ANTECEDENTS OF ATTITUDE TOWARDS THE ADOPTION OFINTERNET BANKING IN SENEGAL Douglas Bryson et Glyn Atwal De Boeck Supérieur | Journal of Innovation Economics & Management 2013/1 - n°11pages 33 à 54
--------------------------------------------------------------------------------------------------------------------Bryson Douglas et Atwal Glyn, « Antecedents of attitude towards the adoption of Internet banking in Senegal »,
Journal of Innovation Economics & Management, 2013/1 n°11, p. 33-54. DOI : 10.3917/jie.011.0033
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Financial inclusion or broad access to financial access is defined as “an absence of price or non-price barriers in the use of financial services” (World Bank, 2008). It is estimated that 2.5 billion adults do not use formal services to save or borrow (Chaia, Dalai, Goland, Gonzalez, Morduch, 2009). It is an astonishing finding that just over half of the world’s adult population is un-banked. These researchers reported that in sub-Saharan Africa 80% of the adult population, 325 million people, do not use formal financial services.
The state of affairs in Senegal demonstrates the limited access to finan-cial services in this region. According to a research study by Consultative Group to Assist the Poor (CGAP) and the World Bank Group (2010), there are 109.35 commercial bank deposit accounts per 1,000 adults. This low de-posit account penetration is reflected in the low number of bank branches in Senegal. It is reported that there are just 4.05 branches per 100,000 adults. In terms of financial access provided by microfinance institutions, there were 96.72 deposit accounts and 34.41 bank loans per 1,000 adults. In terms of outreach, there are 8.75 microfinance branches per 100,000 adults.
The implications of financial exclusion in countries such as Senegal have important economic and social consequences. Millions of people are exclud-ed from the benefits of using formal financial services that “can inhibit their
1. The authors would like to express their sincere gratitude to Ms. Yasmine Sy for her indispen-sable assistance during the data collection phase of this research.
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ability to build wealth, increase their income and manage uncertainty” (Chaia et al., 2009, p. 10). This has also other far reaching implications as argued by Moreno (2007, p.91) within the context of providing financial services more inclusively in Latin America, “which are crucial to help the people develop their full potential as entrepreneurs, workers, consumers, and investors”.
Thus, a major challenge for microfinance institutions is to broaden their access effectively and efficiently in order to ensure that financial services can be made available to households and all income brackets. The cases of SmartMoney and GCash in the Philippines and M-Pesa in Kenya have been widely recognized as a success that offers basic financial services based on a special text-messaging system. However, the fast adoption of the Internet in many developing markets means that microfinance institutions need to consider the adoption of more technologically advanced delivery systems. A possible distribution channel to be explored is the development of Internet banking defined as, “the use of the Internet as a remote delivery channel for bank-ing services” (Furst, Lang, Nolle, 2000). In 2004, Cracknell had identified Internet kiosks as having ‘medium’ accessibility for the distribution of mi-crofinance institutions’ services, while mobile Internet banking was assessed as having ‘medium-high’ accessibility. This situation has only improved with the evolution of mobile telephone handset technology and network infra-structure.
Although Internet penetration in Africa lags behind the rest of the world, investment in the telecommunications infrastructure has helped to accelerate the growth of Africa’s Internet sector. According to Internet World Stats (2011), Internet penetration in Africa is 13.5%. Internet pene-tration in Senegal is slightly higher than the African average at 15.7% of the population. A recent development that has revolutionized communications in Africa is the rapid growth of the mobile Internet. In Senegal, Internet subscribers grew by 130% to nearly 342,000 but the number of mobile Inter-net users increased by 680% to 188,000 (Africa Tracking Internet Progress, 2012). Shrivastava (2011) found in a recent study that the unbanked in South Africa have a positive acceptance towards mobile banking. We sug-gest that microfinance institutions need to leverage this accelerating uptake in Internet and mobile Internet usage, in order to increase access to financial services to the unbanked in developing markets such as Senegal.
