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Emerald Article: Internet banking in Jordan: The unified theory of acceptance and use of technology (UTAUT) perspective E. AbuShanab, J.M. Pearson

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To cite this document: E. AbuShanab, J.M. Pearson, (2007),"Internet banking in Jordan: The unified theory of acceptance and use of technology (UTAUT) perspective", Journal of Systems and Information Technology, Vol. 9 Iss: 1 pp. 78 - 97 Permanent link to this document: Downloaded on: 03-08-2012 References: This document contains references to 35 other documents To copy this document: This document has been downloaded 1307 times since 2007. *

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JSIT 9,1

Internet banking in Jordan
The unified theory of acceptance and use of technology (UTAUT) perspective
E. AbuShanab
College of Information Technology and Computer Sciences, Yarmouk University, Yarmouk, Jordan and


J.M. Pearson
College of Business and Administration, Southern Illinois University, Carbondale, Illinois, USA
Purpose – The purpose of this research is to investigate the key determinants of the adoption of internet banking in Jordan. The paper also attempts to validate the appropriateness of the Unified Theory of Acceptance and Use of Technology (UTAUT) within the context of internet banking. Design/methodology/approach – A questionnaire was developed based on previous work in the areas of technology acceptance and internet banking. The questionnaire was distributed through three banks in Jordan to customers as they enter each bank’s main office. Multiple regressions were utilized to evaluate the collected data. Findings – The results of this study indicate that UTAUT provides a good foundation for future technology acceptance research. The three main predictors relevant to this study (performance expectancy, effort expectancy, and social influence) were significant and explained a significant amount of the variance in predicting a customer’s intention to adopt internet banking. The results also indicate that gender moderated the relationships between the three independent variables and the dependent variable (behavioral intention). Research limitations/implications – This study did not follow-up with respondents to determine if they actually adopted internet banking. Therefore, the results do not measure actual adoption. Originality/value – This study is one of the first to utilize the Unified Theory of Acceptance and Use of Technology (UTAUT) to the technology acceptance domain. It also provides a broader view of the technology acceptance decision in that the study took place in a non-English speaking culture (Arabic – Jordan). Keywords Internet, Banking, Jordan, Consumer behaviour Paper type Research paper

Journal of Systems and Information Technology Vol. 9 No. 1, 2007 pp. 78-97 q Emerald Group Publishing Limited 1328-7265 DOI 10.1108/13287260710817700

Introduction The World Wide Web (WWW) has changed the world since it started facilitating internet activities for both individuals and businesses. World Wide Web users have been increasing exponentially since its introduction in the early 1990s. Based on numbers published by Internet World Stats (2007), there are approximately 1,086 million internet users world wide. The estimated annual growth rate of internet users world wide is 202.9 per cent, with an even higher rate projected in the Middle East (490.1 per cent). Arab users of the WWW are projected to reached 19 million by the end of 2007. Although many business analysts overestimated the impact of internet technologies when they were first introduced, we now know that the presence of these technologies has and will continue to shape business practices for years to come. One industry that

given these advantages. 2001). there is a need to determine which factors influence customers to adopt internet banking. 2004). Literature review Technology acceptance The technology acceptance domain is a well researched area in the information systems area. the total number of customers performing one transaction per month has grown from 1 million to 16 million since 1996. Then. and internet banking (Tan and Teo. but the WWW has opened new opportunities for banks to introduce online banking services to their customers. 1991). future research and conclusions in the concluding section of the paper. This research has typically concentrated on “usage” or “intention to use” as the key dependent variable. contrary to many previous Internet banking in Jordan 79 . The same report indicated savings for banks of $5 per transaction and a return on investment of approximately 60 per cent for banks utilizing the WWW. computer usage (Compeau and Higgins. Previously. 1995). also suggested that behavioral intention significantly influenced use behavior with no moderation effect assumed between intention and use.. Since the success or failure of this technology will depend on the rate at which it is adopted. telemedicine applications (Chau and Hu. internet banking faces many obstacles associated with its adoption. e-mail usage (Szajna. gender. Research in this area has explored topics such as the adoption of electronic commerce (Grandon and Mykytyn. According to Orr (2001). The work proposed by Venkatesh et al. the research model is described and hypotheses presented. 1996). 365 days a year. This paper is organized as follows. was that. These relationships were suggested to be moderated by age. customers of financial institutions have not completely embraced internet banking. Several models and theories exist that try to predict an individual’s intention to adopt or not adopt a specific technology. Like other innovations. and the convenience of performing most banking transactions twenty-four hours a day. Customers also benefit from this new channel of delivery. software applications (Davis et al. One of the main conclusions of Venkatesh et al. The UTAUT hypothesized four main indicators as influencing behavioral intention and/or use behavior (see Figure 1). The WWW provides banks with a new channel in reaching their customers. customers could perform banking transactions only at bank’s premises. implications. 2000). The results and analysis of data are discussed next and finally. (2003) integrates previous technology acceptance models into a Unified Theory of Acceptance and Use of Technology (UTAUT). Unfortunately. 1989. limitations. Mathieson. experience and voluntariness.has witnessed a significant influence of WWW technology is the banking industry. For a comprehensive review of the proposed models/theories of technology acceptance. see Venkatesh et al. Venkatesh et al. (2003). The next section provides an overview of the areas of technology adoption and internet banking. Research in the area of technology acceptance generally has lacked the integrated view needed to understand the domain. Internet banking gives them the option to perform banking transactions and other related activities from home. or by ATM or telephone. This research hopes to add to the body of knowledge in the area of technology acceptance and specifically internet banking adoption by customers in developing countries.

