” Adoption Model of Technical Innovation : A Study of E-banking Adoption in Bundelkhand”
*Mrs. Anubha Srivastava, Research Scholar
*Dr. Indrajit Singh, Director, Vedic Excellency, Gayatri Nagar, Pukharayan, kanpur Dehat- 209111
The banks operating in India are spending tremendous amount of cash on technological frameworks to acquire various set of preferences, e.g. cutting expenses and enhancing the nature of services through technological innovation (E-banking); because it is well accepted phenomena that technological innovation reduces time consumption, erorr propensity and cost of the services. If people are not willing to acknowledge and completely use E-banking services, it won’t convey full advantages to the Companies. To understanding people’s psyches behavior towards tolerating or dismissing technology has turned out to be a standout amongst the most difficult issues in technological frameworks inquires about. This paper aims to develop a technology adoption model from the customers perspective and the study lights on the existance of significant association among the variables considered for the study.
Keywords:- E-banking, Percieved Trust, Percieved Risk, Adoption Intentions, Technical Innovation
1. Introduction :
The substance of Indian current managing an account industry has been changed after numerous changes procedure after some time to time. Since mid 1990’s the Government of India has taken this area in an essential need and this administration part has been changed itself as indicated by the need of present days need and prerequisites. Keeping money part changes in India Strive to expand effectiveness and gainfulness of the managing an account associations and in addition conveyed the current saving money associations to confront the worldwide rivalry in globalized and restricted process. There are distinctive sort of banks working contrastingly regarding tasks, effectiveness, efficiency, benefit and credit proficiency. Indian keeping money division is an imperative constituent of the Indian Financial System and banking industry is essentially administered by Reserve Bank India. The Indian banking industry assumed a fundamental part through advancing business in urban and also provincial territory in late year, with a sound and powerful keeping money framework. In many arenas, in India it is still cannot be considered as a healthy economic banking. The innovations of the modern era including the evolution of information ; technology, put some rays of the new light have penetrated, in the sphere of banking.
To come over this immediate challenge the banks operating in India are spending tremendous amount of cash on technological frameworks to acquire various set of preferences, for example, cutting expenses and enhancing the nature of their services and products/ services through technological innovation and it is well accepted phenomena that technological innovation reduces time consumption, error propensity and cost of the services. In current situation the government of India is also focusing and promoting technological innovation through Digital India Mission. The banking system of India is dedicated to provide the speedy, low cost and error free banking services to the Indian people and still trying to make it possible through E-banking services.
Be that as it may, if people are not willing to acknowledge and completely use technological innovation, e.g., E-banking, it won’t convey full advantages to the Companies encourage all together for technological innovation to convey an incentive to Companies, it must be acknowledged and completely utilized. It is critical to discover the reasons why people utilize or not utilize technological innovation. To understanding people’s psyches behaviour towards tolerating or dismissing technology has turned out to be a standout amongst the most difficult issues in technological frameworks inquires about. Understanding clients’ behaviour will help the two frameworks fashioners and designers to assemble frameworks that urge people to acknowledge and completely use them.
Customer behaviour alludes to the procedure that rouses or causes a person’s choices on what, when, where, and how to buy products and services. There are numerous meanings of consumer behaviour; be that as it may, these definitions have a tendency to be fundamentally the same as in significance. For instance, buyer behaviour has been characterized as the procedures included when people or gatherings select, buy, utilize or discard items, services, thoughts, or encounters to fulfil needs and wants. This definition by and large depict reactions to items as far as mental, passionate or physical procedures, activities and musings, sentiments and encounters engaged with the purchasing and devouring procedure and clarify these as psycho-enthusiastic procedures.
As the present investigation centres on consumer behaviour towards E-banking adaptation pattern, which is one of the budgetary diverts in banks, it is vital to reveal insight into customer behaviour with regards to the money related services industry. By reason of the changing degrees of execution straight forwardness, customers may experience issues in comprehension and distinguishing the results of some monetary services.
