Integration of unified theory of acceptance and use of technology in internet banking adoption setting: Evidence from Pakistan
Graphical abstract
Introduction
The advent of internet and sophisticated technologies not only stimulated the new industries but also changed the business model including the banking sector. The banking sector has adopted internet banking as a delivery channel for their services. Internet banking is a banking channel that allows consumers to do a wide range of financial and nonfinancial services through a bank website [1,2]. Several banks have deployed internet banking system in an attempt to reduce cost while improving customer services (A. A. [3,4]. Internet banking has also appeared as one of the most profitable e-commerce application [5]. Despite the potential benefits that internet banking offers to consumers, the adoption of internet banking has been limited and in many cases fallen short of expectations [6,7]. There are still a large group of customers who refuse to adopt internet banking services due to uncertainty and security concerns [[8], [9], [10], [11]]. Therefore, it is important to understand the determinants that influence the user intention to adopt internet banking.
There are numerous studies conducted to unleash technology adoption issues in banking sector [[12], [13], [14], [15]]. Therefore, the current study integrates the unified theory of acceptance and use of technology and e-service quality to investigate the user behavior towards adoption of internet banking. According to Oliveira et al. [15] an integrative model reinforces the significance and predictability of the results. Previous studies have claimed that performance expectancy and effort expectancy are the most important determinants for accepting or rejecting the internet banking. Therefore, little has been discussed about the antecedents of performance expectancy and effort expectancy. Our study revealed that website design and customer service are the key factors that enhance users performance expectancy and effort expectancy towards use of internet banking technology. Therefore, the current study enriches the service quality and information system literature in internet banking context. The purposes of this study are as follows:
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To evaluate whether the integration of UTAUT model (UTAUT+ESQ) affects user intention to adopt internet banking.
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To clarify which factor drives user intention towards adoption of internet banking.
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To investigate whether e-service quality factors (customer service, website design, assurance, and reliability) affects user intention to adopt internet banking.
The remainder of this paper is structured as follows: section two introduces adoption factors underlying UTAUT and E-SQ and the theoretical foundation. In third section research model and hypotheses are presented while section four outlines the research methodology. The fifth section shows the data analysis and hypotheses testing. Section six discusses research findings, and section seventh explains implications, and finally this paper presents research conclusion and future research directions.
Section snippets
Technology adoption models
In recent years, internet banking has received colossal attention in technology adoption research. The banking sector has been using IS not only for internal business activities, but also to provide core services to their customers [10,11]. The most well-known theoretical models that have sought to investigate the relationship between user beliefs, attitude and intention include Motivational Model (MM) byDavis, Bagozzi, and Warshaw [16]; Theory of Planned Behavior (TPB), a hybrid model that
Theories integration rational
The proposed research model comprises the key factors of UTAUT model and e-service quality for understanding the internet banking adoption trend in Pakistan. According to Shen, Huang, Chu, and Hsu [43] consumer acceptance of new technology is a complicated phenomenon that requires more than a single model. Similarly, Jackson, Mun, and Park [44] postulated that an integrative perspective model provides a more complete account of the causal mechanisms underlying the relationships as well as
Instrument development
The instrument was developed based on nine latent constructs mentioned in research model. All the construct items were adopted from previous research work. There were four items of Intention to adopt internet banking adopted from R. Samar et al. [10,11]; while four items of each performance expectancy, effort expectancy, social influence and facilitating condition were adopted with a slight modification from Venkatesh et al. [21] and S Rahi et al. [22,23]. Next to this six items of customer
Data analysis and results
For data analysis, PLS-SEM approach was used instead of CB-SEM due to the fact that the objective of the current research is to predict factors that influence on user's intention to adopt internet banking. Another reason was the data normality issue. The data was not normally distributed thus, variance based technique using partial least square was suitable for this study. SmartPLS 3.0 software Ringle, Wende, and Becker [69] was used to analyze the structural equation model.
Discussion
Several insightful results could be summarized from our research framework. Findings indicate support for newly developed integrated model. It can be seen that the explanatory power of research model 80.2% for customer's intention to adopt internet banking, and for performance expectancy 33.9%, finally, for effort expectancy 11.4% that ensured the significant integration of UTAUT and E-SQ factors. Compared with previous investigation by S Rahi et al. [22,23] our study presented a
Theoretical implications
From theoretical perspective several implications can be derived from the findings of the research. First, this research used UTAUT model in a new context which is internet banking acceptance. Findings revealed that UTAUT model has a substantial explanatory and predictive power to explain user intention to adopt internet banking. Thus, the finding enriches the UTAUT literature in internet banking adoption context. Second, previously researcher has explained e-service quality as a single factor.
Conclusion and future research
The current study proposed an integrated model UTAUT & E-SQ to investigate user behaviors towards adoption of internet banking. In line with study objectives, the proposed integrated model has direct and positive impact on user intention. This study identified determinants of user beliefs in internet banking adoption context such as website design, assurance customer service, reliability, performance expectancy, effort expectancy, social influence, and facilitating condition. The results of the
<au id="1/">Dr.Samar Rahi is an Assistant Professor of Marketing at Hailey College of Banking & Finance, University of the Punjab, Lahore, Pakistan. He holds a Ph.D. in Marketing from Universiti Sultan Zainal Abidin (UniSZA), Malaysia. He has worked with top-notch travel tech joint like Saffr A/S, Amadeus and Galileo. His current research interests include information management, business intelligence, e-commerce, product innovation and technology adoption. His research projects include study
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<au id="1/">Dr.Samar Rahi is an Assistant Professor of Marketing at Hailey College of Banking & Finance, University of the Punjab, Lahore, Pakistan. He holds a Ph.D. in Marketing from Universiti Sultan Zainal Abidin (UniSZA), Malaysia. He has worked with top-notch travel tech joint like Saffr A/S, Amadeus and Galileo. His current research interests include information management, business intelligence, e-commerce, product innovation and technology adoption. His research projects include study of travelling constraints, brand Image, Internet banking, customer perceived value, e-service quality, customer's perception of public relation and switching cost. Samar Rahi is the corresponding author and can be contacted at: [email protected]
<au id="2/">Dr.Mazuri Abd Ghani is an Associate Professor at Universiti Sultan Zainal Abidin (UniSZA). She is a Deputy Dean of academic and undergraduates at the Faculty of Economics and Management Sciences UniSZA. Her research interests are market orientation, brand orientation and building customer-based brand equity for higher education institutions.
<au id="3/">Dr.Abdul Hafaz Ngah, received his Ph.D. from Universiti Malaysia Pahang and currently a senior lecturer in School of Maritime Business and Management, Universiti Malaysia Terengganu. His research interests include Halal supply chain, Tourism Management, technology adoption and employability skills. His papers have been published in a several international journals.