IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v15y2022i4p157-d783965.html
   My bibliography  Save this article

Antecedents of Behavioural Intention to Adopt Internet Banking Using Structural Equation Modelling

Author

Listed:
  • Shivani Inder

    (Chitkara Business School, Chitkara University, Punjab 140401, India)

  • Kiran Sood

    (Chitkara Business School, Chitkara University, Punjab 140401, India)

  • Simon Grima

    (Department of Insurance and Risk Management, Faculty of Economics, Management and Accountancy, University of Malta, MSD 2080 Msida, Malta)

Abstract

Technology is emerging as an as an important banking mode for customers, and although almost all the banks in India are offering Internet Banking, India faces problems related to the digital divide, e-frauds, and high rates of interest, amongst other things. This is causing concern in banks, which are trying to persuade people to adopt their online banking services. Therefore, the aim with this study is to determine the antecedents of behavioural intentions to adopt e-banking in an emerging economy such as India. We did this by administering a questionnaire with 34 questions and nine constructs to which participants responded using a Likert scale of 1 to 5, 1 being strongly disagree and 5 strongly agree. All constructs used in this questionnaire were adapted from literature related to the antecedents of behavioural intentions to adopt e-banking. We received 436 valid responses, which we analysed using Cronbach’s alpha, Confirmatory Factor Analysis, and Structural Equation Modelling. Results show that Performance Expectancy, Hedonic Motivation, Experience, Habit and Attitude, Perceived Website Usability, and Security and Reliability positively influence the intention to adopt Internet Banking, suggesting that policymakers and bankers should focus on improving website usability and hedonic enjoyment while focusing on Internet Banking performance, security, and dependability. In addition, Effort Expectations, Social Influence, Facilitating Conditions, and Trust resulted as not significant influencing factors of Internet Banking usage; Indians appear to find Internet Banking straightforward to use, perceive it as a breeze, and believe they are backed by solid support systems and organisational infrastructures. Moreover, trust is not a driving factor for Indians to adopt Internet Banking because they already perceive it as a trustworthy exercise.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:4:p:157-:d:783965
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/15/4/157/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/15/4/157/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zagalaz Jiménez, José Ramón & Aguiar Díaz, Inmaculada, 2019. "Educational level and Internet banking," Journal of Behavioral and Experimental Finance, Elsevier, vol. 22(C), pages 31-40.
    2. Yasin, Mahmoud & Liébana-Cabanillas, Francisco & Porcu, Lucia & Kayed, Rasem N., 2020. "The role of customer online brand experience in customers' intention to forward online company-generated content: The case of the Islamic online banking sector in Palestine," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    3. 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).
    4. Durkin, Mark & Jennings, Deirdre & Mulholland, Gwyneth & Worthington, Stephen, 2008. "Key influencers and inhibitors on adoption of the Internet for banking," Journal of Retailing and Consumer Services, Elsevier, vol. 15(5), pages 348-357.
    5. Kawaljeet Kaur Kapoor & Yogesh K. Dwivedi & Michael D. Williams, 2015. "Examining the role of three sets of innovation attributes for determining adoption of the interbank mobile payment service," Information Systems Frontiers, Springer, vol. 17(5), pages 1039-1056, October.
    6. Bauer, Keldon & Hein, Scott E., 2006. "The effect of heterogeneous risk on the early adoption of Internet banking technologies," Journal of Banking & Finance, Elsevier, vol. 30(6), pages 1713-1725, June.
    7. Divya Gupta & Usha Kamilla, 2014. "Cyber Banking in India: A Cross-Sectional Analysis Using Structural Equation Model," The IUP Journal of Bank Management, IUP Publications, vol. 0(2), pages 47-63, May.
    8. Abdulwahed Mo. Sh. Khalfan & Yaqoub S.Y. AlRefaei & Majed Al-Hajery, 2006. "Factors influencing the adoption of internet banking in Oman: a descriptive case study analysis," International Journal of Financial Services Management, Inderscience Enterprises Ltd, vol. 1(2/3), pages 155-172.
    9. Kieran Mathieson, 1991. "Predicting User Intentions: Comparing the Technology Acceptance Model with the Theory of Planned Behavior," Information Systems Research, INFORMS, vol. 2(3), pages 173-191, September.
    10. Alalwan, Ali Abdallah & Dwivedi, Yogesh K. & Rana, Nripendra P. & Algharabat, Raed, 2018. "Examining factors influencing Jordanian customers’ intentions and adoption of internet banking: Extending UTAUT2 with risk," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 125-138.
    11. Sharma, Rashmini & Singh, Gurmeet & Sharma, Shavneet, 2020. "Modelling internet banking adoption in Fiji: A developing country perspective," International Journal of Information Management, Elsevier, vol. 53(C).
    12. Hussain Alwan & Abedlhalim Al-Zubi, 2016. "Determinants of Internet Banking Adoption among Customers of Commercial Banks: An Empirical Study in the Jordanian Banking Sector," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(3), pages 1-95, February.
    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. Chiang Ku Fan & Chen-Ying Lee, 2023. "An Empirical Study of Internet Insurance in Taiwan Adopting the Theoretical Framework of UTAUT2," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 13(5), pages 1-1.
    2. Tarikul Islam & Erhua Zhou, 2024. "Unpacking the Reasons Shaping Employee Acceptance and Attitudes towards AI Assistant Services in the Hotel Industry: A Behavioral Reasoning Perspective," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(5), pages 1-7.
    3. Masoome Abikari & Peter Öhman & Darush Yazdanfar, 2023. "Negative emotions and consumer behavioural intention to adopt emerging e-banking technology," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(4), pages 691-704, December.

