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 h UNIFIED THEORY OF ACCEPTANCE AND USE OF TECHNOLOGY (UTAUT) MODEL MASTER OF BUSINESS (Honours) Ho Chi Minh City – 2014 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 h ID: 22110065 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr NGUYEN THI NGUYET QUE Ho Chi Minh City – 2014 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 h 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 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 h ii 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 h iii 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 h The results from analysis of them based on multiple linear regression show that all five factors i.e 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 TABLE OF CONTENT -o0o ACKNOWLEDGMETS i COPYRIGHT STATEMENT .iii ABSTRACT iv TABLE OF CONTENT v LIST OF TABLES ix 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 h 2.1.1 The Theory of Reasoned Action (TRA) 2.1.2 Theory of Planned Behavior (TPB) 2.1.3 Technology Acceptance Model (TAM) 2.2 The Unified Theory of Acceptance and Use of Technology (UTAUT) 10 2.3 Development of research hypotheses 12 2.3.1 Performance expectancy 13 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 2.3.7 Behavioral intention to use Internet banking 19 2.4 Summary of research model and hypotheses 19 2.5 Summary 21 CHAPTER 3: RESEARCH METHODOLOGY 22 3.1 Research design process 22 3.2 Development of questionnaires 23 3.2.1 Measurement scale 23 3.2.2 Draft questionnaires 25 3.3 Pilot study 25 3.4 Main survey 26 h 3.4.1 Sample size 26 3.4.2 Sampling method 27 3.5 Data analysis method 28 3.5.1 Reliability 29 3.5.2 Exploratory factor analysis (EFA) 29 3.5.3 Multiple regression analysis 30 3.6 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 4.3.1 Exploratory factor analysis results for measurement scales of independent factors 37 vi 4.3.2 EFA analysis results for measurement scales of dependent factors (behavioral intention to use Internet banking) 40 4.4 Correlation and regression 41 4.4.1 Correlation analysis 41 4.4.2 Regression assumption testing 43 4.4.3 Multiple linear regression analysis (MLR) 44 4.5 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 h REFERENCES 58 APPENDICES 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 69 Appendix D: Questionnaire (English Version) 70 Appendix E: Questionnaire (Vietnamese Version) 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 LIST OF FIGURES Figure 2.1: Theory of Reasoned Action from Fishbein and Ajzen (1975,1980) Figure 2.2: Theory of Planned Behavior (Ajzen, 1985) Figure 2.3: Technology Acceptance Model (Davis et al, 1989) 10 Figure 2.4: Unified Theory of Acceptance and Use of Technology (Venkatesh et al., 2003) 12 Figure 2.5: The proposed research model with hypotheses 19 Figure 3.1: Research procedure 22 Figure 4.1: Final research model 49 h viii Name Major Constructs 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 The Social Encouragement by Others, Other’s Use, Bandura (1982), and Cognitive Support, Self-efficacy, Outcome Compeau and Expectations, Affect, Anxiety and Usage Higgins (1995 a & b) Theory (SCT) The Unified Performance Expectancy, Effort Expectancy, Venkatesh, Morris, Theory od Social Influence, and Facilitation Conditions Acceptance and Davis and Davis (2003) Use of technology (UTAUT) h 66 | Page Appendix B: Guidelines for in-depth interview Original Comments Final measurement measurement scales scales Performance Expectancy OBS is convenient and All respondents stated that they IBS is convenient and easy to access understood the scale meaning easy to access However, they suggested adding the word “IBS” instead of “OBS” Effort expectancy Using Internet banking With this sentence, for more Internet Banking save me a lot of time understandable saves me a lot of time It would be easy for me to All respondents stated that they It would be easy for become skillful