Title Page

FACTORS AFFECTING E-COMMERCE ADOPTION IN NIGERIA BANKS (A

CASE STUDY OF GUARANTY TRUST BANK PLC)

BY

AMAKA CALISTA OKONKWO

SMS/17/BFN/00265

BEING A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF

BANKING AND FINANCE, BAYERO UNIVERISTY, KANO IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
BACHELOR DEGREE (B.Sc) IN BANKING AND FINANCE

MAY, 2023

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 APPROVAL PAGE
This project entitles ‘‘Factor affecting E-Commerce adoption in Nigeria Banks (A case Study

of Guaranty Trust Bank PLC).’’ by Amaka Calista Okonkwo has been examined and approve

as meeting the requirement for the award of Bachelor of Science in Banking and Finance in

Bayero University Kano, and is approved for literary presentation and contribution knowledge.

___________________ ______________

DR. FARIDA MOHAMMED SHEHU Sign / Date

(Project Supervisor)

___________________ ______________

AHMED RUFAI YAHAYA Sign/Date

(Level Coordinator)

_____________________ ______________

DR. NURUDEEN ABBA ABDULLAHI Sign/Date

(Head of Department)

ii
 DEDICATION

This research work is dedicated to my Family whose love, encouragement and incessant

effort in seeing my happiness and success inspired me in all my undertaking.

iii
 DECLARATION

I hereby declare that this research work titled “ The Factor affecting E-Commerce adoption in
Nigeria Banks (A case Study of Guaranty Trust Bank PLC) ” is solely a by me under the guidance of
Dr. Farida Mohammed Shehu of the department of Banking and finance, Bayero University
Kano. Writers, whose works have been referred to in this project have been acknowledged, the
researcher is responsible for any error or omission with respect to the contents of this project.

________________ _______________

AMAKA CALISTA OKONKWO DATE

SMS/17/BFN/00265

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 ACKNOWLEDGEMENT

All praise is to the Almighty God, who all dignity, honour and adoration are due, the

omnipotent, the unique being, with perfect attributes and who has no equal.

With a heartfelt gratitude to Almighty God for his love, infinite mercy, provision

guidance, protection and indeed gift of life, may His mercy be upon me. His grace that kept

and sustains me throughout my academic pursuit and made it possible for me to undertake and

complete this research work.

I owe a particular debt to my able and dynamic project supervisor Dr. Farida

Mohammed Shehu for sharing her precious time with me and her useful contribution that has

enriched this study; her comments are so inspiring, I really enjoyed working with this great

scholar. I forever remain thankful for his wonderful guidance. Her contributions, constructive

corrections and criticisms were highly appreciated.

I also wish to acknowledge my level coordinator in the person of Ahmed Rufai Yahaya

and the entire Academic staff of Department of Banking and finance for the knowledge they

have imparted upon me in the course of undertaking my programme.

Similarly, my sincere gratitude goes to my loving parents Mr and Mrs Okonkwo whom

I love you.

I would like to appreciate my siblings. I remain ever indebted to my special Friend;

Miracle Chizitere Nwoke, who shown me care and great concern during struggle they are part

of me. May Almighty God bless you all.

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 TABLE OF CONTENT

Contents
Title Page........................................................................................................................................1
APPROVAL PAGE........................................................................................................................2
DEDICATION................................................................................................................................3
DECLARATION............................................................................................................................4
ACKNOWLEDGEMENT..............................................................................................................5
ABSTRACT....................................................................................................................................8
CHAPTER ONE.............................................................................................................................1
INTRODUCTION..........................................................................................................................1
1.1 BACKGROUND OF THE STUDY........................................................................................1
1.2 STATEMENT OF PROBLEM................................................................................................3
1.3 RESEARCH QUESTIONS......................................................................................................4
1.4 OBJECTIVES OF THE STUDY.............................................................................................5
1.5 RESEARCH HYPOTHESIS...................................................................................................5
1.6 SCOPE OF THE STUDY........................................................................................................6
1.7 SIGNIFICANCE OF THE STUDY.........................................................................................6
1.8 LIMITATIONS OF THE STUDY..........................................................................................7
2.0 DEFINITION OF KEY TERMS............................................................................................8
CHAPTER TWO..........................................................................................................................10
REVIEW OF RELATED LITERATURE THEORETICAL FRAMEWORK............................10
2.0 INTRODUCTION..................................................................................................................10
2.2 HISTORICAL BACKGROUND OF GUARANTY TRUST BANK NIGERIA PLC.........11
2.3 GROWTH OF E-COMMERCE.............................................................................................13
2.5 ADVANTAGES OF E-COMMERCE...................................................................................15
2.6 DISADVANTAGES OF E-COMMERCE............................................................................16
2.7 E-COMMERCE MYTHS......................................................................................................17
2.8 ROLES OF ELECTRONIC COMMERCE IN BANKS.......................................................19
2.9 TYPES OF E-COMMERCE..................................................................................................20
2.10 E-COMMERCE PRACTICES IN DEVELOPING COUNTRIES......................................22
2.13 Theoretical Framework.........................................................................................................29

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2.14. Empirical Review................................................................................................................31
CHAPTER THREE......................................................................................................................38
RESEARCH METHODOLOGY.................................................................................................38
3.1 INTRODUCTION..................................................................................................................38
3.2 RESEARCH DESIGN...........................................................................................................38
3.3 POPULATION AND SAMPLE SIZE...................................................................................38
3.4 SAMPLING TECHNIQUES.................................................................................................38
3.5 METHODS OF DATA COLLECTION................................................................................39
3.6 DATA ANALYSIS TECHNIQUES......................................................................................39
CHAPTER FOUR.........................................................................................................................40
DATA PRESENTATION AND ANALYSIS..............................................................................40
4.1 Introduction……....................................................................................................................40
4.2 Data Presentation...............................................................................................................40
4.3 Descriptive Statistics..............................................................................................................40
Table 4.1 Group statistics.............................................................................................................42
4.4 T-test of Mean Differences................................................................................................43
Discussion of Findings............................................................................................................47
CHAPTER FIVE..........................................................................................................................48
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS.........................48
5.1 Introduction………................................................................................................................48
5.2 Summary of Findings.............................................................................................................48
5.3 Conclusion………..................................................................................................................49
5.4 Recommendations..................................................................................................................50
REFERENCES............................................................................................................................51

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i
 ABSTRACT

This study focuses on “The factors affecting e-commerce adoption in Nigeria banks (A case
Study of Guaranty Trust Bank PLC).”There are three reasons for concentrating on this topic)
Limited research on e-commerce in developing countries like Nigeria with a population of 135
million is a potentially lucrative market for e-commerce services, and The banking sector has
been most successful with e-commerce in Nigeria. Since e-commerce is still a relatively new
concept in Nigeria despite, innovation diffusion theory was used as a foundation for the study.
Drawing from technological innovation literature, an integrated model of ecommerce adoption
in Nigerian banks was developed. Nine variables affecting the adoption of ecommerce were
identified. They are: top management support, organizational competency, IT capability,
perceived benefits, perceived compatibility, perceived complexity, supporting industries,
market, and government e-readiness. The commercial banks in Nigeria make up the population
of this research. Banks that use e-commerce were identified by examining GT-bank website;
after which managers and executives were approached and asked to participate in the research.
Data was collected by means of survey questionnaires. The rank of the factors affecting
adoption of ecommerce (in descending order of impacts) is: Perceived complexity, Perceived
benefits, Organizational competence, Perceived compatibility, Supporting industries e-
readiness, Management support, Market e-readiness, IT capability, and Government e-
readiness. The recommendation include improvement training of account professionals by way
of training would equally improve the outcome of accounting reporting in Nigeria.

vi
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 CHAPTER ONE
INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The business phenomenon that is called electronic commerce had an interesting history from

humble beginnings in the mid 1990’s. Electronic commerce grew rapidly until 2000 when a major

downturn occurred. Many people have seen new stories about the “dot- corn-boom”. In 2000 to

2003 period, many industry observers where writing obituaries for electronic commerce. Just as the

unreasonable expectations during the boom years, overly gloomy new reported colored perceptions

during this time.

E- commerce has been around in various forms since the late 1960’s, but since about 1993, new and

constantly evolving technologies have enabled companies to perform E- business functions better,

faster and more inexpensively than ever before. This result has been an explosion of e-commerce

activity. Beginning in 2003, with the general economy still in the doldrums, electronic commerce

began to show signs of new life. Companies that had survived the downturn were not only seeing

growth in sales again, but many of them were showing profits. Although, the rapid expansion and

high levels of investments of the boom years are not likely to be repeated (Gary P. Schneider,

2004).

Today, even traditional brick and mortar organizations must at least establish web presence if they

want to remain competitive and a strong business can be made that organizations that don’t enter

the e-commerce fray will eventually be left in the technological dust (Charles Trepper, 2000).

E-Commerce is any activity (commercial) that takes place between a business, its partners or its

customers through a combination of computing and communication technology which makes

product announcement easier and faster to deliver. E-Commerce can be defined as the integration of

communication, data management and security capabilities that allows organization to exchange

information on sales of goods and services. E-commerce is any business transaction that takes place

is digital processes over a network.

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E-Commerce however, is really much more than just exchanging products or services for money

over the Internet. It is an enabling technology that allows business to increase the accuracy and

efficiency of business transaction processing. E-Commerce is also a way for organizations to

exchange information with customers and vendors to the benefit of everyone involved. Eventually,

e-commerce will likely replace the movement of paper within and between organizations, as well as

between organizations and consumers (Rush. 1. 2003).

Electronic commerce and electronic Banking are two most important areas where applications of

biometrics have emerged. Advances in the techno logy used for electronic transaction have opened

these areas to biometrics. Applications include; Electronic Fund Transfer (EFT), Automated Teller

Machine (ATM), cheque cashing, credit and security, smart card security and online transaction

(Encyclopedia,2008). Electronic commerce has been moving very slowly, largely as a result of the

industry’s inability to adopt universal standards that would enable low cost business to business

connectivity. Development of standards has been bogged down largely because the leadership of

those organizations in the fore front of ecommerce has been infective at unifying the various

participants into a relatively cohesive industry group (Fred Sollish, 2002).

