|Hotna Marina Sitorus||Department of Industrial Engineering, Bandung Institute of Technology, Jl. Ganesha No.10, Bandung 40132, Indonesia|
|Rajesri Govindaraju||Department of Industrial Engineering, Bandung Institute of Technology, Jl. Ganesha No.10, Bandung 40132, Indonesia|
|Dr. Ir. Iwan Inrawan Wiratmadja||Department of Industrial Engineering, Bandung Institute of Technology, Jl. Ganesha No.10, Bandung 40132, Indonesia|
Adaptation to the internet and advances in mobile technology has become key to the survival of industries, including the banking industry. One of the latest electronic banking channels is mobile banking. While mobile banking offers various advantages, many banks in Indonesia are facing the problem of low adoption. This paper reports on the findings of our research project, which examines mobile banking adoption behavior in Indonesia from an interaction perspective. Specifically, the paper examines the role of usability, compatibility and social influence in explaining people’s intention to continue using mobile banking in Indonesia. Using an interaction perspective framework, a research model is proposed. Ten hypotheses are suggested, examining six constructs: satisfaction, perceived usefulness, perceived ease of use, perceived learnability, compatibility and social influence. From a theoretical perspective, this paper is the first to combine usability, compatibility and social influence in a mobile banking adoption study. Data from 319 valid respondents were used to test the proposed model using partial least squares structural equation modeling. The results show that all the hypotheses are supported, and it was found that people’s intention to continue using mobile banking is significantly affected by satisfaction, compatibility, perceived usefulness, perceived learnability and social influence.
Compatibility; Indonesia; Mobile banking adoption; Social influence; Usability
Adaptation to the internet and advances in mobile technology has become key to the survival of industries and has changed the way companies satisfy the needs of their consumers. Banking industries have developed various electronic banking channels to conform to various customer needs. One of the latest channels is mobile banking, which provides various financial services for consumers through information and communication technologies (Hanafizadeh et al., 2014).
Mobile banking offers numerous benefits for banks and bank customers. For bank customers, it offers unlimited access (Wessels & Drennan, 2010; Zhou, 2012; Hanafizadeh et al., 2014); real time information (Laukkanen & Kiviniemi, 2010); convenience (Riquelme & Rios, 2010); and mobility (Zhou et al., 2010). For banks, mobile banking helps to increase service performance (Riquelme & Rios, 2010; Chen, 2013; Hanafizadeh et al., 2014); efficiency (Wessels & Drennan, 2010; Zhou et al., 2010; Chen, 2013); and improve customer relations (Riquelme & Rios, 2010; Hanafizadeh et al., 2014).
Many Indonesian banks have low adoption of mobile banking. Interviews were conducted with several Indonesian bank managers and it was found that many of their customers had not fully adopted the mobile banking services; i.e., they do use the services continually (Sitorus et al., 2017). Banks can only enjoy the benefits of mobile banking if their customers utilize the service. The more customers use these services on a continual basis, the more benefits this brings to the banks. A study of what makes customers willing to continue using mobile banking would help bank managers to design effective strategies to increase its usage.
Many scholars have been interested in studying consumer adoption of technology in general, as well as the adoption of mobile banking. The literature on the adoption of technology provides several well-known models; for example, the Technology Adoption Model/TAM (Davis et al., 1989); the Diffusion of Innovation Theory/DOI (Rogers, 2003); and the Unified Theory of Acceptance and Usage of Technology/UTAUT (Venkatesh et al., 2003). These models have been widely used in mobile banking adoption studies, combined with or supplemented by various constructs. Koenig-Lewis et al. (2010) combined TAM and DOI with consumer behavior, while Riquelme and Rios (2010) integrated TAM, DOI, risk and gender. Zhou et al. (2010) blended UTAUT with the Task-Technology Fit model (Goodhue & Thompson, 1995) and Wessels and Drennan (2010) applied the Self-Service Technology/Intention to Use model, a modification of TAM, combining it with interaction need and risk. Akturan and Tezcan (2012) extended TAM by adding benefit and risk, while Al-Jabri and Sohail (2012) supplemented DOI with risk. Bidar et al. (2014) and Hanafizadeh et al. (2014) employed various constructs from various adoption models, including TAM, and Baptista and Oliveira (2015) applied UTAUT2 (Venkatesh et al., 2012), extending it by adding culture. Khasawneh (2015) supplemented TAM with trust and credibility, while Alalwan et al. (2016) complemented it with risk and self-efficacy. Several studies have used certain perspectives; for example, the benefit-cost perspective (Shen et al., 2010); innovation characteristics and trust (Lin, 2011); trust and flow experience (Zhou, 2012); and innovation characteristics, brand association and risk (Chen, 2013).