at using understood the scale meaning me to become skillful the system However, they suggested adding the at using IBS h word “IBS” instead of “the system” Social influence In general, the They suggested changing the word In general, the bank organization has “organization “ and “ the system” to has supported the use supported the use of the make this scale clearer of IBS The senior management of 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 system business” and “IBS” instead of “the system” to make this scale clearer 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 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 People in my With this sentence, for easy to organization who use the understand People using IBS have more prestige systemhave more prestige than those who not than those who not Facilitating conditions All contents of OBS are All respondents advocated to change All contents of IBS easy to read and word “OBS” into “IBS” are easy to read and understand understand Basic system Basic system requirements requirements for for using OBS are met using IBS are met Perceived Credibility All respondents advocated to change online banking to protect word “OBS” into “IBS” h I trust in the ability of an I trust in the ability of an IBS to protect my my privacy and personal privacy and personal information information IBS has enough Online bank has enough specialists to detect specialists to detect fraud fraud and information and information theft theft Anxiety I am worried about the All respondents advocated to change I am worried about inaccessibility of OBS web word “OBS” into “IBS” the inaccessibility of pages IBS web pages I am afraid of being I am afraid of being charged for OBS charged for IBS 68 | Page Appendix C: List of interviewers Name Sex Age Banking Major Nguyễn Thị Lập Female 35 BIDV-HCMC Customer Lê Thị Thanh Tuyền Female 31 BIDV- HCMC Customer Nguyễn Thị Hồng Thanh Female 24 BIDV- HCMC Customer Nguyễn Hoàng Quân Male 38 BIDV-HCMC Customer Trần Thị Tuyết Nhung Female 52 BIDV- HCMC Banking expert Nguyễn Hoàng Minh Male 28 BIDV- HCMC Banking expert Trần Minh Huy Male 34 BIDV-HCMC Banking expert Nguyễn Thành Nhơn Male 41 BIDV- HCMC Banking expert Nguyen Thi Thu Ha Female 39 BIDV- HCMC Banking expert Le Thi Thu Hanh Female 37 BIDV- HCMC Banking expert h 69 | Page Appendix D: Questionnaire (English Version) 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 A Information: Did you know about Internet banking services? □ Yes □ Yes □ No □ No Have you currently registered to use Internet banking services? (Continues to survey if answer of question 1, is “Yes” and question is “No”) □ Yes □ No Are you using a personal account or banking card? B Survey content: 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 Criteria Performance Expectancy Level of agreement 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 h Effort Expectancy Level of agreement Internet banking is easy to learn Internet Banking is easy to use Internet Banking saves me a lot of time 5 10 It would be easy for me to become skillful at using IBS Social Influence 11 In general, the bank has supported the use of IBS Level of agreement 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 12 70 | Page 14 People who influence my behavior think that I should use IBS 15 People using IBS have more prestige than those who not Facilitating Conditions Level of agreement 16 All contents of IBS are easy to read and understand 17 Basic system requirements for using IBS are met 18 Specific person (or group) is always available for assistance The language in which the document is written is easily understood 19 Perceived Credibility 20 Level of agreement I trust in the ability of an IBS to protect my privacy and personal information 21 I believe no money will be lost when I transfer 22 IBS has enough specialists to detect fraud and information theft 23 Other people cannot view my bank account information 5 