Improving the quality of internet banking services by using TAM model the case of vietnam bank for agriculture and rural development ha thanh branch

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - PHẠM KHÁNH HOÀN IMPROVING THE QUALITY OF INTERNET BANKING SERVICES BY USING TAM MODEL: THE CASE OF VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT- HA THANH BRANCH NÂNG CAO CHẤT LƯỢNG DỊCH VỤ INTERNET BANKING THÔNG QUA MƠ HÌNH TAM: TRƯỜNG HỢP CỦA NGÂN HÀNG NƠNG NGHIỆP VÀ PHÁT TRIỂN NÔNG THÔN VIỆT NAM- CHI NHÁNH HÀ THÀNH LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - PHẠM KHÁNH HOÀN IMPROVING THE QUALITY OF INTERNET BANKING SERVICES BY USING TAM MODEL: THE CASE OF VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT- HA THANH BRANCH NÂNG CAO CHẤT LƯỢNG DỊCH VỤ INTERNET BANKING THƠNG QUA MƠ HÌNH TAM: TRƯỜNG HỢP CỦA NGÂN HÀNG NÔNG NGHIỆP VÀ PHÁT TRIỂN NÔNG THÔN VIỆT NAM- CHI NHÁNH HÀ THÀNH Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS NGÔ VI DŨNG HÀ NỘI - 2018 DECLARATION The author confirms that the research outcome in the thesis is the result of author‟s independent work during study and research period and it is not yet published in other‟s research and article The other‟s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date: 09/5/2018 i ACKNOWLEDGEMENT I would like to thank all the professors of HSB-MBA program, especially Dr Ngo Vi Dung- my supervisor Then I would like to thank deeply the respondents and interviewees who allowed me to gather enough data for this research I would like to express my thanks to my family, my colleagues and my fellow friends who created convenient conditions and give me encouragement and understanding for me to complete this degree In order to finish this project successfully, I have receive many helps, supports and guidance from many people who I would like to thank sincerely I sincerely thank you! Hanoi, 05 May, 2018 Pham Khanh Hoan ii TABLE OF CONTENT INTRODUCTION Chapter 1: THEORETICAL BACKGROUND 1.1 Internet banking 1.2 Levels of Internet banking 11 1.3 Advantages of Internet banking: 12 1.4 Disadvantages of Internet banking 15 1.4.1 For banks 15 1.4.2 For customers 15 1.5 Technology Acceptance Model - TAM 17 1.5.1 Original TAM model by Davis et al (1989) 17 1.5.2 Extended TAM by Pham Thuy Giang (2015) 18 1.5.3 Extended TAM by Nguyen Thi Khanh Trang et al (2014) 19 1.5.4 Extended TAM by Awni Rawashdeh (2015) 20 1.5.5 Extended TAM by Kesharwani and Bisht (2012) 21 1.5.6 Proposed model in the study and scale building 22 1.5.7 Scale building 25 Chapter 2: RESEARCH METHODS 28 2.1 Research process 28 2.2 Research methods and data analysis 29 2.2.1 Preliminary research 29 2.2.2 Formal research 31 iii 2.3 Sample design 33 2.4 Data collection 33 2.5 Methods of data analysis 34 Chapter 3: RESULTS, DISCUSSIONS AND RECOMMENDATIONS 38 3.1 Introduction of Agribank- Ha Thanh Branch and Internet banking business activities at the Branch 38 3.1.1 History of foundation and development 38 3.1.2 Business results 40 3.1.3 Business situation of Internet banking services at Agribank-Ha Thanh Branch 45 3.2 Data analysis results 47 3.2.1 Characteristics of respondents 47 3.2.2 Scale testing 49 3.2.3 Correlation and regression analysis 52 3.2.4 Customers‟ evaluation on factors in the model 56 3.3 General evaluation 66 3.3.1 Strengths 66 3.3.2 Weaknesses 67 3.3.3 Causes 68 CONCLUSION, LIMITATIONS AND IMPLICATIONS 69 Conclusion 69 Limitations 70 Implications 71 REFERENCES 76 APPENDIX 80 iv QUESTIONNAIRE 80 Characteristics of respondents 89 Scale reliability testing 90 Scale convergence testing 93 Pearson correlation 97 Regression 99 Regression model 99 Regression model 100 Regression model 100 v LIST OF TABLES Table 2.1: Results of interviews with the bank‟s customers 30 Table 2.2: Scale of factors in the model 31 Table 3.1: Capital mobilization structure of the bank 41 Table 3.2: Results of credit activities at Agribank - Ha Thanh Branch in the stage of 2014-2017 43 Table 3.3: Results of financial activities of the bank 44 Table 3.4: Gender 47 Table 3.5: Age 48 Table 3.6: Income 48 Table 3.7: Level of education 49 Table 3.8: Results of reliability testing 50 Table 3.9: Results of convergence analysis 51 Table 3.10: Factor correlation matrix 52 Table 3.11: Influence