FACTORS INFLUENCING THE BEHAVIOURAL INTENTION TO ADOPT INTERNET BANKING: AN EMPIRICAL STUDY IN INDIA
Keywords:
Behavioural Intention, UTAUT, Trust, Awareness, AttitudeAbstract
Internet banking provides huge benefits to banks’ in cost savings, improved customer relationships and differentiating their offerings from competitors. Although the Internet banking services were introduced in India for more than a decade ago, the adoption among the bank customers is still very low. This study aims to identify the factors that are significantly influencing the bank customers intention to use Internet banking services in India. The research proposed a comprehensive model called ‘Internet banking Acceptance in India’, constructs of which were developed based partially on the Unified Theory of Acceptance and Use of Technology (UTAUT) and three additional variables as identified to be context-specific. The data presented in this study are based on 325 questionnaires collected from individual bank customers’ in Hyderabad city. The empirical findings of the study confirms the relationships between the identified latent variables and their impact on the adoption of Internet banking services. The proposed model explained about 67% of the variance in behavioural intention to adopt the Internet banking in India. This study contributes to the literature by providing a new research framework for predicting Internet banking adoption in India and its findings provide useful insights for bank managers and policy makers in planning Internet banking promotion strategies.
Downloads
References
Abu-Shanab, E., & Pearson, M. (2009). Internet banking in Jordan: An Arabic instrument validation process. International Arab Journal of Information Technology, 6(3), 235-244.
Ajzen, I. (1991). The Theory of Planned Behaviour. Organizational Behaviour and Human Decision Processes. 50: 179-211.
Alsajjan, B., & Dennis, C. (2010). Internet banking acceptance model: Cross-market examination. Journal of Business Research, 63(9), 957-963.
Al-Somali, S. A., Gholami, R., & Clegg, B. (2009). An investigation into the acceptance of online banking in Saudi Arabia. Technovation, 29(2), 130-141.
Chang, H.H., & Abdul Hamid M.R.B. (2010). An Empirical Investigation of Internet Banking in Taiwan. Global Journal of Business Research, 4,2, 39-48.
Cheng, D., Liu, G., Qian, C., & Song, Y. F. (2008). Customer acceptance of Internet banking: Integrating trust and quality with UTAUT Model. IEEE International Conference on Service Operations and Logistics, and Informatics, 2008. IEEE/SOLI 2008.
Cheng, T. C., Lam, D. Y., & Yeung, A. C. (2006). Adoption of internet banking: an empirical study in Hong Kong. Decision support systems, 42(3), 1558-1572.
Davis , F . D . (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13, 319 – 340.
Dillon, A. and M. G. Morris. (1996). User acceptance of information technology: Theories and models. Annual Review of Information Science and Technology 31: 3-32.
Dimitriadis, S., & Kyrezis, N. (2010). Linking trust to use intention for technology‐enabled bank channels: The role of trusting intentions. Psychology & Marketing, 27(8), 799-820.
Eriksson, K., Kerem, K., & Nilsson, D. (2005). Customer acceptance of internet banking in Estonia. International Journal of Bank Marketing, 23(2), 200-216.
Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behavior. An introduction to theory and research. Reading, MA: Addison-Wesley.
Foon, Y. S., & Fah, B. C. Y. (2011). Internet banking adoption in Kuala Lumpur: an application of UTAUT model. International Journal of Business and Management, 6(4), p161-167.
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of marketing research, 382-388.
Geetha, K., and Malarvizhi, V. (2012). Assessment of a Modified Technology Acceptance Model among E-banking Customers in Coimbatore City, International Journal of Innovation, Management and Technology, Vol. 3, No. 2, pp. 181-187.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis Sixth Edition Pearson Education. New Jersey.
IAMAI’s Report on Online Banking (2006). Retrieved from http://www.iamai.in/ Research.aspx?Fileid=r8_home.htm&rid=8.
Jaruwachirathanakul, B., & Fink, D. (2005). Internet banking adoption strategies for a developing country: the case of Thailand. Internet research, 15(3), 295-311.
