Factors Affecting Innovation Adoption in the Public Sector: The Case of Monthly Elderly Welfare Payment through an Electronic System by Local Administrative Organizations in Khon Kaen Province

Abstract

The government has promoted the adoption of an electronic payment system for the subsistence allowance for the elderly, but a great number of local administrative organizations (LAOs) are unable to comply with the policy. This research aims to answer the question of why many LAOs in Khon Kaen has not adopted the electronic elderly allowance payment system. The researchers employed a survey research design and quantitative analysis methods. Data were collected from questionnaires from 224 lower-level LAOs in Khon Kaen province. Statistical data was analyzed using mean and standard deviation and the hypotheses were tested through multinomial logistic regression analysis. The results showed that the electronic subsistence payment system has the highest level of innovation characteristics. The readiness and support of the LAOs are at the highest and the high levels respectively. The results of the multinomial logistic regression analysis showed that the LAOs would replace cash payments with electronic payments when they find that the electronic payments are suitable for the lifestyle of the local people and the local authorities are ready to operate. In addition, the LAOs would use both cash and electronic payments when they find that electronic payments were clearly beneficial. In implementing digital government policies, the government and its agencies must demonstrate the clear benefits and ease of trialability of the digital innovation, and at the same time prepare government officials and other resources to be ready to comply.