An Investigation of Factors Influencing Corporate Customers Acceptance of Internet Banking A Case Study of East African Trade Finance Customers.

ABSTRACT 

It is increasingly more interesting to the bank managers to understand what is important to customers when it comes to Internet banking, and especially banking conducted by the customers themselves. Corporate customers and Internet banking has been studied very modestly in the past, and especially the decision-making factors driving customers to go online. The purpose of this research is to identify the factors that influence corporate customers adoption of Internet banking services in Kenya, Uganda, Tanzania and Rwanda. The hypotheses are empirically evaluated by using Trade Finance customers of an East African bank as the target sample. Technology Acceptance Model (TAM) is the primary basis for the study. The information gathered from former studies that are mainly concentrating on private customer acts as a foundation for building an extension of TAM suitable for corporate customers. Due to the quantitative nature of the study, the results are analysed with statistical measures. The analysis reveals that corporate users are not motivated by the same factors as private users. In order to become Internet banking customers, it is extremely important for corporate users to have a system that is easy to use and operate with full support from the bank.

TABLE OF CONTENTS

Title Page ....................................................................................................... .i

Declaration ...................................................................................................... ii

Approval. ...................................................................................................... .iii

Dedication ..................................................................................................... iv

Acknowledgements ............................................................................................. v

Table of Contents ............................................................................................... vi

List of Tables ................................................................................................... x

List of Figures ................................................................................................. xii

Abstract. ....................................................................................................... xiii

CHAPTER ONE

INTRODUCTION

1.0 Introduction .................................................................................................. 1

1.1 Background of The Study ................................................................................ 1

1.1.1 Trade Finance .......................................................................................... 5

1.1.2. Internet banking and Trade Finance ................................................................. 6

1.2 Statement of the problem .................................................................................. 7

1.3 Purpose Of Study ......................................................................................... 7

1.4 Objectives of the project ................................................................................... 8

1.4.1 General objectives ...................................................................................... 8

1.4.2 Specific objectives .................................................................................... 8

1.5 Research Hypothesis ....................................................................................... 9

1.6 Scope ...................................................................................................... 10

1.7 Significance of the study ................................................................................. 10

1.8 Conceptual Framework .................................................................................. 11

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction ............................................................................................... .13

2.1 Overview of the field .................................................................................... 13

2.2 Technology Acceptance Model. ......................................................................... 15

2.3 Original Technology Acceptance Model. .............................................................. 15

2.4 Revised Technology Acceptance Model. ............................................................. 16

2.5 Technology Acceptance Model and Internet banking ............................................... 18

2.6 Adoption of Internet banking ............................................................................ 20

2.7. Research on Technology Acceptance Model in other context than Internet banking ......... .21

2.8 Analyses of the state of the art ........................................................................... 23

2.9 Summary ................................................................................................... 24

CHAPTER THREE

METHODOLOGY

3. 0 Overview .................................................................................................. 26

3.1 Research Design .......................................................................................... 26

3.2 Research population .................................................................................... 27

3.3 Research Instruments ................................................................................... 27

3.4 Ethical considerations ................................................................................... 31

3.5 Data Analysis Methods ................................................................................. 31

3.6. Validity, reliability, generalizability .................................................................. 33

3.7. Summary ................................................................................................. 35

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF FINDINGS

4.0. Overview and structure of the chapter. ............................................................... 36

4.1 Data Analysis ............................................................................................. 36

4.2. Respondent background ................................................................................ 37

4.2.2. Gender .................................................................................................. 38

4.2.3. Age ...................................................................................................... 39

4.2.4. Education ............................................................................................... 40

4.3. Use of the syste1n ......................................................................................... 40

4.4. Regression and Pearson product-moment con-elation analysis .................................. .41

4.4.1. Test of hypothesis 1 .................................................................................. 43

4.4.2. Test of hypothesis 2 ................................................................................... 44

4.4.3. Test of hypothesis 3 ................................................................................... 45

4.4.4. Test of hypothesis 4 .................................................................................. 46

4.5. Adjusted research model. ............................................................................. .47

4.6. T-tests ..................................................................................................... 50

4.6.1. Differences between users and non-users ......................................................... 50

4.6.2. Differences between females and males ........................................................... 51

4.6.3. Differences between age groups .................................................................... 52

4.6.4. Differences between education levels .............................................................. 53

4.6.5. Differences between nationalities ................................................................... 54

4.7. Validity, reliability, generalizability .................................................................. 56

4.8. Su1nmary ................................................................................................. 57

CHAPTER FIVE

DISCUSSIONS, CONCLUSIONS AND RECOMMENDATIONS

5.0. Overview of the chapter ................................................................................ 60

5.1. Analysis of the contribution ............................................................................ 60

5.2. Discussions, Suggestions, and Managerial Implications .......................................... 62

5.3. Reco1n1nendation ........................................................................................ 65

5.4. Suggestions for fmiher research ...................................................................... 67

REFERENCES ............................................................................................. 68

APPENDICIES

APPENDIX A: QUESTIONNARE .......................................................................... .I

APPENDIX B: INTRODUCTORY LETTER .......................................................... VI

APPENDIX B: EAST AFRICAN MAP ................................................................. VII