Impact of information technology effectiveness on users’ acceptance in insurance business in Tanzania: the case of National Insurance Corporation (NIC) of Tanzania limited

Organizations have found it increasingly difficult to justify the costs which surrounds the investment in IT, hence the value of IT investments are often justified by faith alone. This research was mainly conducted to find out whether there is any significant impact of IT effectiveness on users acceptance at the National Insurance Corporation (NIC) of Tanzania limited. The study specifically focused on the impact of the effectiveness of the integrated insurance and accounting system on insurance business at NIC. The study used a likert scale questionnaire to gather data from 106 respondents who are the NIC staff members at Head Office in Dar es salaam as well as in Mbeya, Mwanza, Tabora, Moshi, Morogoro, Arusha and all Dar es salaam branches. In analyzing the findings, probability theory was applied in the attempt to answer specific questions. Based on the variables and the stated hypothesis, the full regression model was analyzed. After carrying out the study it has been clearly established that the IT effectiveness does not have a significant impact on users’ acceptance. The study revealed that usefulness of information systems at NIC, Information quality, System ease of use and MIS department service are seen to have no impact on the system acceptance. It can be hypothesized that most of NIC staff have less knowledge on the systems and hence it becomes difficult for them to evaluate the systems acceptance. It is important that the HR department in collaboration with management to allocate funds to provide training to NIC staff. The study also calls for further research to determine the factors that are perceived by NIC staff as influencing on the acceptance.