Electronic commerce in Malaysia : a case study on the adoption of internet banking among Malaysian professionals
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Date
2002-10
Authors
Gerald Guan Gan, Goh
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Abstract
It is becoming widely accepted that it is important for businesses to embrace electronic
ยท commerce to gain competitive advantage. One form of electronic commerce_ that has attracted
~~i.!!ntilCaJm: attention in Malaysia is Internet banking. Internet banking has the potential of
the capability and improving the profit margins of the local banks in addition to
a convenient delivery channel to consumers. Internet. banking has many advantages
the conventional bank branches, as it provides for convenience to bank customers who
conduct their banking transactions 24/7. The key aim of this research is to identify the
factors that affect the adoption of Internet banking in Malaysia. The responses of 167
members of professional bodies in Malaysia were used for this research. This research uses the
diffusion of innovation theory proposed by Rogers ( 1995) and other information technology
adoption literature that are relevant to Internet banking. Analysis of the data collected from the
email surveys reveals that there are significant differences between adopters and non-adopters
with regard to age, sex, education and income. Generally, individuals who are not older than
40 years, male, possess at least a bachelor's degree or earn a monthly gross income of more
than RM2000 per month have higher adoption rates. It is also proven that the characteristics of
the innovation play an important role in influencing Internet banking adoption. The ease of
use, compatibility, perceived usefulness, observability and trialability of Internet banking are
found to be positively correlated to adoption. Apart from that, it is also discovered that
knowledge of Internet banking influences adoption and that interpersonal sources of
information are the key source of knowledge on Internet banking. Incentives and facilitating
conditions are facilitators of adoption whilst perceived risk of Internet banking is an inhibitor
of adoption. This research also discovered that the features of Internet banking considered
important by professionals are account summary, bill payment and funds transfer.
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Keywords
Finance