of factors on Attitude towards Internet banking services 53 Table 3.12: Influence of factors on Intention to use Internet banking services 54 Table 3.13: Influence of factors on Actual use of Internet banking services 55 Table 3.14: Customers‟ evaluation on perceived usefulness 57 Table 3.15: Customers‟ evaluation on perceived ease of use 58 Table 3.16: Customers‟ evaluation on attitude of use 59 Table 3.17: Customers‟ evaluation on the bank‟s website 61 Table 3.18: Customers‟ evaluation on perceived risk 63 Table 3.19: Customers‟ evaluation on intention to use 64 Table 3.20: Customers‟ evaluation on actual use 65 vi LIST OF FIGURES AND CHARTS Figure 1.1: Technology Acceptance Model (TAM) (Davis et al., 1989) 18 Figure 1.2: Extended TAM by Pham Thuy Giang (2015) 19 Figure 1.3: Expanded TAM by Nguyen Thi Khanh Trang et al (2014) 20 Figure 1.4: Extended TAM by Awni Rawashdeh (2015) 21 Figure 1.5: Extended TAM by Kesharwani & Bisht (2012) 22 Figure 1.6: Research model of the study (Adapted from different sources by the author) 24 vii INTRODUCTION Rationale The rapid development of science and technology, especially information technology industry, has strongly affected all aspects of socio-economic life, changing perception and production methods in many business fields and different economic sectors, including banking (H San, 2014) Developing Internet banking services is an indispensable trend in the modern economy in the stage of international economic integration The benefits of Internet banking are great for customers, banks and the economy in terms of convenience, speed, accuracy and confidentiality Internet banking is a perfect service providing customer relations, transactions and payment with the bank through the network – It is the highest utility service but requires safety and security because the risks from this activity are not small (Duc Nam, 2014) The rapid and widespread growth of the Internet has provided the opportunity for companies in many different sectors and businesses Taking advantage of this opportunity, banks have introduced Internet banking services in recent years Internet banking products have confirmed the ability of banks to seize the opportunities that the Internet brings In the general trend of commercial banks around the world, commercial banks in Vietnam are gradually moving towards retail banking, with the majority being individual customers The main objective of this new model is to help individual workers access banking products and services, creating a diversified market E- Banking services are an important distribution channel, integral to the development of the retail banking model Vietnam Banking Association also said that nowadays, about 40 banks have announced the deployment of Internet banking system to varying degrees The most powerful services are Internet banking services of some big banks such as Vietcombank or Techcombank The greatest benefits of Internet banking consist of convenience, minimization of costs, and saving time of banking transactions With online banking, people DUDINH DUDINH DUDINH THUCTE THUCTE THUCTE THUCTE I will use Internet banking of Agribank when I have enough conditions (financial capacity, service fee) There is always a certain priority when I have the need to use Internet banking I will recommend my friends and relatives to use Internet banking of Agribank I usually use Internet banking of Agribank to conduct transactions I usually use Internet banking of Agribank instead of going to the transaction office Using Internet banking of Agribank is an inevitable thing when I need to conduct banking transactions I will definitely use Internet banking of Agribank in the future What are your recommendations to improve the Branch‟s Internet banking services to better meet customers‟ needs? 