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CONCLUSION AND DIRECTIONS FOR FUTURE RESEARCH

Up to now, a great deal of literature has identified key factors influencing the adoption of e-banking in developed countries - North America and Eu­rope and to a lesser extent in other regions including a mix of developed and developing countries, such as Singapore, Taiwan, Malaysia, and Thailand.

To put it another way, little research on factors influencing the adoption of e-banking has been implemented in countries that are emerging as new potential markets with very high economic growth rates. Among these countries is Vietnam where its average economic growth rate (GDP) was over 7 % during the 1990s and early 2000s, and especially more than 8% in 2006, which made it one of the highest growing economies in the World (World Bank, 2006). Together with Vietnam’s entry into the World Trade Organization dated on 7 Novem­ber 2006, its banking sector is increasingly being deregulated in accordance with the requirements set up by the World Trade Organization. These moves seem to indicate that fierce competition among local banks and foreign banks in Vietnam have been occurring, and Vietnamese banks have to adopt the Internet as a primary service delivery channel in order to survive. However, there are no comprehensive models or frameworks to explain the e-banking adoption by customers in Vietnam.

This study has, based on an extensive review of literature on e-banking benefits for both banks and their customers, trust, perceived risk, bank image, and relevant theories on innovation adoption, proposed alternative structural models (including both moderator and mediating effects) for e-banking adoption in Vietnam. Furthermore, a set of model hypotheses presenting relationships among the factors influencing e-banking adoption have been set up.

The next step in the development of such models is to statistically test the aforementioned hypotheses in the Vietnamese setting.

Each of the factors identified in the previous discussion will form the basis for analysis in the empirical study of e-banking adoption in such a new context. The models presented in this paper are unique as at present, there are no comprehensive theoretical and practical models for analyzing e-banking adoption in newly emerging countries such as Vietnam. None of the prior models have taken into account the interactions between innovation theories, trust, perceived risk, bank image, and intention to use e-banking. These models can provide an impetus for future research, structur­ing them along the lines of interactions between such above theories and factors that will expand the frontiers of knowledge in e-banking adoption.

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APPENDIX

Table 1. International studies on e-banking adoption

References Name of Study Models Utilized Determinants
Hussein and Zolait, 2010 An examination of the factors influencing Yemeni bank users’ behavioral intention to use Internet banking services TPB (theory of planned behavior)

TRA (theory of reasoned action)

+ Attitude

+ Subjective norm

+Perceived behavioral control

+ Ease of use

+ Awareness

+ Advantage

+ Media

This study, based on a self-administered survey involving a convenience sample of 369 Yemeni bank customers, investigates the potential prominent factors relating to the adoption and use of the financial services of Internet banking in Yemen. The authors of this study show that the overall prominent predictors include Relative AdvantageZCompatibility, User’s Informational-Based Readiness, Attitude, Observability, Technology Facilitating Condition, Perceived Behavioural Control and Self-efficacy. The model accounted for 75 per cent of the variation of an individual’s behavioural intention to use IB.
Ozdemir and Trott, 2009 Exploring the adoption of a service innovation: a study of Internet banking adopters and non-adopters TAM (technology acceptance model)

Diffusion of Innovation

Theory of perceived Risk

+ Socioeconomic factors

+ Situational factors

+ Perception factors related to Internet banking use

+ Related experiences

Findings: The authors show that Internet banking adopters and non-adopters have different perceptual, experience-related, socioeconomic and situational characteristics. In addition, besides the perceptual factors related to Internet banking use, perceptual factors in relation to the banks in Turkey have significant impacts on Internet banking adoption.
Alhudaithy and Kitchen, 2009 Rethinking models of technology adoption for Internet banking: the role of website features TAM

TRA

TPB

+ Website features
Findings: The authors show that website features have significant impacts on technology adoption, and specifically Internet banking.
Yousafzai, Pallister and Foxall, 2009 Multi-dimensional role of trust in Internet banking adoption Model of trust for Internet banking + Trust

+ Perceived risk

Findings: The authors show that trust and perceived risk are direct antecedents of intention, and trust is a multi-dimensional construct with three antecedents: perceived trustworthiness, perceived security, and perceived privacy.
Ndubisi and Sinti, 2006 Consumer attitudes, system’s characteristics: an internet banking adoption in Malaysia Decomposed TPB + Banking needs