5 Level of agreement h Anxiety 24 I am afraid of losing information by hitting the wrong key 25 I am worried about the inaccessibility of IBS web pages 26 I am afraid of being charged for IBS 27 I am afraid of making mistakes that I cannot correct Behavioral Intention to use IBS Level of agreement 28 I intend to use Internet Banking in the next few months 29 I predict that I would use Internet Banking in the next few months 30 I plan to use Internet Banking in the next few months C Background Information Gender Income Age Education □ Female □ 20 M □ > 50 □ Others 71 | Page Appendix E: Questionnaire (Vietnamese Version) Chúng sinh viên chương trình cao học “Thạc sỹ Quản trị Kinh doanh” Viện Đào Tạo Quốc Tế - Trường Đại học Kinh tế TP.Hồ Chí Minh Nhằm đánh giá yếu tố ảnh hưởng đến khách hàng lựa chọn sử dụng “Giao dịch ngân hàng qua dịch vụ ngân hàng trực tuyến ” (Internetbanking), mong Anh/Chị dành chút thời gian thực bảng khảo sát bên Ý kiến quý báu Anh/Chị bảo mật, giúp cho chúng tơi hồn thành đề tài nghiên cứu tạo hội để ngân hàng cải tiến, phục vụ khách hàng ngày tốt A Thơng tin chung: Anh/chị có biết dịch vụ ngân hàng trực tuyến khơng? □ Có □ Có □ Chưa □ Chưa Anh/chị có đăng ký sử dụng dịch vụ Internet-banking chưa? (Các anh/chị tiếp tục thực khảo sát câu 1,2 trả lời có câu chưa”) □ Có □ Chưa Anh/chị có sử dụng tài khoản cá nhân thẻ qua ngân hàng? B Nội dung khảo sát Anh/Chị vui lòng cho biết mức độ đồng ý phát biểu đây, việc đánh dấu chéo (X) vào tương ứng:[1] Hồn tồn khơng đồng ý; [2] Khơng đồng ý; [3] Bình thường; [4] Đồng ý; [5] Hồn tồn đồng ý Tiêu chí đánh giá Hiệu mong đợi dịch vụ ngân hàng trực tuyến Sử dụng ngân hàng trực tuyến thuận tiện dễ dàng truy cập Mức độ đồng ý Sử dụng ngân hàng trực tuyến tơi chuyển tiền lúc nơi đâu Ngân hàng trực tuyến giúp tơi tiết kiệm thời gian chi trả hóa 3 đơn bưu điện Ngân hàng trực tuyến giúp tơi lưu trữ giao dịch tài mà thực Sử dụng ngân hàng trực tuyến không cần thường xuyên ngân hàng giao dịch Sử dụng ngân hàng trực tuyến tơi quản lý tiền bạc lúc Tính dể sử dụng dịch vụ ngân hàng trực tuyến Mức độ đồng ý 5 5 5 h Học sử dụng ngân hàng trực tuyến dễ dàng Tôi thấy ngân hàng trực tuyến dễ sử dụng Sử dụng ngân hàng trực tuyến giúp tiết kiệm thời gian nhiều 5 5 10 Tơi dễ dàng có kỹ để sử dụng ngân hàng trực tuyến Ảnh hưởng xã hội dịch vụ ngân hàng trực tuyến Mức độ đồng ý Nhìn chung, ngân hang hỗ trợ việc sử dụng ngân hang trực 11 tuyến Các nhà quản lý ngân hàng giúp sử dụng ngân hàng trực 12 tuyến Người quan trọng với cho nên sử dụng ngân hàng 13 trực tuyến 72 | Page 14 Người có ảnh hưởng đến tơi nghĩ tơi nên sử dụng ngân hàng trực tuyến 15 Sử dụng ngân hàng trực tuyến thể đẳng cấp uy tín Điều kiện hỗ trợ dịch vụ ngân hàng trực tuyến Mức độ đồng ý Tất nội dung hướng dẫn ngân hàng trực tuyến dễ đọc 16 dễ hiểu Thiết bị hỗ trợ cho việc sử dụng ngân hàng trực tuyến dễ 17 dàng đáp ứng Ln ln có sẵn người để hỗ trợ bạn sử dụng ngân 18 hàng trực tuyến 19 Ngôn ngữ sử dụng ngân hàng trực tuyến dể hiểu Sự đáng tin dịch vụ ngân hàng trực tuyến Mức độ đồng ý Tôi tin tưởng vào khả bảo mật thông tin cá nhân ngân 20 hàng trực tuyến Tôi tin giao dịch qua ngân hàng trực tuyến khơng lo 21 ngại bị tiền Tôi tin tưởng ngân hàng trực tuyến phát việc 22 gian lận trộm cắp thông tin 23 Những người khác xem thông tin tài khoản h 16 Tôi cảm thấy lo sợ thơng tin nhấn sai phím Tơi lo lắng khả kết nối trang web sử dụng ngân hàng trực tuyến 16 Tơi sợ bị tính phí sử dụng dịch vụ ngân hàng trực tuyến 5 5 5 5 5 5 Tôi ngại sử dụng dịch vụ ngân hàng trực tuyến sợ mắc lỗi tơi khơng thể sửa chữa Ý định sử dụng dịch vụ ngân hàng trực tuyến Mức độ đồng ý 16 Tơi có ý định sử dụng ngân hàng trực tuyến vài tháng tới 16 Tôi dự định sử dụng ngân hàng trực tuyến vài tháng tới Tôi có kế hoạch sử dụng ngân hàng trực tuyến vài tháng 16 tới □ Nam □ 20 triệu □ > 50 □ khác 73 | Page Appendix F: Results of EFA testing for independent variables KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity 