Abstract:
This study aimed to identify the Determinant Factors Affecting the Adoption of Telebirr
Mobile Money Service in the Case of Gondar City and to use the findings to propose
strategic recommendations for Ethio Telecom to enhance service uptake. A quantitative
research method was applied, drawing on primary data collected from Telebirr users in
Gondar City. A total of 400 questionnaires were distributed, of which 353 valid responses
were obtained and used for analysis. To examine the relationship between adoption and
its predictors—awareness, perceived usefulness, ease of use, prior knowledge, and
perceived risk—both descriptive and explanatory research design were employed. The
data were analyzed using SPSS Version 26, and the assumptions of multiple regression
analysis (including autocorrelation, homoscedasticity, normality, linearity, and
multicollinearity) were fully tested and satisfied. The Pearson correlation analysis
revealed that perceived usefulness had the strongest positive correlation with adoption (r
= .482, p < .01), followed by ease of use (r = .263, p < .01), awareness (r = .255, p < .01),
and prior knowledge (r = .217, p < .01). Perceived risk showed no significant correlation
(r = .043, p > .05). Regression analysis further confirmed that awareness (β = .611),
perceived usefulness (β = .514), and ease of use (β = .278) had significant and positive
impacts on adoption, while perceived risk (β = –.433) had a significant negative effect.
Prior knowledge was found to have no statistically significant influence (p > .05). The
regression model was statistically significant (F = 319.47, p < .01) with an adjusted R² of
.813, indicating that 81.3% of the variation in Telebirr adoption was explained by the
model's independent variables. Based on these findings, it is recommended that Ethio
Telecom focus on increasing user awareness, enhancing the perceived usefulness and ease
of use of the service, and minimizing perceived risks—particularly by improving network
reliability and service security. Doing so can significantly boost Telebirr's adoption rate
and better serve users in Gondar City and beyond.
