Examining Factors Influencing Consumers Intention and Usage of Digital Banking: Evidence from Indonesian Digital Banking Customers

Rila Anggraeni, Raditha Hapsari, Noor Awanis Muslim

Abstract


This paper aims to analyze important factors influencing the intention and use of digital banking as perceived by consumers of the Indonesia commercial bank. This paper adopts variables in the unified theory of acceptance and use of technology 2 (UTAUT 2). The data was collected by distributing questionnaires to the 281 respondents by employed purposive sampling technique. To assessing the acceptance model, a structural equation approach based on Partial Least Squares (SEM-PLS) was used. The UTAUT2 model was proved adequate to explain digital banking behavior intention and usage. The findings demonstrated that habit is the highest variable that determines the behavioral intention and use behavior. Hedonic motivation and social influence also predict intention. Indonesia has a collectivist culture, which emphasizes the high value of the group, so opinions and information from others will affect people's intentions and actions. Surprisingly, effort expectancy, facilitating conditions, performance expectancy, and price value do not have a significant relationship which some possible reasons were explained further. In this article, practical impication also discussed.


Keywords


Digital banking; UTAUT2; behavior intention; use behavior; technology acceptance; Indonesia

Full Text:

PDF

References


Abed, S. 2018. An empirical examination of Instagram as an s-commerce channel. Journal of Advances in Management Research 15(2) 146-160.

Ajzen, I. 2005. Attitudes, Personality, and Behavior. 2nd ed. ed: Open University Press/McGraw – Hill Education, Milton-Keynes.

Alaiad, A. and Zhou, L. 2014. The determinants of home healthcare robots adoption: An empirical investigation. International journal of medical informatics 83(11) 825-840.

Alalwan, A.A., Dwivedi, Y.K. and Rana, N.P. 2017. Factors influencing adoption of mobile banking by Jordanian bank customers: Extending UTAUT2 with trust. International Journal of Information Management 37(3) 99-110.

Arenas-Gaitán, J.P.-P., Begoña and Ramón-Jerónimo, M.A. 2015. Elderly and Internet Banking: An Application of UTAUT2. Journal of Internet Banking and Commerce 20(1).

Aswani, R., Ilavarasan, P.V., Kar, A.K. and Vijayan, S. 2018. Adoption of public WiFi using UTAUT2: An exploration in an emerging economy. Procedia Computer Science 132 297-306.

Babin, B.J., Darden, W.R. and Griffin, M. 1994. Work and/or fun: measuring hedonic and utilitarian shopping value. Journal of Consumer Research 20(4) 644-656.

Barquin, S. and Hv, V. 2015. Digital Banking in Asia: What do consumers really want. McKinsey & Company. Bebli, RS (nd). The Impact of internet banking service quality on.

Castillo-Manzano, J.I. and López-Valpuesta, L. 2013. Check-in services and passenger behaviour: Self service technologies in airport systems. Computers in Human Behavior 29(6) 2431-2437.

Chen, P.Y. and Hitt, L.M. 2002. Measuring switching costs and the determinants of customer retention in internet-enabled businesses: a study of the online brokerage industry. Information Systems Research 13(3) 255-274.

Chong, A.Y.-L. 2013. Predicting m-commerce adoption determinants: A neural network approach. Expert Systems with Applications 40(2) 523-530.

Cooper, J., Kelly, K.A. and Weaver, K. 2001. Attitudes, norms, and social groups Blackwell handbook of social psychology: Group processes.

Davis, F.D. 1989. Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly 13(3) 319-340.

de Guinea, A.O. and Markus, M.L. 2009. Why break the habit of a lifetime? Rethinking the roles of intention, habit, and emotion in continuing information technology use. MIS Quarterly 33(3) 433-444.

Dhiman, N., Arora, N., Dogra, N. and Gupta, A. 2019. Consumer adoption of smartphone fitness apps: an extended UTAUT2 perspective. Journal of Indian Business Research 12(3) 363-388.

Diep, N.A., Cocquyt, C., Zhu, C. and Vanwing, T. 2016. Predicting adult learners’ online participation: Effects of altruism, performance expectancy, and social capital. Computers & Education 101 84-101.

