UNIVERSITY OF ECONOMICS HO CHI MINH CITY t to International School of Business ng hi ep w n lo ad ju y th Nguyen Thi Phuong Tra yi pl n ua al n va INTERNET BANKING ADOPTION fu ll IN HO CHI MINH CITY:AN APPLICATION OF oi m at nh UNIFIED THEORY OF ACCEPTANCE AND USE z OF TECHNOLOGY (UTAUT) MODEL z k jm ht vb om l.c gm an Lu MASTER OF BUSINESS (Honours) n va ey t re Ho Chi Minh City – 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY t to International School of Business ng hi ep w n Nguyen Thi Phuong Tra lo ad ju y th yi INTERNET BANKING ADOPTION pl al n ua IN HO CHI MINH CITY: AN APPLICATION OF va n UNIFIED THEORY OF ACCEPTANCE AND USE fu ll OF TECHNOLOGY (UTAUT) MODEL oi m at nh z z ID: 22110065 k jm ht vb l.c gm MASTER OF BUSINESS (Honours) SUPERVISOR: Dr NGUYEN THI NGUYET QUE om an Lu n va ey t re Ho Chi Minh City – 2014 ACKNOWLEDGMETS Firstly, I would like to express my deepest appreciation to my supervisor Dr Nguyen t to Thi Nguyet Que for her professional guidance, valuable advice, continuous ng hi encouragement, and motivating support that made this thesis possible ep I would like to extend deep senses of gratitude to Professor Nguyen Dong Phong, Dr w n Tran Ha Minh Quan, Professor Nguyen Dinh Tho and lecturers who have taught and lo ad me valuable knowledge and experience during the period of Master of Business y th ju course at International School of Business yi pl Special, thanks to all of my dear friends in MBUS 2011 class, who share with me al n ua useful material, response and experience to conduct this study va I would like to express my grateful thanks to my friends and all the customersin three n fu ll banking who participated in filling the questionnaires and provided the valuable oi m information for this study nh at Personally, I wish to express my deep gratitude to my parents, my husband and two z z ht vb younger brothers for their spiritual support and encouragement during the time of k jm study Specially, I must express my gratitude to Cao Thi Ngoc Anh, mother - in - law, l.c gm 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 om those people who spent their time and generous support making this thesis project a an Lu dream come true va n Ho Chi Minh City, Vietnam, t re ey 21 April 2014 Nguyen Thi Phuong Tra i PLAGIARISM STATEMENTS I would like to declare that, apart from the acknowledged references, this thesis either t to ng does not use language, ideas, or other original material from anyone; or has not been hi ep 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 w n lo will automatically lead to the rejection from the MBA program at International School ad ju y th of Business University of Economics, HCMC yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re ii COPYRIGHT STATEMENT This copy of the thesis has been supplied on condition that anyone who consults it is t to ng understood to recognize that its copyright rests with its author and that no quotation hi ep from the thesis and no information derived from it may be published without the w author’s prior consent n lo ad © Nguyen Thi Phuong Tra / ISB-MBUS/2011-2013 ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re iii ABSTRACT Purpose: Internet banking is becoming a new focuses as the number of Internet users t to ng and its benefits is increasing worldwide and its benefits However, the degree of intent hi ep to use Internet marketing is still a question of interest Thus, the purpose of this paper w is to investigate the effects of performance expectancy, effort expectancy, social n lo ad influence, facilitating conditions, perceived credibilityand anxiety on behavioural y th intention to use Internet banking in Viet Nam and the developing Asian countries with ju yi good internet infrastructure Totally, 300 questionnaires were distributed to customers pl (ACB) and Military Commercial Joint Stock Bank (MBBank),278 n va bank n ua al of Bank for Investment and Development of Viet Nam (BIDV), Asia commercial ll fu questionnaires