Digital Adoption and Financial Sustainability in Tanzania’s Water Sector: The Role of Effort Expectancy and Organizational Culture

Abstract

The research investigates the effort expectancy (EE) of the Water Information System, referred to as MAJI Information System (MAJI IS) usage, and its impact on the financial performance (FP) of public water utilities in Tanzania. Financial performance (FP) is described by revenue collection (FPR), service level effectiveness (FPS), functionality (FPF) and non-revenue water (FPN). Specifically, the study examines the moderating role of organisational culture, focusing on leadership style (OCL) and technology readiness (OCT), in strengthening usage and performance relationships. Guided by the Unified Theory of Acceptance and Use of Technology (UTAUT), the study adopted a positivist philosophy, quantitative approach, and deductive design. Data were collected through structured questionnaires from 235 respondents across Tanzanian water utilities. Constructs included Effort Expectancy (EE) as a predictor of usage. Financial performance was assessed through Revenue Collection (FPR), Service Level Effectiveness (FPS), Functionality (FPF) and Non-Revenue Water (FPN). Data was analyzed using the analysis of moment structures - structural equation modelling (AMOS-SEM). Results indicated that Effort Expectancy (EE) exerts a limited and selective effect within the model. Although EE significantly influences system usage, several of its direct relationships with performance outcomes, specifically service level effectiveness and functionality, were not statistically significant. This indicates that ease of use alone may be insufficient to drive comprehensive performance improvements in water utility operations. This study adopted one variable of UTAUT by integrating organisational culture as a moderator and linking MAJI IS usage to organisational level outcomes, particularly financial performance in water utilities. It provides empirical evidence from the Tanzanian water sector, offering theoretical and practical insights for improving water utility performance.