Understanding the effect of e-learning on individual performance: The role of digital literacy

• We study how digital literacy affects e-learning use for professional development.
• The study asks New Zealand accountants about their Web 2.0 use.
• Digital literacy has an impact on users' performance and effort expectations.
• Performance expectations affect continuance intention, which affects performance.
• Organizational support does not support individual intention to continue using IT.

With the diffusion of easy-to-use Web 2.0 tools, such as podcasts, blogs and wikis, e-learning has become a popular mechanism for individual training. While individuals use these tools in the hope that their training will improve their performance, this relationship is not a given. This paper proposes that an individual's level of digital literacy affects her performance through its impact on her performance and effort expectations. To explain the influence of digital literacy on the intention of individuals to continue using e-learning and their performance, we integrate the concept of digital literacy with the Unified Theory of Acceptance and Use of Technology (UTAUT) and test our model using survey data from New Zealand accountants working in small and medium-sized enterprises (SMEs). The results indicate that these relationships were significant: digital literacy on users' performance and effort expectations, performance expectations on users' intentions to continue using Web 2.0 tools, and continuance intention on performance. These findings suggest that individual digital literacy facilitates the use of e-learning, and should be considered when examining the impact of the latter on performance.