Jones (2010) underlines how technology can improve the social welfare in developing countries. Internet banking has potential to extend the dis-tribution of financial services for the following three reasons. First, Internet banking is able to significantly reduce the costs of providing financial services (Cracknell, 2004). Research conducted by The World’s Bank Consultative
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Group to Assist the Poor (CGAP, 2010) found that the monthly average cost of branchless banking to customers is 19% cheaper than traditional banks. Cost savings are particularly evident for medium-term savings and bill payment (50% cheaper). The growth of mobile Internet in developing markets suggests that potential savings could be significant. This is reinforced by Beshouri and Gravråk (2010, p. 2): “The very small deposits and loans held by poorer customers make them unprofitable for banks that use traditional deliv-ery models. But mobile (Internet) devices reduce the cost to serve customers by 50-70%, making it possible to offer financial services to a vast population once considered unprofitable.”
Second, Internet banking is able to expand the number and range of financial services that could be made available to prospective and existing clients. This would enable clients to take advantage of more sophisticated financial services that are suited to their individual needs. Finally, Internet banking should enable greater access and reach to remote areas in which bank branch coverage is extremely scarce (Cracknell, 2004). Although the unbanked cannot afford a computer, the increase in the number of internet cafés enables clients’ affordable access to the Internet for a limited time.
If Internet banking is to be successful in developing markets, microfi-nance providers need to gain an understanding of the end user acceptance of online banking and the antecedents of attitude towards use, and thus intentions, to use such services. The objective of this research study is to un-derstand the key antecedents to consumers’ attitude towards Internet bank-ing in Senegal. This will help to identify potential barriers to acceptance of Internet banking and provide valuable intelligence which might be used to reduce their negative effect.
As noted by International Trade Forum (2002, p. 18): “Banks in industri-alized countries are slowly evolving to Internet-based payment systems. However, developing countries are still mostly left out of these new payment initiatives”. Although we acknowledge that there has been significant research focused on the acceptance of online banking in the US (e.g. Kolodinsky, Hogarth, Hilgert, 2004) and Europe (e.g. Howcroft, Hamilton, Hewer, 2002), we sug-gest that there exist situations that need to be assessed and evaluated within a local cultural context (Mao, Palvia, 2006).
Online banking in technologically advanced markets is naturally at a far more advanced stage of development compared to developing markets and generalizations could be misleading or even irrelevant. Clearly, differences in the antecedents to adoption can be expected. Likewise, we accept that there are significant differences between developing markets even within the same continent. A review of the literature found that no prior research has been
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conducted on the adoption of Internet banking in Senegal. Further, there is a dearth of research examining the success of adoption of Internet banking by microfinance institutions, making this research an interesting context to extend previous technology adoption research as well as to test the role of variables found in existing theory.
LITERATURE REVIEW
Background
Understanding the diffusion of innovations in general has been studied in the social sciences since the 1940s and 1950s (Rogers, 2003). More target-ed research into the acceptance of the use of information technology got a considerable boost with the introduction of Davis’s (1986) Technology Ac-ceptance Model (TAM). The TAM simplified and expanded existing theory while being more directed at technology adoption than previously exist-ing work. Further research by Davis, Bagozzi and Warshaw (1989) validated TAM as effective in predicting the acceptance of information technology in organizational contexts. TAM and its variants remain of interest to re-searchers because it is parsimonious, easy to use and useful (Yousafzai, Foxall, Pallister, 2010).
It is simple for researchers to add relevant constructs to specific contexts and test the TAM variant to see if it improves predictability of TAM alone. Consequently, the TAM’s original constructs (Figure 1), perceived useful-ness and perceived ease of use, can act as the basis of further model building. This is due to its relative success in predicting attitude, intention and be-havior in technology adoption contexts. Thus, the TAM is one of the most widely used technology adoption models and has been applied to different modes of technologies and user profiles (Jackson, Chow, Leich, 1997; Jeyaraj, Rottman, Lacity, 2006), and much research suggests that it is a reliable and valid model to predict the acceptance of technology (Adams, Nelson, Todd, 1992; Davis, Venkatesh, 1996; King, He, 2006; Mathieson 1991; Schepers, Wetzels, 2007). However, it has been noted that TAM needs to be increas-ingly validated in non-Western cultures if the model is to have universal acceptance (Teo, 2010).
