Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 9

Determinants of Electronic Banking Service Adoption the Case of Economic Leadership in Bank in Economics Leadership Global Journal of Management and Business Research ( A ) XXIII Issue IX Version I Year 2023 23 © 2023 Global Journals in which an organization operates and its condition for supporting the development of E-banking services. For each context, various factors have been identified from the literature but only those that are considered relevant for E- banking adoption are included in the framework. Details of factors considered in this study are discussed below. vii. Technological Factors It appears that there is a lack of consensus on what factors belong to this context. For example, one study (Salwani 2009) includes technology competence covering existing technology infrastructure and skills to utilize the technology in this context, while other studies (Ellias 2009 & Chang 2007) consider some relevant characteristics of technology. To avoid overlapping between technology and organizational contexts, researcher chooses two basic factors related to technology competence, which have relevant to the organizational factors, i. e perceived benefits and perceived risks are considered in this study from the technological factors. 1. Perceived Benefits: Perceived benefits of E-banking cover both direct and indirect benefits for the banking industry as well as for the consumers. Direct benefits include the savings on operational cost, improved organizational functionality, productivity gain, improved efficiency and increased profitability. Indirect benefits include the opportunity or intangible benefits such as improved customer’s satisfaction through improved services, improved banking experience and fulfillment of their changing needs and lifestyle (Lu et al. 2005) 2. Perceived Risks: One of the important risks faced by banking institutions in offering E- banking services is the resistance to use the services which significantly hinder the growth of E-banking (Zhao et al. 2008 & Laforet 2005). Issues related to security have always been a concern when dealing with technologies related to online transactions such as E-banking (Chang 2007). Therefore, the perception of the risks regarding E-banking is expected to influence its adoption and further growth. viii. Organizational Factors Organizations are different in their preference to adopt technological innovation (Iacovou 1995 & Grover 1993) influenced by a number of factors, like firm size, top management support and financial and human resources. In the framework for this study, researcher uses one basic organizational factor as discussed below. Financial and Human Resources: Financial resources are an important factor in facilitating innovation adoption for any organization and they are often correlated with the firm size (Gemechu, A. (2014) Therefore, it is expected that the availability of financial resources within the adopting firms is important for E-banking practice. These resources enable banking institutions to obtain human related resources including the required skills and expertise to develop and support provision of E- banking services. ix. Environmental Factors Researcher identified factors related to the environmental context that play a crucial role in technology adoption and some factors in this category are arguably more influential than others, especially when countries under study have an authoritative government leadership. The Four factors relevant for E-banking adoptions included in this study are:- 1. Legal Frameworks: The existence and maturity of E- commerce legal frameworks within a country influence the diffusion of online transactions including E-banking as demonstrated in various studies Alalwan, A. A., Dwivedi, Y. K., & Rana, N. P. (2017. 2. The National ICT Infrastructure: National ICT infrastructure is a major factor that supports the adoption of E-banking as the case for other E- commerce initiatives. Without an adequate development level and quality of a nation’s ICT infrastructure, E-banking adoption and use cannot do well (Quaddus, M, and Hofmeyer G 2007). 3. Competitive Pressure: Competitive pressure can strongly influence any bank to develop and adopt E- banking initiatives and it may affect the bank’s perception towards E- banking system. As implied in previous studies (Quaddus & Hofmeyer 2007; Gibbs). 4. Government Support: Government can either directly or indirectly affect the adoption of E-banking in terms of creating a favorable environment and impetus for banking institutions and their so that the services can be diffused with the community (Quaddus, M, and Hofmeyer G 2007) x. Technology Acceptance Model (TAM) TAM was developed by Davis 1986 to explain the computer-usage behavior. According to the model, in explaining the adoption of any information system, perceived ease of use (PEOU) and perceived usefulness (PU) are the two most important determinants. 1. Perceived Ease of use: Refers to the degree to which a person that using a particular system would be free from effort Masrom and Hussein (2008) 2. Perceived Usefulness : Refers to the degree to which an organization that using a particular system would enhance or improve its job performance. According to Masrom and Hussein (2008) the adoption of whether to use an information system for a particular individual is very much dependent on the perceived usefulness and perceived ease of use of the information system.