The previous investigations, with regards to monetary services, showed that the imperative factor for the non-utilization of E-banking was the inclination for directing budgetary services through client colleagues and the principle explanations behind embracing this channel were the advantages related with this channel additionally recommended that the clients who received imaginative budgetary services channels were instructed and seen next to zero security danger of utilizing these channels and the hugest components identified with client’s state of mind towards the appropriation of online budgetary services channels were comfort, convenience and similarity of the administration channels with clients’ ways of life. Notwithstanding, a little minority of clients were worried about security, wellbeing and operational issues related with E-banking services appropriation. Moreover, the fundamental components empowering the selection of self-benefit creative innovation identified with financial services were worries for time, and place utility; though the restraining factor was the client’s inclination for managing human specialist co-ops. In this manner, time, cost investment funds and flexibility have been proposed as the fundamental purposes for the acknowledgment of imaginative monetary services. A few examinations additionally show that E-banking services clients are the most beneficial and wealthiest fragment to banks. Surviving examination has likewise proposed that security and protection issues assume a critical part for the acknowledgment of creative budgetary services including web keeping money. Numerous people around the world are hesitant to give private data via telephone or the web, for instance, data about their charge cards (Aldlaigan & Buttle, 2001; Beckett et al. 2000; Black et al., 2001; Chase, 1978; Hoffman and Novak, 1999; Howcroft et al., 2002; Kwan, 1991; Leblanc 1990; Marr and Prendergast 1993; Zeithmal and Gilly, 1987).
The present research paper deals with the issues regarding to customer adaptation of technological innovation with the available electronic banking services area and of customer future behavioral responses. With the help of current stream of research we collected the information from previous literature, with representative diverse nature of researches to understand consumer’s perceptions towards E-banking services and customer adaptation and using behaviour the available E-banking services and forthcoming bank- customer relationship to fill the gap in literature between customer’s perceptions and adoptions of E-banking services delivered and consumed.
2. Background :
The present research is focused to study the antecedent of cusumer perceptions towards technological innovation and their adoptation pattern of the E-banking services. The pro’s and con’s of Technology acceptance model, Task technology fit and Hedonic motivation system adoption model provided motivation to conduct the present study.
2.1 Technology Acceptance Model:
Davis et al., (1989) proposed Technology Acceptance Model (TAM ) with the objective to give a clarification of the determinants of PC acknowledgment that is general, equipped for clarifying client conduct over an expansive scope of end-client figuring advances and client populaces, while in the meantime being both stingy and hypothetically advocated. The TAM proposed that behavioral aim was together dictated by the individual’s state of mind toward utilizing the framework and saw handiness. There were three motivations to expel the state of mind develop from the TAM. Initially, there was a solid direct connection between saw handiness and goal. Second, a powerless direct connection between saw convenience and state of mind was found. Third, mentality was incompletely intervened by the effect of convictions on expectations.
Source: Davis et al., (1989)
There are a few clarifications for the distinctions in these outcomes including: 1) contrasts in the sort of innovation that has been considered, 2) contrasts in the example measure that have been locked in and 3) contrasts in situations and nations. The research further recommends two determinants assume the fundamental part in tolerating or dismissing technological innovation. To start with, people tend to utilize or not utilize an application to the degree they trust it will enable them to play out their assignment better. This alludes to apparent helpfulness. Second, if potential clients trust that a given application is valuable, they may trust that the framework is extremely hard to utilize and that the execution advantages of use are exceeded by the exertion of utilizing that innovation. In this manner, notwithstanding saw value, utilization is impacted by usability too. In any case, saw helpfulness assumes an essential part in tolerating new innovation more than saw usability. Davis et al. (1989) found that individuals’ aims were mutually controlled by seen value and convenience in the beginning times of learning and conduct. Be that as it may, aim is straightforwardly influenced by convenience alone and usability influences expectation, just in a roundabout way by means of value with time and experience.
2.2 Task-Technology Fit Model
Goodhue and Thompson, (1995), expands the TAM by considering how the errand influences utilize. The TTF theory is gotten from the cognitive fit theory of Vessey (1991), which proposed the subjective model from the point of view of psychological cost. The subjective model theorizes that an intellectual fit between critical thinking helps and the critical thinking undertaking decreases the intricacy of the job needing to be done, in this manner enhancing the critical thinking viability. The crucial contention of fit models hypothesizes that information technology will be received and will give points of interest if the capacities accessible to the client underpins the exercises of the client. Its capacity to help an undertaking is communicated by a formal build; assignment innovation fit.