Electronic commerce is a subset of electronic business. Electronic commerce is the publishing,

selling and exchanging of goods and services over computer networks such as the internet through

which transactions or terms of sales are performed electronically. Contrary to popular belief, E-

commerce is not just on the web, it has been in existence and well in business to business

transactions before the web back in the 1970’s through electronic data interchanging (EDI) via

VAN’S value added networks (Mackey c, 2003). To many people, the term “electronic commerce”

means shopping on the part of the internet called World Wide Web (WWW). However, electronic

commerce also includes many other activities such as business trading with other businesses and

internal processes that companies use to support their buying, selling, hiring, planning and other

activities. Some people use the term e- business when they re talking about E-commerce in a

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broader sense. For example, IBM identifies electronic business as “the transformation of key

business process through the use of internet technologies”.

Advances in information and communication technologies and the emergence of the internet have

revolutionized business activities enabling new ways of conducting business are referred to as

electronic commerce. The rapid expansion of the Internet in the year 1990’s led to the explosive

growth in electronic commerce (Akbulut, 2002). Commerce, the negotiated exchange of goods and

services has been in tradition for thousands of years, but due to the invitation of internet, web

technologies and other electronic devices let to E-commerce.

E-commerce follows i.e. buyers and sellers exchange and transport goods from one place to

another, but in ecommerce, the exchange is facilitated by network computers. Buyers order goods

and services online, they track the status of their orders via electronic mail and in some cases; they

receive the goods they purchase directly over the Internet. Products ordered online are delivered by

traditional shipping method (Encarta Dictionaries, 2008).

E -commerce is growing at an incredible pace many organizations and individuals are looking to

the web as the future, definitive source for information, goods, services and communication. As the

amount of businesses transacted over the internet seem to double or triple each year; often

organizations- small and large, non- profit or for profit, privately and publicly held- are being

pushed to the web by both customer and competitors. In some cases, traditional brick and mortar

business are playing catch-up and entering the e- commerce arena late in the game. All indications

may find themselves either having to go online or to go out of business (Charles Trepper, 2000)

1.2 STATEMENT OF PROBLEM

Implementing successful E-commerce service is not as easy as most people might think. Many

obstacles exist and they all revolve around three major pieces of the electronic commerce puzzle-

money, technology and people. Hence, there is limited research on e-commerce in developing

countries particularly in Africa. Sometimes the cost of avoiding e-commerce is greater than the cost

3
of initiating it. Web technology is still developing. Despite the global reach of e-commerce, not all

country has taken advantage of ecommerce. There is a big gap in the internet and e-commerce

adoption between the developed and developing country, thus creating a digital divide.

Nigeria with a population of about l50 million people is a potentially lucrative market for e-

commerce services. Nigeria being one the few nations in the world blessed with abundant mineral

wealth, and entrepreneurial population and productive agricultural base. By virtue of size,

population location is well positioned to the economic activities in Africa. E-commerce is an

opportunity to use private sector to drive economic development.

The banking sector has been most successful with e-commerce in Nigeria. The main issues that

prevent developing countries from leveraging the interest of E-Commerce are lack of adequate

communication infrastructure, technical know-how and information processing about the economy

and the environment. The lack of adequate banking infrastructure is also considered as one of the

problems faced by developing countries in building economic solution which this study sought to

find out.

1.3 RESEARCH QUESTIONS

This research work attempt to provide answers to the following questions:

1. What is adoption rate of e-commerce in Nigerian Banks?

2. What factors drive the adoption of e-commerce in Nigerian Banks?

3. What impacts ha e-commerce taken on the performance of Nigerian Banks?

4. Can the role of e-commerce in Nigerian Banks be examined?

5. What are the problems of e-commerce application in Nigerian Banking Industry?

6. What recommendations can e-commerce apply to Nigerian Banking Industry?

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1.4 OBJECTIVES OF THE STUDY

The aim of this study is to carry out an in-depth investigation on the factor that influences

the adoption and implementation of e-commerce in developing countries with particular reference

to Nigeria banking industry.

In order to achieve this aim, the following objectives are hereby set:

1. To evaluate the adoption of e-commerce in Nigerian Banks.

2. To identify and explain the factors that drives or inhibits the adoption or use of e-commerce

in Nigerian banks

3. To appraise the impact of e-commerce on the performance of Nigerian banks.

4. To examine the roles of e-commerce in banks in Nigeria

5. To ascertain the problems of e-commerce application in Nigerian banking industry.

6. To make recommendations as to how e-commerce can be meaningfully applied in Nigerian

banking industry with a view to contribute to bank’s development and Nigeria economic

growth.

1.5 RESEARCH HYPOTHESIS

Hypothesis can be explained as the statement created by a researcher when they speculate upon the

outcome of a research. They are basically two (2) types of hypothesis, which are null, and

alternative hypothesis. The null hypothesis predicts the number of difference between comparison,

groups, or association among tested variables, while the alternative hypothesis predicts either a

simple difference or a difference in a particular direction. The two hypothesis will be presented as

Ho and Hi respectively and the two are considered in this project.

The following hypothesis where formulated and will be tested using available data from the

questionnaire. The hypothesis includes:

Ho: There is no effective e-commerce on the performance of Nigerian banks. Hi-there is

effective e-commerce on the performance of Nigerian banks.

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1.6 SCOPE OF THE STUDY

The study examines the factors affecting e-commerce adoption in Nigerian Banks. The study also

covers the meaning of e-commerce, ecommerce in Nigeria, types of e-commerce, benefits of e-

commerce, ecommerce myths and limitations of e-commerce.

Guaranty Trust Bank plc was used as case study and data was sourced from Bank’s annual report

for the past five years (2006 – 2015). Their websites were used to study the effectiveness,

functionalities and internet strategies of the Banks.

1.7 SIGNIFICANCE OF THE STUDY

Research indicates that e-commerce offers a promising and exciting way for organizations to meet

various challenges of an ever changing environment in these present days.

The research study will have the potential to assist Nigerian Government in implementing program

and policies to increase the adoption and diffusion of electronic commerce on the role of e-

commerce in achieving faster growth in Nigeria’s Banking Industry.

It generally provides new ways and opportunities for organizations to broaden their participation

into new national and international markets. The adoption of e-commerce are paraded with many

benefits which includes market changes, customer expansion, creation of wealth, job opportunities,

ability to be reached worldwide, system and organizational efficiencies to mention a few.

The study will be beneficial to students, lecturers, Nigerian Government, organizations in Nigeria,

Nigeria’s Banking Industry and the general public and also researchers who might want to embark

on similar study in future.

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1.8 LIMITATIONS OF THE STUDY

In the conduct of this research, certain limitations were encountered which include lukewarm

attitude on the part of the respondent as they view the researcher as an agent of other Banks,

Government, Tax officials or agents of EFFCC and ICPC due to the pending problems of Bank

reform in Nigeria. Improper filling of some questionnaires which invariably renders them useless.

Failure on the part of some respondent to return their filled questionnaires. Due to the hectic nature

of Bank’s job and the busy schedule of respondents, the researcher have to pay several visits to the

Bank before filled questionnaires can be obtained which invariably cost time and money. Fear of

espionage as respondents treats all vital information as “Top Secret”. Despite the above limitation,

due to human relationship of the researcher and know individuals of the Banks and their customers,

sufficient data was obtained which pave way for meaningful study. However, despite the above

limitations, the validity and reliability of this research project will still be very enduring.

1.9 ORGANISATION OF THE STUDY

This study is presented in five (5) chapters. These chapters are organized in a sequential manner

that will aid careful investigation and easy achievement of the objectives.

Chapter one is a preview of the background of the study and the problem(s) that necessitated the

research. This leads to the outline of the objectives, significant of the study, research questions

Operational definitions as well as limitation of study.

Chapter two presents the review of relevant works as it relates to the study. Also, examines the

conceptual framework of the information resource development in academic library.

Chapter three reveals the methods of data collection in relation to the research design, population

and sample with emphasis on the model specification, estimation, validation and reliability of

research instrument.

7
Chapter four presents and analyses the data and also the findings, dealing with the extent to which

information resource development in academic library and conversely the policy used by the library

and discussion of finding.

Chapter five summarizes major findings from the study, recommends tentative policy thrust and

also states suggested areas of further research.

2.0 DEFINITION OF KEY TERMS

 BIO-METRICS: it is a security device that uses an element of a person’s biological make-

up to confirm identification. These devices includes writing pads that detect the form and

pressure of a person writing a signature, eye scanners that read the pattern of blood vessels

in a person’s retina and palm scanners that read palm of a person’s hand. It is also the use of

measurement of human features or eyes in order to identify people.

 DIGITAL DIVIDE: it is the differentiated capabilities of entire social (regional) groups to

access and utilize electronic forms of knowledge, segregating the “haves” from then “have-

nots” in the information society.

 E-commerce- E-commerce (electronic commerce) is the buying and selling of goods and
services, or the transmitting of funds or data, over an electronic network, primarily the
internet. These business transactions occur either as business-to-business (B2B), business-
to-consumer (B2C), consumer-to-consumer or consumer-to-business.

 ELECTRONIC DATA INTERCHANGE (EDI): this is an older form of ecommerce,

originating in the late 1960’s that enables organizations to exchange information via dial-up

lines or dedicated leased lines.

 ELECTRONIC FUNDA TRANSFER (EFI): this is the electronic transfer of account

exchanged information over secure private communications networks.

 E-MAIL or ELECTRONIC MAIL: Mail messages, text, sound or video sent an electronic

network.

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 GTB- Guaranty Trust Bank

 HUB: This is device in a network that joins computer and network lines in a star

configuration.

 INFORMATION TECHNOLOGY: it is the automation of process controls and

information production using computers, software and auxiliary equipment such as ATM,

debit cards etc.

 INNOVATION: This is the introduction of new things, ideas, or ways of doing things.

 Internet banking: This is also be known as on-line banking, virtual banking and E-
Commerce. It is an electronic payment system that enables customer of a bank to conduct a
range of financial transactions through the financial institutions website.

