Relationship of Perceived Behavioral Control and Adoption of Internet Banking in the Presence of a Moderator

Abstract

Internet banking is most remarkable in consumer banking segment alongside the fast-paced financial innovations. In practical scenario, internet banking is a contextual phenomenon. Hence, this research endeavored to determine the association of adoption and perceived behavioral control (PBC) variables on adoption of internet banking in the context of Sri Lankan commercial banks. Sample was drawn from the customers of three of the leading private banks. Accounts opening officials were selected as enumerators and data collected through self-administered questionnaires. Initially 450 research questionnaires were disseminated and only 307 were considered for the final data analysis. Principal factors of PBC were identified by conducting principal component analysis. TAM was extended using the PBC and constructs of the variables were measured by five-point Lickert scale. Hypothesis testing was conducted by correlation analysis afterwards, multiple regression analysis using hierarchical method along with diagnosis tests for outliers, residuals, influential cases performed while supplementary statistical tests namely, trend analysis and contrast test of ANOVA, ANCOVA and Hayes’s process for moderation analysis were simultaneously used for further analysis. Empirical evidences supported two hypotheses indicating the positive relationships of PBC and adoption, towards internet banking acceptance. Additionally, it was exposed that there are significant differences between demographic variables. Third hypothesis based on the presence of differences in adoption of internet banking between low income category customers as against higher income categories was also supported accordingly. Subsequently, ANCOVA test identified that the covariate; age was not significantly related to the respondents’ internet banking acceptance whilst the moderation analysis has confirmed relationship between PBC and internet banking adoption is being moderated by the age of the respondent. As a final note, researchers have forwarded several suggestions for internet banking service providers and system developers towards developing marketing strategies to enhance the adoption of internet banking.