    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. 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.
    2. Hasan, Rajibul & Lowe, Ben & Petrovici, Dan, 2020. "Consumer adoption of pro-poor service innovations in subsistence marketplaces," Journal of Business Research, Elsevier, vol. 121(C), pages 461-475.
    3. Garima Malik & A. Sajeevan Rao, 2019. "Extended expectation-confirmation model to predict continued usage of ODR/ride hailing apps: role of perceived value and self-efficacy," Information Technology & Tourism, Springer, vol. 21(4), pages 461-482, December.
    4. Xuechao Sui & Xianhui Geng, 2021. "Continuous usage intention to e-transaction cards in wholesale markets of agriproducts: empirical evidence from China," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    5. Müller-Seitz, Gordon & Dautzenberg, Kirsti & Creusen, Utho & Stromereder, Christine, 2009. "Customer acceptance of RFID technology: Evidence from the German electronic retail sector," Journal of Retailing and Consumer Services, Elsevier, vol. 16(1), pages 31-39.
    6. Taneja, Shilpa & Ali, Liaqat, 2021. "Determinants of customers’ intentions towards environmentally sustainable banking: Testing the structural model," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    7. Daha Tijjani Abdurrahaman & Maimuna Saad Sharubutu & Tasiu Tijjani Sabiu & Sa'adatu Balarabe Adam & Mohammed Gaddafi Ibrahim & Ama Aka Udu, 2021. "Examining the Determinants of eBanking Adoption: Evidence from Nigeria," Technium Social Sciences Journal, Technium Science, vol. 22(1), pages 463-482, August.
    8. Pankaj Tiwari, 2021. "Electronic banking adoption in Ethiopia: an empirical investigation," SN Business & Economics, Springer, vol. 1(9), pages 1-28, September.
    9. Nripendra P. Rana & Yogesh K. Dwivedi & Banita Lal & Michael D. Williams & Marc Clement, 2017. "Citizens’ adoption of an electronic government system: towards a unified view," Information Systems Frontiers, Springer, vol. 19(3), pages 549-568, June.
    10. Konstantinos Dendrinos & George Spais, 2024. "An investigation of selected UTAUT constructs and consumption values of Gen Z and Gen X for mobile banking services and behavioral intentions to facilitate the adoption of mobile apps," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(3), pages 492-522, September.
    11. Kajol, K. & Singh, Ranjit & Paul, Justin, 2022. "Adoption of digital financial transactions: A review of literature and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    12. Chang, Yung-Chi & Enkhjargal, Uguumur & Huang, Chen-I & Lin, Wen-Ling & Ho, Chi-Ming, 2020. "Factors Affecting the Internet Banking Adoption," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(3), pages 117-131.
    13. Hway-Boon Ong & Lee-Lee Chong, 2023. "The effect of cashless payments on the internet and mobile banking," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 178-188, March.
    14. Shahram Gilaninia & Hamidreaza Alipour & Peyman Rahpeyma & Seyyed Javad Mousavian, 2011. "Effective Factors on Behavior Tendency in the Acceptance of Electronic Banking Based on Planned Behavior Model (TPB)," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 2(4), pages 54-60, November.
    15. Riffai, M.M.M.A. & Grant, Kevin & Edgar, David, 2012. "Big TAM in Oman: Exploring the promise of on-line banking, its adoption by customers and the challenges of banking in Oman," International Journal of Information Management, Elsevier, vol. 32(3), pages 239-250.
    16. Nripendra P. Rana & Yogesh K. Dwivedi & Banita Lal & Michael D. Williams & Marc Clement, 0. "Citizens’ adoption of an electronic government system: towards a unified view," Information Systems Frontiers, Springer, vol. 0, pages 1-20.
    17. Komlan Gbongli & Yongan Xu & Komi Mawugbe Amedjonekou, 2019. "Extended Technology Acceptance Model to Predict Mobile-Based Money Acceptance and Sustainability: A Multi-Analytical Structural Equation Modeling and Neural Network Approach," Sustainability, MDPI, vol. 11(13), pages 1-33, July.
    18. 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.
    19. Agumas Alamirew Mebratu, 2024. "Theoretical foundations of voluntary tax compliance: evidence from a developing country," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.
    20. Yibei Pu & Norzaidahwati Zaidin & Yaodong Zhu, 2023. "How Do E-Brand Experience and In-Store Experience Influence the Brand Loyalty of Novel Coffee Brands in China? Exploring the Roles of Customer Satisfaction and Self–Brand Congruity," Sustainability, MDPI, vol. 15(2), pages 1-17, January.

    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:gam:jjrfmx:v:15:y:2022:i:4:p:157-:d:783965. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.