Adoption of Information Technology

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Drivers of Bank Adoption

The most important determining factor for banks to decide upon any service innovation has typically been the cost and benefits (Barnes & Corbitt, 2003). Generally cost savings have directed the strategic decision-making in business (Lu Stout, 2007) which also showed in the previous adoption of electronic channels in the banking sector (Jayawardhena & Foley, 2000). Cost considerations can also form a barrier for banks to adopt internet banking (Thulani, Kosmas, Collins & Lloyd, 2011) even though it has been found that mobile banking can also generate additional revenue (Jones, 2014). Banks have also been found to be driven by the convenience and flexibility that can be offered to customers through internet banking, combined with the possibility to cross-sell (Herzberg, 2003). However this has been debated numerously in later research (Scornavacca & Hoehle, 2007; Parvin 2013). Another considerable factor for the adoption to offer online banking has been to strengthen the bank-customer relationship (Tiwari, Buse & Herstatt 2007). Simultaneously, Parvin (2013) found that the adoption of internet banking was to obtain increased customer satisfaction, competitive pressure and financial inclusion (Jones, 2014). The numerous findings on the drivers indicate the degree of difficulty to identify a single most important driver for the adoption of internet banking and this may possibly be similar in the case of mobile banking adoption.

Dimensions of technology acceptance

Previous studies and research were carried out with the goal to identify the determinants or factors that influence the acceptance of technology from a consumer perspective. Since mobile banking is a category of technological innovation and the goal is to determine the factors that influence the acceptance of mobile banking by organizations, it becomes relevant to use previous studies and research on technological innovation adoption and factors that influence it (Chong, Ooi, & Lin, 2010). To predict attitude towards the use of new technology, is was proposed that both the perceived ease of use (PEOU) and perceived usefulness (PU) can be used for this prediction (Davis, 1989). Perceived ease of use is believed to be the predictor of perceived usefulness. Furthermore, the perceived ease and perceived usefulness then affect the behavioural intention to directly use a particular system (Venkatesh, Morris, & Davis, 2003). Essentially, the adoption of technology by users originates from the dimensions perceived ease of use and perceived usefulness, which in turn influences and determines the attitude towards the use of the technology. Finally, this generates a reflection of the user loyalty due to the creation of intention to use the technology (Sikdar, Kumar, & Makkad, 2015). Information systems researchers have previously investigated and replicated these factors, to predict the individual acceptance of various particular corporate IT systems (Luarn & Hui Lin, 2005). PEOU and PU are dimensions that can explain what causes consumers to accept or reject information technologies and will be discussed more detailed in the following section (Davis, 1989).

Research philosophy

The research philosophy deals with and relates to the development and nature of knowledge. Since developing knowledge is of main importance when researching a specific field, it is important to specify which type of research philosophy was carried out. This helped to identify in which manner data about a research phenomenon should be acquired, analysed and applied (Saunders, Lewis, & Thornhill, 2012). The use of philosophical arguments helped to guide the choices made in the research design, data collection and analysis of this research. Through guidance and proper use of arguments in the research philosophy, the possibility arises to go more into depth in the methodology which will eventually make the methodology part more coherent (Chalmers, 1975). The research philosophy that is adapted, is based on how the researcher views the world and the assumptions that are derived from those views. These assumptions guided the selection of the method and research strategy. An example of this is when a researcher is concerned with the feelings and attitudes of workers there will be a different view on how research should be conducted compared to when a researcher is more concerned with facts. The ideas on which methods to use will vary, as well as the views on what is useful and important (Saunders, Lewis, & Thornhill, 2012). There are four main research philosophies mentioned in the research by Saunders (2012) that can be adapted in research, which includes pragmatism, positivism, realism and interpretivism.

Standardised – non-standardised

When constructing the interview questions it is important to decide on the standardization of the questions. The level of standardization relates to the level of freedom and responsibility available to the interviewer when designing the questions. This research adopted a low level of standardization to give the interviewer the option to design questions during the interview (Robson, 2002). Since this thesis is adopting an interpretivist epistemology, the interviews had a semi-structured and in-depth structure, which allowed to probe answers from the interviewees to explain and extend their responses. This is essential when the objective is to understand the meaning that participants assign to the described phenomena (Saunders, Lewis, & Thornhill, 2012). Finally, an interview is the most favourable approach to obtain data when there is a large number of questions to be answered, the questions are either complex or open-ended, and where the order and logic of the questioning process may need to be varied based on the individual (EasterbySmith, Thorpe & Jackson, 2013; Jankowicz 2005).

Method of data analysis

To analyse and interpret the empirical data, several qualitative data analysis methods can be used. The method of data analysis depends on the qualitative data method (Saunders, Lewis, & Thornhill, 2012). In this thesis, interviews were conducted to gather the necessary findings 28 derived from the outcome of the interviews. Therefore, it is of importance to define the data analysis methods before conducting the interviews (Kvale & Brinkmann, 2009). The chosen method of qualitative data analysis used for this thesis consists of the steps data reduction, data display and drawing and verifying conclusions (Saunders, Lewis, & Thornhill, 2012). Below these steps are described and applied to this thesis based on the work of Miles & Huberman (1994).

Content :

  • Abbreviations
  • Figures
  • Tables
  • 1. Introduction
  • 2. Frame of reference
    • 2.1 Online banking
    • 2.2 Mobile banking
    • 2.2.1 Adoption of Mobile Banking
    • 2.3 Adoption of Information Technology
    • 2.4 Diffusion of innovation
    • 2.5 Drivers of Bank Adoption
    • 2.6 Mobile banking adoption
    • 2.7 Dimensions of technology acceptance
      • 2.7.1 Perceived usefulness (PU)
      • 2.7.2 Perceived ease of use (PEOU)
      • 2.7.3 Perceived credibility (PC)
      • 2.7.4 Perceived Risk
      • 2.7.5 Social influence
      • 2.7.6 Facilitating Conditions
  • 3. Research methodology
    • 3.1 Research philosophy
    • 3.2 Research Approach
    • 3.3 Research design
    • 3.4 Research Strategy
      • 3.4.1 Qualitative
      • 3.4.2 Interviews
      • 3.4.2.1 Standardised – non-standardised
      • 3.4.3 Interview Design
      • 3.4.4 Interview Measures
      • 3.4.5 Interview Distribution
      • 3.4.6 Interview Guides
    • 3.5 Sampling Process
      • 3.5.1 Defining the Population
    • 3.6 Method of data analysis
    • 3.7 Credibility and reliability of a qualitative study
      • 3.7.1 Credibility
      • 3.7.2 Reliability
    • 3.8 Ethical Implications
    • 3.9 Limitations
  • 4. Empirical Findings
    • 4.1 Perceived usefulness
    • 4.2 Perceived ease of use
    • 4.3 Perceived credibility
      • 4.3.1 Security
      • 4.3.2 Privacy
      • 4.3.3 Trust
    • 4.4 Perceived risk
      • 4.4.1 Perceived risks
      • 4.4.2 Unperceived risks
    • 4.5 Diffusion of innovation
      • 4.5.1 Relative advantage
      • 4.5.2 Compatibility with existing values and practices
      • 4.5.3 Observable results
    • 4.6 Social influence
    • 4.7 Service improvement

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The Acceptance of Mobile Banking by Organizations An exploratory study on mobile banking and factors influencing its acceptance by organizations

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