Behavioral determinants of online banking adoption: Some evidence from a multicultural society

T. Ramayah*, Oh Sook May**, Azizah Omar***
*Associate Professor of OperaHonsManagement, School of Management, USM.
**Lecturer of Marketing, University SainsMaiaysia(USM).
Periodicity:December - February'2008
DOI : https://doi.org/10.26634/jmgt.2.3.335

Abstract

This study examines the intention to use online banking among bank customers in the state of Penang, Malaysia. A research framework based on the Theory of Planned Behavior (TPB) was used to explain the intention to do online banking. A structured questionnaire was used to elicit responses from 239 bank\ customers using a purposive sampling technique. The results reveal a good fit model with an R2 value of 0.454 which indicates that 45.4% of the variation of intention to use online banking can be explained by the three independent variables. Also it was found that attitude towards behavior; subjective norm and perceived behavioral control were all positively related to intention to use Internet banking. It was also observed that attitude was the most  important predictor of intention to use followed by subjective norms. This is not surprising as the positive attitude of a person towards the behavior will result in him/her actually carrying out the behavior. In an eastern culture like Malaysia, subjective norm, the opinion of those who are close or important also plays a big role in supporting behavior. Facilitating conditions also play a role although it is not the most important one; it facilitates the process of adoption of any particular behavior. Implications are provided to facilitate the increase in the uptake of this service.

Keywords

Online Banking, Attitude, Subjective Norm, Perceived Behavioral Control, Intention to Use, Theory of Planned Behavior

How to Cite this Article?

T. Ramayah, Oh Sook May and Azizah Omar (2008). Behavioral Determinants of Online Banking Adoption: Some Evidence From a Multicultural Society. i-manager’s Journal on Management, 2(3), 29-37. https://doi.org/10.26634/jmgt.2.3.335