877 Approx Chi-Square 4087.288 df 351 Sig .000 Total Variance Explained h Extraction Sums of Squared Initial Eigenvalues Loadings % of Cumulative % of Cumulative Factor Total Variance % Total Variance % 8.977 33.247 33.247 8.642 32.007 32.007 3.452 12.786 46.032 3.027 11.211 43.218 2.196 8.133 54.165 1.817 6.729 49.946 1.731 6.412 60.578 1.272 4.712 54.658 1.563 5.790 66.368 1.240 4.593 59.252 1.065 3.944 70.312 742 2.750 62.002 774 2.866 73.179 669 2.478 75.657 664 2.458 78.115 10 617 2.284 80.399 11 528 1.955 82.354 12 483 1.788 84.142 13 463 1.714 85.855 14 438 1.621 87.477 15 427 1.582 89.058 16 361 1.336 90.394 17 336 1.245 91.639 18 334 1.238 92.877 19 319 1.183 94.060 20 306 1.134 95.194 21 269 997 96.191 22 231 856 97.047 23 197 730 97.776 24 180 666 98.443 25 172 638 99.080 26 139 513 99.593 27 110 407 100.000 Extraction Method: Principal Axis Factoring Rotation Sums of Squared Loadings % of Cumula Total Variance tive % 3.909 14.477 14.477 3.722 13.787 28.264 2.591 9.596 37.860 2.414 8.942 46.802 2.232 8.268 55.071 1.871 6.931 62.002 74 | Page Rotated Factor Matrixa Factor SI4 817 SI3 799 SI2 752 SI5 741 SI1 605 322 314 PE6 717 PE5 714 PE2 714 PE3 698 PE1 675 PE4 591 824 FC1 781 FC3 710 FC2 498 h FC4 AN3 786 AN4 760 AN2 755 AN1 738 PC2 719 PC3 643 PC4 627 PC1 584 EE4 756 EE1 660 EE2 615 EE3 578 Extraction Method: Principal Axis Factoring Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations 75 | Page Appendix G: Results of EFA testing for dependent variables KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity 710 Approx Chi-Square 354.461 df Sig .000 Total Variance Explained Initial Eigenvalues Factor Total % of Variance Extraction Sums of Squared Loadings Cumulative % 2.348 78.267 78.267 424 14.119 92.386 228 7.614 100.000 2.047 % of Variance 68.235 68.235 h Total Cumulativ e% Extraction Method: Principal Axis Factoring 76 | Page Appendix H: Multiple regression analysis Variables Entered/Removeda Variables Variables Model Entered Removed Method EE, TR, AN, FC, Enter PE, SIb a Dependent Variable: Behavioral Intention b All requested variables entered Model Summaryb Adjusted R Std Error of the Model R R Square Square Estimate Durbin-Watson 742a 551 539 64007420 1.828 a Predictors: (Constant), Effort Expectancy, Facilitating Conditions, Social Influence, Performance Expectancy, Anxiety, Perceived Credibility b Dependent Variable: Behavioral Intention to use Internet banking h ANOVAa Model Regression Residual Total Sum of Squares df Mean Square 117.959 19.660 96.278 235 410 214.237 241 F 47.986 Sig .000b a Dependent Variable: Behavioral Intention to use Internet Banking b Predictors: (Constant), Effort Expectancy, Facilitating Conditions, Social Influence, Performance Expectancy, Anxiety, Perceived Credibility 77 | Page Coefficientsa Standardiz ed Unstandardized Coefficien Coefficients ts B Std Error Beta -4.067E-17 041 Model t (Constant) 000 Social 325 044 321 7.310 Influence Performance 428 045 417 9.503 Expectancy Facilitating 379 045 372 8.475 Conditions Anxiety -.113 045 -.110 -2.510 Perceived 245 047 228 5.178 Credibility Effort -.076 047 -.070 -1.601 Expectancy a Dependent Variable: Behavioral Intention to use Internet Banking Sig 1.000 Collinearity Statistics Tolerance VIF 000 990 1.010 000 993 1.007 000 995 1.005 013 994 1.006 000 986 1.014 111 992 1.008 Charts h 78 | Page h 79 | Page Descriptive Statistics Minimum 1 1 1 1 1 1 1 1 1 1 1 1 1 Maximum 5 5 5 5 5 5 5 5 5 5 5 5 5 h PE1 PE2 PE3 PE4 PE5 PE6 EE1 EE2 EE3 EE4 SI1 SI2 SI3 SI4 SI5 FC1 FC2 FC3 FC4 PC1 PC2 PC3 PC4 AN1 AN2 AN3 AN4 Valid N (listwise) N 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 242 Std Mean Deviation 3.62 1.025 3.64 1.035 3.61 968 3.75 959 3.99 850 3.62 1.001 3.53 1.078 3.56 1.119 3.46 1.202 3.51 1.139 3.39 1.014 3.41 913 3.27 967 3.25 1.053 3.10 1.063 3.63 934 3.61 891 3.55 994 3.65 1.025 3.29 943 3.42 1.083 3.43 1.030 3.41 1.117 3.14 1.031 3.24 1.039 3.22 1.001 3.22 1.022 242 80 | Page