An analysis of factors affecting on customers’ adoption of internet-banking services using the graph theory

Subject Areas : Operation Research

Ali  Sharifi ¹ (Department of Management, Rasht branch, Islamic Azad University, Rasht, Iran)
Mahdi  Homayounfar ² (Department of Industrial Management, Rasht Branch, Islamic Azad University, Rasht, Iran)

Received: 2016-02-23 Accepted : 2016-04-26 Published : 2016-06-01

Keywords: adoption, Graph Theory, Multiple Criteria Decision Making (MCDM), DEMATEL, Internet Banking (IB),

Abstract :

The rapid development of Internet and electronic businesses have stimulated the banking sector towards encouraging customers to internet banking (IB), However, the evidence indicates a lack of interest in the use of IB services. Therefore, this paper aims to identify affecting factors on customer adoption from IB and measure the influence of each factor on IB adoption. Based on an explorative literature review, numbers of factors were considered as affecting factors on customer adoption of IB. Then, these factors were sent to a sample of IB customers in form of a questionnaire. Having collected the filled questionnaires and based on a statistical test, the more important factors explored among all. Hence, many of these factors have relationship with each others; a graph theory based technique (DEMATEL) with feedback structure is used to explore the direct and indirect effects of factors on the other factors and the whole system. The results indicate that: responsiveness (effective handling of problems), accessibility to IB services (hardware necessities), speed of network, ease of use and no need to physical attendance in bank branch, respectively, are the most critical factors.

References:

Agarwal, R., Rastogi, S., ­& Mehrotra, A. (2009). Customers’ perspectives regarding e-banking in an emerging economy. Journal of Retailing and Consumer Services, 16, 340-351.

Ahmad, R., & Buttle, F. (2002). Retaining Telephone Banking Customers at Frontier Bank. International Journal of Bank Marketing, 20, 5-16.

Alsajjan, B., & Dennis, C. (2010). Internet banking acceptance model: Cross-market examination. Journal of Business Research, 63, 957-963.

Barnes, SJ., & Corbitt, B. (2003). Mobile Banking: Concept and Potential. International Journal of Mobile Communications, 1, 273-288.

Bhattacherjee, A. (2001). An Empirical Analysis of the Antecedents of Electronic Commerce Service Continuance. Decision Support Systems, 32, 201-214.

Bhattacherjee, A. (2001). Understanding Information Systems Continuance: An Expectation-Confirmation Model. MIS Quarterl, 25, 351-370.

Cheng, T.C.E., Lam, D.Y.C., & Yeung, A.C.L. (2006). Adoption of internet banking: An empirical study in Hong Kong. Decision Support Systems, 42, 1558-1572.

Chiu, Y.J., Chen, H.C., Shyu, J.Z., & Tzeng, G.H. (2006). Marketing strategy based on customer behavior for the LCD-TV. International Journal of Management and Decision Making, 7, 143-165.

Chong, A.Y.L., Ooi, K.B., Lin, B., & Tan, B.I. (2010). Online banking adoption: an empirical analysis. International Journal of Bank Marketing, 28, 267-287.

Corrocher, N. (2006). Internet adoption in Italian banks: An empirical investigation. Research Policy, 35, 533-544.

Currie, W. (2000). The global information society. Chichester: Wiley.

Dabholkar, P.A. (1996). Consumer Evaluations of New Technology-Based Self-Service Options: An Investigation of Alternative Models of Service Quality. International Journal of Research in Marketing, 13, 29-51.

Davis, F.D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13, 319-336.

Durkin, M., Jenning, D., Mulholland, G., & Worthington, S. (2008). Key influencers and inhibitors on adoption of the Internet for banking. Journal of Retailing and Consumer Services,15, 348-357.

Eriksson, K., & Nilsson, D. (2007). Determinants of the continued use of self-service technology: The case of Internet banking. Technovation, 27, 159-167.

Eze, U.C., Manyeki, J.K., Yaw, L.H., & Har, L.C. (2011). Factors Affecting Internet Banking Adoption among Young Adults: Evidence from Malaysia. International Conference on Social Science and Humanity, Singapore 2011, 5, 377-381.