El Ouirdi, M., El Ouirdi, A., Segers, J. and Pais, I. 2016. Technology adoption in employee recruitment: The case of social media in Central and Eastern Europe. Computers in Human Behavior 57 240-249.

Fornell, C. and Larcker, D.F. 1981. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18(1) 39-50.

Gefen, D. 2003. TAM or just plain habit: A look at experienced online shoppers. Journal of End User Computing 15(3) 1-13.

Glass, R. and Li, S. 2010. Social influence and instant messaging adoption. Journal of Computer Information Systems 51(2) 24-30.

Gupta, A., Dogra, N. and George, B. 2018. What determines tourist adoption of smartphone apps? An analysis based on the UTAUT-2 framework. Journal of Hospitality and Tourism Technology 9(1) 50-64.

Haverila, M. 2013. Cell phone usage and broad feature preferences: A study among Finnish undergraduate students. Telematics and Informatics 30(2) 177-188.

Hazen, B.T., Kung, L., Cegielski, C.G. and Jones-Farmer, L.A. 2014. Performance expectancy and use of enterprise architecture: training as an intervention. Journal of Enterprise Information Management.

Henseler, J. et al. 2014. Common beliefs and reality about PLS: Comments on Rönkkö and Evermann (2013). Organization Research Methods 17(2) 182-209.

Henseler, J., Hubona, G. and Ray, P.A. 2016. Using PLS path modeling in new technology research: Updated guidelines. Industrial Managagement Data System 116(1) 2-20.

Henseler, J., Ringle, C.M. and Sinkovics, R.R. 2009. The use of partial least squares path modeling in international marketing. New challenges to international marketing. Emerald Group Publishing Limited. pp. 277-319.

Hofstede, 2005. Cultures and Organization.

Hossain, A., Quaresma, R. and Rahman, H. 2019. Investigating factors influencing the physicians’ adoption of electronic health record (EHR) in healthcare system of Bangladesh: An empirical study. International Journal of Information Management 44 76-87.

Huang, L.-Y. and Hsieh, Y.-J. 2012. Consumer electronics acceptance based on innovation attributes and switching costs: The case of e-book readers. Electronic Commerce Research and Applications 11(3) 218-228.

Jamsheer, M.T.P. 2018. Demonetized Monetary System and Digital Economy: An Analysis with Reference to the Indian Economy. International Journal on Global Business Management & Research 7(1) 15-22.

Jang, W. and Byon Kevin, K. 2019. Antecedents and consequence associated with esports gameplay. International Journal of Sports Marketing and Sponsorship 21(1) 1-22.

Kahveci, E. and Wolfs, B. 2018. Digital banking impact on Turkish deposit banks performance. Banks & bank systems(13, Iss. 3) 48-57.

Kim, B.G., Park, S.C. and Lee, K.J. 2007. A structural equation modeling of the Internet acceptance in Korea. Electronic Commerce Research and Applications 6(4) 425-432.

Kim, S.S. and Malhotra, N.K. 2005. A longitudinal model of continued IS use: an integrative view of four mechanisms underlying postadoption phenomena. Management science 51(5) 741-755.

Lankton, N.K., Wilson, E.V. and Mao, E. 2010. Antecedents and determinants of information technology habit. Information & management 47(5) 300-307.

Lee, L. and Mun, Y.Y. 2011. Group-level effects of facilitating conditions on individual acceptance of information systems. Information technology and management 12(4) 315-334.

Limayem, M. and Hirt, S.G. 2003. Force Of Habit And Information Systems Usage: Theory And Initial Validation. Journal of the Association for Information Systems 4 65-97.

Limayem, M., Hirt, S.G. and Cheung, C.M.K. 2007. How Habit Limits The Predictive Power Of Intention: The Case Of Information Systems Continuance. MIS Quarterly 36 705-737.

Lipton, A., Shrier, D. and Pentland, A. 2016. Digital banking manifesto: the end of banks?: Massachusetts Institute of Technology.

Lu, J., Yu, C.-S. and Liu, C. 2005. Facilitating conditions, wireless trust and adoption intention. Journal of Computer Information Systems 46(1) 17-24.

Macedo, I.M. 2017. Predicting the acceptance and use of information and communication technology by older adults: An empirical examination of the revised UTAUT2. Computers in Human Behavior 75 935-948.

