Effects of institutional and technological factors on adoption of mobile banking by agri-entrepreneurs in Northern Uganda

Abstract

The rise of agricultural financial technology, particularly mobile banking, has effectively improved food security and profits for resource-poor agri-entrepreneurs often ignored by traditional banks. However, in regions like northern Uganda with limited formal banking infrastructure, mobile banking adoption remains low. This study explores how institutional and technological factors influence mobile banking adoption among agri-entrepreneurs in northern Uganda, using the Technology Acceptance Model (TAM). It addresses research gaps centered on individual behaviors, emphasizing the need to understand the broader contextual factors at play. A cross-sectional study design was employed, collecting primary data through a structured questionnaire from 480 randomly selected agri-entrepreneurs. Data analysis was conducted using Principal Component Analysis (PCA) and Process Macro regression techniques in SPSS version 25. The findings reveal that awareness is the most significant direct factor influencing mobile banking adoption (c’ = 0.3238). Knowledge dissemination (ab = 0.2514) and sustainability (ab = 0.3324) have indirect effects through perceived usefulness. Key enablers include user protection (ab = 0.3833) and coordination (ab = 0.2910), while training has a smaller but significant indirect effect (ab = 0.1580). Perceived ease of use also shows a strong total effect (c = 0.4413, p < 0.001), primarily mediated by perceived usefulness. To encourage mobile banking adoption, this study emphasizes the importance of investing in awareness campaigns and knowledge-sharing initiatives, as well as implementing reforms to improve coordination, user protection and trust. It recommends policies focused on sustainable infrastructure and customized training programs for agri-entrepreneurs. By integrating institutional and technological factors into TAM, the study provides a comprehensive framework for understanding digital financial adoption in underserved regions. Collaborative efforts among stakeholders are crucial for raising awareness, building trust, and improving technological accessibility for agri-entrepreneurs. This study establishes a foundation for exploring gendered adoption patterns, regional variations, and the long-term effects of these factors.