Flavian ,C.,&  Guinalıu, M. (2006). How bricks-and-mortar attributes Affect online banking adoption. International Journal of Bank Marketing, 24 (6), 406-423.

Foon, Y.S., & Fah, B.C.Y. (2011). Internet Banking Adoption in Kuala Lumpur: An Application of UTAUT Model. International Journal of Business and Management, 6, 161-167.

Gabus, A., & Fontela, E. (1972). World problems, an invitation to further thought within the framework of DEMATEL. Battelle Geneva Research Centre, Switzerland, Geneva.

Gerrard, P., & Cunningham, J.B. (2003). The diffusion of internet banking among Singapore consumers. International Journal of Bank Marketing, 21, 16-28.

Gikandi, J.W., & Bloor, C. (2010). Adoption and effectiveness of electronic banking in Kenya. Electronic Commerce Research and Application, 9, 277-282.

Hoehle, H., & Lehmann, H. (2008). Exploring the State-of-the Art of Mobile Banking Literature. in 7^th Global Mobility Roundtable Conference, Auckland.

Hoehle, H., Scornavacca, E., & Huff, S. (2012). Three Decades of Research on Consumer Adoption and Utilization of Electronic Banking Channels: A Literature Analysis. Decision Support Systems, 54, 122-132.

Howcroft, B., Hamilton, R., & Heder, P. (2002). Consumer attitude and the usage and adoption of home-based banking in the United Kingdom. International Journal of Bank Marketing, 20, 111-121

Huang, C.Y., Shyu, J.Z., & Tzeng, G.H. (2007). Reconfiguring the innovation policy portfolios for Taiwan’s SIP mall industry. Technovation , 29, 744-765.

Jaruwachirathanakul, B., & Fink, D. (2005). Internet banking adoption strategies for a developing country: the case of Thailand. Internet Research, 15, 295-311.

Kesharwani, A., & Singh-Bisht, S. (2012). The impact of trust and perceived risk on internet banking adoption in India: An extension of technology acceptance model. International Journal of Bank Marketing,30, 303-322.

KÖSE, A. (2009). Determination of reasons affecting the use of internet banking through logistic regression analysis, Journal of Global Strategic Management,6, 67-76.

Kuisma, T., Laukkanen, T., & Hiltunen ,M. (2007). Mapping the reasons for resistance to Internet banking: A means-end approach. International Journal of Information Management, 27, 75-85.

Kumbhar, V.M. (2011). Factors affecting the customer satisfaction in e-banking: some evidence from Indian banks. Management Research and Practice, 3, 1-14.

Lai, V.S., & Li, H. (2005). Technology acceptance model for internet banking: an invariance analysis. Information & Management,  42, 373-386.

Lam, R., & Burton, S. (2005). Bank selection and share of wallet among SMEs: Apparent differences between Hong Kong and Australia. Journal of Financial Services Marketing, 9, 204-213.

Lam, R., & Burton, S. (2005). Bank selection and share of wallet among SMEs: Apparent differences between Hong Kong and Australia. Journal of Financial Services Marketing, 9, 204-213.

Laukkanen, T., & Lauronen, J. (2005). Consumer Value Creation in Mobile Banking Services. International Journal of Mobile Communications,3, 325-338.

Lee, M. (2009). Factors influencing the adoption of internet banking: An integration of TAM and TPB with perceived risk and perceived benefit. Electronic Commerce Research and Applications,8, 130-141.

Leroux, C.G., Zo, H., & Rho. J.J. (2008). Factors Affecting Internet Adoption in Latin America. Third International Conference on Convergence and Hybrid Information Technology. ICCIT,  2, 947-951.

Li, C.W., & Tzeng ,G.H. (2009), Identification of a threshold value for the DEMATEL method using the maximum mean de-entropy algorithm to find critical services provided by a semiconductor intellectual property mall. Expert Systems with Applications,36, 9891-9898.

