IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v61y2020ics0160791x19302386.html
   My bibliography  Save this article

Barriers in adoption of internet banking: A structural equation modeling - Neural network approach

Author

Listed:
  • Arif, Imtiaz
  • Aslam, Wajeeha
  • Hwang, Yujong

Abstract

Comparatively, less attention has been paid to the factors that obstruct consumers to use internet banking. Therefore, this study aims to analyze the barriers in the adoption of Internet banking in Karachi, Pakistan. A survey research questionnaire was adopted and, in total, 300 useable responses were used from the banks’ customers. First exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were applied for the establishment of measurement model and structural equation modeling (SEM) was used to find the significant influence barriers on Internet banking adoption. In the second phase, the neural network model was used to rank the relative influence of significant predictors obtained from SEM. The results indicate a significant positive relationship between value barrier, risk barrier, and image barrier with the usage of Internet banking. Only, the traditional barrier has a negative insignificant effect on the usage of Internet banking. The image barrier has a higher impact on usage of Internet banking followed by the value barrier and risk barrier. Results also indicate that males are facing high barriers in comparison with females. Findings provide guidelines to banks for developing facilities that enable the consumer to use Internet banking for their financial transactions. This study will be highly beneficial for the banking industry to improve their online services and revise their policies to facilitate consumers by meeting their needs.