The TAM has its roots in the theory of reasoned action (TRA) proposed in 1975 by Fishbein and Ajzen (Legris, Ingham, Collerette, 2003). The TRA had developed in social psychology literature as a more general theory to ex-plain determinants of attitude, intention and behavior. The theory postulates
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that behavioral intention precedes actual behavior within specific contexts, and behavioral intention is in turn a result of attitude towards the behavior and subjective norm. In the psychology literature, attitude is a prevalent construct often related to intention and behavior (Eagly, Chaiken, 1993). In the TRA, attitude specifically refers to an individual’s evaluation of the tar-get behavior in terms of it leading to desired outcomes. Subjective norm is a construct defined as “the person’s perception that most people who are important to him think he should or should not perform the behavior in question” (Fishbein, Ajzen, 1975, p. 302). This implies the possible link of motivational acquies-cence with others deemed to be significant to the individual.
The TRA was itself later modified by Azjen (1991) to become the theory of planned behavior (TPB). The TPB added the construct perceived behav-ioral control to take into account the situation that occurs when complete control over behavior is not possible, as in the case of a an individual lack-ing necessary resources or skills to perform a behavior (Armitage, Christian, 2003; Ajzen, 1991). The construct has been regarded to include both in-trinsic and extrinsic factors, such as self-efficacy and facilitating conditions respectively (Pedersen, 2005). The TPB has been widely applied in many domains, including technology adoption, and as early as ten years after its introduction, it was seen to be an effective and robust general theory (cf. Armitage, Connor, 2001).
Venkatesh, Morris, Davis and Davis (2003) developed the unified theory of acceptance and use of technology (UTAUT) that identified the following factors to predict the adoption of technology: performance expectancy, ef-fort expectancy and social influence and facilitating conditions. The model appears to be an updated TAM with some value placed on social influence (subjective norm) found in the TRA and TPB, but excluding attitude as a predictor of behavioral intention. Notably, the constructs in the theory have
The Technology Acceptance Model (Davis Figure 1 – et al., 1989)
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been renamed from traditionally used names. The theory also included mod-erators such as gender, age, experience, and voluntariness. Similar to TAM, this model was intended to provide an explanation for individuals’ adop-tion of information technology in an organizational context, not a consumer context. However, AbuShanab and Pearson (2007) conducted research us-ing the UTAUT regarding adoption of Internet banking in a consumer con-text. Measurement items used did not significantly differ from other items used in operationalizing TPB/TAM constructs found in the body of litera-ture regarding the TRA, TPB and TAM.
In this research, we have rooted our model in this classic literature sum-marized above, and we have approached the adoption of Internet banking from a consumer perspective in the context of an early adopter market. Therefore, not all constructs were considered relevant in modeling attitude towards use of the technology. We have attempted to stress parsimony in line with the TAM’s approach. Thus, we started with an abbreviated TAM, and included perceived risk as a potential antecedent to attitude towards Internet banking. As in the TAM, we excluded social variables, but included perceived facilitating conditions from the TPB body of literature. However, we believe perceived facilitating conditions should have an impact on per-ceived ease of use and perceived usefulness in the absence of experience with facilitating conditions by the vast majority of the sampled population.
Attitude towards Use
Psychological processes that explain how attitudes can serve as antecedents to behavior were first studied and results published by Fishbein in the 1960s (Eagly, Chaiken, 1993). With the development of the TRA further under-standing of the relationship between attitude and behavior was gained. Fish-bein and Ajzen’s TRA “suggested that the proximal cause of behavior is one’s intention to engage in the behavior. Attitudes influence behavior by their influence on intentions, which are decisions to act in a particular way” (Eagly, Chaiken, 1993, p. 168).
In the TAM and its variants, attitude towards use of a technology has been considered a primary antecedent to behavioral intention, while social variables are explicitly ignored and are expected to have been taken into account by individuals in forming perceptions of perceived usefulness and perceived ease of use (Davis, 1986; Davis et al., 1989; Mathieson, 1991).