+ Compatibility

+ Complexity

+ Trainability

+ Risk

+ Utilitarian orientation

+ Hedonic orientation

Findings: The authors show that attitudinal factors play an important role in explaining the e-banking adoption. In addition, utilitarian orientation of the website, not hedonic orientation, has significant impacts on adoption.
Fink et al., 2005 Internet banking adoption strategies for a developing country: the case of Thailand Decomposed TPB + Features of the web

+ Perceived usefulness + Risk and privacy + Personal preference + External environment + Culture

Findings: The authors reveal that the attitudinal factors, such as features of the website and perceived usefulness, are very likely to have positive impacts on the e-banking adoption in Thailand, while the most salient impediment to the e-banking adoption is a perceived behavioral control, or external environment. Besides such above factors, the important moderating factors are gender, educational level, income, internet experience and internet banking experience, but not age.

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Table 1. Continued

References Name of Study Models Utilized Determinants
Eriksson, Kerem and Nilsson, 2005 Customer acceptance of internet banking in Estonia TAM + Trust

+ Perceived usefulness

+ Ease of use

+ Use

Findings: The authors indicate that the utilization of e-bank is very likely to elevate if customers perceive e-banking as useful. Specifically, the perceived usefulness is very important due to the fact that it determines if the perceived ease of use of e-bank results in increased use of e-bank. In other words, e-banking services which are well-designed and easy to use might not be realized if they are not perceived as useful. Hence, the authors conclude that the perceived usefulness of e-banking plays an important role in motivating customer usage. Moreover, the authors contend that technology acceptance models need to be redesigned with more emphasis placed on the importance of the services’ perceived usefulness offered by the technology.
Pikkarainen et al., 2004 Consumer acceptance of online banking: an extension of technology acceptance model TAM and focus group + Perceived usefulness

+ Perceived ease of use

+ Perceived enjoyment

+ Information on online banking

+ Security and privacy

+ Quality of internet connection

Findings: The authors conclude that perceived usefulness and information on online banking of the Website are viewed as the primary factors that are very likely to have impacts on the acceptance of online banking.
Wang, Lin and Tang, 2003 Determinants of users acceptance of internet banking TAM + Trust/Perceived credibility

+ perceived usefulness

+ Ease of use

+ Computer self-efficacy

+ Intention

Findings: Based on the results of the study, the authors conclude that individual difference variables such as computer self-efficacy have significant effects on behavioral intention via perceived ease of use, perceived usefulness, and perceived credibility. In addition, the authors show that users with a higher computer-self efficacy are likely to have more positive usefulness and ease of use beliefs, but have more negative credibility beliefs in e-banking. Such results are in line with that of the prior studies which have indicated that there is a significant direct e-banking relationship between computer-self efficacy and perceived ease of use of e-banking. Finally, the authors show that computer-self efficacy has a negative impact on perceived credibility; however, its total impact on behavioral intention is positive.
Shih and Fang, 2003 The use of decomposed theory of planned behavior to study internet banking in Taiwan TPB and Decomposed TPB + Behavior intention

+ Actual usage

+ Attitude

+ Subjective norms

+ Perceived advantage

+ Relative advantage

+ Compatibility

+ Complexity

+ Normative influences

+ Efficacy

+ Facilitating

Findings: It is, based on the decomposed TPB model, shown in this study that only relative advantage and complexity are related to attitude, but compatibility is not related to attitude. In terms of subjective norm, the causal path starting from subjective norm to intention is not statistically significant. Nevertheless, self-efficacy is found to be a significant determinant of PBC. Finally, the authors show that facilitating conditions do not have impacts on perceived behavioral control.
Suh and Han, 2002 Effects of trust on customer acceptance of internet banking TAM + Trust

+ Perceived usefulness

+ Ease of use

+ Attitude

+ Intention to use

Findings: It is shown in this study that trust plays the most important role in explaining a customer’s attitude towards utilizing e-banking. In line with TAM, in this study, customer perception of the usefulness and ease of use also have significant impacts on attitude. Moreover, behavioral intention to use e-banking is significantly related to attitude, perceived usefulness, and trust. Such findings elicit that trust is much emphasized by customers in e-environments with a lot of sensitive information.