Suggested Citation

  • Arif, Imtiaz & Aslam, Wajeeha & Hwang, Yujong, 2020. "Barriers in adoption of internet banking: A structural equation modeling - Neural network approach," Technology in Society, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:teinso:v:61:y:2020:i:c:s0160791x19302386
    DOI: 10.1016/j.techsoc.2020.101231
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X19302386
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2020.101231?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chaouali, Walid & Souiden, Nizar, 2019. "The role of cognitive age in explaining mobile banking resistance among elderly people," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 342-350.
    2. Teo, T. S. H. & Pok, Siau Heong, 2003. "Adoption of WAP-enabled mobile phones among Internet users," Omega, Elsevier, vol. 31(6), pages 483-498, December.
    3. Syed Ali Raza & Syed Tehseen Jawaid & Ayesha Hassan, 2015. "Internet banking and customer satisfaction in Pakistan," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 7(1), pages 24-36, February.
    4. Serener, Berna, 2019. "Testing the Homogeneity of Non-Adopters of Internet Banking," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 10(3), pages 699-708, May.
    5. Laukkanen, Tommi, 2016. "Consumer adoption versus rejection decisions in seemingly similar service innovations: The case of the Internet and mobile banking," Journal of Business Research, Elsevier, vol. 69(7), pages 2432-2439.
    6. Heidenreich, Sven & Kraemer, Tobias & Handrich, Matthias, 2016. "Satisfied and unwilling: Exploring cognitive and situational resistance to innovations," Journal of Business Research, Elsevier, vol. 69(7), pages 2440-2447.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jacques Nel & Christo Boshoff, 2023. "Unraveling the link between status quo satisfaction and the rejection of digital-only banks," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 189-207, March.
    2. Omar H. Fares & Irfan Butt & Seung Hwan Mark Lee, 2023. "Utilization of artificial intelligence in the banking sector: a systematic literature review," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(4), pages 835-852, December.
    3. Simplice Asongu & Nicholas Odhiambo, 2022. "The role of mobile characteristics on mobile money innovations," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 4693-4710, December.
    4. Huang, Dan & Jin, Xin & Coghlan, Alexandra, 2021. "Advances in consumer innovation resistance research: A review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    5. Simran Jit Kaur & Liaqat Ali, 2021. "Understanding bank employees’ perception towards technology enabled banking: a developing country perspective," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(3), pages 129-143, September.
    6. Mahmud, Hasan & Islam, A.K.M. Najmul & Mitra, Ranjan Kumar, 2023. "What drives managers towards algorithm aversion and how to overcome it? Mitigating the impact of innovation resistance through technology readiness," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    7. Villanueva Orbaiz, María Luisa & Arce-Urriza, Marta, 2024. "The role of active and passive resistance in new technology adoption by final consumers: The case of 3D printing," Technology in Society, Elsevier, vol. 77(C).
    8. Simplice Asongu, 2023. "Telecommunications regulation, mobile money innovations and financial inclusion," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 31(4), pages 503-521, April.
    9. Wajeeha Aslam & Syed Tehseen Jawaid, 2023. "Systematic Review of Green Banking Adoption: Following PRISMA Protocols," IIM Kozhikode Society & Management Review, , vol. 12(2), pages 213-233, July.
    10. Söderlund, Magnus, 2023. "Moderator variables in consumer research: A call for caution," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    11. Md. Emam Hossain & Subarna Biswas, 2024. "Technology acceptance model for understanding consumer’s behavioral intention to use artificial intelligence based online shopping platforms in Bangladesh," SN Business & Economics, Springer, vol. 4(12), pages 1-61, December.
    12. Shivani Inder & Kiran Sood & Simon Grima, 2022. "Antecedents of Behavioural Intention to Adopt Internet Banking Using Structural Equation Modelling," JRFM, MDPI, vol. 15(4), pages 1-18, March.
    13. Md. Al Amin & Abureza M. Muzareba & Imtiaz Uddin Chowdhury & Mubina Khondkar, 2024. "Understanding e-satisfaction, continuance intention, and e-loyalty toward mobile payment application during COVID-19: an investigation using the electronic technology continuance model," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 318-340, June.
    14. Wajeeha Aslam & Iviane Ramos de Luna & Muhammad Asim & Kashif Farhat, 2023. "Do the Preceding Self-service Technologies Influence Mobile Banking Adoption?," IIM Kozhikode Society & Management Review, , vol. 12(1), pages 50-66, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huang, Dan & Jin, Xin & Coghlan, Alexandra, 2021. "Advances in consumer innovation resistance research: A review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    2. Faten Baklouti & Fayçal Boukamcha, 2024. "Consumer resistance to internet banking services: implications for the innovation resistance theory," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 364-376, June.
    3. Villanueva Orbaiz, María Luisa & Arce-Urriza, Marta, 2024. "The role of active and passive resistance in new technology adoption by final consumers: The case of 3D printing," Technology in Society, Elsevier, vol. 77(C).
    4. Hew, Jun-Jie & Lee, Voon-Hsien & Leong, Lai-Ying, 2023. "Why do mobile consumers resist mobile commerce applications? A hybrid fsQCA-ANN analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    5. Chaouali, Walid & Souiden, Nizar, 2019. "The role of cognitive age in explaining mobile banking resistance among elderly people," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 342-350.
    6. Mahmud, Hasan & Islam, A.K.M. Najmul & Mitra, Ranjan Kumar, 2023. "What drives managers towards algorithm aversion and how to overcome it? Mitigating the impact of innovation resistance through technology readiness," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    7. Mirosława Kaczmarek, 2023. "Przynależność do kohorty pokoleniowej jako determinanta korzystania z BLIK-a," Bank i Kredyt, Narodowy Bank Polski, vol. 54(2), pages 221-238.
    8. Paolo Franco, 2023. "Older consumers and technology: A critical systematic literature review," AMS Review, Springer;Academy of Marketing Science, vol. 13(1), pages 92-121, June.
    9. Pynnönen, Sari & Haltia, Emmi & Hujala, Teppo, 2021. "Digital forest information platform as service innovation: Finnish Metsaan.fi service use, users and utilisation," Forest Policy and Economics, Elsevier, vol. 125(C).
    10. Boeuf, Benjamin, 2019. "The impact of mortality anxiety on attitude toward product innovation," Journal of Business Research, Elsevier, vol. 104(C), pages 44-60.
    11. Muhammad Ali & Syed Ali Raza & Chin-Hong Puah & Muhammad Shujaat Mubarik, 2023. "Customer acceptance toward Islamic personal financing in Pakistan," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(2), pages 270-284, June.
    12. Sadiq, Mohd & Adil, Mohd & Paul, Justin, 2021. "An innovation resistance theory perspective on purchase of eco-friendly cosmetics," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    13. Hew, Jun-Jie & Leong, Lai-Ying & Tan, Garry Wei-Han & Ooi, Keng-Boon & Lee, Voon-Hsien, 2019. "The age of mobile social commerce: An Artificial Neural Network analysis on its resistances," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 311-324.
    14. Shankar, Amit & Jebarajakirthy, Charles & Ashaduzzaman, Md, 2020. "How do electronic word of mouth practices contribute to mobile banking adoption?," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    15. Yi, Jisu & Lee, Youseok & Suh, Jungmin & Kim, Sang-Hoon, 2022. "Psychological determinants of non-attendees’ resistance toward performing arts," Journal of Business Research, Elsevier, vol. 149(C), pages 690-699.
    16. Sven Heidenreich & Katrin Talke, 2020. "Consequences of mandated usage of innovations in organizations: developing an innovation decision model of symbolic and forced adoption," AMS Review, Springer;Academy of Marketing Science, vol. 10(3), pages 279-298, December.
    17. Lambert Kofi Osei & Yuliya Cherkasova & Kofi Mintah Oware, 2023. "Unlocking the full potential of digital transformation in banking: a bibliometric review and emerging trend," Future Business Journal, Springer, vol. 9(1), pages 1-18, December.
    18. Malodia, Suresh & Kaur, Puneet & Ractham, Peter & Sakashita, Mototaka & Dhir, Amandeep, 2022. "Why do people avoid and postpone the use of voice assistants for transactional purposes? A perspective from decision avoidance theory," Journal of Business Research, Elsevier, vol. 146(C), pages 605-618.
    19. Ye Sang & Heeseung Yu & Eunkyoung Han, 2022. "Understanding the Barriers to Consumer Purchasing of Zero-Waste Products," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    20. Maria Tsourela & Dafni-Maria Nerantzaki, 2020. "An Internet of Things (IoT) Acceptance Model. Assessing Consumer’s Behavior toward IoT Products and Applications," Future Internet, MDPI, vol. 12(11), pages 1-23, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:61:y:2020:i:c:s0160791x19302386. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.