were collected and 242 questionnaires were used for the final analysis m oi The results from analysis of them based on multiple linear regression show that all nh at five factors i.e performance expectancy, social influence, facilitating conditions, z z perceived credibilityand anxietyhave an impact on behavioural intention to use vb jm ht Internet banking Knowing the determinants on Internet banking adoption could help k banking companies to improve their service to attract more users Besides, the use of gm om l.c Internet banking could reduce the frequency to bank that indirectly reduces cost Keywords: Internet banking, performance expectancy, effort expectancy, social an Lu influence, facilitating condition, perceived credibilityand anxiety n va ey t re iv TABLE OF CONTENT -o0o ACKNOWLEDGMETS i t to ng COPYRIGHT STATEMENT .iii hi ep ABSTRACT iv w TABLE OF CONTENT v n lo LIST OF TABLES ix ad ju y th LIST OF ABBREVIATIONS x CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Problem statement 1.3 Research objective 1.4 Research scopes and methodology 1.5 Thesis structure CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS 2.1 Theoretical foundation yi pl n ua al n va ll fu oi m at nh z z ht vb k jm 2.1.1 The Theory of Reasoned Action (TRA) l.c gm 2.1.2 Theory of Planned Behavior (TPB) 2.1.3 Technology Acceptance Model (TAM) om The Unified Theory of Acceptance and Use of Technology (UTAUT) 10 2.3 Development of research hypotheses 12 an Lu 2.2 n va 2.3.1 Performance expectancy 13 ey t re 2.3.2 Effort expectancy 14 2.3.3 Social influence 14 2.3.4 Facilitating conditions 16 v 2.3.5 Perceived credibility 17 2.3.6 Anxiety 18 t to 2.3.7 Behavioral intention to use Internet banking 19 ng hi 2.4 Summary of research model and hypotheses 19 ep 2.5 w CHAPTER 3: RESEARCH METHODOLOGY 22 n Summary 21 lo ad Research design process 22 3.2 Development of questionnaires 23 ju y th 3.1 yi pl 3.2.1 Measurement scale 23 al n ua 3.2.2 Draft questionnaires 25 Pilot study 25 3.4 Main survey 26 n va 3.3 ll fu m oi 3.4.1 Sample size 26 nh 3.4.2 Sampling method 27 at Data analysis method 28 z z 3.5 vb jm ht 3.5.1 Reliability 29 k 3.5.2 Exploratory factor analysis (EFA) 29 gm 3.5.3 Multiple regression analysis 30 l.c Summary 31 CHAPTER 4: DATA ANALYSIS 32 4.1 Descriptive data analysis 32 4.2 Reliability analysis 34 4.3 Exploratory factor analysis (EFA) 37 om 3.6 an Lu ey vi t re factors 37 n va 4.3.1 Exploratory factor analysis results for measurement scales of independent 4.3.2 EFA analysis results for measurement scales of dependent factors (behavioral intention to use Internet banking) 40 t to 4.4 Correlation and regression 41 ng 4.4.1 Correlation analysis 41 hi ep 4.4.2 Regression assumption testing 43 w 4.4.3 Multiple linear regression analysis (MLR) 44 n lo Final research model 48 4.6 Summary 49 CHAPTER 5: CONCLUSIONS AND IMPLICATIONS 50 5.1 Conclusions of research 50 5.2 Research contribution 52 5.3 Managerial implications 53 5.4 Limitations and recommendations for future research 56 ad 4.5 ju y th yi pl n ua al n va ll fu oi m at nh REFERENCES 58 z APPENDICES 65 z vb Appendix A: Summarizes the Unified Theory of Acceptance and Use of Technology ht k jm (UTAUT) model 65 l.c gm Appendix B: Guidelines for in-depth interview 67 Appendix C: List of interviewers 69 om Appendix D: Questionnaire (English Version) 70 an Lu Appendix E: Questionnaire (Vietnamese Version) 72 ey vii t re Appendix H: Multiple regression analysis 77 n Appendix G: Results of EFA testing for dependent variables 76 va Appendix F: Results of EFA testing for independent variables 74 LIST OF FIGURES t to ng hi Figure 2.1: Theory of Reasoned Action from Fishbein and Ajzen (1975,1980) ep Figure 2.2: Theory of Planned Behavior (Ajzen, 1985) w Figure 2.3: Technology Acceptance Model (Davis et al, 1989) 10 n lo ad Figure 2.4: Unified Theory of Acceptance and Use of Technology (Venkatesh et al., ju y th 2003) 12 yi Figure 2.5: The proposed research model with hypotheses 19 pl ua