UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Thi Phuong Tra INTERNET BANKING ADOPTION IN HO CHI MINH CITY:AN APPLICATION OF UNIFIED THEORY OF ACCEPTANCE AND USE OF TECHNOLOGY (UTAUT) MODEL MASTER OF BUSINESS (Honours) Ho Chi Minh City – 2014 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Thi Phuong Tra INTERNET BANKING ADOPTION IN HO CHI MINH CITY: AN APPLICATION OF UNIFIED THEORY OF ACCEPTANCE AND USE OF TECHNOLOGY (UTAUT) MODEL ID: 22110065 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr. NGUYEN THI NGUYET QUE Ho Chi Minh City – 2014 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGMETS Firstly, I would like to express my deepest appreciation to my supervisor Dr. Nguyen Thi Nguyet Que for her professional guidance, valuable advice, continuous encouragement, and motivating support that made this thesis possible. I would like to extend deep senses of gratitude to Professor Nguyen Dong Phong, Dr.
Tran Ha Minh Quan, Professor Nguyen Dinh Tho and lecturers who have taught and me valuable knowledge and experience during the period of Master of Business course at International School of Business. Special, thanks to all of my dear friends in MBUS 2011 class, who share with me useful material, response and experience to conduct this study. I would like to express my grateful thanks to my friends and all the customersin three banking who participated in filling the questionnaires and provided the valuable information for this study. Personally, I wish to express my deep gratitude to my parents, my husband and two younger brothers for their spiritual support and encouragement during the time of study.
Specially, I must express my gratitude to Cao Thi Ngoc Anh, mother - in - law, for her taking care of my son since I was pregnant until now when my child is 17 months old. So, I was able to complete the course on time. I also wish to thank all those people who spent their time and generous support making this thesis project a dream come true. Ho Chi Minh City, Vietnam, 21 April 2014 Nguyen Thi Phuong Tra i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com PLAGIARISM STATEMENTS I would like to declare that, apart from the acknowledged references, this thesis either does not use language, ideas, or other original material from anyone; or has not been previously submitted to any other educational and research programs or institutions.
I fully understand that any writings in this thesis contradicted to the above statement will automatically lead to the rejection from the MBA program at International School of Business University of Economics, HCMC. ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com COPYRIGHT STATEMENT This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author’s prior consent. © Nguyen Thi Phuong Tra / ISB-MBUS/2011-2013 iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT Purpose: Internet banking is becoming a new focuses as the number of Internet users and its benefits is increasing worldwide and its benefits. However, the degree of intent to use Internet marketing is still a question of interest.
Thus, the purpose of this paper is to investigate the effects of performance expectancy, effort expectancy, social influence, facilitating conditions, perceived credibilityand anxiety on behavioural intention to use Internet banking in Viet Nam and the developing Asian countries with good internet infrastructure. Totally, 300 questionnaires were distributed to customers of Bank for Investment and Development of Viet Nam (BIDV), Asia commercial bank (ACB) and Military Commercial Joint Stock Bank (MBBank),278 questionnaires were collected and 242 questionnaires were used for the final analysis. The results from analysis of them based on multiple linear regression show that all five factors i. performance expectancy, social influence, facilitating conditions, perceived credibilityand anxietyhave an impact on behavioural intention to use Internet banking.
Knowing the determinants on Internet banking adoption could help banking companies to improve their service to attract more users. Besides, the use of Internet banking could reduce the frequency to bank that indirectly reduces cost. Keywords: Internet banking, performance expectancy, effort expectancy, social influence, facilitating condition, perceived credibilityand anxiety. iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENT ---o0o--- ACKNOWLEDGMETS.
iv TABLE OF CONTENT. v LIST OF TABLES. ix LIST OF ABBREVIATIONS .4 Research scopes and methodology. CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS .1 The Theory of Reasoned Action (TRA) .2 Theory of Planned Behavior (TPB) .3 Technology Acceptance Model (TAM) .2 The Unified Theory of Acceptance and Use of Technology (UTAUT) .3 Development of research hypotheses.
16 v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.7 Behavioral intention to use Internet banking .4 Summary of research model and hypotheses. CHAPTER 3: RESEARCH METHODOLOGY.1 Research design process .2 Development of questionnaires .5 Data analysis method .2 Exploratory factor analysis (EFA) .3 Multiple regression analysis. CHAPTER 4: DATA ANALYSIS .1 Descriptive data analysis .3 Exploratory factor analysis (EFA) .1 Exploratory factor analysis results for measurement scales of independent factors. 37 vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.2 EFA analysis results for measurement scales of dependent factors (behavioral intention to use Internet banking) .4 Correlation and regression .2 Regression assumption testing .3 Multiple linear regression analysis (MLR) .5 Final research model.
CHAPTER 5: CONCLUSIONS AND IMPLICATIONS .1 Conclusions of research .4 Limitations and recommendations for future research. 65 Appendix A: Summarizes the Unified Theory of Acceptance and Use of Technology (UTAUT) model. 65 Appendix B: Guidelines for in-depth interview. 67 Appendix C: List of interviewers.
72 Appendix F: Results of EFA testing for independent variables. 74 Appendix G: Results of EFA testing for dependent variables. 76 Appendix H: Multiple regression analysis. 77 vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 2.1: Theory of Reasoned Action from Fishbein and Ajzen (1975,1980) .2: Theory of Planned Behavior (Ajzen, 1985) .3: Technology Acceptance Model (Davis et al, 1989).4: Unified Theory of Acceptance and Use of Technology (Venkatesh et al.5: The proposed research model with hypotheses .1: Final research model.