References

[1]. Ajzen, I. & Fishbein, M. (1980}. Understand\ng Attitudes and Predicting SocIaI Behavior, NJ: Prentice- Hall,
[2]. Ajzen, I. & Modden, T. (1986}. Prediction of Goal- Directed Behavior: Attitudes, Intentions, and Perceived Behavioral Control. J. Experimental Social Psychology, 22, 453-474.
[3]. Ajzen, I. (1985}. From intent\ons to act\ons.' A theory of planned behaviour, in J. Kuhl, J. Beckmann (eds), Action Control from Cognition to Behavior, Springer Verlag, New York, 11-39.
[4]. Ajzen, I. (1991}. The Theory of Planned Behavior. Organizational Behaviour and Human Decision Processes, 50, 179-211 .
[5]. 8onduro, A. (1977}. Self-efficacy: Toward a Unifying Theory of Behavioral Change, Psycho/ogy Review, 84, 191-215.
[6]. 8onduro, A. (1982}. Self-efficacy Mechanism In Human Agency. Amerlcan Psychology, 37, 122-147. ,
[7]. Chon, S.C. & Lu, M.T. (2004). Understanding Internet banking adoption and user behavior: A Hong Kong perspective. Journal of GIobaI Informat\on Management, 12 (3), 21-43
[8]. Chou, RY K. & Hu, RJ.H. (2001}. Information Technology Acceptance by Individual Professionals: A model Comparison Approach. Declsion Sclence, 32 (4), 699-719.
[9]. Chou, RY.K. (I 996). An Empirical Assessment of a Modified Technology Acceptance Model, Journal of Management lnformatlonSystems, 1 2 (2), I B5-204,
[10]. Datamonitor: Europe's oniine banking population to rise [Online] Available at http://www.nua,com/surveys, March 2B, 2003.
[1 I ]. Davis, F.D. (1989). Perceived Usefulness, Perceived Ease Of Use, and User Acceptance of Information Technology, M/S Quarter\y, 13, 9B3-1003.
[12]. Davis, F.D., Bagozzi, R.R & Warshaw, RR. (I 989). User acceptance of computer technology: A comparison of two theoretical models. Management Sc\ence, 35 (B), 9B2-1003
[I 3]. Erl, Y. (2004). Retailing On Internet The Buying Intention, MBA Thesis, School of Management, University Sains Malaysia, Penang.
[I 4]. Fishbein, M. & Ajzen, I. (I 975). Belief, Att\tude, Intentions and Behavlor: An Introductlon to Theory and Research. Reading, MA: Addison-Wesley, Boston, Massachusetts,
[15]. George, Joey F., (2004). The theory of planned behavior and Internet purchasing, Internet Research, 14 (3), 19B-212.
[I 6]. Goh, H.P (1995). The Diffusion of Internet in Singapore, Academic Exercise, Faculty of Business Administration, National University of Singapore.
[I 7]. Guru, B.K. , Vaifhilingam, S. & Prasad, R. (2001). Electronic Banking in Malaysia: A Note on Evolution of Services and Consumer Reactions: Journal of Internet Banking and Commerce, (7) [Online] Available: http://www.arraydev.com/commerce/jibc/0001-07.htm
[18]. Hair, J.F., Anderson, R.E., Tatham, R.L., & Black, W.C. (1998). Mu/tivariate Data Analysis, 5th ed,, Prentice-Hail International, Englewood Chiffs, NJ.
[I 9]. Hartwick, J. & Barki, H. (I 994). Explaining the role of user participation in information system use. Management Science, 40 (4), 440-65.
[20]. Hill, T., Smith, N.D. & Mann, M.F. ( I 986). Communicating innovations: convincing computer phobic to adopt innovative technologies Advances in Consumer Research (Edited by Lutz RJ), Association for Consumer Research, Provo, Utah, 3, pp. 419-422.
[2 I ]. Ing-Long, W. , & Jian-Liang, C. (2005). An extension of Trust and TAM model with TPB in the initial adoption of on-line tax: An empirical study. /nternatlonal Journal of Human-Computer Studies, 62 (6), 7B4-BOB .
[22]. Jen-Ruei, F., Cheng-Kiang, F. & Wen-Pin, C. (2006). Acceptance of electronic tax filing: A study of taxpayer intentions~ Information & Management, 43, 109- 126
[23]. Lee, J.E., & Ho, RS. (2002). A retail investor's perspective on the acceptance if Internet stock trading Proceedings of the 36th HICSS, 1-1 I ~ .
[24]. Lu, J. , Yu, C .S. , Liu, C. & Yao, J.E. (2003). Technology acceptance model for wireless Internet.internet Research, 1 3 (3), 206-222
[25]. Ma'ruf, J.J., Mohamad, O. & Ramayah, T. (2003). Intention to purchase via the Internet: a comparison of two theoretical models. The Proceedings of the 5th Asian Academy of Management Conference, "Challenges of Giobalized Business: The Asian Perspectfve", Hyatt Hotel, Kuantan, Pahang, Malaysia.
[26]. Mathieson, K. (1991). Predicting user intention: Comparing the technology acceptance model with the theory of planned behavior~ Information Systems Research, 2 (3), 173-191 .
[27]. May, O.S. (2005). User Acceptance of Internet Banking in Penang: A Model Comparison Approach, MBA Thesis, School of Management, University Sains Malaysia, Penang.
[28]. Nunnally, J.C. (I 978). Psychometric Theory New York: McGrawHili,
[29]. Ramayah, T. & Mohd. Suki, N. (2006). Intention to Use Mobile PC among MBA students: Implications for Technology Integration in the Learning Curriculum, UN/TAR E-Journal, I (2), I -1O~
[30]. Ramayah, T. , Ling, C.Y., Norazah, M.S. & Ibrahim, M. (2005). Determinants of intention to use an online bill payment system among MBA students. E-Business, 9, BO- 91.
[3 I ]. Ramayah,T. Noor, N~ , Nasurdin, A~M. , & Hasan, H. (2003). Students' choice intention of a higher learning institution: An application of the theory of reasoned action (TRA). Ma/aysian Management Journal, 7 ( I ), 47-62.
[32]Ramayah,T., Noor, M.N.M. , Nasurdin, A.M. , & Sin, Q.B. (2004). The relationships between belief, attitude, subjective norm, intention, and behavior towards infant food formula selection: The views of the Malaysian mothers. Gadjah Mada Internatlonal Journal of Buslness, 6(3)'405-418'
[33] Rhodes, R.E. & Courneya, K.S. (2003). Investigating multiPle comPonents of attitude, subjective norm, and perceived control: An examination of the theory of Journal of Social Psychology' 42' 129-146 '
[34]. Ryan, M.J. (I 9 75). The Fishbein Extended Model and Consumer Behavior. J. Consumer Res. , 2, I I 8- I 36
[35] .Shih, Y.Y. & Fang, K. (2004). The use of decomposed theory of planned behavior to study Internet banking in Taiwan~ internet Research, I 4 (3), 2 I 3-223
[36]. Shim, S.E. , Mary Ann, L., Sherry, L. and Warrington, p(2001). An online prepurchase intentions models: The role 204, of intention to search, Journa/ of Retailing, 77, 397-41 6 .
[37]Tan,M.&Teo,T.S.H.(2000).Factors Influencing the Adoption of Internet Banking, Journal of Association for Information Systems, I (5), I -42~
[38] Taylor, S. & Todd, p {I 995a). Understanding 62' Information Technology Usage: A Test of Competing [Models, Informafion SystemsResearch, 6 (2), 144-176.
[39] Tea, T.S.H. & pok, SH. (2003), Adoption of WAp- enabled mobile phones among Internet users. The Infernational Journal of Management Science, 3 I , 483- 498.6(3)'405-418'
[40] The Malaysian banking industry gearing up for excellence by Dr Zeti Akhtar AzIz, Gabenor of the Central Bank of Malaysia, at the Malaysian Banking & Financial Services Summit 2002 [Online] Available at planned behaviour in the exercise domain, The British http:[[www.bnm,gov,my, August I 4, 2004.
[41]. Trjandjs, H.C . {1 9 79). Values, attitudes, and interpersonal behavior, Nebraska Symposium on, Motlvation, Belief, Attitudes, and Values, University of Nebraska Press, Lincoln, NE, pp, I 95-259.
[42]. Venkatesh, V. & Davis, F.D, (2000). A theoretical, extension of the technology acceptance model'. Four longitudinal studies, Management Science, 46 (2), 186-204
If you have access to this article please login to view the article or kindly login to purchase the article

Purchase Instant Access

Single Article

North Americas,UK,
Middle East,Europe
India Rest of world
USD EUR INR USD-ROW
Pdf 35 35 200 20
Online 35 35 200 15
Pdf & Online 35 35 400 25

Options for accessing this content:
  • If you would like institutional access to this content, please recommend the title to your librarian.
    Library Recommendation Form
  • If you already have i-manager's user account: Login above and proceed to purchase the article.
  • New Users: Please register, then proceed to purchase the article.