K.M. Nor and J.M. Pearson, (2008). An exploratory study into the adoption of internet banking in a developing country: Malaysia, Journal of Internet Commerce 7 (1), 29–67.
Karthikeyan, S., & Clement Sudhakar, J. (2010). Diffusion of Internet Banking in India: An Empirical Study. Advances in Management, Vol. 3 (11), 15-20.
Lai, V. S., & Li, H. (2005). Technology acceptance model for internet banking: an invariance analysis. Information & management, 42(2), 373-386.
Liao, S., Shao, Y., Wang, H. and Chen, A. (1999). The adoption of virtual banking: an empirical study, International Journal of Information Management, 19(1), 63-74.
Liu, G., Huang, S. P., & Zhu, X. K. (2008). User acceptance of Internet banking in an uncertain and risky environment. In Risk Management & Engineering Management. ICRMEM'08. International Conference on (381-386). IEEE.
Mashhadi, M. M.; Tofighi, M.; Salamat, V. (2007). Investigating customers’ decision to accept e-banking services," Industrial Engineering and Engineering Management, IEEE International Conference on , vol., no., pp.204,208, 2-4 Dec. 2007
Pallant, J. (2001). SPSS survival manual. Maidenhead, PA: Open University Press.
Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., & Pahnila, S. (2004). Consumer acceptance of online banking: an extension of the technology acceptance model. Internet research, 14(3), 224-235.
Prema, C., and Sudhakar J.C., (2009). Internet Banking Acceptance – An Extended Technology Acceptance Model, RVS Journal of Management, 2(1), 110-118.
Ramayah, T., Jantan, M., Mohd Noor, M. N., Razak, R. C., & Koay, P. L. (2003). Receptiveness of internet banking by Malaysian consumers: The case of Penang. Asian Academy of Management Journal, 8(2), 1-29.
Rogers, E.M. and Shoemaker, F. (1971). Communications in Innovation, Free Press, New York, NY.
Sathye, M. (1999). Adoption of internet banking by Australian consumers: an empirical investigation. International Journal of bank marketing, 17(7), 324-334.
Sentosa, I., Ming, C.W., Soebyakto, B.B., & Nik Mat, N. K. (2012). A Structural Equation Modeling of Internet Banking Usage in Malaysia, Researchers World – Journal of Arts, Science & Commerce, 3(1), 75-86.
Shah, R., & Goldstein, S. M. (2006). Use of structural equation modeling in operations management research: looking back and forward. Journal of Operations Management, 24(2), 148–169.
Sun, H. (2003). An integrative analysis of TAM: Toward a deeper understanding of technology acceptance model. In Proceedings of the 9th American Conference on Information Systems, 2255.
T. M. Qureshi, M. K. Zafar, and M. B. Khan. Customer Acceptance of Online Banking in Developing Economies, Journal of Internet Banking and Commerce, 13(1), 2008.
Tan, M., & Teo, T. S. (2000). Factors influencing the adoption of Internet banking. Journal of the AIS, 1(1es), 5.
Venkatesh, V., Morris, M., Davis, G., Davis, F. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27 (3), 425-478.
Wang, Y. S., Wang, Y. M., Lin, H. H., & Tang, T. I. (2003). Determinants of user acceptance of internet banking: an empirical study. International Journal of Service Industry Management, 14(5), 501-519.
World Internet Usage and Population Statistics, Internet World Stats. Miniwatts Marketing Group, June 2012.
Yen Yuen, Y., & Yeow, P. H. P. (2009). User acceptance of internet banking service in Malaysia. In Web information systems and technologies (295-306). Springer Berlin Heidelberg.
Yeow, P. H., Yuen, Y. Y., Tong, D. Y. K., & Lim, N. (2008). User acceptance of online banking service in Australia. Communications of the IBIMA, 1(22), 191-197.
Yousafzai, S. and Yani-De-Soriano, M. (2012). Understanding customer-specific factors underpinning internet banking adoption, International Journal of Bank Marketing, 30(1), 60-81.
