An analysis of online banking usage intentions : An extension of the technology acceptance model

ABSTRACT Purpose - This study is aimed at investigating the factors influencing the online banking acceptance in Kota Kinabalu, Northern Borneo, Malaysia. Design/methodology/approach - This study applies technology acceptance model (TAM) as the base model in order to investigate the online banking acceptance. For this purpose, a linear regression is employed to examine the factors influencing online banking acceptance. The model employs perceived credibility, perceived enjoyment, and social norm, in addition to perceived usefulness and perceived ease of use. Findings - The study results suggest that perceived usefulness, perceived ease of use, perceived credibility and social norm are statistically significant while perceived enjoyment are statistically insignificant. Research limitations/ implications - Due to the time and cost constraints, the present study has suffered from the two setbacks. On one hand, the sample of the study somewhat limits generalizations. On the other hand, other potential variables are not included in the model. Practical implications - Essentially, this study offers an insight into online banking in Kota Kinabalu, Northern Borneo, Malaysia, which has limited previously been investigated. Indeed, the results useful to banks planning further online banking. Originality/value - Worth to mention, the study is able to contribute to the literature on online banking in Kota Kinabalu, Northern Borneo, Malaysia. Keywords: Online banking, Kota Kinabalu, Sabah, Banks, Technology acceptance model (TAM) I. INTRODUCTION It is undeniably that Internet banking is widely used by Malaysians for making simple transactions which can be completed in just a few minute by employing Internet banking. People are now busier with their routine activities. For instance, those who are lecturers are dealt with the limited time in their routine tasks. As far as Internet banking is concerned, these lecturers can utilize Internet banking to complete their banking transactions such as utility bill payment, fund transfer, credit card payment, flight ticket and etcetera. Apparently, the need of investigating what causes force individuals use Internet banking is increasingly important. Previous studies have explored Internet banking. In Malaysia, two important studies namely Ramayah et al. (2003) and Guriting and Ndubisi (2006) have investigated Internet banking acceptance in Pulau Pinang and Kota Kinabalu, respectively. Although the investigation is already done by Guriting and Ndubisi (2006) in Kota Kinabalu, however there is a proof that the study in Internet banking is remained inconclusive. Indeed, the present study uses different factors, although TAM is utilized as similar as what used by Guriting and Ndubisi (2006). It is then still important for the current study explores Internet banking from the different angle compared to Ramayah et al. (2003) and Guriting and Ndubisi (2006). Furthermore, previous studies on online banking range from Eriksson et al.'s (2005) study in Estonia, Pikkarainen et al.'s (2004) study in Finland and Wang et al.'s (2003) study in Taiwan and Tan and Teo's (2000) study in Singapore. Apparently, these prior studies on Internet banking acceptance factors have reported mixed results, which have raised a difficulty in understanding the Internet banking acceptance factors. The reasons of this are because the different factors employed that lead into conflicting results with respect to the relative importance of the factors that explain Internet banking adoption in the mentioned studies. Generally, there is still a room for the current study to explore Internet banking acceptance factor in Kota Kinabalu, Sabah. II. LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT The literature survey contains five sections. The first section reviews studies which have investigated the importance of the base construct notably perceived usefulness in affecting the customers' decision to use online banking as offered by banking institutions in Kota Kinabalu, Northern Borneo, Malaysia. …