Such results emphasize the importance of knowing what customers want and addressing those needs. internet banking in the Middle East is still in its early stages as internet usage is limited. The reasons cited for this lag include a lack of top management support. Sciglimpaglia and Ely (2002) reported a high risk of banks losing customers when offering services via the net. (2006) were among the first to test the validity of the UTAUT in a different setting. Chung and Paynter concluded that factors that are important to customers’ adoption of internet banking include age. response time.5 per cent if customers have an existing internet connection. security.JSIT 9. A study by Chung and Paynter (2002) reported that four factors that affect customer satisfaction in internet banking (security. and studies that deal with what banks offer and the channels utilized are rare. but that it should be tested in different contexts in order to further validate the proposed relationships. but they are slower than their conventional counterparts. Table I presents a list of the important advantages and disadvantages of internet banking to customers. Anderson et al. and perceiving the service as not being complicated. with emphasis on performance expectancy and voluntariness as the most salient drivers of acceptance. The study concluded that Islamic banks are progressing towards transactional internet banking. Anderson et al. being an existing phone customer. download time. These findings were similar to a study by Khalfan and Alshawaf (2004) that addressed e-commerce in the banking .1 80 Figure 1. concluded that UTAUT was a useful model in predicting user adoption behavior. They reported that 32. (2003). Internet banking in the Middle East According to Guru et al. They utilized the model in the context of business faculty at a large university and the adoption of Tablet PCs.9 per cent of all customers would be tempted to switch banks if they discovered a better rate. and privacy issues. education. self-efficacy and anxiety did not influence behavioral intention directly and suggested these may be antecedents for one of the independent variables in the UTAUT model. Unified theory of acceptance and use of technology (UTAUT) studies. Internet banking The level of service offered by banks varies. Their findings moderately supported the relationships proposed by UTAUT as predictors of behavioral intention. and this percentage would increase to 40. and transactions free of technical problems).

like any other developing country. Jordan.. Awamleh et al. we are not investigating actual usage. Al Sukkar and Hasan found support for the basic structure of TAM. 2002. The second objective of this study is to develop and validate an Arabic instrument that tests the UTAUT in the context of internet banking. consumer specific constructs and service provider specific constructs) when this model is utilized in different countries. Al Sukkar and Hasan (2005) utilized the technology acceptance model (TAM) as a foundation to study intention to adopt internet banking. like mailing and transportation to the bank Availability of the web Ease of access Convenience Efficiency of operations Profitability for the bank Retain customers Disadvantages Extra cost of systems and connection Extra cost or monthly charge. Objectives of this research In this study. is witnessing a rapid movement towards internet banking. The first objective of this work was to determine the validity of the UTAUT as proposed by Venkatesh et al.. gender. and online service quality. The results indicated that major Jordanian banks have introduced bank services primarily through informational website facilities. we dropped perceived facilitating conditions in the replication process. but suggested that it may be necessary to include other variables (i. trust. . Figure 2 indicates the relationships that were tested in this study. Other factors that were less significant were power conflict in deciding to adopt internet banking and the general lack of investment in e-commerce applications. In another study related specifically to internet banking and Jordan. One of the few studies that has dealt with internet banking in Jordan was a survey of the major banks in Jordan with respect to which service phase each bank was at and the type of services provided (Awamleh et al. Only two banks out of the thirteen banks surveyed maintained a transactional website. Based on that. bank websites were visited during July 2006 and it was found that the number of banks offering transactional internet banking had increased significantly. (2003) as it relates to intention to adopt. They extended this model to include measures on culture. and social influence) proposed by the UTAUT and their relationship to behavioral intention and three of the four moderating variables (age. For this study. we are not testing the relationship between facilitating conditions and user behavior as we are looking specifically at intention to adopt internet banking. 2003.sector in Oman (a survey aimed at IS executive and managers). Thus. the study tested the three independent variables (performance expectancy. effort expectancy. or bill paying charge Identity theft Privacy policy problems and ambiguity Table I. Part of the processing of validating and demonstrating the robustness of a proposed theory/model is testing it Internet banking in Jordan 81 Advantages Reduced cost of transactions. and experience).e. Advantages and disadvantages of Internet banking Sources: Adapted from: Consumer Report. 2003).

