Journal Screenshot

International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Determinants of Adoption of Internet Banking by Trade Finance Customers in East Africa

Silvance O. Abeka, Evance Ochieng’ Abeka, Ondoro Charles Omondi

Open access

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. The purpose of this paper is to identify the factors that influence corporate customers’ adoption of Internet banking services in Kenya, Uganda, Tanzania and Rwanda. This study involved 472 Trade Finance customers. The hypotheses are empirically evaluated by using Trade Finance customers of an East African bank as the target sample. 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.

Akinci, S., Aksoy, S., & Atilgan, E. (2004), Adoption of Internet banking among sophisticated consumer segments in an advanced developing country, The international Journal of Bank Marketing, Vol. 22 no 3, pp. 212-232.
Chau, P. Y. K., & Lai, V. A. K. (2003), An Empirical Investigation of the Determinants of User Acceptance of Internet Banking, Journal of Organizational Computing and Electronic Commerce, Vol. 13 No. 2 pp. 123-145.
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989), User Acceptance of Computer Technology: a Comparison of Two Theoretical Models, Management Science, Vol. 35, No. 8.
Davis, F. D., & Venkatesh, V. (1996a) A critical assessment of potential measurement biases in the technology acceptance model: three experiments, Int . J . Human – Computer Studies, Vol. 45, pp. 19-45.
Devlin, J. F., & Yeung, M. (2003), Insights into customer motivations for switching to Internet banking, Int. Rev. of Retail, Distribution and Consumer Research, Vol. 13 No. 4 pp. 375–392.
Eastin, M. S. (2002), Diffusion of e-commerce: an analysis of the adoption of four e-commerce activities, Telematics and Informatics, Vol. 19, pp. 251–267.
Eriksson, K., Kerem, K., & Nilsson, D. (2004), Customer acceptance of internet banking in Estonia, International Journal of Bank Marketing, Vol. 23 No. 2, pp. 200-216.
Flavian, C., Torres, E., & Guinalíu, M. (2004), Corporate Image measurement A further problem for the tangibilization of Internet banking services, International Journal of Bank Marketing Vol. 22, No. 5, pp. 366-384.
Gerrard, P., & Cunningham, J. B. (2003), The diffusion of internet banking among Singapore consumers, International Journal of Bank Marketing, Vol. 21, No. 1, pp. 16-28.
Jagero, N., and Abeka, S. O. (2011), Corporate Customers Usage of Internet Banking in East Africa, IJCSI International Journal of Computer Science Issues, Vol. 8, Issue 5, No 1, September 2011 ISSN (Online): 1694-0814.
Jiang, J. J., Shu, M. K., Klein, G., & Lin, B. (2000), E-commerce user behavior model: an empirical study, Human Systems Management, Vol. 19, pp. 265–276.
Karjaluoto, H., Mattila, M., & Pento, T. (2002), Factors underlying attitude formation towards online banking in Finland, International Journal of Bank Marketing Vol. 20, No. 6, pp. 261-272.
Lassar, W. M., Manolis, C., & Lassar, S. S. (2005), The relationship between consumer Innovativeness, personal characteristics, and online banking adoption, International Journal of Bank Marketing, Vol. 23 No. 2, pp. 176-199.
Lu, H. P., Hsu, C. L., & Hsu, H. Y. (2005), An empirical study of the effect of perceived risk upon intention to use online applications, Information Management & Computer security, Vol. 13 No. 2, pp. 106-120.
McFarland, D. J., & Hamilton, D. (2004), Adding contextual specificity to the technology acceptance model, Computers in Human Behavior, Article in Press Vol. 39, pp. 283-295.
Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., & Pahnila, S. (2004). Consumer acceptance of online banking: an extension of the technology acceptance model, Internet Research, Vol. 14 No. 3, pp. 224–235.
Rotchanakitumnuai, S., & Speece, M. (2002), Barriers to Internet Banking adoption: a qualitative study among corporate customers in Thailand, International Journal of Bank Marketing, Vol. 21, No. 6/7, pp. 312-323.
Shih, Y. Y., & Fang, K. (2004), The use of a decomposed theory of planned behavior to study Internet banking in Taiwan, Internet Research, Vol. 14 No. 3, pp. 213–223.
Sohail, A. S., & Shanmugham, B. (2003), E-banking and customer preferences in Malaysia: An empirical investigation, Information Sciences, Vol. 150, pp. 207-217.
Sudarraj, R. P., & Wu, J. (2005), Using information-systems constructs to study online and telephone banking technologies, Electronic Commerce research and applications, Article in press, 17 pages.
Yi, M. Y., & Hwang, Y. (2003), Predicting the use of web-based information systems: self-efficacy, enjoyment, learning goal orientation, and the technology acceptance model, Int. J. Human-Computer Studies, Vol. 59, pp. 431-449.

In-Text Citation: (Abeka et al., 2012)
To Cite this Article: Abeka, S. O., Abeka, E. O., & Omondi, O. C. (2012). Determinants of Adoption of Internet Banking by Trade Finance Customers in East Africa. International Journal of Academic Research in Accounting Finance and Management Sciences, 2(2), 123–135.