However, others have ignored attitude as a predictor of behavioral in-tention to use. For example, in a study by AbuShanab and Pearson (2007), attitude was ignored as a predictor of behavioral intention as the researchers
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attempted to validate the UTAUT in the context of the adoption of Inter-net banking in Jordan. We cannot yet assess the validity of this approach as the research analysis used multiple linear regression and not structural equation modeling. Their results do not reflect any measures of model fit although they do provide validation of the correlations between the con-structs as predicted by the UTAUT (Venkatesh et al., 2003).
In this research, we adopted a TAM-based approach where attitude is our dependent variable. Attitude has been shown to predict usage of information technology (Chau, Lai, 2003; Al-Gahtani, King, 1999; Winter, Chudoba, Gutek, 1998). We have taken the approach of Chau and Lai (2003) due to the low penetration of Internet in Senegal, thus making it arguably an early adopter market: one which intentions have not yet fully formed. As Chau and Lai (2003, p. 126) state, “when intention is poorly formed, attitude will thus have a direct effect on usage”.
Perceived Ease of Use
Perceived ease of use is defined as the degree to which the prospective user expects the potential system to be free of effort (Davis, 1989). The scope of what actually constitutes perceived ease of use has been discussed within the literature. According to Zeithami, Parasuraman, Malhotra (2002), the ability to understand or apply innovation can be associated with perceived ease of use. Within the context of Internet banking, Mathieson (1991) sup-ports the view that perceived ease of use is related to the perception that this will involve a minimum of effort. This implies that if Internet bank-ing is perceived as not being technologically complex and overwhelming to use, there is a greater probability of adoption. This idea is supported by Chong, Ooi, Lin and Tan (2010, p. 272), “Given that users do not have face-to-face interaction in an Internet environment, user friendliness and the ease of use of the web sites will lessen the threat to use Internet banking by the custom-ers”. Extensive research has underlined that the perceived ease of use has a positive impact of the adoption of Internet banking (Gounaris, Koritos 2008; Hernandez, Mazzon 2007; Wang, Wang, Lin, Tang, 2003). However, results are equivocal. Research by Pikkarainen, Pikkarainen, Karjaluoto and Pahnila (2004) and Eriksson, Karem and Nilsson (2005) concluded that perceived ease of use does not have an influence on the adoption of Internet banking. However, we suggest as perceived ease of use is a fundamental pre-dictor within the TAM and that results are not conclusive, further testing is warranted. Thus:
H1: Perceived ease of use is positively related to the attitude towards Internet banking in Senegal.
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The TAM (Davis et al., 1989) leads us to the following:H2: Perceived ease of use is positively related to perceived usefulness of Inter-
net banking in Senegal.
Perceived Usefulness
Davis et al. (1989) defined perceived usefulness as the individual’s perception that using the new technology will enhance or improve his or her perform-ance. In a similar vein, this construct (renamed as performance expectancy) is defined by Venkatesh et al. (2003) as the extent to which a person values new technology to improve his or her job performance. In the case of Inter-net banking in Senegal, this could include benefits of direct access to banking services anytime and anywhere. There is overwhelming support within the literature to suggest that perceived usefulness is a strong determinant of the adoption of Internet banking (Celik, 2008; Chau, Lai, 2003; Eriksson, et al., 2005; Hendrickson, Massey, Cronan, 1993; Jaruwachirathanakul, Fink, 2005; Jeyaraj et al., 2006; Polatoglu, Ekin, 2001; Venkatesh, Morris, 2000; Wang et al., 2003). This is reinforced by Pikkarainen et al. (2004) who found that perceived usefulness of Internet banking was one of the most significant fac-tors predicting the use of Internet banking in Finland. Thus, we propose:
H3: Perceived usefulness is positively related to the attitude towards Internet banking in Senegal.