and MPCU (Davis. we propose the following hypothesis: H1. the UTAUT summed or aggregated all job/performance related constructs. it is expected that PE will have a significant and positive relationship with behavioral intention to use internet banking in Jordan. In composing performance expectancy. Thompson et al. the same is the case of relative advantage as proposed in the Innovation Diffusion Theory (IDT) (Moore and Benbasat. 1989. Davis et al. The construct was aggregated in the UTAUT from perceived ease of use and complexity. Davis et al. 1989.JSIT 9. and relative advantage are important for individuals when they decide on using/adopting a technology.. TAM2. 1995). Decomposed Theory of Planned Behavior (DTPB) and Motivational Model (MM) (Davis. The development of an Arabic instrument that facilitates this process in Islamic countries is a valuable contribution to the validation process that UTAUT (and all instruments/models/theories) should go through. it is expected there will be a . 1995a. Therefore. 1991).. Research hypotheses Previous research has indicated that the relationship between performance expectancy (PE) and behavioral intention is a strong predictor of technology acceptance. Thus. Moore and Benbasat. Usefulness (or extrinsic motivation in the motivational model) was a significant predictor of intention in most of the research related to TAM. IDT. Customers with high performance expectancy will have high intention to use internet banking. Aspects like usefulness. Taylor and Todd. 1991). Research conducted utilizing the TAM model has provided contradictory outcomes. 1989. The relationship between effort expectancy (EE) and behavioral intention is frequently debated because of the effect of performance expectancy on behavioral intention. 1989. when reviewing the research utilizing PEOU and complexity in studies utilizing the TAM.. however. Based on the findings of these previous studies. 1995b). 1991)..1 82 Figure 2. job-fit in the Model of PC Utilization (MPCU) (Thompson et al. we concluded that a positive relationship between perceived ease of use and intention is expected. Components of UTAUT tested in this study within different contexts. and outcome expectations in the Social Cognitive Theory (SCT) (Compeau and Higgins. job fit. 1991.

we dropped voluntariness from the set of moderators and thus only three moderators were used to replicate the UTAUT. Customers with high effort expectancy will have high intention to use internet banking. The Arabic version was then resubmitted to a second certified translation office and two other Internet banking in Jordan 83 . Gender will significantly moderate the relationships between (PE. H4c. (2003). H4b. Theory of Planned Behavior. social influence/factors.. Venkatesh et al. Research methods The survey used in this study consisted of three sections: first. Based on the review of the literature. These variables have been shown to moderate the intention to adopt new technologies in several studies (Agarwal et al. EE and SI) and behavioral intention in the UTAUT. 2000. The construct was composed in the UTAUT from subjective norms (SN). 2004) Based on the nature of this study (internet banking and its focus on intention to adopt). The third part of the instrument solicited demographic information from each respondent about age. 2002. The items used for each construct and their sources are provided in Table II. and Decomposed Theory of Planned Behavior) and the results have been debated with respect to the importance of this construct in predicting behavioral intention. Translation process The instrument (the English version) was submitted to a certified translation office in Jordan. At the same time. Pearson et al. age. After translation. The following hypotheses are related to this effect: H4a. The items used in this study were modified from the items utilized by Venkatesh et al. The UTAUT hypothesized that four factors would moderate the relationships depicted in their model. it is expected that social influence will positively influence behavioral intention in the context of internet banking in Jordan. 2003. and image. Al-Gahtani. Experience will significantly moderate the relationships between (EE and SI) and behavioral intention in the UTAUT. education. EE and SI) and behavioral intention in the UTAUT. gender. Age will significantly moderate the relationships between (PE. the Arabic version was reviewed for differences between the translations (differences were minor). Customers perceiving high social influence from significant others will have high intention to use internet banking. the same copy was reviewed and translated by two Arab graduate students residing in the USA.. a description of internet banking and the services provided by Jordanian banks. The moderators utilized were gender. Second.positive relationship between effort expectancy and behavioral intention related to internet banking in Jordan. Social influence has been explored in more than one model (Theory of Reasoned Action. voluntariness and experience. H3. 15 items were used to measure the variables tested in this study.. H2. etc.

