Behavioral Intention and Usage of Digital Financial Services among Small and Medium Enterprises in Sri Lanka: An Extended Unified Theory of Acceptance and Use of Technology (UTAUT) Approach

Abstract

Small and medium-sized enterprises (SMEs) contribute to innovation, workforce advancements, and economic growth. SMEs achieve potential growth in their market and operational effectiveness from Digital Financial Services (DFS). This study examines the intention to adopt digital financial services and the usage of these services among SMEs in Sri Lanka. The study used the extended version of the Unified Theory of Acceptance and Use of Technology (UTAUT) model to identify the factors that influence the intention and usage of DFS. This study used 287 SMEs from Southern Province as a sample for PLS-SEM analysis. The results demonstrated a statistically significant positive relationship between behavioral intention and usage behavior. Further, the results revealed the importance of perceived risk as a critical factor in DFS adoption among SMEs. Despite existing theoretical frameworks, research data about SME digital finance intention and use in Sri Lanka's unique business environment remains scarce. This research addresses a knowledge gap by assessing behavioral intention's connection to DFS acceptance among Sri Lankan SMEs. The study reveals that the SMEs in the southern province of Sri Lanka demonstrate that the intention functions as a key determinant in forming and predicting actual DFS usage. In addition, there are multiple drivers to influence their intention to adopt digital financial services, particularly, the perceived risk perceptions emerge as an essential framework for DFS acceptance promotion within SMEs.