Liao, S., Shao, Y., Wang, H., & Chen , A .(1999). The adoption of virtual banking: an empirical study. International Journal of Information Management, 19, 63-74.

Liao, Z., & Cheung, M.T. (2002). Internet-based e-banking and consumer attitudes: an empirical study. Information & Management, 39, 283-295.

Lichtenstein, S., & Williamson, K. (2006). Understanding consumer adoption consumer of internet banking: An interpretive study in the Australian banking context. Journal of Electronic Commerce Research, 7, 50-66.

Lin, C.J., & Wu, W.W. (2008). A causal analytical method for group decision making under fuzzy environment. Expert Systems with Applications, 34, 205-213.

Liou, J.J.H, & Tzeng, G.H. (2007). A non-additive model for evaluating airline service quality. Journal of Air Transportation Management, 13, 131-138.

Liou, J.J.H., & Chuang, Y.T. (2010). Developing a hybrid multi-criteria model for selection of outsourcing providers. Expert Systems with Applications,  37, 3755-3761.

Maenpaa, K., Kale, S.H., Kuusela ,H., & Mesiranta ,N. (2008). Consumer perceptions of Internet banking in Finland: The moderating role of familiarity. Journal of Retailing and Consumer Services, 15, 266-276.

Malhotra, P., & Singh, B. (2010). An analysis of Internet banking offerings and its determinants in India. Journal of Internet Research, 20, 421-468.

Nasri ,W., & Charfeddine, L .(2009). Factors affecting the adoption of Internet banking in Tunisia: An integration theory of acceptance model and theory of planned behavior. Electronic Commerce Research and Applications, 8, 130-141.

Nasri ,W., & Charfeddine,^, L. (2012). Factors affecting the adoption of Internet banking in Tunisia: An integration theory of acceptance model and theory of planned behavior. The Journal of High Technology Management Research,  23, 1-14.

Nasri, W. (2011). Factors Influencing the Adoption of Internet Banking in Tunisia. International Journal of Business and Management, 6, 143-160.

Ndubisi, N.O., & Sinti, Q. (2006). Consumer attitudes, system's characteristics and internet banking adoption in Malaysia. Management Research News, 29, 16-27.

Padachi, K., Rojid, S., & Seetanah, B. (2007). Analyzing the factors that influence the adoption of internet banking in Mauritius. Paper presented at the Proceedings of the 2007 Computer Science and IT Education Conference.

Pikkarainen ,T., Pikkarainen, K., Karjaluoto, H.,& Pahnila ,S. (2004). Consumer acceptance of online banking: an extension of the technology acceptance model. Internet Research,14, 224-235.

Polasik, M., & Wisniewski, T.P. (2009). Empirical analysis of internet banking adoption in Poland. International Journal of Bank Marketing,27, 32-52.

Polatoglu,V.N., & Ekin, S. (2001). An empirical investigation of the Turkish consumers’ acceptance of Internet banking services. The International Journal of Bank Marketing,19, 156-165.

Qiu-dan, X., Ting ,L., & Yunfei, L. (2011). The Study of Influencing Online Banking Information Security Products Service Quality Factors Based on Customer Perception. Energy Procedia,  13, 1203-1213.

Railton, J. (1985). Automated Teller Machines. Computer Law & Security, 1, 1-30.

Rexha, N., John, R.P., & Shang, A.S. (2003). The impact of the relational plan on adoption of electric banking. Journal of Services Marketing, 17, 53-67.

Rogers, E.M., & Shoemaker, F. (1971). Communications in Innovation, Free Press, New York, NY.

Safeena, R., Date, H., & Kammani, A. (2011). Internet Banking Adoption in an Emerging Economy: Indian Consumer’s Perspective. International Arab Journal of e-Technology,2, 56-64.

Sanchez-Franco, M.J. (2009). The Moderating Effects of Involvement on the Relationships Between Satisfaction, Trust and Commitment in e-Banking. Journal of Interactive Marketing, 23, 247-258.

Sankar, N.R., & Prabhu, B.S. (2001). Modified approach for prioritization of failures in a system failure mode and effects analysis. International Journal of Quality Reliability Management,18, 324-335.