Perceived Facilitating Conditions
Facilitating conditions can be considered to be a perceptual construct re-flecting external situational enablers and constraints to behavior (Ventatesh, 2000; Ajzen, 1985). In this research facilitating conditions refers to per-ceived facilitating conditions. Facilitating conditions are related to the con-structs perceived behavioral control which is defined as the resources and opportunities available to an individual that offer the conditions necessary for adopting a certain behavior (Ajzen, 1991).
According to Taylor and Todd (1995), facilitating conditions include self-efficacy, resources and technology. In a study to predict adoption of mobile banking, Püschel, Afonso and Hernandez (2010, p. 394) defined facilitating conditions as whether the person “is capable of using mobile bank-ing and possesses the required knowledge and resources to adopt the service”. Within a broader context, this could also include to what extent govern-ment is supporting Internet banking adoption. This has been identified as an important factor of Internet banking adoption (Tornatzky, Klein 1982, Jaruwachirathanakul, Fink, 2005; Tan, Teo, 2000).
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For an early adopter consumer market we suggest that perceptions of fa-cilitating conditions, considered an external variable to the TAM, should influence an individual’s perceived ease of use and ultimately the usefulness of the system. Simply put, most individuals lack experience with actual fa-cilitating conditions, thus perceived facilitating conditions might impact at-titude towards use and perceived ease of use, rather than perceived behavior control, which would require actual experience of facilitating conditions. Thus:
H4: Positive perceptions of facilitating conditions are positively related to per-ceived ease of use of Internet banking in Senegal; and
H5: Positive perceptions of facilitating conditions are positively related to per-ceived usefulness of Internet banking in Senegal.
Perceived Risk
Risk has been defined in a number of ways within the literature. Rosa (2003, p. 56) defined risk as “a situation or an event where something of human value (including humans themselves) is at stake and where the outcome is uncertain”. This implies that trust is strongly related to risk and influences an individ-ual’s willingness to assume risk (Mayer, Davis, Shoorman, 1995) and ap-pears to be of particular relevance within the realms of Internet technology (Rotchanakitumnuai, Speece, 2003).
Perceived risk can therefore be defined “in terms of the consumer percep-tions of the uncertainty and adverse consequences of buying a product (or serv-ice)” (Dowling, Staelin, 1994, p. 119). The literature has identified different categories of risk such as performance, physical, financial, psychological and social (Kaplan, Szybillo, Jacoby, 1974) that vary according to the defined product or service category. However, within the case of Internet banking, Littler and Melanthiou (2006) argue that security risk is of particular rel-evance. This is reinforced by Chong et al. (2010, p. 273), “Without trust the consumer will avoid making any transaction online”.
Our conceptualization of perceived risk echoes definitions of trust used by Eriksson et al. (2005) and Chong et al. (2010) that focused on the is-sues of security and privacy of information. Issues concerning trust (Casalo, Flavian, Guinaliu, 2007; Khalil, Pearson, 2007; Rexha, Kingshott, Aw, 2003; Tan, Teo, 2000; Vatanasombuta, Igbaria, Stylianou, Rodgers, 2009) and se-curity (Laforet, Li, 2005; Sathye, 1999; Singh, 2004; White, Nteli, 2004) have been identified as prominent barriers to the adoption of Internet bank-ing. There is evidence to suggest that concern for Internet security is a global phenomenon. A McKinsey study found that 80% of respondents in Brazil
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expressed concern about online security (Cepeda, Waslander, Fernandes, 2001). This is underlined in another McKinsey study which found that over half of respondents in Asia cited security as a key reason for declining to open an online banking account (Pasa, Sherman, 2001). Closer to Senegal, Molony (2007) argues that within Tanzanian micro and small enterprises, trust is an important determinant of adoption of new information and com-munication technologies (ICTs). Recently, Ayo, Adewoye and Oni (2010) found perceived risk and trust as being an important antecedent to Internet banking acceptance in Nigeria. Thus:
H6: Lower perceived risk is positively related to a more positive attitude to-wards Internet banking in Senegal.
