Adoption of information communication technology (ICT) and determinants of performance of SACCOs’ in Uganda

Abstract

The study focused on adoption of ICT and determinants of performance of SACCOs’ in Uganda. The three specific objectives included: to investigate the effects of ICT on SACCOs’ performance, to determine other factors that determine SACCOs’ performance in Uganda. Further, the study investigated the determinants of ICT adoption among SACCOs in Uganda. The study used primary data collected from different SACCOs that had embraced the use of ICT in their operations in Uganda. A population of 420 reflecting sample size of 201 SACCOs was interviewed. The study employed a multiple logistic regression model to analyze the effect of ICT on SACCOs’ performance and other factors that determined SACCOs’ performance in Uganda. The study also used an ordered logistic regression model to explore the different factors that determine SACCOs’ ICT adoption levels in Uganda based on three levels that is low, medium and high. The study results revealed that ICT expenditure and number of functional computers were positive and statistically significant at 0.04 percent with ICT adoption and 7.6 percent respectively holding other factors in the model constant in influencing profitability. The study further found out that total accumulated savings and total loan portfolio amount of the SACCO were positive and statistically significant at 0.256 percent and approximately 0.2 percent respectively holding other factors constant in the model and membership size was positive though non-significant in influencing the performance of the SACCO. The ordered logistic model results revealed that number of ICT trained staff, internet access, number of ICT training and age of the SACCO were factors that positively and significantly determines the probability of SACCO ICT adoption levels at 1% and 10% respectively. The study therefore, recommended that SACCOs should earmark more funds for ICT adoption and use, increase the availability of functional computers since they had significant effect, encourage and motivate members to save more and also continuously train their staff in ICT related tools among others to improve SACCOs performance and also adopt ICT in their operations.