I expect internet banking will be useful in my life 2. Zarqa and Russaifa). The Jordan Islamic Bank. Using internet banking will increase my productivity 4. I expect internet banking to be easy to use 4. The purpose of using three banks and three cities is to guard/reinforce the external validity of the study. I expect it would be easy for me to become skillful at using internet banking. The Arabic survey was pilot tested using Arab students residing in the USA. the two English versions (the initial and the back-translated) were reviewed for consistency. Items utilized for TAM constructs Notes: UTAUT ¼ Unified Technology Acceptance and Usage Theory by Venkatesh et al. 1976). It was assumed that no differences exist between the three banks customers and the customers residing in the three cities. The institutions chosen for this study were leading banks in the Jordanian banking sector: The Housing Bank. People who influence my behavior thing that I should use internet banking 2. (2003). The sampling process took place at the banks’ branches in three major cities in Jordan (Amman.1 Behavioral intention 1. and The Arab Bank. Senior management at the bank has been very helpful in the use of internet banking 4. The convenience of the pilot sample is important at this stage as the purpose of the pilot testing is the readability of the instrument and the logical flow of the questions. which suggested the translation of the instrument was acceptable. Finally. Learning to use internet banking will be easy for me Social influence 1. The pilot survey included a “your comments” section to collect opinions of the respondents before using the survey. . I expect my interaction with internet banking will be clear and understandable 2. People who are important to me think that I should use internet banking 3. I predict that I would use internet banking in the next few months 3. Using internet banking will enable me to accomplish transaction more quickly 3. All items measured on a seven-point Likert scale: (1) Strongly disagree to (7) Strongly agree graduate students to back translate the Arabic version to the English language (Brislin. The versions contained non-significant differences.JSIT 9. Data collection The population of interest in this study is Jordanian bank customers. 3. the bank has supported the use of internet banking UTAUT UTAUT UTAUT UTAUT UTAUT UTAUT UTAUT UTAUT UTAUT UTAUT UTAUT UTAUT UTAUT UTAUT UTAUT 84 Table II. In general. Using internet banking will increase my chances of getting a raise Effort expectancy 1. I intend to use internet banking in the next few months 2. I plan to internet banking in the next few months Performance expectancy 1. The results of this stage indicated that the sequencing of the instrument was appropriate and did not include mistakes or confusing items.

Cook’s D. and the standardized residuals. For power calculations and to detect significant differences in R 2 with a power level of 0. Table III provides the demographics of the sample used for model validation (non-internet banking customers).6 13.1 57. 1998). leverage.7 Missing 0 Total 523 Internet banking in Jordan 85 0 523 0 523 0 523 Table III. The first step performed on the data was to check the data visually to detect any missing data. The final sample collected was 940 cases.3 32. Factor analysis The purpose of using factor analysis in this study was to confirm item loadings and to check the reliability of the measures used.3 60. Preliminary regression analysis was conducted using the mean of the items representing each variable for each case.4 1.0 28. The total number of independent variables in this study was three. (1998) recommends a ratio of 1-to-10 Completed Bank Jordan Islamic Bank Arab Bank Housing Bank Gender Male Female Age Less than 30 30-40 More than 40 Education High school and less Bachelor Graduate Use of Internet banking Used Did not 204 148 171 334 189 301 154 68 156 296 71 346 523 % 39. Based on the recommendations of Hair et al. The tests included Mahalanobis distance. regardless of the reliability of the instrument and regression model accuracy. (1998) the sample size should be 15-20 observations per variable for generalizability purposes. Inspection of these measures resulted in deleting nine additional cases from the file (n ¼ 869). The necessary sample size was estimated based on the number of independent variables.0 29.The study used a systematic random sampling (taken on intervals) of the customers entering the bank for a two week period of time.7 63. the sample size should be greater than 100.8 56. Demographics of non-Internet banking customers 0 869 . The purpose of the preliminary multiple regression test(s) was to check for outliers and influential cases only. The data contained 62 cases that were missing more than two responses..9 36.6 39. Those cases were deleted.8 (recommended by Hair et al.6 29. The total number of usable responses after the visual inspection was 878 cases. Cases which exceeded the limits on more than one measure were deleted. Hair et al. The results of the analysis were used to develop a set of summated measures representing the four variables (three independent and one dependent) used in this study. standardized DFBeta.

Values that have been used in the literature as acceptable Cronbach’s alpha range from 0. The cumulative variance explained was 75. based on the research model and literature review. One aspect of a confirmatory factor analysis is the ability to limit the number of factors to be extracted. Behavioral intention (BI).371 Cumulative % 47. performance expectancy (PE). Cronbach’s alpha was used as a measure of the reliability of the scales.026 9. This indicates that correlations were adequate to conduct factor analysis.749 10.462 1.745 8.5.2 and 0. an oblique rotation was utilized for factor analyzing the data.4 (Field.520 75.316 (adjusted R 2 ¼ 0:311). it was necessary to split the data set into adopters (n ¼ 346) and non-adopters (n ¼ 523) of internet banking.5). Table IV summarizes the explained variance of the extracted factors.1. 783:7. This was done through the inspection of the component correlation matrix. After running the initial factor analysis.749 57. while the diagonal correlations were all more than 0. EE and SI) with an R 2 value of 0.775 67. 0.001.892 Table IV. This indicates that factor analysis was an appropriate technique for reducing the number of items used in this study. This part of the analysis utilized the non-adopters as this study investigated the intention to utilize internet banking. Testing the UTAUT In order to test the validity of the proposed UTAUT relationships. The Kaiser-Meyer-Olkin measure of sampling adequacy was used to check for excessive correlations with a value equal to 0. Table V shows the pattern matrix and the final factor loadings. The matrix identified a significant portion of the correlations between the extracted factors as significant and between 0. The reliability measures are listed at the bottom of Table V.256 Initial eigenvalues % of variance 47. This suggests the existence of small correlations between variables.JSIT 9. Factors extracted represented all the variables in the research model. with a minimum of 1-to-5. Based on these findings.9466 (recommended value of KMO is greater than 0. Component 1 2 3 4 Total 7. The analysis indicated significant results for all three variables (PE. we checked the suitability of the rotation method. four factors were extracted. Highly correlated factors are a concern. Total variance explained .6 and above. and low correlations indicate that an orthogonal rotation would be more appropriate than oblique. 2000).504 1.162 1. The method used in the analysis was R-type factor analysis using an oblique rotation (oblimin). p . Finally. In this study.1 86 between the items to be factored and the number of cases used. Preliminary checks on the results indicated the overall suitability of factor analysis based on Bartlett’s test of Sphericity with a x1275 ¼ 29. Analysis was conducted on 15 items and the ratio of items to cases was 1-to-58. a substantial part of the off-diagonal correlations in the anti-image matrix were less than 0. social influence (SE) and effort expectancy (EE) all loaded as expected on unique factors with significant loadings.9 per cent.