 INTERNET: This is a group of interconnected networks. An international computer

network connecting other networks and computers.

 SUPPLY CHAIN: a group composed of the parties needed to bring a product or services

from inception to end use.

 VALUE-ADDED NETWORK (VAN): This is a network connection, usually supplied by

a third party that adds value to the hardware setup or transmission.

 VIRTUAL PRIVATE NE1WORK (VPN): This is a secured private network established

over the internet, using various methods of encryption (data scrambling).

 WORLD W1E WEB (WWW): This is the subset of internet computer that connects

computers and their contents in a specific ways, and that allows for easy sharing of data

using a standard interface.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURE THEORETICAL FRAMEWORK

2.0 INTRODUCTION

Internet usage in Nigeria is still relatively low compared to developed countries and e-commerce is

still in an elementary stage, not with standing there is growing awareness in the benefits and

opportunities offered by e-commerce amongst Nigerians.

These section is divided into

CONCEPTUAL FRAMEWORK

EMPIRICAL LITERATURE REVIEW

THEORETICAL FRAMEWORK

2.1 ONLINE BANKING

Moreover, the reduction in tariffs and further cuts expected telecommunication services will

become more affordable and essential to many Nigerians. The recent advances in the telecoms

market and the explosion in the number of subscribers demonstrate the potential market for

information and communication technology services generally in Nigeria, given Nigeria’s sizeable

population; it is a potentially lucrative market for electronic commerce services (Ndukwe, 2006).

Until 1998, Nigeria had only few dial-up e-mail providers and a few internet service providers

operating on slow links in the country present internet service providers provide online advertising

opportunities, internet banking security and VSAT (very small aperture terminal) services. The

Economist intelligence unit estimates that the number of internet users per 100 persons grew from

1.25% in 2004 to 1.82% in 2005. There is progress in the sector, as illustrated by cyber-cafes

springing up even in some more remote part of the country. Lagos alone has more than 1,000 cyber

cafes. Business appreciation of the value of online communication is growing rapidly. But with low

household disposable income and a restrictive infrastructure, it will still be a while before internet

penetration in homes reaches a significant level.

10
Online banking is a growing part of e-commerce which provides interactive services such as

assessing account summary information, paying bills and accessing other banking products and

services (Kellart-Courtney, 2005). October 18, 1995, security first network bank opened to the

public as work’s first internet bank (Cronin, 1998). Banking executives needed to find more cost

effective delivery channels to overcome limitations of labour intensive, high cost branch banking

browser based access offered a completely different delivery model for banking, one in which

customers could tap into their accounts to conduct transactions at any hour (Cronin, 1998). Online

banking provides the opportunity for bank customers to find out information or make a payment

when a visit to a branch is not convenient (McGraw Hill, 2002).

For the bank, it reduces the cost of processing each transaction and has the potential to enable the

bank to reduce the overhead of the branch network. While online banking can provide considerable

convenience for users who require out of branch banking facilities, the user is also vulnerable to

potential holes of virus attacks, unauthorized access, fraudulent transactions and identity theft

(Kellart-Courtney, 2005). Few managers have a clear vision of tomorrow’s banking environment.

Few institutions have strategic plans in place today that anticipate the future of online banking.

The challenge for the banking industry lies in creating the right incentives for customers to use PCs

regularly for banking. Financial institutions today have reason to worry that they do not offer online

banking services, affluent customers will look to competitors. In addition to wanting protect their

existing franchise, financial institution can look to online and related services to expand their

products offerings and win new business (Cronin, 1998).

2.2 HISTORICAL BACKGROUND OF GUARANTY TRUST BANK NIGERIA PLC.

Guaranty Trust Bank plc is a Nigerian funded bank. The bank was incorporated in July 1990 as a

private limited liability company wholly owned by Nigerians and Nigeria institutions. It was

licensed as a commercial bank in August 1990 and commenced operation in February 1991 with its

headquarters in Lagos, Nigeria. In September 1996, GT bank became a publicly quoted company.

11
As of February 28, 2007, GT bank operated approximately 102 branches in Nigeria with Asaba

branch inclusive, 5 branches in Gambia and 4 branches in Sierra-leone. The improvement of the

bank cannot be over-emphasized as a result of the rapid increasing number of its branches all over

Nigeria.

Guaranty Trust Bank plc provides various commercial banking services. It services includes, retail

banking loans and advances, equipment leasing, corporate financial money market activities and

foreign exchange operations. It also offer internet banking services which includes GTB Western

Union money transfer, GTB Auto pay, GTB electronic notification services, GTB Automated

interbank services, GTB Book-fly-pay-easy, GTB Gens, GTB web pay, financial advisory services

including debtor services, creditor advisory services and bank advisory services. It also offers

electronic Banking services which includes GTB ATM card, GTB Master Card, GTB ValuCard,

GTB e-transact scheme payment system, GTB funds in transit, GTB GAPS, GTB Batch payment,

GTB cheque writer and GTB pay direct.

GT Bank won the Nigeria stock exchange president merit award in 1996 and again in the year 2000,

2003, 2005 and 2006. The bank was also runner up for the quoted company of the year award in

2005. In February 2002, it obtained a universe Banking license and was appointed a settlement

bank by the business of its shareholders, it emerged as pacesetter and industry leader over the years.

This is evident in its introduction of real-time online banking in 1990, mobile telephone and internet

banking in 2002, slip free banking in 2006 and first fully interactive self service call centre, GT

connect in 2006, GT Bank was Nigeria’s most customer focused bank (ie in Retail banking),

Nigeria’s most respected company (2007), first African Bank-first Nigerian company listed on the

London stock exchange (main market). GTB was recognised by Euro money as the “Best Bank in

Nigeria” at the 2009 Euro money Awards for excellence.

Guaranty Trust Bank Nigeria plc is controlled by the Chief Executive Officer, in support of the

Managing Director and the deputy managing director, executive directors, divisional heads, general

managers or branch head and group head etc.

12
Guaranty Trust Bank also has other non-banking subsidiaries namely GT Assurance plc, GTB Asset

management Plc, act as registrars to public companies, GTB Finance, GT Homes. GT Bank has 1,

875 employees.

2.3 GROWTH OF E-COMMERCE

The internet was designed more than 30 years ago to serve the needs of the U.S Departments of

Defence and other organisations and individual working on defence-related research project. The

internet was built to solve the key problem of communication between computers that were

thousands of miles apart but needed to work together. The department of defence eventually opened

its network to educational institutions and then to commercial users. The diagram below shows a

rough timeline of how electronic commerce has evolved from a simple exchange of information

between government agencies to the World Wilde Web of today.

E-COMMERCE TIMELINE

1969 1970s Late 1995 2010

Arpa Net EFT 1980s Amazon Com Internet II
Established First BC

Mid 1970s Early 1980s Early 1990s 2000

Other nets EDI EDI to BC E-commerce
Transition growing quickly

Source: The evolution of E-Business, Darwin, May, 2003

13
 1969: Technology Enables E-commerce.

In 1969, U.S department of defence established the Advanced Research Project Network

(ARPANET). ARPANET was firstly really viable inter-organizational network or internet, in the

1970s, other networks such as Bitnet and usernet sprang up as the technology becomes more public.

In the same decade, banks began to use EFT over secured private networks to move money quickly

and accurately. EFT made electronic payment possible and led to direct deposit and debit cards.

In the early 1980s, electronic commerce practices became widespread between organisations in the

form of EDT and e-mail. Around the late 1980’s e-commerce became an integral part of business,

although not over the public internet. Around that same time, new e-commerce technology

emerged, pushed by the internet, but the technology was difficult to use, most work had to be done

manually.

 1992: The World Wide Web is created.

In 1992, the World Wide Web arrived. The web made the internet relatively easy to use, compared

to the level of technical skill needed with earlier technologies. Web technology supported

information publishing and dissemination. The web made e-commerce cheaper because small

business could now reach large audiences easily. It also increased accessibility for all business and

international operation technologically easy.

 2000: Expansion is exponential.

Electronic commerce grew at spectacular rates. A 1998 World Trade Organisation report put the

value of e-commerce at $300 billion by the year 2001. According to the study, business will remain

primarily U.S domestic because of various legal and cultural problems. International trade over the

internet reached only $60 billion, mainly generated from the United States. Also, internet based

electronic commerce could account for as much as two percent of all commercial transactions in

industrialized nations within five years.

2.4 DEVELOPMENT AND GROWTH OF E-COMMERCE.

14
Growth in e-commerce is slow but steady. The vast improvement in telecommunication services in

the country as illustrated by the explosion of subscribers and users of GSM (global system for

mobile communication), is further underscore by a surge in private telecom operators offering fixed

wireless services’’ which offers data and wire transfer. Hence, this supports internet use in some of

the rural parts of the country. This phenomenon not only let Nigerians communicate with the rest of

the country and the world from areas that had been completely cut off, but they are also getting

used to the phenomenon of modern communications including GSM, short message service (SMS)

and e-mail.

The introduction of e-commerce services hampered by a lack of public awareness on how to use the

technologies. GSM phone technology introduced in August 2001, however is gradually drawing

consumers, and there has been a rapid growth in electronic- cash transfer services such as western

union, money gram and Travelex in recent years (The Economic Intelligence Unit Limited, 2009).

Over the Thousand of years, which people have engaged in commerce with one another, they have

adopted the tools and technologies that become available. The internet has changed the way people

buy, sell, hire and organize business activities in more ways and more rapidly than any other

technology has in the history of business. E-commerce has existed for more than 30 years. Banks

have been using electronic fund transfer (EFT also called wire transfers), which are electronic

transmissions of account exchange information over private communication networks.

2.5 ADVANTAGES OF E-COMMERCE

Organisations that use e-commerce techniques and technology will also attract additional

consumers because of a higher level of customer service. Organisations that move to the web will

be able to help their customers resolve problems faster, which will eventually lead to better

customer relations and more customers.

The benefit of e-commerce extend to the general welfare of the society. Electronic payments of tax

refunds, public retirement, and welfare support cost less to issue and arrive securely and quickly

15
when transmitted over the internet. It is easier to monitor electronic payments than payments made

by cheque, providing protection against fraud and theft losses.

