Technology Adoption and Double-Bottom-Line Performance in Ghanaian Cooperative Financial Institutions: The Moderating Role of Firm Size and Age

Authors

  • Kwasi Poku Attobrah Valley View University, Oyibi, Ghana
  • Evans Osborn Nene Daker Ocansey Department of Accounting and Finance, Valley View University, Oyibi, Accra, Ghana https://orcid.org/0000-0002-5176-1809
  • Emmanuel B. Amponsah Department of Accounting and Finance, Valley View University, Oyibi, Accra, Ghana

DOI:

https://doi.org/10.14738/abr.1306.19021

Keywords:

Digital finance, double-bottom-line performance, technology adoption, cooperative financial institutions, Firm size, Firm age

Abstract

In Ghana, Cooperative Financial Institutions (CFIs) are crucial for extending financial services to underserved communities while achieving financial sustainability. The study sought to investigate the effect of technology adoption on CFIs' double-bottom-line (DBL) performance (simultaneous achievement of financial sustainability and social outreach); to understand how mobile banking, core banking systems (CBS), and digital marketing tools influence CFIs on profitability, membership acquisition and retention, and brand visibility; and, to explore and explain if institutional characteristics shape CFIs' technology adoption outcomes on DBL performance.  The study examined views of CFI senior officers and management committee members from all over Ghana and found a positive relationship between technology adoption and financial performance and social performance. Importantly, the findings revealed CFI firm characteristics are important, in that younger CFIs and larger CFIs experienced more benefit to their operational performance through digital technologies than older CFIs and smaller CFIs. While technology adoption was a driver for more financial viability including a more comprehensive brand visibility, social outreach for the CFI was more insightful in demonstrating institutional capacity. Although technology adoption can be a driver for inclusive development, CFIs' readiness to adopt was as critical as the technology itself.  Employing a DBL model, this study expands to the body of knowledge on digital transformation in financial cooperative development. It attracts attention to the moderate influence of institution-level determinants on the results of technology adoption for social and financial purposes, offering useful information to regulators, policymakers, and inclusive growth strategies.

References

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

CGAP. (2022). Digitization and financial inclusion in Africa: Trends and insights. Consultative Group to Assist the Poor. https://www.cgap.org

Credit Union Association of Ghana. (2021). Annual Report and Financial Statements. Accra: CUA Ltd.

Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008

GIZ. (2023). Enhancing inclusive finance through cooperative models in Ghana. Deutsche Gesellschaft für Internationale Zusammenarbeit. https://www.giz.de/en/downloads_els/ 197

Ghana Ministry of Finance. (2022). Budget Statement and Economic Policy of Ghana for the 2022 Financial Year. Accra: Government of Ghana. https://www.mofep.gov.gh

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2019). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE Publications.

ITU. (2022). Status of digital financial services in West Africa. International Telecommunication Union. https://www.itu.int/

Kusi, A., Oppong, A., & Darko, A. (2022). Digital financial services and operational efficiency of microfinance institutions in Ghana. Journal of African Business, 23(4), 571–589. https://doi.org/10.1080/15228916.2021.1909771

Riley, T., & Armah, B. (2023). Mobile money adoption and loan repayment performance in Ghanaian credit unions. African Journal of Finance and Development, 15(2), 85–102. [DOI or Publisher URL if available]

Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press.

TechCabal Insights. (2023). Digital banking for the underserved: Lessons from Ghana. https://www.techcabal.com/reports/

Tornatzky, L. G., & Fleischer, M. (1990). The processes of technological innovation. Lexington Books.

Umba, F., Yeboah, R., & Mensah, E. (2024). Customer engagement in digitally transformed rural banks: Evidence from Ghana. International Journal of Banking and Finance, 10(1), 44–61. [DOI or Publisher URL if available]

World Bank. (2021). Fintech and the future of finance in Africa: Building trust and resilience. Washington, DC: World Bank Group. https://www.worldbank.org

Downloads

Published

2025-07-03

How to Cite

Attobrah, K. P., Ocansey, E. O. N. D., & Amponsah, E. B. (2025). Technology Adoption and Double-Bottom-Line Performance in Ghanaian Cooperative Financial Institutions: The Moderating Role of Firm Size and Age. Archives of Business Research, 13(06), 182–198. https://doi.org/10.14738/abr.1306.19021