this study contrasted users vs.146 0.227 0.190 0. Unstandardized coefficients B Standard error Constant PE EE SI 2 0.166 0.136 0. The regression model includes the independent variables.222 t-test 2 0.041 Significance 0.212 0.161 0.025 0.167 0.522 ¼ 76:84. In our case. When testing for the moderation effect of experience.138 0.899 Internet banking in Jordan 87 Notes: Extraction method: Principal Component Analysis.254 0.245 0.171 0. Performance expectancy was more important in predicting behavioral intention than the other two variables (based on the standardized betas).824 0.035 0.827 0.449 3.781 0.652 7.329 0. Rotated component matrix and reliability measures with an F 3.175 0.825 0. and the multiplication of the dummy variable by the independent variables.916 2 0.256 0. 0.855 0.235 0.875 3 0.158 0.040 Standardized coefficients Beta 0. where K is the number of categories measuring that variable. Dummy coding is a simple technique that represents the categorical variable with a set of K 2 1 factors. Interaction effects (or moderation effects) were estimated using an additional term in the regression model that is computed through the multiplication of the independent variable and the moderator.838 4 0.205 0.228 0.748 0.308 0.209 0. p .138 0. Testing the UTAUT coefficients .216 0.875 0.228 0.102 5.219 0.515 0.254 0.040 0.193 0.217 0. gender and experience on the independent variables. Table VI provides the output of the analysis.193 0. Researchers recommend using dummy coding for categorical variables in the regression model.215 0.211 0.201 0.198 0.001.811 0.854 0.230 0.916 0.829 0.000 0.215 0.184 0. Rotation method: Oblimin with Kaiser Normalization Table V. Testing the interaction effects in the UTAUT.758 0.139 0.702 0.799 0.302 0.000 0.740 0.194 0.1 BI 1 BI 2 BI 3 PE 1 PE 2 PE 3 PE 4 EE 1 EE 2 EE 3 EE 4 SI 1 SI 2 SI 3 SI 4 Cronbach’s 0.192 0.167 0.187 0.130 0.207 0.160 0.000 Note: Dependent variable: Behavioral intention Table VI. the categorical moderator (or dummy variable(s)). we are measuring the moderation effect of age.181 0.183 0.259 0.044 0. The analysis used only non-users for the regression of gender and age.597 0.749 0.

In the first block. When testing the effect of gender as a moderator with performance expectancy. The independent variables were multiplied by the two dummy variables. the ANOVA table.453 ( p . Tables X.449 ( p . 0. Note that when the moderator included two dummy variables. and the coefficient table. age did not significantly moderate the relationship between social influence and behavioral intention.487 and 0.JSIT 9.05 level. which resulted in six interaction terms in the regression model. and females had stronger effect in the case of social influence and effort expectancy. Finally. VIII and IX summarizes the results when moderated by gender. SI. Experience effect.166 ( p . but not moderated with experience. Gender effect.05 for both). The results indicated that the effect was stronger for older customers in the case of performance expectancy. the ANOVA table.01) and 0. Contrary to what was proposed by Venkatesh et al. Experience was a significant moderator in the relationship between social influence and behavioral intention. XIV and XV provide the results when using experience as a moderator. the interaction effects were the result of multiplying the two dummy variables by the predictor variables (resulting in two interaction parts in the model). the results indicated significant results for all interaction terms at the 0. 0. . (2003). which included the multiplication of the moderator by the independent variables. Gender was coded with males as the reference category (control category). Performance expectancy and effort expectancy were significantly moderated by gender with a beta value of 2 0. The moderation effect was stronger for non-users in the case of social influence. social influence was moderated by gender with a beta value of 0. Tables XIII. The relationship between performance expectancy and behavioral intention was moderated by gender and age. Experience failed to moderate the relationships between performance expectancy. The relationship between effort expectancy and behavioral intention was moderated by gender and age. Results indicated that males had stronger effect in the case of performance expectancy. the ANOVA table and the coefficient table. the independent variables were entered into the model (PE. thus utilizing the full data set to measure the variation of usage (experience). The results include the model summary. The beta values were 2 0.397 for performance expectancy and effort expectancy respectively ( p .1 88 non-users. 0. Tables VII. Social influence interaction terms were not significant in predicting behavioral intention when moderated by age. Finally. effort expectancy and behavioral intention. The case of age is slightly different than gender as there were three categories which required two dummy variables. which includes the model summary. and the coefficient table. XI and XII summarize the results of the interaction model using age as a moderator. The table includes the model summary. but not by age (see Table XVI). Age effect. social influence. but not moderated by experience. Tests were conducted using the block method. and effort expectancy as predictors. 0. SE and the moderator).01) respectively.05). Results indicated significant interaction terms for both performance expectancy and effort expectancy when moderated by age. The previous results supported the finding of the UTAUT with respect to the significance of the independent variables in predicting behavioral intention. The second block included the interaction variable. the relationship between social influence and behavioral intention was moderated by gender and experience. and stronger for younger customers in the case of effort expectancy.