E-commerce is a tool for reducing administrative costs and cycle time, streamlining business

processes and improving relationships with both business partners and customers. An effective e-

commerce can help a business increase opportunities with customers, suppliers and other business

partners. Organisations that compete efficiently and effectively in e-commerce arena should

therefore be able to make better decisions which should enhance market position and ultimately,

profitability.

A firm can use e-commerce to reach narrow market segments that are geographically scattered. E-

commerce can increase sales and decrease cost. Advertising done well on the web can get a small

firm’s promotional message out for potential customers in every country in the world.

A business can reduce cost of handling sales inquiries, providing price quotas and determining

product availability by using e-commerce. E-commerce techniques allow small businesses to have

access to the same market as larger businesses.

Just as e-commerce increases sales opportunities for the seller, it increases purchasing opportunities

for the buyer. Business can use e-commerce to identify new suppliers and business partners.

Negotiating price and delivery terms is easier in e-commerce because the internet can help

companies efficiently obtain competitive bid information.

Electronic commerce provides buyers with a wide range of choices than traditional commerce

because buyers can consider may different products and services from a wider variety of seller. This

wide variety is available for consumers to evaluate 24hours a day, telecommunicate, everyone

benefits from the reduction in commuter-caused traffic and pollution. Electronic commerce can also

make purchases and services available in remote areas (Levaux, 2001).

16
2.6 DISADVANTAGES OF E-COMMERCE

Business often calculate return on investment numbers before committing to any new technology.

This has been difficult to do for investments in e-commerce because the costs and benefits have

been hard to quantify. Costs which are a function of technology, can change dramatically even

during short-lived e-commerce implementation projects because the underlying technologies are

changing so rapidly.

Another problem facing firm that wants to do business on the internet is the difficulty of integrating

existing database and transaction-processing software, designed for traditional commerce into the

software that enables electronic commerce.

Some customers are still some what fearful of sending their credit card number over the internet and

having online merchants (merchants they have never met) know so much about them.

Lack of information is an organisations greatest enemy and prevents it from competing effectively.

These organisations will not receive as much outside information as those that not implement e-

commerce strategies with their customers and business partners which means that they won’t be

able to make the same quality decisions. Making too many bad business decisions means no more

business.

Some business process may never lend themselves to e-commerce. This is due to the newness and

rapidly developing pace of the underlying technologies. Organisations that continue to operate on

paper-based systems that are slow and inefficient will tend to loose market share to their

competitors. Because e-commerce enables companies to reach larger customer populations quickly

via the internet, those organisations that implement effective e-commerce solutions will also be able

to compete more effectively for the consumers who fit the web-based demographic. This

demographic is made up of consumers who tend to do better, educated and have higher incomes

(Bingi and Khamalah, 2000).

17
2.7 E-COMMERCE MYTHS

It is important to understand the realities of electronic commerce before starting e-commerce

initiatives. E-commerce has quickly become like the Holy Grail in the medieval times. Myths and

mystery surrounds it. As with most subjects, e-commerce has its own strengths and weakness. In

general, e-commerce initiative offers many benefits for an organisation, its customers and its

suppliers.

i. Myth1: It is cheap, easy and lucrative.

According to Andrew Bantels, a senior research analyst with Cambridge, Massachusetts-based Giga

group, e-commerce will eventually be lucrative, but it is not yet. Besides, the Giga group believes

that working at the web as a specific source of income is the wrong approach and that organisations

should be using e-commerce techniques to improve their business process and cut the cost of

acquiring, servicing and selling to customers. In many cases, organisations doing e-commerce are

getting orders through the web that they would have received anyway, so the revenue is

incremental.

Bantels also says that e-commerce isn’t as easy as everyone thinks. Putting up a website process

such as inventory, accounting and so on. Creating a customer relationship management database

can solve this problem, but creating, managing and forcing internal staff and business partners to

use that common database can be difficult.

ii. Myth 2: Every one’s doing it.

Although many organisations are looking to eventually do something on the web, not all are there

yet. Giga’s Bantel say that roughly 90% of large companies have websites that are more than just

“brochure ware”. About 25% have the ability to take orders, and 25% are using e-commerce to

allow suppliers to order for them. About 80% are using their websites for customer service only 5-

10% however, is using e-commerce techniques to actually automate their supply chains.

According to Bantels, organisation that are already part of proprietary EDI networks are not

embracing web-based e-commerce yet because of performance, security and lack of standard for

18
order transmission. Performance reasons include the potentially slower speed, the random nature of

travel paths of information, and concerns about reliability.

Iii Myth 3: Middlemen are eliminated.

Some middle men, such as travel agents, can be replaced by automated reservation system such as

Microsoft’s expedia.

However, some middlemen know are emerging in situations where price is critical, or where a new

market can be created. The reality is that those who provide information about products who locate

the best choice or price, replace intermediaries, the traditional middlemen. For example, e-Bay

allows customers to put items up for auction and bid on terms in real time. These new middlemen

are allowing consumer to do things they couldn’t do before a way that’s convenient for everyone.

iv. Myth 4: All products becomes commodities and the playing fields is level.

This is true to a point. A specific mobile radio may become a commodity because it doesn’t matter

where you buy it. That is, a known product, with consistent quality or uniqueness, or on which

organisations depends for mission-critical operations are unlikely to become commodities. An

example is Automated Teller Machine (ATM) in the consumer banking industry. ATMS are unlike

to be replaced by web-based e-commerce because one cannot with draw money or make a deposit

on one’s pc at home.

v. Myth 5: Brand building is easy on the web.

Organisations that have brand strength and are well known are unlikely to go away or loose money

simply because they don’t have a web presence. Offline brand awareness they strength is just as

important for small start-ups. Software can be delivered via the web, but even consumer trust in a

specific brand of software take time. Products that are critical businesses or consumers will take

longer to gain brand strength.

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2.8 ROLES OF ELECTRONIC COMMERCE IN BANKS

The business of internet and e-commerce have made some people millionaires. With this in mind,

many banks in the world have begun using the internet in their business. Thus, an extensive

spectrum of terms has been created which confused e-commerce with internet banking. Internet

banking should be interpreted as a part of the strategy of e-commerce.

 Emerging technologies for urgent business

With each new technology, the world becomes more and more connected. Devices such as smart

cards, extended networks, biometric devices and wireless devices which can process, store or

transfer a large amount of data and information at a surprising speed that resemble those shown in

the intergalactic trips of the old science fiction television shows. In time, a consumer will be able to

complete any and all transaction through a communication network device that connects diverse

devices worldwide, such as the internet. Thus, banks will be able to medicate all the financial and

commercial transactions of their clients.

 Interrelations in the E-world

As new devices arise, increasing the capacities of the communication networks and financial

entities restructure their business, diverse types of interrelations will arise in the banking and

financial environments.

Now banks and financial organisations do business with entities with which they are directly

involved. This technologies create and allow the possibility of serving as facilitators and

intermediaries in non traditional market segments. This could represent a great opportunity for

banks, since they who need on line bank.

Customers feel more comfortable with this choice, knowing the have the option to visit a real

branch office if they choose (chan, Brands. Al-Hawamdch, 2002).

20
2.9 TYPES OF E-COMMERCE

There are two major types of electronic commerce. They are business to business e-commerce and

business to consumer e-commerce.

Business-to-business model of e-commerce occurs between two organisation characterised by large

volume of products and small price margin. It is the transaction conducted between business most

commonly to improve communication with the organisation and to cut the cost and increase the

efficiency of business process.

According to steve Dioro, president of IMT strategies, a Stamford based sales and marketing

advisory firm, the most important feature of a business-to-business website is easy access to support

and products. It is also useful to create communities where business partners and potential business

partner can communicate.

Business to-consumer e-commerce occurs between and organisation and an individual. It is

characterised by small volumes of products and lager price margin. Business selling to general

public typically through catalogs utilizing shopping software by dollar volume. Business to-

business takes the price, but business-to consumer is really what an average man has in mind with

regards to e-commerce as a whole. Business to-consumer e-commerce is used by consumers for the

convenience of purchasing products and services. Businesses use business- to- consumer e-

commerce to reach new markets and promote products and services.

Other types of e-commerce are; Business-to affiliate e-commerce, consumer-to consumer e-

commerce, consumer-to-Business e-commerce and Business-to Government e-commerce.

Consumer-to-business e-commerce is a type of e-commerce in which a consumer posts his project

with a set budget online and within hours, companies review the consumer requirement and bid on

the project. The consumers review the bids and select the company that will complete the project.

Consumer-to-consumer type of e-commerce; there are many sites free classified, auctions and

forums where individual can buy and sell, thanks to online payment systems where people can send

and receive money online with ease.

21
Business-to-Government e-commerce, this type includes business transactions with government

agencies, such as paying taxes and filling required reports. An increasing number of stales have

websites that help companies do business with state government agencies.

An additional type of e-commerce is called inra-organisational e-commerce, it comprises of global

organisation using electronic technology to communicate between divisions or operating

companies. The same technology is used internally as would be used externally but generally with

more restricted access.

Many types of transactions and business functions can be completed via e-commerce common

types include:

 EDT (Electronic data interchange)

 EFT (Electronic funds transfer)

 Purchases

 Marketing and promotions

 Customer service and billing

 Inventory management for global and multilocation entities

 Organisational communications

Organisations use a combination of any or all of these e-commerce strategies. All these form of e-

commerce should work together for the benefit of the organisation.

2.10 E-COMMERCE PRACTICES IN DEVELOPING COUNTRIES

In most developing countries, the payment schemes available for online transaction are the

following:

(i) Traditional payment methods:

(a) Cash on delivery: Many online transaction only involve submitting purchase order online

payment is by cash upon the delivery of the physical goods.

22
(b) Bank payment: After ordering goods online payment is made by depositing cash into a bank

account of the company from which the goods were ordered. Delivery is likewise done the

conventional way.

(ii) Electronic payment methods:

(a) Innovations affecting consumers include credit and debit cards, automated teller machines

(ATMs), stored value cards and e-banking.

