Journal Of Internet Banking And Commerce

Transcription

Journal of Internet Banking and CommerceAn open access Internet journal (http://www.arraydev.com/commerce/jibc/)Journal of Internet Banking and Commerce, August 2014, vol. 19, no.2(http://www.arraydev.com/commerce/jibc/)The Adoption of Personal Internet Banking in VietnamMANH HUNG HOANG, MSc.Faculty of Science and Technology, Assumption University, ThailandPostal Address: VMS Building 6th Floor, Assumption University, 10540 ThailandOrganizational Website: http://www.scitech.au.edu/Email: ManhHung.Hoang@gmail.comMr. Hoang is a PhD Student of Faculty of Science and Technology in AssumptionUniversity, Thailand. His areas of interest are Internet and Banking, IT Security, ERPSystem, Open Source and Database.AbstractBased on previous studies a model of the determinants of an individual’s intentions(Behavioral Intention) to use Personal Internet Banking (PIB) services was formulated,tested using data collected by questionnaire from 319 users of PIB in Vietnam, anddeveloped to arrive at a final model. Independent determinants included an individual’spersonal characteristics (Gender, Age, Level of Education, Internet Experience, InternetBanking Experience, and Position Description), personality traits (Extraversion,Agreeableness, Conscientiousness, Neuroticism, and Openness to Experience), andlevel of trust in the bank (Trust). These were proposed to affect Behavioral Intentiondirectly or indirectly by influencing the individual’s perceptions of the ease of use andusefulness of PIB (Perceived Ease of Use and Perceived Usefulness). From atheoretical perspective many of the findings in previous studies were found to beassociated with significant correlations rather than significant causal effects whichinvolved only four independent variables (Position Description, Trust, Agreeableness,and Neuroticism). New findings stressed the important mediation roles played byPerceived Ease of Use and Perceived Usefulness in the total effect of Trust onBehavioral Intention while all of the personal characteristics, except for PositionDescription, were found to be less important than in several previous studies. Among thepersonality traits the direct effect of Agreeableness on Perceived Ease of Use and

JIBC August 2014, Vol. 19, No.2-2-Neuroticism on Behavioral Intention had not been reported in previous PIB studies andthe same was true for other significant correlations involving Extraversion,Conscientiousness, and Openness to Experience. Based on the final causal modelpractical implications of the findings are discussed.Keywords: Perceived Ease of Use; Perceived Usefulness; Personal Characteristics,Personality Traits; Behavioral Intention; Trust; Personal Internet Banking;Vietnam; Manh Hung Hoang, 2014INTRODUCTIONPersonal Internet Banking (PIB) is one of many services that banks provide asalternative channels for customers to access their bank accounts instead of going to thebank. With PIB, benefits accrue from serving more customers with fewer employees andlessening loads on ATMs (e.g. employees and security staff needed to refill money,maintenance, electricity, and rental of location). PIB frees the customer from theconstraints of time and place to conduct their personal banking transactions.Internet banking in Vietnam has appeared later than in other countries in the region.However, the Vietnam government is trying to keep up with the technology. As shown inTable 1 the growth in the number of banks providing PIB services increased from onlythree in 2004 to 45 out of a total of 50 banks in December 2011 (Ministry of Industry andTrade, 2012).Increasing the use of PIB is one of the efforts to push the development of e-commerce,which is an objective in the mission of the Vietnam government to 2020 (State Bank ofVietnam, 2011). Although the Vietnam government and banks are encouraging businessand citizens to use cashless transactions with many promotion programs and projects,the success of PIB is not only dependent on government and bank support but alsocustomer acceptance (Le, 2011).Table 1: Number of banks providing PIB services in Vietnam by yearYear20042005Number of Banks35Source: Vietnam e-Commerce Report 2011200718200825201145Very few studies of PIB have been conducted in Vietnam and they do not reflect thecomplete picture of PIB in Vietnam (Wang and Pho, 2009; Chong et al., 2010; Le, 2011;Lin and Nguyen, 2011) because the infrastructure to support PIB in Vietnam has onlybeen implemented quite recently and extra services are still in the experimental stage.This study is motivated by the need to further understand the effects on an individual’sattitude to the adoption of PIB in Vietnam and to addressing the lack of current researchon this topic in Vietnam.