Female. PE. EE.626 0.014 209.640 Notes: Model 1 – Predictors: (constant). Female. PE.000 0. Model 2 – Predictors: (constant). Female *PE. EE.26 4 3 F change 0.623 0. Dependent variable: Behavioral intention Internet banking in Jordan 89 Table VII. SI.626 0.998 0. Model summary of the interaction effect of gender .014 0.74 6. Female *SI. Female *EE.635 R2 Adjusted R 2 R 2 change Change statistics df1 df2 501 498 Significant change F 0.000 1 2 0. SI.Model Standard error of the estimate 1.

170 3.449 0.217 21. Davis (1989) in TAM .718 14.254 1.000 Notes: Model 1 – Predictors: (constant).346 0.7 126.091 0. (2003) in the UTAUT.012 F change 211.0 1376.321 1. Middle.276 1.064 Standardized coefficient Beta 0.JSIT 9.102 0.004 Table X.254 0. Young *PE. Coefficient table of the interaction effect of gender Note: Dependent variable: Behavioral intention Change statistics Model 1 2 R2 0. Model 2 – Predictors: (constant).000 0.297 0.280 13. Female. SI. Female.048 2 Table IX.379 0.166 t 0.000 0.040 0.681 Standard error of the estimate 0.7 df 4 501 505 7 498 505 Mean square 215.730 20.042 0.996 F 209.394 0.440 0. Female *SI.000 0. Female *EE. Female *PE.000 0.637 6.6 880.032 0.055 0. Young.961 0.603 2 0. Model 2 – (constant). Middle *EE .074 0.052 0.555 2 0.7 1376.982 Significance 0.002 0.3 Significance 0. Venkatesh and Davis (2000) in TAM2 and Model 1 2 Table VIII.314 2 3. EE. Young *EE. SI. Middle *SI. PE.215 0. EE. Customers with high performance expectancy had high intentions to use internet banking.881 4.2 df1 5 6 df2 508 502 Significant change F 0. PE.672 0.001 0.169 2 0.606 0. Model summary of the interaction effect of age Notes: Model 1 – (constant).170 21. Young *SI.676 0.9 514.169 2 0.059 0.000 0.094 0.500 0.085 0.046 0.676 0. Dependent variable: Behavioral intention Model 1 Constant PE EE SI Female Constant PE EE SI Female Female * PE Female * EE Female * SI Unstandardized coefficient Beta 0.057 0.453 0.201 0.269 0.898 20.000 0.7 496.949 R 2 change 0.000 0. Middle. Such a result supports the work of Venkatesh et al.1 90 Discussion Performance expectancy ( behavioral intention Performance expectancy accounted for the largest unique contribution in explaining the variance in behavioral intention.027 125.155 0.000 0. ANOVA table of the interaction of effect of gender Regression Residual Total Regression Residual Total Sum of squares 861.847 14.270 2 4. SI.127 Standard error 0.215 2 0. Middle *PE. PE.325 0.687 Adjusted R 2 0.040 0.473 0. SI. PE. Young. EE.5 1.5 3. EE.8 0.