87 Thank you very much! 88 RESULTS Characteristics of respondents Gender Percent Frequency Male Valid Female Total 45 Total 37 20.9 177 100.0 20.9 100.0 Income Frequency Percent 11 million Total 40 22.6 62 35.0 Valid Cumulative Percent Percent 22.6 22.6 35.0 57.6 58 32.8 17 9.6 177 100.0 32.8 9.6 100.0 Level of education Frequency Percent Valid High school graduates 100.0 46 26.0 89 90.4 100.0 Valid Cumulative Percent Percent 26.0 26.0 Vocational SchoolCollege graduates 71 40.1 40.1 66.1 University graduates 35 19.8 19.8 85.9 23 13.0 1.1 177 100.0 13.0 1.1 100.0 98.9 100.0 Masters PhDs Total Scale reliability testing Reliability Statistics Cronbach's N of Items Alpha 824 Item-Total Statistics Scale Mean if Scale Variance Corrected Item Deleted if Item Deleted Item-Total Correlation Cronbach's Alpha if Item Deleted HICN1 10.63 5.018 653 775 HICN2 10.61 5.410 644 782 HICN3 10.32 4.708 676 765 HICN4 10.35 4.990 626 788 Reliability Statistics Cronbach's N of Items Alpha 850 90 DSD1 DSD2 DSD3 DSD4 Scale Mean if Item Deleted 10.54 10.49 10.30 10.32 Item-Total Statistics Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted 7.705 690 809 7.933 674 816 7.427 705 803 7.547 688 810 Reliability Statistics Cronbach's N of Items Alpha 828 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted THAIDO1 10.23 2.724 687 768 THAIDO2 10.34 2.954 622 798 THAIDO3 10.37 2.972 608 804 THAIDO4 10.16 2.907 708 761 Reliability Statistics Cronbach's N of Items Alpha 865 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted 91 WEBSITE1 10.43 4.428 804 789 WEBSITE2 10.46 5.034 666 847 WEBSITE3 10.49 4.922 657 851 WEBSITE4 10.27 4.673 734 819 Reliability Statistics Cronbach's N of Items Alpha 851 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted RUIRO1 10.86 6.584 714 801 RUIRO2 10.75 6.747 657 826 RUIRO3 10.92 6.426 775 774 RUIRO4 11.06 7.377 624 838 Reliability Statistics Cronbach's N of Items Alpha 689 Scale Mean Item Deleted Item-Total Statistics if Scale Variance if Corrected Item- Cronbach's Item Deleted Total Correlation Alpha if Item Deleted 92 DUDINH1 10.35 1.979 431 651 DUDINH2 10.46 1.920 497 608 DUDINH3 10.49 2.092 412 661 DUDINH4 10.28 1.817 552 571 Reliability Statistics Cronbach's N of Items Alpha 723 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted THUCTE1 10.63 3.792 556 635 THUCTE2 10.73 3.798 634 588 THUCTE3 10.99 4.625 385 730 THUCTE4 10.70 4.154 483 679 Scale convergence testing KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of df Sphericity Sig Comp onent Initial Eigenvalues 791 561.462 28 000 Total Variance Explained Extraction Sums of Squared Loadings 93 Rotation Sums of Squared Loadings Total % of Cumulat Total Variance ive % % of Cumulat Varian ive % ce 2.951 36.883 36.883 2.951 36.883 36.883 2.499 31.241 68.123 2.499 31.241 68.123 540 6.750 74.874 481 6.015 80.889 473 5.915 86.804 385 4.818 91.622 379 4.736 96.358 291 3.642 100.000 Extraction Method: Principal Component Analysis Rotated Component Matrixa Component DSD3 840 DSD2 829 DSD1 824 DSD4 823 HICN1 824 HICN3 821 HICN2 808 HICN4 779 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of df Sphericity Sig 94 758 970.580 66 000 Total 2.790 2.660 % of Cumulative Variance % 34.875 33.248 34.875 68.123 Compo nent Total Variance Explained Initial Eigenvalues Extraction Sums of Rotation Sums of Squared Loadings Squared Loadings Total % of Cumula Total % of Cumulat Total % of Cumulative Variance tive % Variance ive % Variance % 2.87 3.153 26.273 26.273 3.153 26.273 26.273 23.936 23.936 2.78 2.873 23.938 50.210 2.873 23.938 50.210 23.181 47.117 2.69 2.318 19.320 69.530 2.318 19.320 69.530 22.413 69.530 622 5.182 74.712 549 4.576 79.288 484 4.031 83.319 474 3.951 87.269 439 3.655 90.925 353 2.939 93.864 1 331 2.761 96.625 213 1.775 98.400 192 1.600 100.00 Extraction Method: Principal Component Analysis Rotated Component Matrixa Component WEBSITE1 905 WEBSITE4 854 WEBSITE3 809 WEBSITE2 794 RUIRO3 RUIRO1 RUIRO2 RUIRO4 883 846 810 782 95 THAIDO4 841 THAIDO1 838 THAIDO3 786 THAIDO2 774 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of df Sphericity Sig .686 121.120 000 Total Variance Explained Componen Initial Eigenvalues Extraction Sums of Squared Loadings t Total % of Cumulative Total % of Cumulative Variance % Variance % 2.076 51.910 51.910 2.076 51.910 51.910 833 20.820 72.731 642 16.052 88.783 449 11.217 100.000 Extraction Method: Principal Component Analysis Component Matrixa Component DUDINH4 794 DUDINH2 752 DUDINH1 675 DUDINH3 653 Extraction Method: Principal Component Analysis 96 a components extracted KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of df Sphericity Sig .727 145.262 000 Total Variance Explained Componen Initial Eigenvalues Extraction Sums of Squared