Madigan, R. et al. 2017. What influences the decision to use automated public transport? Using UTAUT to understand public acceptance of automated road transport systems. Transportation Research Part F: Traffic Psychology and Behaviour 50 55-64.

Manohar, B. and Kumar, C.H.V. 2012. GREEN BANKING: "Bye-bye cheques, hello electronic payments". Asia Pacific Journal of Management & Entrepreneurship Research 1(3) 60-74.

Mbama Cajetan, I., Ezepue, P., Alboul, L. and Beer, M. 2018. Digital banking, customer experience and financial performance: UK bank managers’ perceptions. Journal of Research in Interactive Marketing 12(4) 432-451.

Nielsen 2012. Smartphone Ownership On The Rise In Asia Pacific, Whilst Advertisers Struggle To Engage With Consumers Via Mobile Ads.

Norzaidi, M.M. 2011. Determining critical success factors of mobile banking adoption in Malaysia. Australian Journal of Basic and Applied Sciences 5(9) 252-265.

OJK 2016. Panduan Penyelenggaraan Digital Branch oleh Bank Umum. In O. J. Keuangan ed.

Parise, S., Guinan, P.J. and Kafka, R. 2016. Solving the crisis of immediacy: How digital technology can transform the customer experience. Business Horizons 59(4) 411-420.

Park, J., Ahn, J., Thavisay, T. and Ren, T. 2019. Examining the role of anxiety and social influence in multi-benefits of mobile payment service. Journal of Retailing and Consumer Services 47 140-149.

Pentina, I., Koh, A.C. and Le, T.T. 2012. Adoption of social networks marketing by SMEs: exploring the role of social influences and experience in technology acceptance. International Journal of Internet Marketing and Advertising 7(1) 65-82.

Rezaei, S. 2015. Segmenting consumer decision-making styles (CDMS) toward marketing practice: A partial least squares (PLS) path modeling approach. Journal of Retailing and Consumer Services 22 1-15.

Rogers, E.M. 1983. Diffusion of Innovations: New York: Free Press.

Sajić, M., Bundalo, D., Bundalo, Z. and Pašalić, D. 2018. Digital Technologies In Transformation Of Classical Retail Bank Into Digital Bank. Annals of the Faculty of Engineering Hunedoara 16(3) 77-81.

Sardana, V. and Singhania, S. 2018. Digital technology in the realm of banking: A review of literature. International Journal of Research in Finance and Management 1(2) 28-32.

Söderlund, M. and Öhman, N. 2005. Assessing behavior before it becomes behavior: An examination of the role of intentions as a link between satisfaction and repatronizing behavior. International Journal of Service Industry Management 16(2) 169-185.

Tak, P. and Panwar, S. 2017. Using UTAUT 2 model to predict mobile app based shopping: evidences from India. Journal of Indian Business Research 9(3) 248-264.

Talukder, M.S., Shen, L., Hossain Talukder, M.F. and Bao, Y. 2019. Determinants of user acceptance and use of open government data (OGD): An empirical investigation in Bangladesh. Technology in Society 56 147-156.

Tarhini, A. et al. 2017. Factors influencing students’ adoption of e-learning: a structural equation modeling approach. Journal of International Education in Business 10(2) 164-182.

Turel, O., Serenko, A. and Bontis, N. 2010. User acceptance of hedonic digital artifacts: A theory of consumption values perspective. Information & management 47(1) 53-59.

Venkatesh, V. and Davis, F.D. 2000. A theoretical extension of the technology acceptance model: Four longitudinal field studies. Management science 46(2) 186-204.

Venkatesh, V., Morris, M.G., Davis, G.B. and Davis, F.D. 2003. User acceptance of information technology: Toward a unified view. MIS Quarterly 27(3) 425-478.

Venkatesh, V., Thong, J.Y. and Xu, X. 2012. Consumer acceptance and use of information technology: extending the unified theory of acceptance and use of technology. MIS Quarterly 157-178.

Yaseen Saad, G. and El Qirem Ihab, A. 2018. Intention to use e-banking services in the Jordanian commercial banks. International Journal of Bank Marketing 36(3) 557-571.




DOI: https://doi.org/10.21776/ub.apmba.2021.009.03.1

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.