Sathye, M. (1999). Adoption of internet banking by Australian consumers: an empirical investigation. The international Journal of Bank Marketing,17, 324-334.

Scornavacca, E., Barnes, S.J., & Huff, S.L. (2006). Mobile Business Research Published in 2000-2004: Emergence, Current Status and Future Opportunities. Communications of the Association for Information Systems (AIS),17, 635-646.

Shah, M.H., & Siddiquis, F.A. (2006). Organizational critical success factors in adoption of e-banking at the Woolwich bank. International Journal of Information Management, ume 26, 442-456

Shah, M.H., Braganza, A., & Morabito, V. (2007). A survey of critical success factors in e-banking: An organizational perspective. European Journal of Information Systems,16, 511-524.

Shih, K.H. (2008). Is E-Banking A Competitive Weapon, A causal analysis. International Journal of Electronic Finance, 2, 180-196.

Sohail, M.S., & Shanmugham, B. (2003). E-banking and customer preferences in Malaysia: An empirical investigation. Information Sciences, 150, 207-217.

Suh, B., Han, I. (2002). Effect of trust on customer acceptance of Internet banking. Electronic Commerce Research and Applications,  1, 247-263.

Suki, N.M. (2010). An empirical study of factors affecting the Internet banking adoption among Malaysian consumers. Journal of Internet Banking and Commerce, 15, 1-11.

Tan, K.S., Chong, S.C., Loh, P.L., & Lin, B. (2010). An evaluation of e-banking and m-banking adoption factors and preference in Malaysia: a case study. International Journal of Mobile Communications,5, 507-527.

Tan, M., & Thompson, S.H.T. (2000). Factors Influencing the Adoption of Internet Banking. Journal of the Association for Information Systems, 1, 1-43.

Tsai, W.H., Leu, J.D., Liu, J.Y., Lin, S.J., & Shaw, M.J. (2010). A MCDM approach for sourcing strategy mix decision in IT projects. Expert Systems with Applications,37, 3870-3886.

Tzeng, G.H., Chiang, C.H., & Li. C.W. (2006). Evaluating intertwined effects in e-learning programs: a novel hybrid MCDM model based on factor analysis and DEMATEL. Expert Systems with Applications, 32, 1028-1044.

Wang, Y.S., Wang, Y.M., Lin, H.H., & Tang, T.I. (2003). Determinants of user acceptance of Internet banking: An empirical study. International Journal of Service Industry Management,14, 501-519.

Wu, W.W. (2008). Choosing knowledge management strategies by using a combined ANP and DEMATEL approach. Expert Systems with Applications,35, 828-835.

Wu, W.W. (2012). Segmenting critical factors for successful knowledge management implementation using the fuzzy DEMATEL method. Applied Soft Computing,12, 527-535.

Wu, W.W., & Lee, Y.T. (2007). Developing global managers’ competencies using the fuzzy DEMATEL method. Expert Systems with Applications,32, 499-507.

Xue, M., Hitt, L.M., & Chen, P.Y. (2011). Determinants and Outcomes of Internet Banking Adoption. Management Science,57, 291-307.

Yiu, C.S., Grant, K., & Edgar, D. (2007). Factors affecting the adoption of Internet Banking in Hong Kong-implications for the banking sector. International Journal of Information Management, 27, 336-351.

Yiu, C.S., Grant, K., & Edgar, D. (2007). Factors affecting the adoption of Internet Banking in Hong Kong—implications for the banking sector, International Journal of Information Management,27, 336-351.

Yousafzai, S.Y., Pallister, J.G., & Foxall, G.R. (2003). A proposed model of e-trust for electronic banking. Technovation,23, 847-860.

Yousafzai, S.Y., Pallister, J.G., & Foxall, G.R. (2003). A proposed model of e-trust for electronic banking. Technovation,23, 847-860.

Zhou, Q., Huang, W., & Zhang, Y. (2011). Identifying critical success factors in emergency management using a fuzzy DEMATEL method. Safety Science,49, 243-252.