Initial Research ModelFigure 2 –
METHOD
The questionnaire
We used a short questionnaire to measure the constructs in the initial model. The wording of the scale items were pre-tested with four graduate students that had previously participated in the development of scales for other research projects. These students had taken two research methods
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classes as part of their postgraduate degree program and spoke English as a mother tongue. Comments from these students resulted in minor rewording of several items. The English versions of the items were then translated into French by a bilingual graduate student and then back translated by a second graduate student. A comparison of the two English versions was done by the researchers and minor discrepancies were corrected by the researchers.
Measurement
The items that we used for measurement were adapted from the litera-ture and are presented below in Table 1. The inter-item reliability of the measurement instruments was evaluated using the Cronbach’s α statistic. Cronbach’s α value of at least 0.7 is generally agreed to be satisfactory (Hair, Black, Babin, Anderson, Tatham, 2006, p. 137). The Cronbach α scores ranged from 0.741 to 0.869. This indicated that all the model’s constructs had been adequately measured with satisfactory internal consistency.
Data collection
An initial pilot test of the questionnaire was performed face-to-face on a convenience sample of 71 Senegalese. Results from this pilot study were deemed satisfactory and the main data collection was conducted. Data were collected through the use of questionnaires administered face-to-face with respondents outside several banks in Dakar, Senegal. Respondents were screened verbally for the following conditions: (1) they had to have a bank account; and (2) they had to be aware of the existence of Internet banking. In total, 314 questionnaires were completed, of which 33 were discarded after screening the responses for missing data and outliers. The retained sam-ple consisted of 281 Senegalese respondents.
Constructs, measurement items and inter-item reliability of scalesTable 1 –
Construct Measurement Items1 Cronbach’s α
Attitude towards Use (ATT)
Using Internet banking is a good thing (ATT1).Using Internet banking is pleasant (ATT2).I feel favorable towards Internet banking (ATT3).Using Internet banking is a wise idea (ATT4).
α = 0.810
Perceived Ease of Use (PEOU)
Using Internet banking services is easy for me (PEOU1).Personal interaction with Internet banking services is clear and understandable (PEOU2).Using Internet banking services to accomplish my banking tasks is easy for me (PEOU3).
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RESULTS
The Sample
The distribution of the sample showed a remarkable share of individuals with a high level of education (95% have studied at a university level). This is consistent with our desirable demographic target which was set on the assumption that early adopters of new innovations or technological services are often well educated people (Rogers, 2003). 94% of the respondents were younger than 50 years old and 63% were younger than 40. Table 2 shows details the breakdown of age and gender of the final sample. There were ap-proximately two times as many male respondents, likely indicating a domi-nant role of males in the local ‘banked’ economy. Therefore, this sample was considered suitable for this research as it consists of individuals that are typical early adopters of new technologies.
Perceived Usefulness (PU)
Using Internet banking services can make it easier for me to carry out my banking tasks (PU1).Using Internet banking services is useful (PU2).Using Internet banking enables me to save time (PU3).
α = 0.778
Perceived Facilitating Conditions (FC)
I have access to the software, hardware and network services required to use Internet banking services (FC1).The necessary support and assistance to use Internet banking is available to me (FC2).I have the financial resources required to use Internet Banking and Internet banking services (FC3).
α = 0.741
Perceived Risk (PR)
I trust the ability of my bank to protect my privacy (PR1).Internet banking is a secure way through which to conduct transactions (PR2).Providing my personal information over the Internet is safe (PR3).Sending my personal information across the Internet to a bank is not risky (PR4).
α = 0.866
1 Items measured on a 7-point Likert scale from ‘Strongly Disagree’ to ‘Strongly Agree’
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Analyses
As recommended by Anderson and Gerbing (1988), we conducted a two stage method for the data analysis. First, we did a confirmatory factor analy-sis (CFA) using SPSS to ensure that measurement items were loading as expected onto their latent factors. The Kaiser-Mayer-Olkin measure of sam-pling adequacy was well over the minimum acceptable level of 0.5 at 0.859, and the Bartlett test of sphericity (Table 3) was significant indicating the da-taset was suitable for the CFA (Hair et al., 2006). The rotated components matrix from the CFA is presented as Table 4. The CFA demonstrated good to excellent factor loadings on the appropriate components, indicating good convergent validity of the measurement items. The five factors extracted after Varimax rotation explained 70.8% of the total variance.