Our previous work discusses the importance of examining interactions between elements in the mobile banking adoption system and proposes a framework for mobile banking adoption from an interaction perspective (Sitorus et al., 2016). The interaction perspective framework analyzes mobile banking adoption by studying four elements in the mobile banking adoption system, the individual, technology, tasks, and the environment, and elaborates three types of interaction: (1) individual-technology interaction; (2) individual-environment interaction; and (3) individual-task interaction.
We conducted a preliminary study of the first type of interaction in the framework, individual-technology interaction, which focused on two main concepts: usability and compatibility (Sitorus et al., 2017). We included five constructs in the research model: user satisfaction, perceived usefulness, perceived ease of use, perceived learnability (derived from the usability literature), and compatibility. Although we only used a relatively small number of samples, the study indicated that usability and compatibility affect the intention to continue using mobile banking. An empirical study involving a larger number of samples is needed to provide better evidence to confirm the important role of usability and compatibility in mobile banking adoption behavior.
This paper reports on the findings of our research project, which examined mobile banking adoption behavior in Indonesia from an interaction perspective. Specifically, the paper examines the role of usability, compatibility and social influence in explaining users’ intention to continue using mobile banking in Indonesia. While our preliminary work investigated the first type of interaction in the interaction perspective framework, this paper extends the examination to the second type, i.e. individual-environment interaction. Many people, especially in Indonesia, have close relations and interactions with their social environment. We believe that the influence of the social environment also plays a crucial role in driving individual behavior. While Venkatesh et al. (2003) argue that the role of social influence has been debatable, empirical evidence has shown the positive effect of social influence on mobile banking adoption (Zhou et al., 2010; Bidar et al., 2014).
This paper makes a theoretical contribution by providing an empirical study of mobile banking adoption using a new perspective. To the best of our knowledge, this paper is the first to combine usability, compatibility and social influence constructs in mobile banking adoption research.
The remainder of this paper is organized as follows. The following section explains the conceptual model development and data collection method, and is followed by discussion of the results in Section 3. The conclusion and proposals for future research are presented in Section 4.
The study has found that the intention to continue using mobile banking is significantly determined by satisfaction, compatibility, perceived usefulness, perceived learnability and social influence. Satisfaction is found to have the highest influence on continued usage intention. This shows that satisfaction is not only important for bank customers in direct interactions at the physical bank branches, but also in their experience in using mobile banking applications. Therefore, banks must focus their efforts on increasing customer satisfaction in using such applications. We found that satisfaction is largely determined by perceived ease of use and perceived usefulness, therefore banks should ensure that their mobile banking is easy to use and beneficial in order to improve customer satisfaction.
Our findings confirm that perceived learnability could be analyzed separately from perceived ease of use. In addition, this study is the first to find a significant effect of perceived learnability on the intention to continue using mobile banking.
The research model has been proven to be able to explain a high percentage of continuance usage intention variance. This suggests that examination of the interaction between individuals and technology, represented by usability and compatibility, along with the interaction between individuals and the social environment, can help to understand mobile banking adoption behavior.
The research used convenience sampling to collect empirical data, thus limiting the generalization of the findings. The study also only partially investigates the interaction perspective framework; future work will be to examine all the interaction types in the framework. An analysis of the differences between different sample characteristics and their influence on the intention to continue using mobile banking would also contribute to better understanding of bank customer adoption behavior.
