Studying acceptance of online banking information system: A structural equation model

This thesis was submitted for the degree of Doctor of Philosophy and awarded by Brunel University.Acceptance of information technology (IT) has remained a topic of interest for a last few decades. Several theories, specifically over the conceptualisation of the technology acceptance model (TAM) have emerged and they have been applied in different contexts to investigate new insights into the acceptance behaviour at individual and organisational levels. However, despite TAM’s maturity and validity in different contexts, very little published literature strives to extend its capability to predict individuals’ acceptance behaviour about an online banking information system (OBIS). A possible rational for this gap may be conceptualisation of the TAM under which individuals’ acceptance behaviour can only be predicted with two beliefs: perceived ease of use (PEOU) and perceived usefulness (PU). The evidence in literature shows that PU and PEOU beliefs are not sufficient; hence, they may not explain individuals’ acceptance behaviour in emerging contexts, such as online banking information systems, especially in developing economies such as Pakistan. There is therefore a need for inclusion of any additional factor that can enhance prediction of acceptance of online banking information system by potential users. Extending research on the TAM, this study developed and tested a model of OBIS acceptance. The proposed model integrated key constructs from the information systems acceptance research stream into the theoretical frame of the TAM and other theories from social psychology, such as the theory of reasoned action (TRA), theory of planned behaviour (TPB) and the TAM2. According to the proposed conceptual model, OBIS acceptance was determined by eight main factors, which included perceived usefulness, perceived ease of use, trust, technological self-efficacy, response time, output quality, accessibility, and terminology clarity. In this model, PU was hypothesised to be affected by PEOU, trust, technological self-efficacy (TSE), output quality (OQ) and response time (RT). In addition, PEOU was hypothesised to be determined by three external factors: TSE, accessibility and terminology clarity (TC). The model was tested on a sample of 353 Internet banking users in Pakistan. Using structural equation modelling with Analysis of Moment Structures (AMOS) software, data analysis showed considerable support for the extended hypothesised model. The result indicated that, in order of importance, PU, PEOU and trust explained 45.7 % of the variance in the acceptance behaviour. The trust and the TSE predicted 28.1 % of the variance in the PU. However, the hypothesised relationships between the PU and the PEOU, OQ and RT were found to be not significant. While in the PEOU, 21.8 % of the variance was predicted by the TSE, accessibility and TC. TSE was found to be a more influential determinant of the PEOU than the PU. The consideration of factors that have a significant influence on the acceptance of OBIS, as identified in this research, is important for the managers in the banking sector, especially in developing countries, in order to increase wider acceptance and use of these systems, which provide benefits to both the customers and the service providers.University of Sind