Factors affecting the adoption of internet banking in the Kingdom of Bahrain Item Type Thesis Authors Janahi, Yusuf M.A.M. Rights <a rel="license" href="http://creativecommons.org/licenses/ by-nc-nd/3.0/"><img alt="Creative Commons License" style="border-width:0" src="http://i.creativecommons.org/l/by- nc-nd/3.0/88x31.png" /></a><br />The University of Bradford theses are licenced under a <a rel="license" href="http:// creativecommons.org/licenses/by-nc-nd/3.0/">Creative Commons Licence</a>. Download date 03/10/2021 18:09:32 Link to Item http://hdl.handle.net/10454/15884 University of Bradford eThesis This thesis is hosted in Bradford Scholars – The University of Bradford Open Access repository. Visit the repository for full metadata or to contact the repository team © University of Bradford. This work is licenced for reuse under a Creative Commons Licence. FACTORS AFFECTING THE ADOPTION OF INTERNET BANKING IN THE KINGDOM OF BAHRAIN Overcoming Barriers to Adoption Through the Use of Biometrics YUSUF MOHAMED ABDULLA MOHAMED JANAHI Submitted for the Degree of Doctor of Philosophy FACULTY OF ENGINEERING AND INFORMATICS UNIVERSITY OF BRADFORD 2016 Janahi, Yusuf Mohamed Abdulla M. “FACTORS AFFECTING THE ADOPTION OF INTERNET BANKING IN THE KINGDOM OF BAHRAIN” Abstract The emergence of the Internet in business as a marketing tool and as a communication medium is one of the existing challenges for the banking industry. Because of this evolution, the banking industry has adopted Internet banking both for financial transactions and for the provision of information about products and services. Based on the ideas mentioned, this study aimed to examine the factors which may affect the intention to use Internet banking in the Kingdom of Bahrain with the following research objectives to be achieved: first, to identify the factors which affect the intention to use and adopt Internet banking in the Kingdom of Bahrain; second, to develop a model based on the identified factors that affect the intention to use Internet banking in the Kingdom of Bahrain; and third, to test the reliability and validity of the proposed model and find its implications on the intention to use and adopt Internet banking. In this study, five variables were initially chosen, namely, perceived privacy protection, perceived security protection, perceived trust, perceived information quality and perceived risks/benefits that may affect the intention to use Internet banking. Besides the five variables, two more variables were included: cultural dimension and biometric technology to measure a significant relationship with any ii of the five variables that might affect the intention of bank customers to use Internet banking in Bahrain. As a quantitative method of research, the study focused on assessing the co-variation among naturally occurring variables with the goal of identifying predictive relationships by using correlations or more sophisticated statistical techniques. In analysing the data, the descriptive statistics were used. In addition, construct reliability and discriminant validity tests were conducted and structural equation modelling were used to test the research model and verify the hypotheses. The cultural context has rarely been commented on in previous research, but as a result of taking this factor into account in addition to the more technical issues, a number of practical implications became evident for banking in Bahrain that may have applicability elsewhere in the Arab world. These include both a focus on relationship management as well as the need for additional levels of security through biometric fingerprinting to be implemented by banks wishing to increase the adoption of Internet banking amongst existing customers. These strategies also have potential to attract new market segments. KEYWORDS: Bahrain, Biometric, Security, Authentication, Cultural Dimensions and Internet Banking. iii ACKNOWLEDGEMENTS The completion of this study has enabled me to gain a deeper understanding of academic writing, research protocols and, more importantly, acquire useful new knowledge which might benefit the banking industry in the Kingdom of Bahrain. The academic experiences from this undertaking have allowed me to grow professionally and personally. For these gifts of knowledge, I am indebted to the counsel of my supervisors, Dr Andrea Collins, Dr Rana Tassabehji of Bradford University and Dr Saeed Al Hajaar. I also wish to acknowledge the assistance and support of a great many people who supported me all the way: my family, friends and significant others. In particular, the assistance of my wife Badria and children, Khalid, Mohammed and Lulwa for putting up with my absence over the years that I was in the process of pursuing this academic endeavour. Lastly, I would like to thank my uncle Hasan A. Rahim who encouraged and taught me the value of education; my friends Khalifa, Salman Zaiman and Mohammed Dito for their moral support and encouragement. Y.M.A.M.J. iv DEDICATION I would like to dedicate this book to my father who inspired me to work hard, to take everything seriously and to do my best in every endeavour to achieve my goals. v Table of Contents Abstract .................................................................................................................... ii 1.0 CHAPTER 1 .......................................................................................................1 1.1 Introduction .....................................................................................................1 1.2 Background .....................................................................................................1 1.3 Aim and Objectives of the Study .....................................................................6 1.4 Problem Statement ..........................................................................................6 1.5 Significance of the Study .................................................................................8 1.6 Methodology Used in this Study ......................................................................9 1.7 Summary and Organisation of the Study ....................................................... 11 2.0 CHAPTER 2 ..................................................................................................... 14 2.1 Literature Review .............................................................................................. 14 2.2 Background ................................................................................................... 15 2.3 Internet Banking Concepts and Definition ..................................................... 16 2.4 Users’ Acceptance of Technology ................................................................. 21 2.5 Technology Acceptance Theories Related to Customers’ Adoption of Internet Banking ............................................................................................................... 22 2.5.1 The Theory of Reasoned Action (TRA) ................................................... 23 2.5.2 The Theory of Planned Behaviour (TPB) ................................................ 25 2.5.3 Technology Acceptance Model by Davis (1989) ..................................... 28 2.6 Related Factors Influencing Consumers’ Adoption of Internet Banking......... 33 2.6.1 Security ................................................................................................... 33 2.6.2 Privacy .................................................................................................... 35 2.6.3 Customers’ Trust in Internet Banking Transactions ................................ 39 2.6.4 Information Quality .................................................................................. 43 2.7 Cultural Impact on Technology Adoption .......................................................... 48 vi 2.8 Biometric Technology ....................................................................................... 59 2.9 Problem Statements and Gaps ......................................................................... 61 2.10 Chapter Summary .......................................................................................... 71 3.0 CHAPTER 3 ..................................................................................................... 75 3.1 Conceptual Framework..................................................................................... 75 3.2 Conceptual Framework Development .............................................................. 75 3.3 Dependent Variable – Behavioural Intention Towards the Use of Internet Banking .................................................................................................................. 76 3.4 Factors Affecting Online Banking Adoption .................................................. 81 3.4.1 Perceived Privacy Protection Towards the Use of Internet Banking........... 81 3.4.2 Perceived Security Protection Towards the Use of Internet Banking ......... 82 3.4.3 Perceived Trust towards the Use of Internet Banking ................................ 84 3.4.4 Perceived Information Quality Towards the Use of Internet Banking ......... 85 3.4.5 Perceived Risks and Benefits Towards the Use of Internet Banking .......... 87 3.5 Cultural Dimensions and their Relationship to Technology Acceptance and the Adoption of Internet Banking .................................................................................. 88 3.6 Biometrics Technology towards the Use of Internet Banking...........................