This study aims to investigate the influence of public spending card (PSC) usage and attitudes toward using PSC (ATU) on budget disbursement effectiveness (BDE) in developing countries. This research also examined the antecedents of PSC usage and ATU.
The unified theory of use and acceptance of technology and perceived risk theory were used. Based on survey data collected from 202 Vietnamese public organizations and using structural equation modeling (SEM) with partial least squares (PLS)-SEM analysis using SmartPLS software to examine the relationships between PSC usage, ATU and BDE, as well as to determine the factors affecting PSC usage and ATU.
Results indicated that PSC usage and ATU significantly impacted BDE. The study also revealed that ATU, perceived risk and financial autonomy directly impacted PSC usage. ATU is strongly influenced by effort expectancy and social influence.
The insights from this study can be useful for researchers, policymakers and practitioners to understand the implementation of PSC and its impact on BDE.
This study represents the first investigation of the influence of PSC usage on BDE in the public sector of developing countries.