This model theorizes that a higher level of fit prompts desires by clients of helpful outcomes of utilization. There are various variants of the TTF show that incorporate downstream and upstream factors. On the downstream side, TTF models may incorporate elements that are influenced by fit, for example, state of mind toward apparatuses, aim to utilize, device usage and execution, while on upstream factors the models may have factors that influence fit. For instance, assignment and innovation attributes ordinarily are accepted to straightforwardly influence fit and individual qualities. Goodhue and Thompson (1995) express that the precursors of errand innovation fit develop are the association between assignment, innovation and the person. Hence, certain sorts of assignments require certain sorts of innovation usefulness. TTF will be lessened if the hole between the prerequisites of an undertaking and the functionalities of an innovation augments.
2.3 Hedonic Motivation System Adoption Model :
Lowry et al. (2013) proposed the hedonic motivation system adoption model (HMSAM), as the extention of TAM, However, TAM has been successful for clarifying numerous sorts of frameworks utilize, yet TAM isn’t in a perfect world suited to clarify selection of absolutely inherent or hedonic frameworks. Accordingly, for these sorts of frameworks HMSAM is intended to enhance the comprehension of hedonic motivation systems (HMS) adoption. HMS are frameworks utilized basically to satisfy clients’ characteristic inspirations, such for internet gaming, virtual universes, web based shopping, learning/training, web based dating, computerized music archives, person to person communication, gamified frameworks, and for general gamification. HMSAM is a HMS-particular framework acknowledgment show in light of an option hypothetical point of view, which is thusly grounded in stream based intellectual ingestion and it might be particularly helpful in understanding gamification components of frameworks utilize.
Source: Lowry et al., (2013)
The hedonic-motivation system adoption model (HMSAM) is a native information systems theory to improve the understanding of hedonic-motivation systems (HMS) adoption. HMS are frameworks utilized essentially to satisfy clients’ natural inspirations, such for web based gaming, virtual universes, web based shopping, learning/instruction, internet dating, advanced music vaults, long range informal communication, just explicit entertainment, gamified frameworks, and for general gamification. Rather than a minor, general TAM expansion, HMSAM is a HMS-particular framework acknowledgment display in view of an option hypothetical point of view, which is thus grounded in stream based subjective retention. Ordinarily, models shortsightedly speak to “natural inspirations” by minor saw delighted in. Rather, HMSAM utilizes the more mind boggling, rich build of CA, which incorporates bliss, control, interest, centered submersion, and worldly separation. CA is develop that is grounded in the original stream writing, yet incidentally CA has generally been utilized as a static build, as though every one of the five of its subconstructs happen in the meantime in guide inconsistency to the stream writing. In this manner, some portion of HMSAM’s commitment is to return CA nearer to its stream roots by re-requesting these CA subconstructs into more common process-difference arrange as anticipated by stream.
Literature Review :
The glimps of reviewed literature that is relevant to conduct the present study of adoption pattern of E-banking from the customer’s perspective has been given below in tabulated farm. Although the literature has been reviewed extensible, but, Researchers presented only those attributes in very short, which are playing vital role and neccessory for adoption of technical innovation model development. The previous studies helped the researcher to better understand the phenomena of consumers psyches towards acceptance or rejection of technical innovations in the frame of monetory issues.
Table: 01 Selected Previous Literature
Researchers Variables associated with Adoption Intentions
Davis (2000) Subjective norm, voluntariness, image, job relevance, output quality, result demonstrability and perceived ease of use influence customers’ intention.
Mathieson et al.
(2001) The perceived resources, perceived ease of use and usefulness influence customers’ intentions.
Chen et al.
(2002) Consumer attitude and, compatibility influences perceived usefulness of virtual stores.
Gefen et al.
(2003) Trust and Familiarity are for potential customers, while repeat customers are influenced by usefulness and trust.
(2004) Compatibility and security predicts attitude toward online shopping, self-efficacy and normative beliefs influence adoption intentions
Luarn ; Lin
(2005) Self-efficacy, Credibility, and financial cost influence adoption intention, while self-efficacy has a significant effect on perceived ease of use, perceived usefulness, credibility.
; Hubona (2006) System experience, Demographic variables (age, education, income, and race) and Perceived access barriers influence adoption intentions.
Wu et al.
System factors (task-technology fit), External factors (external computing, support and training, network externality), internal factors (subjective norm, management support, internal computing support and training), and Individual factors (computer self-efficacy, computer enjoyment).
(2008) Perceived credibility, amount of information about mobile phone credit cards and perceived expressiveness.
(2009) Perceived trust, Perceived risk, perceived benefits, attitude, perceived behavioural control and perceived usefulness significantly influence customers’ intention to trade online.