(b) Innovation enabling online commerce in e-cash, smart cards, and encrypted credit cards.

These payment method are not too popular in developing countries. They are employed by a

few large companies in specific secured channels on a transaction basis.

(c) Innovations affecting companies pertaining to payment mechanisms that bank provide their

clients, including inter-bank transfer through automated clearing house allowing payment by

direct deposit.

2.10.1 ELECTRONIC PAYMENT SYSTEM

An electronic payment system (EPS) is a system of financial exchange between buyers and sellers

in the online environment that is facilitated by a digital financial investment (such as encrypted

credit card numbers, and digital cash) backed by a bank, intermediary or by legal tender.

E-payment system plays an important role in e-commerce because it closes the e-commerce loop. In

developing countries, the under developed electronic payment system is a serious impediment to the

growth of e-commerce. In these countries, entrepreneurs are not able to accept credit card payments

over the internet due to legal and business concerns. The primary issue is transaction security.

The absence of inadequacy of legal infrastructures governing the operation of payments is also

concern. Hence, banks with e-banking operations employ service agreements between themselves

and their clients. The relatively underdeveloped credit card industry in many developing countries

is also a barriers to e-commerce. Only a small segment of the population can buy goods and

services over the internet due to the small credit card market base.

23
2.10.2 PAYMENT CARDS

Business people often use the term payment card as a general term to describe all types of plastic

cards that consumers use to make purchases. The main categories of payment cards are credit cards,

debit cards and change cards. Credit cards are by far the most popular form of online payment for

consumers. A credit such as a Visa or Master Card, has a spending limit based on the user’s credit

history. User can pay off the entire credit card balance or pay a minimum amount each billing

period. Credit card issuer charge interest on any unpaid balance. A consumer is protected by an

automatic 30-day period in which he or she can dispute an online credit card purchase.

A debit card works quit differently from a credit card. Instead of charging purchases against a credit

line, a debit card removes the amount of the sale from the cardholder’s bank and transfer it to the

seller’s bank account. Debit cards are issued by the cardholder’s bank and usually carry the name of

a major credit card issuer, such as Visa or Master Card, by agreement between the issuing bank and

the debit from issuer.

A charge card, such as one from American Express or Dinner club, carries no speeding limit and

the entire amount charged to the card is due the end of the billing period. Charge cards do not

involve lines of credit and do not accumulate interest change (Rush, 2003).

2.10.3 ELECTRONIC CASH

Electronic cash is a general term that describes any value storage and exchange system created by a

private (non-governmental) entity that does not use paper document or coin and that serve as a

substitute for government- issued physical currency. A significant difference between e-cash is

issued by private entities, there is a need for common standards among all electronic each issuers so

that one issuer’s electronic cash can be accepted by another issuer. Each issuer has its own

standards and electronic cash is not universally accepted, as government-issued physical currency.

2.10.4 MONEY ORDERS

Money orders are similar to certified checks, as a known third party such as Nigeria postal service,

Nigeria express, western union or a bank’s guarantee value. The transaction cost is small and the

24
advantage is that it can be sent to a named receiver. The payment still carries some degree of

anonymity. If the issuer preserves the privacy of both the seller and the buyer, the transaction is

well protected (Chung, W and payer, j, 2002).

Examples of e-cash service company are e-charge and internet cash. Having mention these payment

methods, e-commerce in Nigeria has been predominated by substandard methods and varying

business method among Nigeria banks.

2.11 E-COMMERCE METHODS IN NIGERIAN BANKS

Majority of the participating banks are new generation banks, though the consolidation of Nigerian

banks has brought about merger and acquisition between two or more banks. Types of e-commerce

methods in Nigerian Banks are discussed below.

2.11.1 ELECTRONIC BANKING

Electronic banking can be referred to a system whereby all the banking services are conducted via

electronic medium, such as money depositing and withdrawal, checking account balance and many

more. The banks are characterised by the use of virtual private network to connect other branches.

Virtual private networks (VPNs) is an extranet that uses public networks and their protocols to send

sensitive data to partners, customers, suppliers and employees using a system called IP tunnelling or

encapsulation. IP tunnelling effectively creates a private passages way through the public internet

that provides secure transmission from one computer to another. The virtual passage way is created

by VPN software that encrypts the packet content and then places the encrypted packets inside

another packet in a process called Encapsulation.

The local branches of bank are connected via Very Small Aperture Terminal (VSAT), a satellite

communication system. In this case of e-banking the network is referred to as extranet. An extranet

is the use of internet technology outside a company’s premises to share commercial and operational

information and task with customer (okey Nwosu, 2005). Alternatively, it is a private network

25
outside a business where as the internet is a worldwide public network. Outsides are not permitted,

but see the extranet. It is secured. Customers are able to transact on the banks website in a secured

environment using secured socket layer (SSL) (Chung and Payter, 2002).

2.11.2 INTERNET BANKING

Today’s Nigerian banks use VSAT for communication among their branches with what is refereed

to as intranet. Intranet is an interconnected network (internet), usually one that uses the TCP/IP

protocol set, and does not extend beyond the organisation that created it. An intranet is the use of

internet technology inside a company, and it has made it possible for someone to deposit or

withdraw money from any of the branches of the bank (Okey Nwosu, 2005). Intranets are often the

most efficient way to distribute internal corporate information, because producing and distributing

paper is usually slower and more expensive than using web based communications.

2.11.3 MOBILE COMMERCE

Resources are accessed using devices that have wireless connections. Telephone banking is a

process whereby one branch of a bank calls another where the customer’s account domicile to

confirm if the account is valid before performing the task of depositing or withdrawal.

2.11.4 MOBILE BANKING

With the advent of Global System for Mobile communication (GSM), we now have very few banks

using it as a medium of conducting some their services. Also, with such account the owner can

perform other transaction like buying any of the bank’s e-product (okey Nwosu, 2005).

2.11.5 OTHER METHODS OF TRANSACTION.

Among other methods the widely used is Automated Teller Machine (ATM) ATMs are mostly

situated in large stores and hotels. Someone can cash money from this information processing

system. It is a complex computer system in a box that handles at least four operations including

currencies, cards, receipts and envelopes. It also have self supervising operating application and

diagnostic programs and in corporate sophisticated physical and logical security features (Kaplan &

Maxwell, 1994).

26
2.12 ADOPTION OF ELECTRONIC COMMERCE IN NIGERIA BANKS

This gives answer to the research question-what factors determines the adoption of e-commerce in

Nigerian bank? Looking at technological innovation literature and integrated model of e-commerce

adoption in Nigerian banks was developed. Each of the variables is discussed below.

2.12.1 E-COMMERCE ADOPTION

Adoption of e-commerce is defined as the use of computer networks, principally the internet, for

sharing of business information, maintaining of business relationship and conducting of business

transactions. A business is defined as having adopted e-commerce if it has achieved interactive e-

commerce status.

Molla and Licker (2005) identified a six phase e-commerce status indicator relevant to e-commerce

in developing countries. They are No e-commerce, connected e-commerce static e-commerce,

interactive e-commerce, Transactive e-commerce and integrated e-commerce.

2.12.2 TOP MANAGEMENT SUPPORT.

Adopting e-commerce will depend on whether support from top management is available, top

management support has been identified as crucial in the acquisition and diffusion of innovation.

There is a positive effect of leadership support on innovation adoption E-commerce can potentially

influence the organisations competitive positive and business relationships, therefore it is important

that top management needs to get involved in order to gain a good understanding of the issues

surrounding e-commerce and mobilize organisational stakeholders (Epstein, 2004).

2.12.3 ORGANIZATIONAL COMPETENCY

The availability of employees with competency for producing new ideas is important for e-

commerce adoption. Organisational competency refers to the availability of employees with

adequate experience and exposure to information and communication technology and other skills or

business strategy that are needed to adequately staff e-commerce projects. Chewelos et al (2001)

stated that the level of management understanding and support for using IT to achieve

organisational objectives may influence the adoption of it innovation. Thus an understanding of e-

27
commerce technologies and business models can facilitate the adoption of e-commerce (Turban et

al, 2004).

2.12. 4 IT CAPABILITY

It capability refers to the level of IT resources and personal IT knowledge of an organisation

(Akbulut, 2002). Access to adequate equipment in the organisation is a major determinant of the

adoption of new technologies (Aguila-Obra, A.R.D., & Padilla-Malendez, 2006). In the adoption of

e-commerce, it requires organisations to process a set of IT-related skills and knowledge (Spanos,

Prastacos & Poulymenakou, 2002) such as telecommunication Knowledge, IT security knowledge

and internet application environment.

2.12.5 MARKET E-READINES

This refers to the assessment that an organisation’s partners such as customers and suppliers allow

an electronic conduct of business (Molla and licker, 2005). For e-commerce to thrive, sellers and

buyers have to be willing to exchange goods and services for money online (Davis, F.D., 1989).

Thus, an organisation considering adoption may first examine the willingness of its existing

customers and suppliers to do business online or the likelihood of generating new business online.

2.12.6 SUPPORTING INDUSTRIES E-READINESS

This refers to the assessment of presence, development service level and cost structure of support-

giving institutions such as telecommunications, financial trust enables and the IT industry whose

activity might affect the e-commerce initiatives of business in developing countries (Molla &

Locker, 2005).

The existence of adequate IT infrastructure is a necessary condition for the take-off and

development of e-commerce since organisations would rather concentrate on their core

competencies, it is vital that there are other organisations whose main activity is provision of IT

infrastructure and services.

2.12.7 GOVERNMENT E-READINES

28
This refers to the organisations assessment of the preparation of the nation state and its

contributions to promote, support, facilitate (Molla & Licker, 2005). The government has a strong

role in the promotion and spreading the benefits of e-commerce (Bandyo-Padhay, 2002).

Government can provide an enabling its full potential. They can help address the problems and

challenges of awareness infrastructures, develop content creation depending on language used and

cultures prevailing in the local environment (Kame, 2006).