The authors wish to thank Direktorat Riset dan Pengabdian Masyarakat and Direktorat Jenderal Penguatan Riset dan Pengembangan, Ministry of Research, Technology and Higher Education of the Republic of Indonesia for their financial support in this research through Hibah Penelitian Disertasi Doktor 2017 (Research Contract No. 1598/K4/KM/2017).
|R1-IE-886-20180405232105.jpg||Figure 1 The conceptual research model|
Akturan, U., Tezcan, N., 2012. Mobile Banking Adoption of the Youth Market: Perceptions and Intentions. Marketing Intelligence & Planning, Volume 30(4), pp. 444–459
Al-Jabri, I.M., Sohail, M.S., 2012. Mobile Banking Adoption: Application of Diffusion of Innovation Theory. Journal of Electronic Commerce Research, Volume 13(4), pp. 379–391
Alalwan, A.A., Dwivedi, Y.K., Rana, N.P., Williams, M.D., 2016. Consumer Adoption of Mobile Banking in Jordan: Examining the Role of Usefulness, Ease of Use, Perceived Risk and Self-efficacy. Journal of Enterprise Information Management, Volume 29(1), pp. 118–139
Baptista, G., Oliveira, T., 2015. Understanding Mobile Banking: The Unified Theory of Acceptance and Use of Technology Combined with Cultural Moderators. Computers in Human Behavior, Volume 50, pp. 418–430
Bidar, R., Fard, M.B., Salman, Y.N., Tunga, M.A., Cheng, H.I., 2014. Factors Affecting the Adoption of Mobile Banking: Sample of Turkey. In: The 16th International Conference on Advanced Communications Technology, Pyeongchang, South Korea
Chaouali, W., Ben Yahia, I., Souiden, N., 2016. The Interplay of Counter-conformity Motivation, Social Influence, and Trust in Customers' Intention to Adopt Internet Banking Services: The Case of an Emerging Country. Journal of Retailing and Consumer Services, Volume 28, pp. 209–218
Chen, C.S., 2013. Perceived Risk, Usage Frequency of Mobile Banking Services. Managing Service Quality, Volume 23(5), pp. 410–436
Cheng, E.T.C., Lam, D.Y.C., Yeung, A.C.L., 2006. Adoption of Internet Banking: An Empirical Study in Hong Kong. Decision Support Systems, Volume 42, pp. 1558–1572
Davis, F.D., 1989. Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, Volume 13(3), pp. 319–340
Davis, F.D., Bagozzi, R.P., Warshaw, P.R., 1989. User Acceptance of Computer Technology: A Comparison of Two Theoretical Models. Management Science, Volume 35(8), pp. 982–1003
Flavian, C., Guinaliu, M., Gurrea, R., 2006. The Role Played by Perceived Usability, Satisfaction and Consumer Trust on Website Loyalty. Information & Management, Volume 43, pp. 1–14
Goodhue, D. L., Thompson, R. L., 1995. Task-technology fit and individual performance. MIS Quarterly, Volume 19(2), pp. 213–236
Hair, J.F., Hult, G.T.M., Ringle, C.M., Sarstedt, M., 2014. A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage Publications, Singapore
Hanafizadeh, P., Behboudi, M., Koshksaray, A.A., Tabar, M.J.S., 2014. Mobile-banking Adoption by Iranian Bank Clients. Telematics and Informatics, Volume 31, pp. 62–78
Hong, S.-J., Thong, J.Y., Tam, K.Y., 2006. Understanding Continued Information Technology Usage Behavior: A Comparison of Three Models in the Context of Mobile Internet. Decision Support Systems, Volume 42, pp. 1819–1834
ISO, 1998. Ergonomic Requirements for Office Work with Visual Display Terminals (VDTs). Part 11: Guidance on Usability. Volume 9241–11
Khasawneh, M.H.A., 2015. An Empirical Examination of Consumer Adoption of Mobile Banking (m-Banking) in Jordan. Journal of Internet Commerce, Volume 14, pp. 341–362