KMO and Bartlett’s TestTable 3 –
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .859
Bartlett’s Test of Sphericity
Approx. Chi-Square 1988.934
df 120
Sig. .000
Table 4 – Convergent validity as indicated by rotated components matrixa
Component
1 2 3 4 5
Attitude towards Use Item 1 .614
Attitude towards Use Item 2 .834
Attitude towards Use Item 3 .761
Facilitating Conditions Item 1 .845
Facilitating Conditions Item 2 .756
Facilitating Conditions Item 3 .593
Perceived Ease of Use Item 1 .869
Perceived Ease of Use Item 2 .759
Perceived Ease of Use Item 3 .831
Perceived Risk Item 1 .752
Perceived Risk Item 2 .821
Perceived Risk Item 3 .863
Perceived Risk Item 4 .797
Perceived Usefulness Item 1 .754
Perceived Usefulness Item 2 .791
Perceived Usefulness Item 3 .711
Extraction Method: Principal Component Analysis.Rotation Method: Varimax with Kaiser Normalizationa. Rotation converged in 6 iterations
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Discriminant validity was assessed by comparing the AVE with the squared correlations between the constructs. As no squared correlation was greater than the AVE values, we concluded that the measurement model demonstrated good discriminant validity (Anderson, Gerbing, 1988; For-nell, Larcker, 1981). Convergent validity was also assessed by verifying that the AVE was higher than 0.5, a guideline suggested by Fornell and Larker (1981). Results are presented in Table 5.
Table 5 – Convergent validity and discriminant validity analyses
AVE ATT PEOU PU FC PR
ATT 0.518 0.7191
PEOU 0.690 0.330 0.830
PU 0.541 0.530 0.733 0.735
FC 0.509 0.327 0.274 0.357 0.714
PR 0.618 0.671 0.273 0.303 0.234 0.786
1Square root of AVE on diagonal in bold.
We concluded that the data were sufficient to continue with the exami-nation of fit of the measurement model. AMOS 18 was used in the SEM analysis to produce these fit scores.
Measurement model
The measurement model was assessed for fit using: (1) χ2 and d.f., yielding the normal χ2 (i.e. χ2 ÷ d.f.); (2) the goodness of fit index (GFI); (3) the root mean square error of approximation (RMSEA); and (4) the comparative fit index (CFI). These indices were chosen as being the most appropriate and include “absolute goodness-of-fit” measures (the normal χ2, the GFI and the RMSEA), and an “incremental” fit measure (the CFI), which is a widely used index and an improvement over the often reported normed fit index (NFI) (Hair et al., 2006). The results were: (1) χ2 ÷ d.f. = 2.202; (2) GFI = .908; (3) RMSEA = .066 (LO 90 = .055, HI 90 = .078, PCLOSE = .001; and (4) CFI = .939. Thus, the measurement model was accepted as these scores are satisfactory (Arbuckle, 2009).
Structural model
Since the assessments of reliability and validity, and measurement model fit scores were satisfactory, we continued to the second step of the SEM analysis
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(Anderson, Gerbing, 1988). The results for the initial research model were: (1) χ2 ÷ d.f. = 2.392; (2) GFI = .901; (3) RMSEA = .071 (LO 90 = .060, HI 90 = .081, PCLOSE = .001; and (4) CFI = .928. Again these scores are satisfactory. An examination of the standardized regression weights indicat-ed that the path between perceived ease of use and attitude towards use of Internet banking was not significant at the p<.05 level. We deleted this path and ran the analysis again. We obtained the following results: (1) χ2 ÷ d.f. = 2.296; (2) GFI = .904; (3) RMSEA = .068 (LO 90 = .057, HI 90 = .079, PCLOSE = .004; and (4) CFI = .933. As expected, the fit results are margin-ally better than the model with the insignificant path deleted. Standardized regression weights (β) and R2 values can be seen in Figure 3.