29
 RESEARCH MODEL

Perceived Technology Factors

1. Relative Advantage
- Cost of Technology ORGANISATIONAL
- Benefit FACTORS
- Barriers ELECTRONIC 1. Top management support
- Risk COMMERCE 2. Organisation competence
3. It compatibility
ADOPTION
2. Compatibility
- Technological
- Organisational
- Existing operations
PERCEIVED EXTERNAL
3. Complexities FACTORS
- Technological 1. Government e-Readiness
- Organisational 2. Market forces e-Readiness
3. Supporting industries e-
Readiness

Source: IT and Business Renewal, Jonkoping, June, 2016

2.13 Theoretical Framework

This helps in the examination of theories on the areas of investigation. This study seeks to establish the

impact of The Factor affecting E-Commerce adoption in Nigeria Banks (A case Study of Guaranty Trust

Bank PLC).

2.13.1 Bank-Focused Theory

This Bank-focused theory was postulated by Kapoor (2010) which explain how banks use non-

traditional but conventional low-cost delivery channels to offer services to its customers. Such channels

include the E-Commerce, automated teller machines (ATM's), mobile phone banking, Point of Sale

(POS) among others. This theory was propounded In using these channels, the bank offers a wide range

of services to its customers regardless of location and branch attachments. All that is required is to enter

the needed information into the system and the transaction is done. This theory favors this study since

the emphasis here is on electronic platforms as means of delivering services.

30
2.13.2 Bank-Led Theory

The bank-led theory of branchless banking was postulated by Lyman, Ivatury and Staschen (2016) and

emphasizes the role of an agent who acts as a link between the banks and the customers. In this case the

retail agents have direct interaction with the banks customers and they perform the role expected of the

bank by either paying cash or collecting deposits. Finally, this agent is expected to transmit all his

dealings with the banks customers to the bank he is representing through electronic means (such as

phones, internet, etc.).

2.13.3 Non-bank-Led Theory

This theory was popularized by Hogan (1991). Here customers do not deal with any bank and they do

not maintain any bank account, instead customers deal with a non-bank firm such as mobile network

operator or prepaid card issuer who they exchange their cash with for e-money account. The e-money

account is then stored in the server of this non-bank agent. This tends to represent the most risky

platform in the electronic payment methods because of lack of existing regulatory framework upon

which these e-agents operate.

2.13.4 Theory of Planned Behavior

The theory of planned behavior (TPB) suggests that human behavior is determined by intention to

perform the behavior, which is affected jointly by attitude towards behavior, subjective norm and

perceived behavioral control (Ajzen, 1991). Attitude refers to the degree to which a person has positive

or negative feelings of the behavior of interest. Subjective norm (SN) expresses the perceived

organizational or a social pressure of a person who intends to perform a specific behavior.

2.13.5 Theory of Reasoned Action (TRA)

The TRA assumes that the behavior under investigation is under volitional control, that is, that people

believe that they can execute the behavior whenever they are willing to do so. Gradually, the TRA was

used more often for the study of behaviors for which control was a variable factor. For that purpose, the

TRA was complemented by a component that was named ‘perceived behavioral control’. This concept

represents the extent to which people believe they are able to perform the behavior because they have

adequate capabilities and/or opportunities or are lacking in these. It is very easy to see that this factor

31
can substantially improve the generality of application of the model because there are many behaviors

that need specific skills or external facilities. For example, recycling is virtually impossible if no

collection system is available, and abandoning private cars is often impractical, at the least, when public

transportation functions poorly.

2.14. Empirical Review

This review is concerned mainly with relevant practical applications of the theoretical underpinnings.

Bello and Dogarawa (2015) examined and assessed the impact of E-commerce services on customer’s

satisfaction in Nigeria banking industry. The result of their study shows that many bank customers in

Nigeria are fully aware of the positive development in information technology and communication

which led to new delivery channel for commercial banks’ products and services in Nigeria. Banks

traditionally have always sort medium through which they will serve their clients more cost-effectively

as well as augment the benefit to their clientele. Their core concern has been to serve clients more

conveniently and, in the process, increase profit and competitiveness. Thus, banking in Nigeria

embracing the influx of e-banking. Improvements in Information and Communication Technology in

Sub-Saharan Africa are rapidly changing the way business is conducted. Agboola (2011) also stated the

impact of computer automation on banking services in Lagos using six banks and concluded that E-

commerce has tremendously improved customer services. However, transactional electronic banks

differed from other banks primarily by size.

According to Centeno (2014), the internet adoption factors are divided into two categories:

i i. Factors relating to the infrastructure and accessing technology,

ii ii. Factors that are related to retail banking factors.

The prior factors include skills on the part of consumers in using internet and other related technologies,

attitudes towards technologies, internet penetration rate, privacy and security concerns. The latter

involves factors like banking culture, internet culture, trust in banking institutions and E-commerce
32
push. However, lack of PC and internet penetrations serve as barriers for development of e-banking.

Also, in their study conducted in Turkish retail banking sector, Polatoglu and Ekin (2011) concluded

that internet decreases operational costs and it amplifies customer’s satisfaction retention.

Abaenewe et al (2013) from their analysis of effect of E-commerce has significantly impact on return of

equity. Beck et al, (2015) in assessing the effect of privatization of Nigerian banks from 1990-2011,

controlled for the age of the banks, since longer established banks might enjoy performance advantages

over relative newcomers. Their results for the Nigerian market indicate that older banks did not perform

as well as newer banks, which were better able to pursue new profit opportunities.

Furthermore, Sathye (2015) investigated the impact of the introduction of transactional E-commerce on

performance and risk profile of major credit unions in Australia. Similar to the result of Sullivan (2010),

the E-commerce variable did not show a significant association with the performance as well as with

operating risk variable. Thus, E-commerce did not prove to be a performance enhancing tool in the

context of major credit unions in Australia. It is neither reduced nor enhanced risk profile.

Mahotra & Singh (2017) examined the impact of E-commerce on banks performance and risk in India.

The study examined comprehensive set of 10 measures of financial performance that made it possible

for the authors to critically look into banks performance. By developing a deeper understanding of these

phenomena, the researchers drew more insightful inference about the impact of the internet on banking

business strategies and performances. The results of the study revealed that on average, internet banks

are more profitable than non-internet banks and are operating with lower cost as compared to non-

internet banks. Thus, representing the efficiency of the internet banks. The reasons for lower

profitability of these banks were pointed out to be higher cost of operations, including fixed cost and

labor cost. Gakure and Ngumi (2013) studied the influence of innovations in profitability of commercial

banks, and concluded that bank innovations have a moderate influence on profitability of commercial

banks in Kenya. The analysis produced a coefficient of determination of 47.8% which showed the

percentage of variations in profitability which is explained by bank innovations. Siam (2016) examined

the impact of e-banking on Jordanian banks and concluded that majority of the bank are providing

services on internet through their website and his findings showed that the attention was more to

33
achieving e-banking as satisfying and fulfilling Customer’s needs. He also concluded that there should

be a well-articulated strategy to achieve success and profit in the long run.

Hernado and Nieto (2015), examine the performances of multi-channel banks in Spain between 1994

and 2012. The result was that internet as a delivery channel has positive impacts on banks’ profitability

after one and half years of being used.

In the same vein, Onay et al (2018) conducted a research on Turkish banks and concluded that e-

banking has positive impacts on the profits of banks. According to the study, “Internet has changed the

dimensions of competitions in the retail banking sector. It has also provided opportunities for emerging

countries to build up their financial intermediation infrastructure. The e-banking variable has had a

positive effect on the performance of the banking system in Turkey.

Gao and Owolabi (2018) also investigated the factor that influence the customers adoption of E-

commerce in Nigeria. They reported that the level of awareness or attention, convenience, privacy,

availability of knowledge are the relevant issues that need to be considered in determining the adoption

of E-commerce in Nigeria.

Using information drawn from banks in Italy, Hasan et al. (2012) found that the E-commerce

institutions were performing significantly better than the non- internet groups. Additionally, the risk

variables associated with the internet group continued to be lower relative to the non-internet group. The

asset-liability variables revealed that on average, the banks in this internet group were larger and had

significantly higher trading and investment activities and less dependent on retail deposits (both demand

and saving deposits) relative to the non-internet group. The only category where the internet group

showed a lower performance was the no interest expense category. It found a significant and positive

link between offering of E-commerce activities and banks profitability and a negative but marginally

significant association between the adoption of E-commerce and bank risk levels particularly due to

increased diversification.

A considerable number of literature exist on the nexus between electronic banking and performance of

banking sector. However, only a few of such literature pertain to Nigeria and they are mostly descriptive

analysis. For instance, Furst et. al (2012) examined the influence of E-commerce on profitability

34
amongst United States national banks. The study considered large banks in urban areas and their

counterparts in the localities. Findings revealed that bank profitability has a strong correlation with E-

commerce in all US national banks. However, the study emphasized that in large banks in the urban

areas, bank profitability has no relationship with E-commerce because those banks merely use E-

commerce for competition purposes and not for profit making.

Mahotra and Singh (2019) studied the impact of E-commerce on Indian banks performance and found

that there is no significant association between adoption of E-commerce by banks and their

performance. They also concluded that E-commerce has a negative and significant impact on

profitability of private sector banks particularly new private sector banks.

In addition, Hasan et. al (2015) investigated the impact of E-commerce on the performance of

commercial banks in Italy. Hasan et. al (2015) adopted return on assets (ROA) and return on equity

(ROE) as performance indicators. Findings showed that E-commerce has significant effect on both

ROA and ROE of commercial banks in Italy. Hence, the study concluded that E-commerce significantly

affects commercial banks performance in Europe.

Onay et. al (2018) investigated the impact of E-commerce on the performance of commercial banks in

Turkey from 1996 to 2010. The study adopted a sample of 14 commercial and savings banks and the

profitability measures include return on assets (ROA), return on equity (ROE) and Margin of Interest

which served as the dependent variables. Findings revealed that (i) In the first year of adopting internet

banking, there is no positive performance between E-commerce and profitability of commercial banks.

(ii) In the second and third years, some improvements in performance were seen such that return on

equity (ROE) had a positive and significant relationship with internet banking. However, return on

assets (ROA) had a positive but insignificant relationship with internet banking.