Nonusers. PE.111 0.000 0.270 5. Model 2 – (constant).517 0. Middle.6 993.158 2 0.487 0.008 0.030 0.445 0.017 2 0. Middle *SI.143 0.891 1.560 2 1. The results of this study also supports the finding of the UTAUT with respect to the moderation effect of gender.043 0.842 8.253 2.032 2 0. Model summary of the interaction effect of experience Notes: Model 1 – (constant). SI.162 2 2.635 2 0.628 2 0. Middle.068 0.265 0. Young *SI. Young *PE. SI.036 Standard error 0.409 2 6.074 0.005 0.5 100.8 1445.133 0.827 2 2.3 0.960 0.040 0.010 0.144 2 0.223 0.000 0.062 2 0. they can manifest their intentions based on their usefulness.131 0. Coefficient table of the interaction effect of age Change statistics Model 1 2 R2 0. Nonusers.633 0. EE.089 0.316 2 0.063 2 2.598 2.941 0.4 Significance 0.097 0. ANOVA table of the interaction of effect of age Model 1 Constant PE EE SI Young Middle Constant PE EE SI Young Middle Young * PE Young * EE Young * SI Middle * PE Middle * EE Middle * SI Unstandardized coefficient Beta 1. Young.208 0.000 0.145 0.010 F change 335. Model 2 – (constant). EE. Middle *PE.737 2 Table XII.051 t-value 4.000 0.139 0.405 2 16.886 0.053 1.622 Standard error of the estimate 1.122 0.597 0.001 0.614 0.011 0. PE.615 0. PE. Nonusers *SI.1 df1 4 3 df2 839 836 Significant change F 0.110 0.6 df 5 508 513 11 502 513 Mean square 195.019 2 0. Tan and Teo.107 Standardized coefficient Beta 0.6 7. 2000). Middle *EE Table XI.047 3.045 R 2 change 0.016 0.601 0.711 2 4.157 2 0.000 Internet banking in Jordan 91 Notes: Model 1 – (constant).900 F 211.923 90.251 0. 1996.8 451. PE.other replications of those models (Szajna. Young *EE.000 Table XIII.151 2 0.007 0.756 2 0.000 0. Model 1 2 Regression Residual Total Regression Residual Total Sum of squares 976.1 1445.955 2 1.615 0.041 0. SI.3 0.283 0. EE.625 Adjusted R 2 0. Nonusers *EE .485 0.104 0.000 0.006 0.097 0.050 0.5 469.779 2 0.243 0.000 0.553 15.109 0.336 Significance 0. Young. Nonusers *PE.154 0.000 0. As males in Jordan are closer to decision making positions and have more control in the society.057 1. EE.478 0.001 0.397 0. SI.

190 0. Nonusers.445 15.024 0.611 199.000 0.JSIT 9.043 0.163 0.000 0.945 9.037 0.000 0.639 2 17.000 0.715 1.773 0. Coefficient table of the interaction effect of experience Moderator Gender Age Experience Table XVI.295 0.456 Significance 0. EE.123 0. SI.026 0. PE.187 3.515 0.076 0. ANOVA table of the interaction of effect of experience 2 Notes: Model 1 – (constant).1 2435.198 2 1.306 0.000 0.081 0.192 2 0. One reason might be the 92 Model 1 Regression Residual Total Regression Residual Total Sum of squares 1498. not on all relationships.043 2 0.037 0.558 0.116 217.143 0.120 0.527 2 0.039 0. The result may indicate an inverse influence compared to the perception that younger customers will accept the technology more easily.1 1521. This result was inconsistent with the UTAUT findings as their findings supported a higher influence for younger people.1 Age was another significant moderator that affected this relationship as the effect was stronger for older customers than younger ones.5 2435.443 0. EE.091 0. Nonusers. H4a supported H4b partially supporteda H4c partially supporteda Relationship PE(BI EE(BI SI( BI PE(BI EE(BI SI(BI PE(BI EE(BI SI(BI Result Effect was stronger Effect was stronger Effect was stronger Effect was stronger Effect was stronger Not supported Not supported Not supported Effect was stronger for for for for for males females females old customers young customers for non-users Note: Interaction effect exists.068 0.000 0.378 0. PE.054 Standardized coefficient Beta 0.000 Table XIV.216 0. or different direction a . Nonusers *PE. Nonusers *EE Model 1 Constant PE EE SI Nonusers Constant PE EE SI Nonusers Nonusers * PE Nonusers * EE Nonusers * SI Unstandardized coefficient Beta 0.000 2 Table XV.844 0.311 1.044 2 1.366 0.023 2 4.701 7.417 1.106 0.126 0.065 0.630 1.325 3.994 2 1.570 0.000 0. Interaction results (UTAUT replication) Hypothesis No. SI.239 Standard error 0. Model 2 – (constant).1 df 4 839 843 7 836 843 Mean square 374.092 F 335.828 2 0.049 Significance 0.082 0. Nonusers *SI.067 0.000 0.9 913.844 1.664 0.342 t 4.288 4.5 936.000 0.000 0.