The final research modelFigure 3 –
DISCUSSION
The TAM does not perform flawlessly in the context of Internet banking in Senegal: the relationship between perceived ease of use and attitude towards use of Internet banking is not significant. Thus we reject H1: perceived ease of use is positively related to the attitude towards Internet banking in Sen-egal. We suggest that this might reflect the early adopter context of the
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market, notably the likely situation where our respondents have not yet used Internet banking and thus have collectively little experience in the actual ease of use of Internet banking. Therefore, it might be considered that their perceptions have a bias towards framing the ease of use as ‘obviously’ neces-sary for the system to be useful, yet less important in forming their attitudes directly.
From the TAM, H2 stated that perceived ease of use is positively related to perceived usefulness of Internet banking in Senegal. We accept this asser-tion as it has a strong and significant result in the findings. H3 was presented as perceived usefulness is positively related to the attitude towards Internet banking in Senegal. This too found support with a highly significant, me-dium strong result in this research. This hypothesis is a key TAM conten-tion: if a system is useful, individuals will have a positive attitude towards using it.
H4 contended that positive perceptions of facilitating conditions are positively related to perceived ease of use of Internet banking in Senegal. This is supported by our findings with a medium strong, highly significant result. H5 proffered that positive perceptions of facilitating conditions are positively related to perceived usefulness of Internet banking in Senegal. Again this hypothesis has been supported by our research with a weak, but highly significant result. It seems in this early adopter market, perceptions of that which individuals’ have imagined, and not perceptions gained through actual experience, may be related more to perceived ease of use and per-ceived usefulness than perceived behavior control as in the TPB.
Finally, H6 postulated: lower perceived risk is positively related to a more positive attitude towards Internet banking in Senegal. The results from thus study reinforce this strongly as the relationship between perceived risk and attitude towards use of Internet banking is very strong and highly significant. Thus, this research strongly supports the idea that the relationship between perceived risk and attitude is the fundamental one in Internet banking adop-tion research.
Implications for marketing
The opportunity for the microfinance sector to leverage the benefits of In-ternet banking is dependent to the extent existing and potential customers are willing to adopt online banking. Thus, the results from this research have implications for the marketing of Internet banking within the microfinance sector. It should be considered to actively promote the undeniable usefulness of Internet banking to the consumer. Marketing efforts should also focus on communicating the secure nature of Internet transactions with banks and the
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existence of trustworthy technical infrastructure and assistance to consumers that would make Internet banking easy to use. By focusing on these issues, attitudes towards using Internet banking can be improved, and ultimately these efforts should lead to unhindered rates of adoption in the future.
Limitations and future research
As with all research, this study has its limitations and weaknesses. Since we did not have a list of all banked customers, the sampling method used was one based on convenience. As the sample was not random, we consider it is unwise to generalize the results from this study’s sample to the population of all Senegalese. Further research, might attempt a different data collec-tion strategy. Also, as we had decided to study ‘banked’ consumers, they tended to have a higher education that would be considered the norm in Senegal. According to World Bank (2012), the adult literacy rate in Senegal is 50% which could have an important impact on the adoption of technol-ogy. Howcroft and Durking (2000) point out that Internet banking requires a minimum level of technical skills and competences. These may not be available to illiterate individuals within the population.
We have considered that Senegal was in an early adopter condition in terms of Internet banking. Over time, we expect individuals will adopt Inter-net banking and replicating this study may be difficult: research into adop-tion is the study of a moving target. Future research might look for markets that are arguably also in an early adopter position.
The conceptualization of the model can be criticized as it does not in-clude behavioral intention to use or actual use. We have done this purpose-fully because we have assumed that low Internet penetration plus relatively high illiteracy rates means that the market should be considered to be in an early adopter stage and therefore studying attitude towards use of Internet banking is sufficient (Chau, Lai, 2003). Additionally, one must subscribe to the idea that attitude towards use of Internet banking is predictive of behav-ioral intention to use Internet banking, and that in turn will predict actual use. Since research is not unequivocal regarding this issue, future research is warranted.
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