Framework for the Adoption of Online Banking

188 Pages·2013·1.79 MB·English

Framework for the Adoption of
Online Banking
PhD Thesis
Tagreed Alsulimani
Software Technology Research Laboratory
Faculty of Technology
De Montfort University
Leicester- United Kingdom
This thesis is submitted in partial fulfillment of the
requirements for the Doctor of Philosophy.
June 11, 2013
Abstract
Information technology represents the most important tool for any business to grow
and increase profits in this century. Online banking represents one type of business
change due to revolutionary changes in technology. There are limited studies for
adoption of online banking in Saudi Arabia which is one of the largest economies
in the world. For that reason my study focused on the adoption of online bank-
ing by countries in general and particularly in Saudi society. In many situations
there is a gap between business and information technology. In particular there is
a crimson between online bank users and technology. It is necessary to bridge this
gap In order to achieve online banking targets. My study investigated the different
reasons for the gap its formation (between online banking and information technol-
ogy) and how to bridge it. This research is focused on the different factors that
enhance the adoption of online banking services through general users. This frame-
work was established by drawing from several theoretical studies. The proposed
research framework contains the most important factors for online banking. These
include the following hypotheses; (H1) personal information, (H2) personal experi-
ence, (H3) disposition to trust, (H4) reputation, (5)trusting belief, (H6)structural
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assurance and (H7)perceived site quality. These hypotheses were tested experimen-
tally through a questionnaire which was analyzed using SPSS Version 14 program.
The results showed that (H1) personal information, (H2) personal experience, (H3)
disposition to trust, (H4)reputation, (H5) trusting belief, (H6) structural assurance
and (H7)perceived site quality are positive factors affecting customer adoption of
online banking. There was a significant correlation between the different online
banking adoption factors or hypotheses and the personal information (age, gender
and education) with P values of <0.005 in most of cases.
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Dedication
To my Father
Sadeek Al-Sulimani
For encouraging me beyond this PhD, thank you my dad for everything you have
Done.
To my Husband
Salah Menshawi
Thank you my husband for your patience and support throughout my research.
Declaration
Declaration This thesis is submitted for the degree of Doctor of Philosophy at the
FacultyofTechnology,DeMontfortUniversity,UK.Ideclarethattheworkdescribed
in this thesis is original. This thesis has been written by me and produced using
LATEX.
Tagreed Al-Sulimani
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Acknowledgement
First of all I would like to thank ALLAH the almighty who gave me comfort at the
difficult times during this study without which I would not be in this position at all.
I also would like to thank my first supervisor, Professor Hussein Zedan, for his
guidance, advise and the many new ideas he shared during my meetings with him.
Without his support and encouragement this thesis would not be complete. I am so
happy that I achieved my thesis under his supervision.
I also would like to thank my father Sadeek Al-Sulimani who pushed me forward
and made many sacrifices for me. I owe you father. May ALLAH reward you.
Also I would like to thank my mother Nawal Halwani for her support and prayers
since the start of my studying until she passed away from this life. Thank you my
Mum, I miss you so much.
Moreover, my special thanks to my ardent husband Dr.Salah Menshawi for his
love, encouragement, prayer, support, trust and care through out this study.
I am grateful to my husband for all of this time and patience; sharing both my sad
and my happy times even when he was far away.
I am also extremely thankful to my children Rayan, Yara, Lara and Khalid who
supported me and excused me when I was busy during my research.
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I would like to thank my dearest sisters for their constant prayer and everyone else
not mentioned. Last but not the least I am also obliged to thank all colleagues
and the team of Software Technology Research Laboratory Department (STRL)
for their cooperative and friendly support to me especially Mrs Lindsey Trent,
Lynn Ryan Antonio Cau, and Fran¸cois Siewe who helped many times in my
thesis.
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Conferences and Posters
1. Women in Computing Research 2010 London Hopper Colloquium, 4th May at
BCS HQ, London.