1989. Age was not a significant moderator of this relationship. Experience was not a significant moderator of this relationship as the ease of a system attenuates with experience and customers are more concerned by the usefulness and security of it (supports the result of Szajna. Social influence ( behavioral intention The results indicated a support of the UTAUT findings and other research (Venkatesh and Davis. Experience was a significant moderator in the replication of the UTAUT as non-users showed stronger effect than users (supports the UTAUT findings). Finally. Previous research supported this relationship based on the association between the ease of the system and the higher intentions to use it (Davis. Jordanians are influenced by others in their daily life. and thus banks’ efforts to advertise the benefits of internet banking can be amplified through the social influence on people. 2002). but supports the findings of Zinkhan et al. Riemenschneider et al. The result of this study can be explained as the effect tends to be stronger for people without previous experience as they depend more on the social influence of others. Venkatesh. Effort expectancy ( behavioral intention This relationship was supported. 1992 and Zinkhan et al.. older people generally have higher income so they can use internet banking for their financial needs. This was not tested by the UTAUT. Factors that affect customers’ acceptance of internet banking were explored and introduced in an integrated and summarized structure. but age did not as younger customers had stronger effect (consistent with Harrison and Rainer. gender and age significantly moderated the relationship. experience moderated the relationship between performance expectancy and behavioral intention. 2000). Gender moderated this relationship as the effect was stronger for females than males (consistent with the UTAUT).. 1987). which fails to support the UTAUT findings that older people had stronger influence than younger people. 1996).. and also when using internet banking. bank customers were influenced mostly by their perceptions about the performance of internet banking and the benefits expected from it. Implications for practice Internet banking in Jordan is a recent technology that emerged from the needs of businesses to better serve their customers and reduce their operational costs. (1987).confidence level in the system (as a new system) and the economical stability in Jordan. 2002). Customers with high social influence had high intentions to use internet banking. 1996). Providing incentives and promotions for customers’ referrals can be a strong technique to Internet banking in Jordan 93 . Gender supported the findings of the UTAUT. and at the same time. This result contradicts the TAM2 findings (Venkatesh and Davis. Szajna. As a highly social society. When replicating the UTAUT. In this study. 2000. Users had stronger influence than non-users which indicates the accumulating benefits of internet banking. This implies that advertising for internet banking in Jordan should emphasize the benefits and advantages of the systems to customers and how it can improve performance and productivity of users. Previous research indicated a direct relationship between age and perceptions related to technology (Venkatesh et al. 2000.

An important part of developing solid theoretical foundations within a discipline is to have proposed theories or models undergo a thorough validation process. Also. Practitioners need to put more emphasis on customers’ differences that exist between different categories of bank customers (related to gender. By validating the relationships that have been suggested by Venkatesh et al. More research is encouraged to validate the instrument and refine it (maybe add more items) to fit with Arabic/Mediterranean culture. We believe that this study is a first step in this validation process. One limitation of this study is the method by which respondents were solicited. Such result show the cultural difference as Jordanians start their professional life (earning money) later than their American counterparts. (2003). As an example. this study showed older customers had higher intentions to use internet banking with respect to the effect of performance expectancy. which contradicts with the UTAUT findings. This factor is closely related to internet banking as previously supported by the literature (research related to e-commerce and the internet). The process of translating and validating an instrument is a long and often complex process.. needs and personal differences between customers. although efforts were taken to strengthen . our understanding of the relationships and interactions that influence the intention to adopt internet banking (and technology adoption) still needs further exploration. Internet banking is a service that requires people using it to trust the system when transacting because of the financial risks associated. This cultural difference requires banks to design systems that take into consideration the values. another factor that is important to practitioners is the trust level invested in internet banking by customers. However. we have provided support for the validity of this model. and experience). Using behavioral intention is rich.1 94 influence customers to use internet banking. Future studies should investigate the appropriateness and robustness of the UTAUT for different applications and within different cultures.JSIT 9. but does not replace exploring actual usage of a system. age. behavioral intention is the closest construct that can be used as a surrogate for internet banking usage. Limitations of the study As stated in this study. Jordanians are willing to trust banks with their financial transactions and will continue to do that when a bank builds this trustworthy business image. To generalize the findings of this study. Banks need to emphasize the security levels imposed and the safe environment to influence customers’ levels of trusts so that customers use the system. more research is encouraged on other technologies in the Middle East and using an Arabic instrument. The UTAUT is a parsimonious model that integrates much of the previous work that has been done in the technology adoption domain. Future studies should also investigate the role that other constructs can have in explaining the two dependent variables proposed by UTAUT – intention and usage. Implications for research This study is one of the first to investigate the robustness of the model (UTAUT) proposed by Venkatesh et al. The demographical and cultural differences combined are of great importance in affecting users’ intentions to use internet banking. which suggests that future research should investigate the Arabic instrument and validate it in further implementation.

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M. F. Joachimsthaler. 3.. . “Individual differences and marketing decision support system usage and satisfaction”. (2003). Morris. and Davis. (1987). V. MIS Quarterly. Further reading Venkatesh. M.G. “Why don’t men ever stop to ask for directions? Gender. Vol. Or visit our web site for further details: www. and Morris. V. M. pp. G. (2002).. Corresponding author J. Decision Sciences. MIS Quarterly.G. Internet banking in Jordan 97 To purchase reprints of this article please e-mail: reprints@emeraldinsight. and their role in technology acceptance and usage behavior”. and Kinnear. pp.C. (2000). 208-14.Venkatesh. E. Pearson can be contacted at: jpearson@cba. 27 No. pp. 115-39. Vol. 24.B.D. 2. M. 24 No. 425-78. Davis. “User acceptance of information technology: toward a unified view”. Zinkhan. social influence.siu.. 33 No. and Morris. pp. Vol. G. Venkatesh. “User acceptance enablers in individual decision making about technology: toward an integrated model”. Vol.G.emeraldinsight. V.A. C. 1.M.. Journal of Marketing Research.

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