The Influence of Information Communication Technology Adoption Practices on Strategic Communication of Banks in Ethiopia

Abstract

The purpose of this study was to determine the level of Information Communication Technology adoption and
practices for strategic communication comparing private and public banks in Addis Ababa. To achieve the
objective of this study, a quantitative approach was employed. Three hundred six respondents, who were
selected through stratified sampling techniques, were surveyed of which 110 were from public and 196 from
private banks. The data were analyzed using percentage, mean, and independent t-tests. The hypothesis testing
and model-building procedure were significant at a p-value<0.05. Findings indicated that ICT adoption was a
widely accepted practice and was held with a similar degree and pattern among private and public bank
employees. Additionally, workers used ICT for strategic communication at an average and consistent level in
public and privately owned banks. The amount of ICT use had an indirect influence on banks' strategic
communication and mediated 88% of the overall effect of organizational factors. So, there is statistical evidence
that organizational factors do affect and contribute to strategic communication, and there was no evidence of
mediation, despite the fact that a considerable portion of the total effect of technology and environment-related
factors (61%) and (67%) respectively have indirect influences. The study recommends ICT adoption practices
can help banks streamline their operations and increase efficiency through effective strategic communication.
To strengthen the banking sector in Ethiopia, the government could initiate and strengthen banks through
effective ICT adoption for effective strategic communication and enhance banking services aimed at achieving a
global competitive advantage