al Figure 3.1: Research procedure 22 n Figure 4.1: Final research model 49 n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re viii ng hi Major citations Utilization Affect, Social Factors, Complexity, Thompson et al (MPCU) Facilitating Conditions and Utilization of PC (1991) Innovation Voluntariness, Image, Relative Advantage, Rogers (1983), and Diffusion Theory Compatibility, Trialability, Visibility, Result Moore and Benbasat (IDT) Demonstrability, Ease of Use, and Rate of (1991) Adoption ep Major Constructs t to Name w n The Social lo ad Cognitive Bandura (1982), and Support, Self-efficacy, Outcome Compeau and Expectations, Affect, Anxiety and Usage Higgins (1995 a & b) ju y th Theory (SCT) Encouragement by Others, Other’s Use, Davis and Davis ua (2003) n n va Use of technology Social Influence, and Facilitation Conditions al Acceptance and Performance Expectancy, Effort Expectancy, Venkatesh, Morris, pl Theory od yi The Unified ll fu (UTAUT) oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re 66 | Page Appendix B: Guidelines for in-depth interview Original Comments Final t to ng hi measurement measurement scales scales ep Performance Expectancy w OBS is convenient and n lo easy to access All respondents stated that they IBS is convenient and understood the scale meaning easy to access ad However, they suggested adding the y th ju word “IBS” instead of “OBS” yi Effort expectancy pl With this sentence, for more Internet Banking save me a lot of time ua al Using Internet banking understandable saves me a lot of time n All respondents stated that they It would be easy for become skillful at using understood the scale meaning the system However, they suggested adding the n va It would be easy for me to ll fu me to become skillful oi m at using IBS nh word “IBS” instead of “the system” at Social influence z They suggested changing the word organization has “organization “ and “ the system” to supported the use of the make this scale clearer In general, the bank z In general, the vb jm ht has supported the use of IBS k gm system All respondents stated that they The senior this business has been understood the scale meaning management of the helpful in the use of the However, they suggested changing the bank has been helpful system word “the bank” instead of “this in the use of IBS om l.c The senior management of an Lu va business” and “IBS” instead of “the n People who are important All respondents advocated to change People who are to me think that I should word “the system” into “IBS” important to me think use the system that I should use IBS 67 | Page ey t re system” to make this scale clearer People who influence my All respondents advocated to change People who influence behavior think that I word “the system” into “IBS” my behavior think should use the system that I should use IBS t to ng People in my With this sentence, for easy to organization who use the understand People using IBS hi have more prestige ep systemhave more prestige than those who not than those who not w n Facilitating conditions lo ad All contents of OBS are y th easy to read and All contents of IBS word “OBS” into “IBS” are easy to read and ju understand yi understand All respondents advocated to change pl Basic system al Basic system requirements requirements for n ua for using OBS are met va using IBS are met n Perceived Credibility online banking to protect word “OBS” into “IBS” an IBS to protect my privacy and personal oi m at my privacy and personal I trust in the ability of ll All respondents advocated to change nh fu I trust in the ability of an information z information z IBS has enough vb ht Online bank has enough k fraud and information gm and information theft theft om All respondents advocated to change l.c Anxiety I am worried about the specialists to detect jm specialists to detect fraud I am worried about an Lu the inaccessibility of pages IBS web pages I am afraid of being I am afraid of being charged for OBS charged for IBS