Francesca and Peter (2018) further conducted a comparative analysis of the effect of electronic banking

on performance in four European countries namely; United Kingdom, Spain, Finland and Italy. The

study adopted panel data method from 1995 to 2014 using 46 banks. The dependent variables were

return on assets (ROA) and return on equity (ROE). Findings revealed that banks involved in only on

line banking services and those involved in mixed E-commerce services do not have any clear

35
differences. However, the study showed that E-commerce has a significant effect on both return on

assets (ROA) and return on equity (ROE).

Furthermore, Nnolim (2013) examined the impact of information and communication technology ICT

on the banking sector using Access Bank PLC as a case study, the findings of this study uncover that

ICT has influenced operational cost of banks in terms of personnel administration and management.

Njuru (2017) also carried out a study on the challenges of implementing electronic banking strategy by

commercial banks in Kenya. The objective of the study was establishing the challenges inhibiting

electronic banking implementations and how banks are responding to these challenges and the

responses that organizations employ in strategy implementation and the extent of electronic banking in

Kenya commercial banks. The banks have thus employed strategic responses to overcome these

challenges with some of these responses being more popular than the rest depending on the impact they

have on the implementation process. Lack of required infrastructure, resources and specialized skills,

commitment from the senior management team and fear of adopting the system by both the bank

employees and customers were some of the popular responses that banks have been using. The entire

internal and external environment however needs to be considered during the implementation of the

electronic banking strategy.

De Young (2015) analyzed the performance of internet only banks versus the bricks and monitors in the

US market and found strong evidence of general experience effects available to all start-up.

However, in a later study, De young et al (2017) analyzed the US community banks market to

investigate the effects of E-commerce on banking performance, and the study explained that bank’s

profits actually improved due to online banking by accelerating meaningful revenue. Sullivan (2010)

found that click and mortar banks in the 10 th Federal Reserve District incurred somewhat higher

operating expenses but offset these expenses with somewhat higher fee income. On average, this study

found no systematic evidence that banks were either helped or harmed by offering the internet delivery

channel. Demirguc-Kunt et. al (2012), Goddard et al. (2014), Naceur and Goaied (2011), and Pasiouras

and Kosmidou (2017) indicate that banks that hold a high level of equity relative to their assets perform

36
better in terms of profitability. These studies suggest that as banks capital ratio increase, the cost of

funding tend to fail due to lower perspective bankruptcy costs.

Olasope (2013) investigated the effects of E-commerce on commercial banks operation in Nigeria using

primary data derived from questionnaire and oral interviews. The study employed simple percentages

and chi-square as the analytical method. Findings revealed that poor staff orientation, poor infrastructure

and high cost of adoption of electronic banking platforms are factors that have affected the profitability

of the commercial banks in Nigeria In the findings of Aderonke and Charles (2010) it was discovered

that ATM (Automatic teller machine) is still the most common form if internet banking.

Ogini et al (2013), did a study on e-banking and bank performance: evidence from Nigeria. The study

examined the impact of electronic banking on banks performance in Nigeria. Panel data comprised

audited financial statements of eight banks that have been adopted and retained their brand name

banking between 2010 and 2010 as well as macroeconomic control variables were employed to

investigate the impact of e-banking on return on assets (ROA), return on equity (ROE) and net interest

margin (NIM). Result from pooled OLS estimations indicate that e-banking begins to contribute

positively to bank performance in terms of ROA and NIM with a time lag of two years while a negative

impact was observed in the first year of adoption. It was recommended that investment decisions on

electronic banking should be rational so as to justify cost and revenue implementation on bank

performance.

Ayo, Adewoye and Oni (2020) reviewed the state of e-banking implementation and evaluated the

influence of trust on adoption of e-payment in Nigeria. The study revealed that perceived case of

use and perceived usefulness not only precedes the acceptance of e-banking, they are factors to

retain customers to use e-banking system. Madueme (2020) assessed the impact of information and

communication technology (ICT) on the efficiency of 13 commercial banks in Nigeria using

TRANSLOG and CAMEL rating. The finding showed that ICT improved the efficiency of the

banks and recommended increased investment in ICT by banks. Ojeka and Ikpefan (2021) in their

study explored the various challenges and benefits e-banking pose to Nigerian business, with

particular inclination to the banking industry. It was discovered that there is statistically significant
37
difference between anticipated and encountered benefits and the major challenge is the security

breach experienced by customers.

Periodic training on e-commerce was recommended to create awareness on latest development in e-

commerce. Auta (2020) examined the impact of e-banking on the Nigerian economy using Kaiser-

Meyar-Olkin (KMO) Approach and Barlett’s Test of Sphericity. To further ensure the use of e-

banking, critical infrastructure like power and telecommunication was recommended to be provided

with high level of stability. Anyasi and Otubu (2029) assessed the use of mobile phone technology

in the Nigerian banking system and its economic implication. Their study showed that mobile

banking offers a way to lower the costs of moving money and paving a way to bring more users in

contact with the formal financial systems. Salehi and Alipour (2020) examined e-banking in an

emerging economy seeking to provide empirical evidence from Iran. The results showed that e-

banking is beneficial to the banking sector in several ways and customers have little or no

knowledge about e-banking. Ahmad Bello (2015) investigated the impact of e-banking on customer

satisfaction in Nigeria. It was discovered that though customers are aware of the positive

developments in information technology and telecommunications, they are not satisfied with the

quality and efficiency of e-banking services.

. Transaction Cost Theory

Economists have classified transactions
among and within organizations as
those that (a)
support coordination between buyers
and sellers, that is, market transactions,
and those (b)
38
supporting coordination within the
firm. Figure 2 depicts a typical market
hierarchy pro-
gressing from ª manufacturerº to ª
wholesaler,º ª retailer,º and ª
consumer.º The associated
respective transaction costs are shown
as well. Williamson (1981b) points
out that the
choice of transaction depends on a
number of factors, including asset
specificity, the par-
ties’ interests in the transaction, and
ambiguity and uncertainty in describing
the transac-
tion. Transactions may then be broken
down into production and coordination
costs (e.g.

39
 CHAPTER THREE
RESEARCH METHODOLOGY

3.1 INTRODUCTION

The essence of this chapter is to show the methods used to collected the relevant data or

information for this research project. It shows the procedures used in collecting the necessary data

coupled with various statistical instruments used in analysing the data.

3.2 RESEARCH DESIGN

The research design is the fundamental question of how the study subject will be brought

into the scope of the research and how it will be adopted within the research setting to obtain the

required data (Baridam, 2001).

For this study, the survey method of research design was employed in this research because

of the use of case study. This method tries to examine and evaluate a particular sample from a case

study’s population without controlling or manipulating the object of the research work.

3.3 POPULATION AND SAMPLE SIZE

The population of this study is made up of the staffs and customers of GT Bank Nigeria Plc.

It is rather impracticable and extremely impossible to study the whole population. Therefore, simple

random sampling was used to select the sample size of fifty (50) questionnaires for the bank.

3.4 SAMPLING TECHNIQUES

The simple random sampling techniques was used since it is the best way of drawing

samples based on the researcher’s knowledge of the population. The entire staff and customers of

GT bank Nigeria Plc constitute the study. Simple random sampling techniques were employed in

administering questionnaires to the staff and customers. Convenience was employed so that any

respondent that is available at the period of the research will be examined. Each respondent is

treated equally, free from bias.

40
3.5 METHODS OF DATA COLLECTION

The method adopted in the collection of data involved both primary and secondary sources.

The involved both primary and secondary sources. The primary sources of data collection method

involved the use of questionnaire, which was used to obtain fresh information from respondents.

The secondary source of data collection involve the use of textbooks, Journals, magazines and other

related periodical publications.

3.6 DATA ANALYSIS TECHNIQUES

The data collected was analyzed using the simple percentage method. The data was first

deduced from the questionnaires distributed and it is then tabulated and a frequency corresponding

to the response was converted into percentage using the formula.

Simple percentage = X x 100

Y 1

Where:X = Frequency of response

Y = Total number of respondents

Also, for the verification of hypothesis, regression (ordinary least square) method was used as well

as chi-square statistical method.

Chi – square is calculated as:

fo =  (fo – fe)

fe

X2 = chi – square

fo = frequency observed

fe = frequency expected

41
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Introduction
In this chapter, statistical data of the variables generated from secondary sources which

include annual reports of banks and daily official price list are presented, analyzed and

interpreted. The key variables of interest comprising both the dependent and

independent variables are presented and explained descriptively using the descriptive

statistics generated on the basis of the research model. SPSS software for Windows was

used to carry out discriminant function analysis and independent samples t test. A

significance level of .05 was used.

4.2 Data Presentation

Statistical analysis was conducted in two steps. Firstly, a preliminary discriminant

analysis was carried out to discover which factors differentiated adopters of ecommerce

from non- adopters. The factors were later ranked according to their importance.

Secondly, further insights into discriminating factors in the adoption of ecommerce were

obtained using t- tests. The t-tests identified items that differentiated between adopters

and non-adopters within each factor.

A total of forty nine responses were received; however one of them was unusable. This

represented 61% of the total questionnaires sent out.

4.3 Descriptive Statistics

Using discriminant analysis, major differences were discovered between adopters and

non- adopters of ecommerce at the factor level. Discriminant function analysis works with

data that is already classified into groups to derive rules for classifying new (and as yet

42
unclassified) individuals on the basis of their observed variable values (Landau & Everitt,

2004). Fisher’s linear discriminant function was used as it is suitable for two group

situations (Landau & Everitt, 2004). During the analysis all items measuring the different

factors were included. The dependent variable, adoption of ecommerce is a dichotomous

variables measured by adopters and non-adopters. A set of nine independent factors,

based on previous research in technology adoption was used in the survey.

Table 4.1 shows the group means, standard deviations, and the test for equality of the

group means of all the factors.

Management support, IT capability, perceived benefit, perceived compatibility, perceived

complexity, organizational competence, market, and supporting industries showed

significant univariate differences between the two groups (p<.0005). Furthermore, the

mean from the adopter group was larger than the mean from the non-adopter group for the

eight significant variables. The standard deviation for non-adopters was larger than the

adopters in all cases except for management support indicating greater dispersion among

non-adopters compared to adopters of ecommerce.