JIBC August 2014, Vol. 19, No.2-3-Based on the findings from previous studies (Section 3), an extended version of theTechnology Acceptance Model (TAM) model (Davis et al., 1989) was developed as thetheoretical model (Section 4) for explaining an individual’s intention to use PIB inVietnam. Data collected by questionnaire was prepared and analyzed (Section 5) as aprerequisite to the analysis and development of the theoretical model in order to producea final model (Section 6). The findings of the study are discussed in Section 7 andconclusions are presented in Section 8.RESEARCH DESIGN AND METHODOLOGYA cross-sectional field study design was used to collect data using a questionnairedesigned to measure the variables in the theoretical model. English and Vietnameselanguage versions of the questionnaire were prepared and reviewed by a focus group offive PIB users representing the target population. Suggested modifications wereincluded in revised versions of the questionnaire that was then administered in a pilotstudy using a sample of 10 suitable participants. Their responses and comments werenoted and any necessary modifications were incorporated into the final versions of thequestionnaire and the Vietnamese language version was then used in the full study. Anotated English language version of the final questionnaire is included in Appendix A1.The target population for the study was individuals who were at least 18 years of agewith at least one month of Internet and PIB experience. A purposive sampling methodwas decided with a minimum sample size of approximately 400 individuals whichrepresented a 95 percent confidence level and 5 percent precision in what was assumedto be an unknown but very large target population. Also, this sample size satisfied thecriteria for the statistical validity of the structural equation modeling (SEM) and otherstatistical techniques used in the study (Kline, 2005). Sampling was done in stages usingeducational institutions, organizations, social media, and the researcher’s personalcontacts. Individuals were invited to complete the questionnaire online at a designatedweb site where explanations of the purpose of the questionnaire and instructions for itscompletion were available.RELATED LITERATUREThe purpose of the review of literature related to PIB was to identify among recentstudies the important variables which have been shown to influence an individual’sintentions to use PIB services. In line with the nature of this study the review has focusedon previous studies in developing nations which have used survey questionnaires as themeans of collecting data and quantitative methods for analysis. An overview of relatedstudies is presented first followed by a discussion of the important variables and theirrelationships which form the basis for the theoretical model used in this study.An Overview of Previous StudiesTable 2 presents an overview of previous studies of Internet banking where the unit ofanalysis is an individual user and data was collected by questionnaire. The reviewcovered the period from 2008 and variables included in these studies are identified.

JIBC August 2014, Vol. 19, No.2-4-From the table 2 it is seen that over the period 2009-2012 there were numerous studiesof PIB where the unit of analysis is an individual user.Studies have been conducted of particular user groups, developing countries, andcountries with different cultures and religions. Most studies identified factors that affectthe adoption of PIB technologies while others focused on resistance factors and barriersmay cause a low rate of adoption. Customer satisfaction and intentions to continue touse PIB services were the dependent variables in most of the studies. The majority ofthe studies tested an explanatory theoretical model while the remainder was exploratoryor descriptive in nature. Many researchers have used TAM as a theoretical basis forstudying PIB while other theories have received relatively less attention compared toTAM even though they were more recently than TAM (e.g. UTAUT).Model VariablesBased on a comprehensive survey of the variables and the theoretical bases used inprevious studies (Table 2), 15 important variables were identified and classified into fourgroups: three variables related to TAM; six variables related to personal characteristicsof individuals; trust as an important indicator of an individual’s attitude to PIB; and fivevariables related to an individual’s personality traits, which reflect cultural influencesmeasured at the level of an individual.TAM VariablesPerceived Usefulness and Perceived Ease of Use are in all of the previous studies whichadopted TAM. However, in many studies (van Raaij and Schepers, 2008; AldásManzano et al., 2009; Chong et al., 2010; Le, 2011; Kesharwani and Bisht, 2012;Yousafzai and Yani-de-Soriano, 2012) the Attitude construct was removed from TAMwhile retaining Intention because this two variables are significantly positively correlatedwhen the adoption of a technology is voluntary (Davis et al., 1989; Venkatesh et al.,2003) and PIB is a self-service which operates based on the voluntariness of use by thecustomer. Also, although Intention and Actual Use in general technology adoption mightbe different in the context of voluntary PIB usage they have been shown to besignificantly correlated ((Prompattanapakdee, 2009). For this reason, many studiesremoved Actual Use from TAM and instead used Intention as the dependent variablebased on the understanding that if usage is voluntary and the individual’s intentions touse the system are strong (weak) then actual usage will be high (low).TrustTrust is an important factor in many social interactions involving uncertainty anddependency (Grabner-Kräuter and Faullant, 2008) especially in relation to Internetbased applications and PIB in particular. In PIB, Trust is understood as the confidencewhich the individual has in the bank’s ability to provide reliable Internet banking services.Previous studies have identified consistently the significant role of Trust in PIB. Someresearchers refer to Credibility instead of Trust but these constructs have a similarmeaning. Results from previous studies show that Trust has a direct effect on anindividual’s perceptions of the usefulness and ease of use as well as their intention touse the system (Aldás-Manzano et al., 2009; Alsajjan and Dennis, 2010; Le, 2011).According to Winley (2011), customers lose their trust for four main reasons: security;the service provider's reputation; privacy; and risks associated with reliability of theservices.