Koenig-Lewis, N., Palmer, A., Moll, A., 2010. Predicting Young Consumers' Take Up of Mobile Banking Services. International Journal of Bank Marketing, Volume 28(5), pp. 410–432
Laukkanen, T., Kiviniemi, V., 2010. The Role of Information in Mobile Banking Resistance. International Journal of Bank Marketing, Volume 28(5), pp. 372–388
Lin, H.F., 2011. An Empirical Investigation of Mobile Banking Adoption: The Effect of Innovation Attributes and Knowledge-based Trust. International Journal of Information Management, Volume 31, pp. 252–260
Mendoza, A., Stern, L., Carroll, J., 2010. "Learnability" as a Positive Influence on Technology Use. In: The 8th International Conference on Education and Information Systems, Technologies and Applications, Orlando, Florida
Moore, G.C., Benbasat, I., 1991. Development of an Instrument to Measure the Perceptions of Adopting an Information Technology Innovation. Information Systems Research, Volume 2(3), pp. 192–222
Nielsen, J. 1993. Usability Engineering. AP Professional, Boston
Riquelme, H.E., Rios, R.E., 2010. The Moderating Effect of Gender in the Adoption of Mobile Banking. International Journal of Bank Marketing, Volume 28(5), pp. 328–341
Rogers, E.M., 2003. Diffusion of Innovations (Fifth ed.). Free Press, New York
Rubin, J., Chisnell, D., 2008. Handbook of Usability Testing (Second edition ed.). Wiley Publishing, Inc., Indiana
Shackel, B., 2009. Usability - Context, Framework, Definition, Design and Evaluation. Interacting with Computers, Volume 21, pp. 339–346
Shen, Y.C., Huang, C.Y., Chu, C.H., Hsu, C.T., 2010. A Benefit-cost Perspective of the Consumer Adoption of the Mobile Banking System. Behaviour & Information Technology, Volume 29(5), pp. 497–511
Sitorus, H.M., Govindaraju, R., Wiratmadja, I.I., Sudirman, I., 2016. The Customer Adoption of Mobile Banking from an Interaction Perspective. In: The International Conference on Data and Software Engineering (ICoDSE), Denpasar, Indonesia
Sitorus, H.M., Govindaraju, R., Wiratmadja, I.I., Sudirman, I., 2017. Interaction Perspective in Mobile Banking Adoption: The Role of Usability and Compatibility. In: The International Conference on Data and Software Engineering 2017, Palembang, Indonesia
Staples, D.S., Seddon, P., 2004. Testing the Technology-to-Performance Chain Model. Journal of Organizational and End User Computing, Volume 16(4), pp. 17–36
Sun, S., Goh, T., Fam, K.S., Xue, Y., 2012. The Influence of Religion on Islamic Mobile Phone Banking Services Adoption. Journal of Islamic Marketing, Volume 3(1), pp. 81–98
Venkatesh, V., Morris, M.G., Davis, G.B., Davis, F.D., 2003. User Acceptance of Information Technology: Toward a Unified View. MIS Quarterly, Volume. 27(3), pp. 425–478
Venkatesh, V., Thong, J.Y., Xu, X., 2012. Consumer Acceptance and Use of Information Technology: Extending the Unified Theory of Acceptance and Use of Technology. MIS Quarterly, Volume 36(1), pp. 157–178
Wessels, L., Drennan, J., 2010. An Investigation of Customer Acceptance of m-Banking. International Journal of Bank Marketing, Volume 28(7), pp. 547–568
Zhou, T., Lu, Y., Wang, B., 2010. Integrating TTF and UTAUT to Explain Mobile Banking User Adoption. Computers in Human Behavior, Volume 26, pp. 760–767
Zhou, T., 2012. Examining Mobile Banking User Adoption from the Perspectives of Trust and Flow Experience. Information Technology and Management, Volume 13(1), pp. 27–37