43
Table 4.1 Group statistics

All of the independent factors were considered simultaneously in the discriminant

analysis regardless of the discriminating power. The discriminant function was significant

at .0005 level. The canonical correlation value is 0.987 so that 0.987 x 0.987 x 100 =

97.42% of the variance in the discriminant function scores can be explained by group

difference. Thus, a linear combination of the nine independent variables explains 97

percent of the variance in the dependent factors. The lambda coefficient is defined as the

proportion of the total variance in the discriminant scores not explained by the difference

among the groups, here 2.7%. The rank of importance in descending order, given by the

absolute value of loading (Table 4.2), was: perceived complexity, perceived benefit,

organizational competence, perceived compatibility, supporting industries, management

support, market, IT capability, and government.

Based on the predicted group membership, the classification matrix correctly classified all

adopters and non-adopters. Thus the discriminant function was able to classify 100

percent (hit ratio) of the cases correctly assuming homogeneity of the covariance

matrices. The hit ratio exceeds the proportional chance criterion of 71 percent

demonstrating predictive accuracy of the discriminant function (Hair, Anderson, Tatham

& Black, 1998).

Factor Function
Perceived complexity .786
Perceived benefits .382
Organizational competence .325
Perceived compatibility .296
Supporting e-readines .289
Top management support .262
Market e-readiness .245
IT capability .242
Government e-readiness .017
44
Table 4.2 Structure Matrix

45
 4.4 T-test of Mean Differences

The preliminary discriminant analysis shed some light on the factors that differentiate

adopters from non-adopters of ecommerce GT bank Nigeria Plc. Subsequent analysis

employed Independent-Samples T Test to identify which specific items within each factor

made the difference. The t-test helped in understanding the specific issues that influenced

the adoption of ecommerce. Furthermore, carrying out the analysis at the item level

clarified the results from the discriminant analysis.

Table 4.3 shows the results of the Independent Samples T Test across adopters and

non- adopters of ecommerce.

Item Description t df Sig. Mean

Differen
(2-tailed)
ce

Top Management Support (MS)

MS1 Management is interested in the use of 6.482 46 .000 1.741

electronic commerce

MS2 Management is supportive of the use of 10.230 46 .000 2.053

electronic commerce in business operations

MS3 Our business has a clear vision on electronic 7.833 46 .000 1.847

commerce

MS4 Our vision of electronic commerce activities 11.644 46 .000 2.497

is widely communicated and understood

throughout the organization

IT Capability (IT)

IT1 Our organization is well computerized with 5.392 46 .000 .952

LAN and WAN

46
IT2 We have high bandwidth connectivity to the 6.395 46 .000 1.323

Internet

IT3 We have an established enterprise-wide IT 3.187 46 .003 .492

infrastructure

IT4 We have sufficient experience with network 8.471 46 .000 1.841

based applications

Perceived Benefits (PB): Electronic commerce should help…

PB1 Reduce cost of business operations 8.471 46 .000 1.386

PB2 Improve customer service 6.292 46 .000 1.053

PB3 Improve distribution channels 9.833 46 .000 1.513

PB4 Reap operational benefits 9.777 46 .000 1.265

PB5 Increase ability to compete 2.279 46 .027 .444

Perceived Compatibility (PC): Electronic commerce fits well our

PC1 Organizational beliefs and practices 6.015 46 .000 .915

PC2 Existing technology infrastructure 8.087 46 .000 1.444

PC3 Communication is very open in our 1.954 46 .057 .275

organization

PC4 Our organization has a strong relationship .496 46 .622 .079

with suppliers and customers

PC5 Our organization has a positive attitude 9.197 46 .000 1.783

towards electronic commerce

Perceived Complexity (PX): inverted

PX1 Learning to operate electronic commerce 12.854 46 .000 2.122

is/would be easy

PX2 Interacting with electronic commerce 14.048 46 .000 2.079

is/would be flexible
47
PX3 My interaction with electronic commerce 15.421 46 .000 2.381

is/would be clear and understandable

PX4 It would be easy for me to become skillful at 13.079 46 .000 1.889

using electronic commerce

Organizational Competence (OC)

OC1 Our organization has a good understanding 8.242 46 .000 1.577

of electronic commerce business models that

are applicable to our business

OC2 We have a good understanding of electronic 10.205 46 .000 1.730

commerce application solutions that are

applicable to our business

OC3 Our organization has the necessary 9.923 46 .000 1.587

technical, managerial and other skills to

implement electronic commerce

Market (MK)

MK1 We believe our customers are ready to do 6.416 46 .000 1.249

business on the Internet

MK2 We believe our business partners are ready to 8.627 46 .000 1.593

conduct business on the Internet

48
Supporting Industries (SI)

SI1 The telecommunication infrastructure is 7.245 46 .000 1.354

reliable and efficient

SI2 The technology infrastructure of commercial 6.050 46 .000 1.095

and financial institutions is capable of

supporting electronic commerce transactions

SI3 We feel that there is efficient and affordable 12.498 44.087 .000 1.698

support from the local IT industry to support

our move to the Internet

Government (GV)

GV1 We believe there are effective laws to protect -.135 46 .893 -.026

consumer privacy

GV2 We believe that there are effective laws to -.526 46 .601 -.090

combat cyber crime

GV3 We believe the legal environment is -2.412 46 .020 -.413

conducive to conduct business on the

Internet

GV4 We believe that the government 3.738 46 .001 .857

demonstrates strong commitment to promote

electronic commerce

GV5 Government regulations allow electronic -.091 46 .928 -.016

settlement of electronic commerce

transactions

Table 4.3 T test for means

49
Discussion of Findings

This chapter discusses the results from the statistical analysis. The results from the statistical

analysis are analyzed based of the research model. All but one of the hypothesis were

confirmed; the result from the research was not strong enough to confirm the hypothesis on the

impact of strong government support on ecommerce. At the end of the chapter the factors that

affect ecommerce in Nigerian banks are ranked based on the structure matrix.

50
 CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction
This research work is on Factor affecting E-Commerce adoption in Nigeria Banks (A case Study

of Guaranty Trust Bank PLC). The work has been divided in five chapters. Chapter one of this

study is an introductory chapter. It carries the background of the study where an introduction on

information resources was made. It also contained the statement of the problem, research

questions, and objectives of the study, significance of the study, scope, and limitations of the

study as well as operational definition of terms.

Chapter two of this study is a review of related literature. It has been noticed in this chapter that

there is Historical Background Of Guaranty Trust Bank Nigeria Plc, E-Commerce comes of age,

E-Commerce timeline, Development and Growth of E-Commerce, Advantages and

Disadvantage of E-Commerce, E-Commerce Myth, Types of E-Commerce, E-Commerce

Practices in Developing Countries, Electronic Payment System, E-Commerce Methods in

Nigerian Banks.

Chapter three of the study is on research methodology. It has shown the research design used for

the study. The population of the study, the sample and sampling technique used for the study

were also seen. The research instrument used, procedure of data collection and the procedure for

data analysis were all seen in this chapter.

Chapter four of this study is on data analysis and interpretation. It contains both the dependent

and independent variables are presented and explained descriptively using the descriptive

statistics generated on the basis of the research model.

5.2 Summary of Findings

Using the analysis of the Study, the result of the descriptive analysis revealed a significant

impact on Adoption of E-commerce in GT banks in Nigeria. The result of the adoption has

51
relative impact on the banking professionalism and has a positive and significant impact on the

value driven motive GT banks in Nigeria. This result substantiates our earlier finding.

5.3 Conclusion

This study is an attempt to identify the factors that determine the likelihood of adoption of

ecommerce in Nigerian banks. The objectives of the study was to understand the ecommerce

adoption behavior of banks and the factors that could drive or inhibit the use of ecommerce in

the Nigerian banking industry; and to rank the importance of such factors on the decision to

adopt and use ecommerce.

Results from our statistical analysis provide a picture of the adoption of ecommerce in the GT

Bank banking sector. Generally, the results support all the hypotheses but one; this is consistent

with previous research in ecommerce adoption (Molla & Licker, 2005; Grandon & Pearson,

2004). Adopters of ecommerce were different from non-adopters in terms of topmanagement

support, organizational competence, and IT capability.

A number of conclusions can be drawn from these results. Firstly, banks with a strong support

and commitment to ecommerce from top management are more likely to adopt ecommerce.

Secondly, banks that have the requisite IT and business resources (infrastructure and skills) for

ecommerce adoption stand a better chance at adopting ecommerce. Thirdly, banks that have

sound IT infrastructure in place are in a better position to adopt ecommerce.

The data analysis also showed that ecommerce characteristics have a major effect on the decision

to adopt. Banks with more positive attitude towards ecommerce characteristics are more likely to

adopt ecommerce. This result provides support for Roger’s innovation theory. Three essential

attributes of innovation that affect the formation of attitude are benefits, compatibility, and

complexity. If ecommerce is viewed as better than the existing method of operations, consistent

with the needs of the adopting bank, and is easy to use, then there is a greater chance that a

52
favorable attitude towards ecommerce will be formed.

External factors also influence the adoption of ecommerce. A highly developed supporting

industry will improve the adoption of ecommerce. The perception of the market banks operate

in affects the decision to adopt. Adopters believe their customers and business partners are

ready to do business on the internet while non-adopters think otherwise. The low level of

government support did not stop adopters from adopting ecommerce; however, government can

play a key role in the development of ecommerce in Nigeria by providing the necessary

infrastructure.

The rank of the factors affecting adoption of ecommerce (in descending order of impacts) is:

Perceived complexity, Perceived benefits, Organizational competence, Perceived com- patibility,

Supporting industries e-readiness, Management support, Market e-readiness, IT capability, and

Government e-readiness.

5.4 Recommendations

The study makes the following recommendations based on the findings:

Improvement in the coefficient of determination showed that E-commerce adoption had a

positive impact on the GT banks in Nigeria for the entire period under investigation. This implies

that any improvement of account professionals by way of training would equally improve the

outcome of accounting reporting in Nigeria.

53
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