cost of keeping branch banking. This notion was also confirmed in a study conducted by Jasimuddin (2004) who investigated the role of E-banking in Saudi Arabia. Jasimuddin found that the majority of Saudi Arabia banks had taken advantage of internet technology to establish web sites but few offered E-banking services. He suggested that if the Saudi Arabian banking industry wished to be successful in the global economy it would need to integrate internet technology into its banking strategy. Despite the fact that internet technology acceptance is growing worldwide, banks in are yet to adopt-fully internet technology. This study aims to extend the existing adoption models and to propose an integrated and conceptual framework of factors which influence adoption of E-banking behavior. To accomplish this, we start with critical understanding of adoption of E-banking behavior and factors that could drive or inhibit wider adoption and use of E-banking. We then examine the roles of institutions in the E-banking adoption process and how effectively they can play a role in expending the adoption of E-banking. Finally we develop theoretical model by integrating theories of rationalistic goal mental behaviors of firms and institutional theories in order to better explain technology adoption in Tanzania. 1.3 Statement of the problem The research problem addressed in this study is that despite an increase in number of banks; customers and awareness and knowing the benefits and the fact that acceptance is growing worldwide, banks in Tanzania are yet to fully adopt
Exhibit 2: IS Adoption Studies on T-O-E Framework Authors Types of IS Studied Construct used in TOE Framework Technology Organization Environment Zhu & Kraemer (2005) E- Business Adoption Technology Yes Competence Yes Size Yes International Yes Xu (2004) Internet Adoption Financial Commitment Yes Competitive Pressure Regulatory Support Yes Technology Competence Yes Firm Size Yes Global Scope Yes Lin (2008) IS Adoption Enterprise Integration Competition Yes Integration Yes Regulatory Environment Explicitness of Technology Yes Accumulation of Technology Yes Organizational Encouragement Yes Lina & Lin (2008) E- business Diffusion Quality of Human Resources Yes Environmental Uncertainty Yes Government Support Yes IS Infrastructure Yes IS Expertise Yes Organization Compatibility Yes Expected Benefit of E-business Yes Competitive Pressure Trading Partner Readiness Yes 2.7.3 The Technology Acceptance Model Technology Adoption (Davis, 1985, 1989) has been the foundation of many technology adoption and diffusion research and it is rooted in the Theory of
readiness The research wanted to study ICT infrastructure which includes Telecommunication network, internet connectivity, Technological environment. Both electronic and telecommunication act as a barrier to sustain growth of adoption E-banking the researcher found that table 4.35 below shows that 2 respondents equivalent to 10% responded strongly disagreed, 3 respondents equivalent to 15% responded disagree, 5 respondents equivalent to 25% responded neutral while 6 respondents equivalent to 30% responded agree and 4 respondents equivalent to 20% responded strongly agreed. Also under table no. 4.35 above, statistical analysis shows that sample population mean of 3.35 and estimated population mean at confidence limit of 95% ranged between 3.254 and 3.416 showing that ICT readiness in inhibitor of full adoption of E-banking. 4.8.5 Perceived regulatory support. The study wanted to investigate legislative laws and regulatory issues how are tackled to avoid financial loss and to safeguard customers. The researcher found that table 4.35 below shows 2 respondents equivalent to 10% responded strongly disagree, 2 respondents equivalent to 10% responded disagree, 4 respondents equivalent to 20% responded neutral, while 6 respondents equivalent to 30% responded agreed and 6 respondents equivalent to 30% responded strongly agree. Also table no. 4.34 above, the statistical analysis shows that sample population mean 3.6 and estimated population mean at confidence limit of 95% ranged from 3.508 to 3.692 which mean perceived regulatory support is most inhibitor of full adoption of E-banking in Tanzania banking industry