(2011) Convenience, risk, security and prior internet knowledge, demographic factors significantly influence customers’ intention to use E-banking.
Kim et al.
(2010) Navigation functionality, transaction cost and satisfaction , Online loyalty significantly influence customers’ intention to adopt new technology.
JayaramanMunusamy (2012) In demographics factors only age significantly influence customers’ intention to use E-banking.
Bhavesh J. Parmar et al (2013) user friendly, security, convenient to use, time saving significantly influence customers’ intention to use E-banking.
R. Elavarasi , S.T.Surulivel, (2014) Convenience, Ease of use, Security, Accessibility, User friendliness, Online shopping significantly influence customers’ intention to use E-banking.
K.T. Geetha ; V.Malarvizhi Security and trust, Innovativeness, Familiarity, Awareness significantly influence customers’ intention to use E-banking.
(2016) Attitudes, customer perceptions influence consumer behavior towards
banking in Rural India.
3. Model Develoment :
The present research is focused to study the antecedent of consumer perceptions towards technological innovation and their adaptation pattern of the E-banking services. The study of consumer perceptions towards technological innovation and consumers adaptation pattern of the E-banking services has two phases i.e. consumer’s perceived risk and perceived trust with the available E-banking services and customer’s acceptance and rejection of technological innovation inbuilt banking services. The previous researchers have been focused on three major streams of researches regarding benefits of E-banking services, customer satisfaction with the E-banking services and using pattern of E-banking services. The first stream of researchers focused on consumer benefits and losses and highlighted the characteristics of the E-banking services or the sources of benefits and losses. The second group of studies presented the effects of customer satisfaction/ dissatisfaction on consumers and organizations future relationships, analysing also the latter’s effectiveness to respond to the formers. The another one of stream of research identified by the researcher, that the necessary elements to of consumption pattern of E-banking services and building the effective relationship marketing strategies, because it was realized that the cost of a transaction trough E-banking services could be substantially lesser than an existing one branch banking transaction and other considerations. These streams of studies mostly indicate procedures and structures to render E-banking services in order to keep the consumer satisfied, who is an already conquered asset.
Due to the importance of adoption of E-banking services and customer consumption pattern with this mode of banking, the present researcher have devoted considerable effort to gain better understanding of consumer adaptation pattern of E-banking services and consequences of different future relationships. The following proposition has been formulated by the present researchers in the light of previous literature available to the researchers with the blend of observations and understandings of the researchers.
“Adoption or rejection of E-banking services rendered by the banking institutions are depended on the customer’s perceived trust & risk; while the customer efficiency, services efficacy and system effectiveness are influencing the customer’s perceived trust & risk towards the adoption of technological innovations.”
Thus the above discussions and evidences provided to the present researchers valid reasons and enough background to develop the following model.
4. Conclusions :
The subjects for this study have been taken from Bundelkhand Region of Uttar Pradesh which is considered as one of the backward region in the country in term of human development index and industrial development index. Seven Hundreds copies of the questionnaire were distributed only in seven districts of Uttar Pradesh viz.Jhansi, Banda, Lalitpur, Hamirpur, Mahoba, Jalaun, Chitrkoot. Only Bundelkhand region comprises of districts from Uttar Pradesh due to resources and time constrains this study would be confined to A total of 429 completed questionnaires were received, giving a response rate of 61% of the original sample. Multiple regression was the statistical technique employed in this study. The main results of this study suggest that customer efficiency, system effectiveness and service visibility positively influence customers’ perceived trust and which later positively influences behavioral intentions to use E-banking services. Moreover, customer efficiency, system effectiveness and service visibility negatively influence customers’ perceived risk and which later negatively influences behavioral intentions to use E-banking services. The results also reveal that customer perceived trust and perceived risk is inversely associated in the frame of adoption of E-banking services.
The current study presented a statistically tesed adoption model of technical innovation; which appears to be very useful for making predictions about consumers adoption pattern towards technological innovations. Inspite of researchers best efforts to made easy to understand consumers psyches towards adoptions, but can not claim to generalize this model to other sectors and geographical areas due to the fact of limited resourses and awareness, such as the study is confined to very small sample space, service areas and even the possible adoptions attributes included but are not limited to the present study. Thus the limitations of this study indicate future research extensions, and the possible extension of current study is to add more adoptions attributes to a strategy and find out the best combination of adoptions attributes to optimize the mutual benefit between consumers and firms.
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