JIBC August 2014, Vol. 19, No.2-5-Personal CharacteristicsSeveral previous studies of PIB have included variables related to personalcharacteristics (Gender, Age, Level of Education, Internet Experience, Internet BankingExperience, and Position Description) as having an influence on the individual’s intentionto use PIB services. Yousafzai et al. (2009) found effects of Age and Gender onPerceived Usefulness and Intention to use PIB. Computer self-efficacy (related to levelof education) is also an important factor with effects on Perceived Usefulness andPerceived Ease of Use (Le, 2011; Sentosa et al., 2012) and Intention to Use (Chau andNgai, 2010; Kesharwani and Tripathy, 2012; Sentosa et al., 2012). It seems obvious thatbecause PIB is a self-service technology based on the Internet it will attract moreattention from those who often use and work in an Internet environment and this wasconfirmed by the studies of Chan and Hosein (2010) and Ozdemir and Trott (2009).Ozdemir and Trott (2009) also found that customers with higher incomes in more seniorpositions with higher levels of education who work longer hours are likely to adopt PIB.However, in Vietnam, because income is often not reported precisely by individuals inquestionnaires it was not among the personal characteristics that were included in thetheoretical model for the study.Culture Characteristics and the Individual’s PersonalityHofstede (2006) states that: “Culture is the collective programming of the mind thatdistinguishes the members of one group or category of people from others”. Culturecharacteristics are related to standard operating procedures, unstated assumptions,tools, norms, values, and habits in sampling the environment (Triandis, 2001).Personality is defined as “an individual’s characteristic pattern of thought, emotion, andbehavior, together with the psychological mechanisms—hidden or not—behind thosepatterns” (Triandis, 2001).As noted by Triandis (2001), when studying the relationship of culture and psychology itis imperative to keep the level of analysis distinct because the results of analyses areoften different depending on the level of analysis. Triandis proposed to link the cultural(societal) and individual (psychological) levels of analysis by noting that customs areaspects of culture and habits are aspects of personality and he hypothesize acorrespondence between customs, norms, and values on the one hand and habits andpatterns of individual behavior on the other hand. In PIB studies several researchershave considered (social) norms as determinants of PIB adoption (Nor et al., 2008; Shi etal., 2008; Lee, 2009; Al-Majali and Mat, 2010; Alsajjan and Dennis, 2010; Zolait, 2010;Abbesi and Haghighy, 2011; Nasri and Charfeddine, 2012).In a study of personality and culture, Hofstede and McCrae (2004) also noted theconfusion between levels of analysis. One possibility for relating dimensions of cultureand personality factors was measuring the culture dimensions in individuals.This has been tried most often in the case of individualism-collectivism with notablyinconsistent

CountryFocus of the StudyInternet banking adoption under riskand privacy threatImpacts of risk on IB adoptionIndiaFactor influences IB adoptionConsumer’s perspective on internetbanking adoption.Customer satisfaction on adoptiononline bankingFactors obstructed IB adoptionFactors manipulate the acceptance ofIBMuslim consumer’s perception on IBDeterminants of internet usage inbanksFactors influence IB adoptionMalaysiaFactors Affecting the Internet BankingAdoptionFactors that influence bankingcustomers’ intention to use IBCustomer perception of e-servicequality and adoption of IBFactors influence individual’s intentionto use IBTAM (PU, PEU, Intention), Trust, CC (Social Influence),Perceived Risk, Website Design, Perceived BehavioralControlTAM (PU, PEU, Intention to Use), PC (Computer selfefficacy), price concern, technology complexity,financial risk, performance risk, physical risk, psychologyrisk, time-loss risk, CC (social influence)TAM (PU, PEU), Perceived Risk, Consumer AcceptanceTAM (PU, PEU), Perceived Risk, Awareness, IBAdoptionTechnology, Ease to Use, Web Design, Security, Speed,Information Content, Interaction with Internet Banking,Quick response, Cost, Customer Experience, Access,TimeFamiliarity with technology, Concerns for downloadspeed, Unfriendly website design, fear of governmenttracking transaction, security, people gainingaccess/misusing informationPU, PUE, Enjoyment, Info on Online Banking, Securityand Privacy, Quality of Internet, Customer Acceptance,Characteristics of Innovations (Relative advantage,Compatibility, Complexity, Trialability, and Observability),Time, Communication, Social systemPC (Computer self-efficacy), TAM (PU, PEU, Intention),Perceived credibilityPerformance expectancy, Effort expectancy, Socialinfluence, Facilitating condition, TrustPerceived importance, complexity, Trialability,Compatibility, perceived risk, utilitarian oriented Internetbanking sites, hedonism oriented Internet banking sitesTAM (PU, PEU, Intention to use), TrustEU, Appearance, Reliability, Customization,Communication, IncentiveAttitude toward IB, Subjective Norm, Intention to use IBTheoreticalBasisReferencesTAMKesharwani andBisht, 2012TAMKesharwani andTripathy, 2012TAMTAMSafeena et al., 2011Safeena et al., 2010-Akram and Asghar,2012DOI-Akhlaq and Shah,2011Qureshi et al., 2008DOIAnuar et al., 2012TAMSentosa et al., 2012UTAUTFoon and Fah, 2011-TAMTRASuki, 2010Nor et al., 2010Raman et al., 2008Nor et al., 2008-6-PakistanVariablesJIBC August 2014, Vol. 19, No.2Table 2: Previous Internet banking studies