n ey t re 68 | Page va inaccessibility of OBS web word “OBS” into “IBS” Appendix C: List of interviewers Name Sex Age Banking Major t to ng hi Female 35 BIDV-HCMC Customer Lê Thị Thanh Tuyền Female 31 BIDV- HCMC Customer Female 24 BIDV- HCMC Customer Male 38 BIDV-HCMC Customer Trần Thị Tuyết Nhung Female 52 BIDV- HCMC Banking expert Nguyễn Hoàng Minh Male 28 BIDV- HCMC Banking expert 34 BIDV-HCMC Banking expert 41 BIDV- HCMC Banking expert 39 BIDV- HCMC Banking expert BIDV- HCMC Banking expert ep Nguyễn Thị Lập w Nguyễn Thị Hồng Thanh n lo Nguyễn Hoàng Quân ad ju y th yi Male ua al Nguyễn Thành Nhơn pl Trần Minh Huy Male n va Female Le Thi Thu Hanh Female n Nguyen Thi Thu Ha fu ll 37 oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re 69 | Page Appendix D: Questionnaire (English Version) t to We are currently studying the program "Master of Business Administration" of International School Of Business - University of Economics Ho Chi Minh City To analyze the factors affecting customers behavioral intention to use Internet banking (IB), we are looking forward to his / her spend free time to implement the survey below With this survey, you will help us complete the paper and provide an opportunity for banks to serve customers better ng A Information: hi Are you using a personal account or banking card? ep Did you know about Internet banking services? w Have you currently registered to use Internet banking services? (Continues to survey if answer of question 1, is “Yes” and question is “No”) □ Yes □ Yes □ No □ No □ Yes □ No n lo B Survey content: ad ju Criteria y th Please you indicate level of agreement on the following statements by mark X in the appropriate box: [1] Strongly disagree; [2] Disagree; [3] Neutral; [4] Agree; [5] Strongly agree yi Performance Expectancy Level of agreement pl 5 m IBS is convenient and easy to access I can transfer money anytime and any where I can save time paying essential bills at the post office I can keep a record of my finances 5 I need not visit traditional banks regularly I can manage my money online at any time n ua al n va ll fu oi at nh z z vb Effort Expectancy Level of agreement Internet Banking is easy to use Internet Banking saves me a lot of time 5 k Internet banking is easy to learn jm ht 5 om l.c an Lu Social Influence gm 10 It would be easy for me to become skillful at using IBS Level of agreement n va The senior management of the bank has been helpful in the use of IBS 13 People who are important to me think that I should use IBS 70 | Page ey 12 t re 11 In general, the bank has supported the use of IBS 14 People who influence my behavior think that I should use IBS 15 People using IBS have more prestige than those who not t to Facilitating Conditions Level of agreement ng hi 16 All contents of IBS are easy to read and understand ep 17 Basic system requirements for using IBS are met 5 5 w n 18 Specific person (or group) is always available for assistance lo The language in which the document is written is easily understood ad 19 y th Level of agreement ju Perceived Credibility I trust in the ability of an IBS to protect my privacy and personal information yi pl 20 al IBS has enough specialists to detect fraud and information theft 5 5 n va 22 n ua 21 I believe no money will be lost when I transfer ll fu 23 Other people cannot view my bank account information m Level of agreement oi Anxiety nh at 24 I am afraid of losing information by hitting the wrong key z z 25 I am worried about the inaccessibility of IBS web pages vb 5 5 2 5 n va an Lu 30 I plan to use Internet Banking in the next few months om I predict that I would use Internet Banking in the next few months l.c Level of agreement 28 I intend to use Internet Banking in the next few months □ Male □ – 10 M □ 23 – 35 □ Graduate □ 10 – 20 M □ 36 – 50 □ Master □ >20 M □ > 50 □ Others 71 | Page ey □ Female □ 20 triệu □ > 50 □ khác t re □ 10 – 20 □ 36 – 50 □ Sau đại học n va □ Nữ □ – 10 triệu □ 23 – 35 □ Đại học an Lu □ Nam □