49 viii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 3.1: Construct and corresponding items .1: Mode of data collection .2: Type of gender .3: Type of age .4: Type of education .5: Type of income .6: Reliability analysis result.7: KMO and Bartlett's test of independent variables .8: Rotated component matrix of independent.9: KMO and Bartlett’s test of dependent variables .10: Total variance explained .11: Rotated component matrix of dependent variable .13: Model summary of multiple linear regression analysis .14: ANOVA of multiple linear regression analysis.15: Coefficient of multiple linear regression analysis. 48 ix LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ABBREVIATIONS ACB Asia Commercial Bank AN Anxiety BIDV Bank for Investment and Development of Viet Nam EE Effort Expectancy EFA Exploratory Factor Analysis FC Facilitating Conditions IBS Internet Banking Services HCMC Ho Chi Minh City KMO Kaiser-Meyer-Olkin OBS Online Banking Services MBBANK Military Commercial Joint Stock Bank PC Perceived Credibility PE Performance Expectancy SI Social Influence TAM Technology Acceptance Model TPB Theory of Planned Behavior TRA Theory of Reasoned Action UTAUT Unified Theory of Acceptance and Use of Technology x LUAN VAN CHAT LUONG download : add luanvanchat@agmail.1 Research background Internet banking is an innovative service, which has been perpetuated by the development and diffusion of the Internet communication technology. Internet banking services not only allow customers to carry out a range of banking activities such as managing bank accounts and transactions without leaving their desks (Weir et al., 2006), but also a very cost-efficient way for banks to provide their customer services (Yakhlef, 2001). Internet banking offers customers the advantages of lower costs, location and time convenience, the ease and speed of completing transactions.
As one percent increase in the retention of Internet banking acceptance will typically bring 18 percent reduction in operating cost (Bhattacherjee, 2001), indifference towards consumers’ adoption of Internet banking services may result in a big loss to the financial institutions. Therefore, the development of Internet banking services is most important in bank management. From year 2000 to 30 June 2012, the total Internet user growth is 566. The largest proportion (44.8%) of Internet users was from Asia followed by Europe (21.5%) and North America (11.
Viet Nam, an Asian country was among the Top 20 highest number of Internet users from 2010 to 30 June 2012. In year 2000, Viet Nam Internet users recorded 200,000 and increased to 31,034,900 in June, year 2012. This showed an increase of 155 times in 12 years (Internet World Stats, 2012). Internet banking was first launch by Viet Nam in may, 2002 to provide Internet banking services to bank holders.
According to the commercial banks survey of Nielsen Global in 2012, there is less than 1.02% banking customers using Internet banking 1 | Page LUAN VAN CHAT LUONG download : add luanvanchat@agmail. This rate is very low if compared with the number of Internet subscribers nationwide at the end of June 2012. This figure is also still very low when compare with developed nations in Asia. It means that Internet banking service in Viet Nam is a potential market in future.
Hence, the need to understand the factors influencing to use Internet banking services is indispensable.2 Problem statement The Internet banking plays a significant role in the Banking industry. According to Yasuharu(2003), implementation of information technology and communication networking has brought about a revolution in the functioning of the banks and the financial institutions.The transition to electronic banking has therefore become a necessity for banks as it offers major opportunities in terms of competitive advantage and it also allows banks to develop a stronger and more durable business relationship with its customers. However, despite of the numerous benefits, the acceptance of Internet banking in Vietnam is relatively low when comparing to West and the United States. In Asian region, most studies concentrated to developed Asian countries (Singapore, Hong Kong, Taiwan, Malaysia, ect.) than developing country like Vietnam in the last twenty years.Thus, understanding the reason for acceptance or non-acceptance of new technologies by people is one of the greatest challenges.
Hence, there is a necessity to research about the behavioral intention to use Internet banking in Ho Chi Minh City, Viet Nam.That is also the motivation for developing this research. Most studies focused narrowly on the positiveaspects of Internet banking services. For example, AbuShanab and Pearson (2009) focused on the effects of trust, relative advantage and attitude toward using Internet banking services. Additional dimensions 2 | Page LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com were added to the UTAUT model such as voluntariness of use (Anderson and Schwager, 2004);perceived credibility and anxiety (Yeow et al., 2008), self-efficacy, anxiety, perceived trust, perceived risk, personal innovativeness and locus of control (AbuShanad and Pearson, 2009); trust (Foon and Fah, 2011).
On the other hand, the research’s findings of Yeow et al. (2008)have proved that perceived credibility and anxiety add to the UTAUT model in Malaysia. This is market that posses many similar traits to Vietnam’s market. Moreover, the motivation of this study also derives from the lack of studies in terms of Internet banking in Vietnam from the UTAUT model.
There are very few studies, for examples, the research of Khuu and Nguyen (2011)showed that performance expectancy, social influence, perceived credibility and anxiety significantly impact customers’ intention to adopt Internet banking. In addition, effort expectancy and self-efficacy do not affect the intention to use Internet banking. Therefore, this study aims to test the influences of UTAUT model (performance expectancy, effort expectancy, social influence, facilitating conditions) and two additional dimensions(perceived credibility and anxiety) on behavioral intention to use Internet bankingin Ho Chi Minh City, Viet Nam.