Focus of the StudyCustomers’ intention to use IBVietnamFactors that affect the adoption ofonline bankingDeterminants of customer intention touse online banking.Important variables associated with theuse of IBSUse of IB ServicesThailandBruneiDemographic factors with IBsatisfactionCustomers’ intention to use IBSFactors influence IB adoptionTaiwanReasons for customer continued ofuse IBChinaHong KongRole of trust and risk in IBS usageintentionRisk factors with IB adoptionFactors impact IB adoptionTAM (PU, PEU, Intention of use), PC (Computer selfefficacy),TrustTAM (PU, PEU), Government support, Trust, Adoption ofIBSystem quality, Information Quality, Service Quality,Complementary Relationship, Expertise,Trustworthiness, Intention to Use, SatisfactionTAM (PU, PEU, Attitude, Intention, Actual Use), Trust,CC( Personal Relationships, Peer Influence), PC (Age,Level of education, income, position description, Internetexperience, IB experience)PC (Age, gender, Level of education, income, Internetexperience, IB experience, Position Description), Trust,CC (Personal Relationships, Peer Influence), TAM (PU,PEU, Attitude, Intention, Actual Use)TAM variables, attitude, trust, perceived credibility(security, privacy), antecedent (communication,opportunistic behavior, reputation, reliability, trust inservice provider ), factors moderate relationship (usercharacteristics, customer readiness).PC (Age, Gender, Income, Education Level, Internetexperience), Customer SatisfactionTAM (PU, PEU), Perceived risk, Perceived trust of thePhysical bank, Satisfaction with the Physical bank,Specific asset investment in the Physical bankTAM (PU, PEU, Attitude, Intention), Perceived benefit,Perceived Risk (performance, social, time, financial,time, security), Social Norm, Perceived Behavior Control,TAM (PEU, PU, Intention to Continued Use), CostSaved, Self-Control, Customer Value, CustomerReadiness,Perceived risk of IBS, Trust in Bank, IBS Competence,Behavioral Intention to use IBS8 risks factors: Performance, security, financial, privacy,time/convenience, psychological, social, physicalBrand Name of IB provider, Perceived Credibility, TAM(PU, PEU, Intention to use IB)TheoreticalBasisReferencesTAMLe, 2011TAMChong et al., 2010DeLone andMcLeanSuccessModelTAMWang and Pho, 2009TAMPrompattanapakdee,2009TAM andTPBTransactionCost Analysisand TAMTAM andTPBWinley, 2011Sattabusaya, 2008Seyal and Rahim,2011Chiou and Shen,2011Lee, 2009TAMHo and Ko, 2008-Zhao et al., 2010-Zhao et al., 2008TAMCheng and Yeung,2010-7-Factors determine success and affectintention of IBVariablesJIBC August 2014, Vol. 19, No.2Country

Focus of the StudyAustraliaMeasuring IB consumer satisfaction: acore frameworkExploring the antecedents toconsumers’ continued and frequentuse of IBDeterminants of Customers’ IBacceptanceSegmenting IB adoption customersTurkeyFactors affecting IB adoptionGreecePredict IB adoption by usability, social,psychological aspectsDrivers of IB adoptionFactors affect the adoption of Internetban

Personal Internet Banking (PIB) is one of many services that banks provide as alternative channels for customers to access their bank accounts instead of going to the bank. With PIB, benefits accrue from serving more customers with fewer employees and lessening loads on ATMs (e.g.