2. ForumofthesecondSaudistudentsintheUnitedKingdom, Ireland, Saturday,
May 21, 2011, Coventry United Kingdom.
3. Fifth Saudi International Conference SIC 2011 (June 23-26, 2011 - The Uni-
versity of Warwick - Coventry, United Kingdom).
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Contents
1 Introduction 2
1.1 Motivation and rationale for conducting the research . . . . . . . . . 3
1.2 The gap between business and information technology . . . . . . . . . 3
1.3 Purpose of the research . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.4 Research Question . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.5 Organization of the thesis . . . . . . . . . . . . . . . . . . . . . . . . 5
1.6 Measure of success . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.7 Contribution to Knowledge . . . . . . . . . . . . . . . . . . . . . . . . 7
2 Literature Review 8
2.1 The gap between business and information technology and rate of
evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.2 Rate of evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.3 Essential properties of co-evolution and Types of co-evolution . . . . 15
2.4 Types of co-evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.5 The legacy system and gap formation . . . . . . . . . . . . . . . . . . 18
2.6 Process and forms of information system evolution . . . . . . . . . . . 19
2.7 Online trust definition . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.8 Website contents and trust . . . . . . . . . . . . . . . . . . . . . . . . 21
2.9 website and trust factors . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.10 Trust factors for online bank . . . . . . . . . . . . . . . . . . . . . . . 24
2.10.1 Trusting beliefs . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.10.2 Disposition to trust . . . . . . . . . . . . . . . . . . . . . . . . 26
2.10.3 Institutional-based trust . . . . . . . . . . . . . . . . . . . . . 26
2.10.4 Reputation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.10.5 Familiarity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.10.6 Perceived site quality . . . . . . . . . . . . . . . . . . . . . . . 27
6
CONTENTS
2.10.7 General web experience . . . . . . . . . . . . . . . . . . . . . . 28
2.10.8 Trusting intention . . . . . . . . . . . . . . . . . . . . . . . . . 28
2.11 Internet banking security model for e-banking . . . . . . . . . . . . . 28
2.12 Online banking and extended theory of planned behaviour (ETBP) . 31
2.13 Innovation diffusion theory (IDT) . . . . . . . . . . . . . . . . . . . . 32
2.14 The decomposed theory of planned behaviour . . . . . . . . . . . . . 34
3 Research Methodology 36
3.1 Choice of Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . 36
3.2 Research Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
3.2.1 Inductive reasoning . . . . . . . . . . . . . . . . . . . . . . . . 38
3.2.2 Deductive reasoning . . . . . . . . . . . . . . . . . . . . . . . 39
3.2.3 Positivism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.2.4 Post-positivism . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.3 Co-evolution approach . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.4 Case study approach . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
3.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
4 The design of the questionnaire 47
4.1 The proposed research framework . . . . . . . . . . . . . . . . . . . . 47
4.1.1 (H1)Personal information . . . . . . . . . . . . . . . . . . . . 49
4.1.2 (H2)Personal experience . . . . . . . . . . . . . . . . . . . . . 50
4.1.3 (H3) Disposition to trust . . . . . . . . . . . . . . . . . . . . . 52
4.1.4 (H4) Reputation . . . . . . . . . . . . . . . . . . . . . . . . . 54
4.1.5 (H5) Trusting belief . . . . . . . . . . . . . . . . . . . . . . . . 56
4.1.6 (H6) Structural assurance . . . . . . . . . . . . . . . . . . . . 57
4.1.7 (H7) Perceived site quality . . . . . . . . . . . . . . . . . . . . 59
4.2 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
5 Results and Discussion 63
5.1 Personal information H1 . . . . . . . . . . . . . . . . . . . . . . . . . 64
5.1.1 Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
5.1.2 Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
5.1.3 Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
5.1.4 Bank name . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
5.1.5 Online bank account . . . . . . . . . . . . . . . . . . . . . . . 68
5.2 Personal Experiences H2 . . . . . . . . . . . . . . . . . . . . . . . . . 69
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