marketing. 68(1):59-72 (2004)
  42. Gefen, D., Straub, D., Boudreau, M. C.: Structural equation modeling and regression: Guidelines for research practice. Communications of the association for information systems4(1), 7(2000).
  43. Hair, J.F., Black, W.C., Babin, B.J. Anderson, R.E. Multivariate Data Analysis, 7th ed., Prentice Hall, Upper Saddle River, NJ. (2010).
  44. Henseler, J., Ringle, C. M., Sarstedt, M.: A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science43(1), 115-135 (2015).
  45. Anwar, A., Thongpapanl, N., & Ashraf, A. R.: Strategic imperatives of mobile commerce in developing countries: the influence of consumer innovativeness, ubiquity, perceived value, risk, and cost on usage. Journal of Strategic Marketing29(8), 722-742(2021).
  46. Riffai MM, Grant K, Edgar D. Big TAM in Oman: Exploring the promise of on-line banking, its adoption by customers and the challenges of banking in Oman. International Journal of Information Management. 32(3):239-50 (2012).

Published online 28.12.2021