Loadings t Total % of Cumulative Total % of Cumul Variance % Variance ative % 2.200 54.997 54.997 2.200 54.997 54.997 774 19.354 74.351 605 15.137 89.487 421 10.513 100.000 Extraction Method: Principal Component Analysis Component Matrixa Component THUCTE2 835 THUCTE1 782 THUCTE4 720 THUCTE3 610 Extraction Method: Principal Component Analysis a component extracted Pearson correlation Correlations 97 HIC N Pearson Correlatio n HICN Sig (2tailed) N Pearson Correlatio n DSD Sig (2tailed) N Pearson Correlatio n THAIDO Sig (2tailed) N Pearson Correlatio WEBSIT n E Sig (2tailed) N Pearson Correlatio n RUIRO Sig (2tailed) N Pearson Correlatio DUDIN n H Sig (2tailed) N Pearson THUCT Correlatio E n DSD THAID O WEBSIT E RUIRO DUDIN H THUCTE 058 372** 110 145 437** 203** 445 000 145 054 000 007 177 177 177 177 177 177 177 058 730** 028 011 555** 441** 000 709 888 000 000 177 177 177 177 177 177 372** 730** 125 069 832** 613** 098 359 000 000 445 177 000 000 177 177 177 177 177 177 177 110 028 125 -.040 344** 312** 145 709 098 598 000 000 177 177 177 177 177 177 177 145 011 069 -.040 255** 121 054 888 359 598 001 109 177 177 177 177 177 177 177 437** 555** 832** 344** 255** 666** 000 000 000 000 001 177 177 177 177 177 177 177 203** 441** 613** 312** 121 666** 98 000 Sig (2tailed) N 007 000 000 000 109 000 177 177 177 177 177 177 177 ** Correlation is significant at the 0.01 level (2-tailed) Regression Regression model Model Model Summaryb R Adjuste Std Change Statistics Durbin Square dR Error of R F df1 df2 Sig F Square the Square Change Change Watson Estimate Change R 801 a 642 637 332 642 155.695 174 000 1.935 a Predictors: (Constant), DSD, HICN b Dependent Variable: THAIDO Model ANOVAa df Mean Square Sum of Squares Regression 34.287 Residual 19.159 174 Total 53.446 176 a Dependent Variable: THAIDO b Predictors: (Constant), DSD, HICN Model (Constant) 1HICN DSD 17.143 110 Coefficientsa Unstandardized Standardized t Coefficients Coefficients B Std Error Beta 1.131 145 7.809 231 032 331 7.282 424 027 710 15.626 99 F Sig 155.695 Sig .000 000 000 000b Collinearity Statistics Tolerance VIF 997 997 1.003 1.003 a Dependent Variable: THAIDO Regression model Model Summaryb Model R R Adjuste Std Change Statistics Durbin Square dR Error of R F df1 df2 Sig F Square the Square Change Change Watson Estimate Change a 892 795 792 202 795 223.990 173 000 1.828 a Predictors: (Constant), RUIRO, WEBSITE, THAIDO b Dependent Variable: DUDINH Model Regression Sum of Squares 27.509 9.170 F Sig 223.990 000b Residual 7.082 173 041 Total 34.592 176 a Dependent Variable: DUDINH b Predictors: (Constant), RUIRO, WEBSITE, THAIDO Model ANOVAa df Mean Square (Constant) THAIDO WEBSITE RUIRO Unstandardized Coefficients B Std Error 349 131 632 028 159 022 110 018 Coefficientsa Standardized Coefficients Beta t 2.671 786 22.601 255 7.341 210 6.090 a Dependent Variable: DUDINH Regression model Model Summaryb 100 Sig .008 000 000 000 Collinearity Statistics Tolerance VIF 979 982 993 1.022 1.018 1.007 Model R R Adjuste Std Change Statistics Durbin Square dR Error of R F df1 df2 Sig F Square the Square Change Change Watson Estimate Change a 666 444 441 482 444 139.775 175 000 2.130 a Predictors: (Constant), DUDINH b Dependent Variable: THUCTE Model ANOVAa df Mean Square Sum of Squares Regression 32.534 Residual 40.733 Total 73.268 a Dependent Variable: THUCTE b Predictors: (Constant), DUDINH Model Unstandardized Coefficients B (Constant ) DUDINH Std Error 227 287 97 08 175 176 32.534 233 Coefficientsa Standardize d Coefficients Beta 666 a Dependent Variable: THUCTE 101 t F Sig 139.775 Sig .000b Collinearity Statistics Toleranc e 794 428 11.82 000 1.000 VIF 1.000 ... HOÀN IMPROVING THE QUALITY OF INTERNET BANKING SERVICES BY USING TAM MODEL: THE CASE OF VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT- HA THANH BRANCH NÂNG CAO CHẤT LƯỢNG DỊCH VỤ INTERNET BANKING. .. to improve the quality of its Internet banking services Research object The object of the study was the Internet banking services of Agribank - Ha Thanh Branch Research scope Time: The study was... Advantages of Internet banking: Internet banking offers certain advantages over traditional banking services Internet banking benefits both banks and customers 1.3.1 For banks Internet banking offers