Explaining Internet Banking Behavior: Theory of Reasoned Action, Theory of Planned Behavior, or Technology Acceptance Model?
A key objective of information technology (IT) research is to assess the value of technology for users and to understand the factors that determine this value in order to deploy IT resources better. This paper uses structural equation modeling to ascertain the extent to which 3 popular models of users' behavior theory of reasoned action (TRA) theory of planned behavior (TPB) and technology acceptance model (TAM) are predictive of consumers' behavior in the context of Internet banking. Unlike other tests of these models, this paper employs independent measures of actual behavior, as well as behavioral intention. The results indicate that TAM is superior to the other models and highlights the importance of trust in understanding Internet banking behavior. Explaining user acceptance of new technology is often described as one of the most mature research areas in the modern day information technology (IT) literature (e.g. Hu, Chau, Sheng, Tam, 1999) Researchers in past years have approached technology acceptance from many levels. Some researchers have examined this issue at the firm level by assessing the relationship between IT expenditure and performance (e.g. Banker, Kauffman, Mahmood, 1993) A second approach has been to examine the determinants of IT adoption and use by individual users (e.g. Davis, 1989; Davis, Bagozzi, Warshaw, 1989) As a key dependent variable in the IT literature, understanding use is of increasing theoretical interest. In recent years, a variety of theoretical perspectives have been applied to provide an understanding of the determinants of IT adoption and use, including the intention models from social psychology (Christie, 1981; Swanson, 1982) This stream of research uses behavioral intentions to predict actual use and, in turn, focuses on identification of the determinants of intention. The theory of reasoned action (TRA; Fishbein Ajzen, 1975) and the theory of planned behavior (TPB; Ajzen, 1991) are especially well researched intention models that have proven successful in predicting and explaining behavior across a wide variety of domains. From this stream of social psychology research, the technology acceptance model (TAM; Davis 1989) an adaptation of TRA, has emerged as a powerful and parsimonious way to represent the antecedents of technology use. These multi attribute models have long dominated attempts to predict technology acceptance behavior (e.g. Chau Hu, 2001; Gefen, 2002; Gefen Straub, 2000; Igbaria, Iivari, Maragahh, 1995; Szajna, 1994) The critical methodological examination reported in the present paper is a combination of a theoretical critique of these models and an empirical investigation of Internet banking behavior. The present study is concerned with both the theoretical status of the models under review and the sphere of human behavior in which they are applied. Therefore, the context of investigation is of central importance to the interpretation of the results. Before introducing the theoretical critique of these models, therefore, it is necessary to summarize briefly the context of Internet banking in the UK, where the empirical work was undertaken. The conventional focus of Internet banking research is shifting from technological developments to customer behavior. Previous research on Internet banking has pointed out that customer acceptance is the key factor in the future development of Internet banking and has called for further research that facilitates a comprehensive understanding of this customer based electronic revolution (Lassar, Manolis, Lassar, 2005) To develop a deeper understanding of the relationship between customers' beliefs and Internet banking acceptance, the next section discusses important theories of technology acceptance.