Extending UTAUT with Digital Literacy: The Role of Performance Expectancy in the BPO Industry

Abstract

This study extends the Unified Theory of Acceptance and Use of Technology (UTAUT) by examining how Digital Literacy and Effort Expectancy influence Behavioral Intention through the mediating role of Performance Expectancy in the Business Process Outsourcing (BPO) industry. It addresses the digital adoption gap, where the availability of digital technologies does not necessarily translate into employees’ Behavioral Intention to use them. Drawing on Human Capital Theory, Digital Literacy is conceptualized as digital human capital that enhances employees’ perceptions of technology usefulness through Performance Expectancy. Data were collected from 120 employees of the Marketing and Sales Directorate at PT Infomedia Nusantara who actively use the Omnix platform. The proposed model was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The results show that Digital Literacy and Effort Expectancy have significant positive effects on Performance Expectancy, which is the strongest predictor of Behavioral Intention. Performance Expectancy fully mediates the relationship between Digital Literacy and Behavioral Intention and partially mediates the relationship between Effort Expectancy and Behavioral Intention. These findings extend UTAUT by establishing Digital Literacy as an antecedent of Performance Expectancy, providing a capability-based explanation of technology adoption. Practically, BPO organizations should strengthen digital literacy through scenario-based Omnix training, communicate system benefits using performance indicators such as lead management and sales productivity, and develop user-friendly digital platforms to improve technology adoption.