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Table 1. Continued

References Name of Study Models Utilized Determinants
Karjaluoto, Mattila and Pento, 2002 Factors underlying attitude formation towards online banking in Finland TAM + Prior computer experience

+ Prior technological experience

+ Prior banking experience

+ Reference group influences

Findings: It is shown in this study that prior computer experience, prior technology experience, personal banking experience, reference group and computer attitudes have significant impacts on attitude and behavior towards e-banking. In addition, there is a significantly positive relationship between personal banking experience and attitude.
Black et al., 2001 The adoption of internet financial service: a qualitative study Decomposed TPB + Relative advantage

+ Compatibility

+ Trainability

+ Observability

+ Complexity

Findings: The authors of this study concentrate on innovations related to delivery of financial services via the e-channels and on reassessment of Rogers’ (1983) model’s applicability. The data was colleted via the focus group members based on their usage of the internet. There are differences between people who utilize the internet to buy financial services (S3) and people who utilize the internet to buy goods/services (not financial services) (S2) in terms of income and the utilization of information technology (higher levels for S3). When S2 is compared with S1 (people who utilize the internet without buying anything over the internet), there are also differences in terms of income and the product related environment (higher levels for S2).

Based on such comparisons among the three groups, it is shown that considering factors of Rogers’ model, similar attitudes exist in S1 and S2 regarding their perceived advantages by utilizing e-banking compared to utilizing bank branches and risks involved. S1 and S2 attitudes are much less positive than that of S3. In addition, compatibility with a person’s values and previous experience with the product category is proved to be one of the most important factors affecting the adoption of the internet to carry out financial transactions. Trialability is considered important for the future adoption, but its availability needs to be better communicated. In spite of the fact that Rogers’ model utilized to assess an innovation’s perceived attributes is thought of as a useful starting point, there are still other issues emerged that should be taken into consideration, such as societal issues and the sense of fatalism. It seems that the former may have a negative effect on the adoption, while the latter may have a positive effect on the adoption.

Tan and Teo, 2000 Factors influencing the adoption of internet banking TPB and Diffusion of Innovation + Relative advantages

+ Compatibility with values

+ Internet experiences

+ Banking needs

+ Complexity

+ Trialability

+ Risk

+ Self efficacy

+ Government support

+ Technology support

+ Social norms

Findings: The findings from the study uncover that factors such as attitudinal and perceived behavioral control factors, not social influence, have a significant role in influencing the intention to adopt e-banking. Specifically, perceptions of relative advantage, compatibility, trialability, and risk towards utilizing the internet have impacts on intentions to adopt e-banking services. Furthermore, the confidence in utilizing e-banking services and perception of government support for e-commerce also have impacts on intentions to adopt e-banking services.

continued on following page

Table 1. Continued

References Name of Study Models Utilized Determinants
Liao et al., 1999 The adoption of virtual banking: an empirical study TPB and Diffusion of

Innovation

+ Attitude

+ Relative advantage

+ Ease of use

+ Compatibility

+ Result demonstrability

+ Perceived risks

+ Subjective norms

+ Belief of image

+ Belief of visibility

+ Critical mass

+ Perceived behavioral control

+ Voluntariness

+ Trialability

+ Support

+ Learning

Findings: In this study, TPB is partially utilized for the prediction of the adoption of e-banking. Nevertheless, there are four major relationships of TPB presented as the four hypotheses and three of them were tested. The first hypothesis stated that attitude towards virtual banking was dependent on relative advantage, compatibility, ease of use, result demonstrability, and perceived risk. Reliable measures on perceived risk could not be obtained and only the first four constructs were tested. The hypothesis was supported but the two factors found were not clear cut. One of them was a combination of ease of use, compatibility and result demonstrability whereas the other was a mixture of relative advantage, compatibility and result demonstrability. The explanation power of this relationship is 0.56. The second hypothesis claimed that subjective norms about virtual banking were dependent on image, visibility and critical mass. Visibility was not used as no reliable measure was available. The hypothesis was also supported. However, the R square value was only 0.29, which meant that image and critical mass alone could not provide a powerful explanation of subjective norms.

The third hypothesis was that perceived behavioral control about virtual banking was dependent on voluntariness, trialability, support and organizational learning. However, this hypothesis could not be tested in this study due to an unavailable reliable measure. The last hypothesis stated that intention to use virtual banking was determined by attitude, subjective norms and perceived behavioral control. Dependency on subjective norms could not be tested due to the absence of reliable measure. Dependency on the other two factors was founded statistically significant. Nevertheless, the low R square value of 0.056 indicated very low explanation power.

Sathye, 1999 Adoption of internet banking by Australian consumers TPB and Diffusion of

Innovation

+ Security concerns

+ Ease of use

+ Awareness of service and its benefits

+ Reasonable price

+ Resistance to change

+ Availability of infrastructure

Findings: The author of this study reveals that security concerns and lack of awareness about e-banking and its benefits are considered as the main impediments to the adoption of e-banking in Australia.

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