Investigating the impact of technology trust on the acceptance of mobile banking technonlgy within

270 Pages·2017·2.99 MB·English

University of Huddersfield Repository
Ifeonu, Robert Odera
Investigating the impact of technology trust on the acceptance of mobile banking technonlgy within
Nigeria
Original Citation
Ifeonu, Robert Odera (2014) Investigating the impact of technology trust on the acceptance of
mobile banking technonlgy within Nigeria. Doctoral thesis, University of Huddersfield.
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INVESTIGATING THE IMPACT OF TECHNOLOGY TRUST ON THE ACCEPTANCE
OF MOBILE BANKING TECHNOLOGY WITHIN NIGERIA
BY
IFEONU ROBERT ODERA
A THESIS SUBMITTED TO THE UNIVERSITY OF HUDDERFIELD IN PARTIAL
FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF
PHILOSOPHY
DECEMBER 2014
ACKNOWLEDGMENT
The completion of this thesis would not have been possible without the grace of God. He is
truly the author and finisher of all things. I would also like to dedicate this thesis to my late
father, Robert Ifeonu Snr, whom I wish was here to experience this achievement. I am also
eternally grateful to Esther Ifeonu, my remarkable mother who is a pillar of support, love and
inspiration. I would like to express my unconditional love for my siblings, Paschalene and
Collins Ifeonu, whose emotional support have motivated me throughout this period. Finally,
special thanks to Dr Rupert Ward, whose knowledge, direction and support throughout this
process has provided me with invaluable guidance.

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TABLE OF CONTENTS
1 INTRODUCTION .......................................................................................................... 10
1.1 BACKGROUND OF STUDY ................................................................................................................ 10
1.2 CONTEXT OF MOBILE BANKING IN NIGERIA .............................................................................. 11
1.2.1 CASHLESS BANKING TECHNOLOGIES IN NIGERIA ......................................................... 18
1.3 MOBILE PENETRATION IN NIGERIA .............................................................................................. 22
1.4 DEFINITION AND EVOLUTION OF MOBILE BANKING ............................................................... 24
1.4.1 BUSINESS NEED EVOLUTION ................................................................................................ 25
1.4.2 EVOLUTION OF MOBILE BANKING SERVICES AND TECHNOLOGY ............................ 27
1.5 MOBILE BANKING ADOPTION IN NIGERIA .................................................................................. 30
1.6 DEMOGRAPHICS AND ADOPTION TRENDS .................................................................................. 31
1.6.1 GENDER ...................................................................................................................................... 32
1.6.2 OCCUPATION AND EMPLOYMENT STATUS ...................................................................... 34
1.6.3 AGE .............................................................................................................................................. 34
1.6.4 EDUCATION LEVEL ................................................................................................................. 36
1.6.5 MARITAL STATUS, TECHNOLOGY COMPETENCE............................................................ 37
1.7 CHALLENGES OF MOBILE BANKING IN NIGERIA ....................................................................... 37
1.8 RESEARCH QUESTIONS .................................................................................................................... 41
1.9 STATEMENT OF PROBLEM ............................................................................................................... 42
1.10 OPERATIONALISATION OF RESEARCH CONSTRUCTS ......................................................... 43
1.11 RESEARCH AIM .............................................................................................................................. 48
1.12 RESEARCH OBJECTIVES .............................................................................................................. 48
1.13 SIGNIFICANCE OF STUDY ........................................................................................................... 49
1.14 ASSUMPTIONS ............................................................................................................................... 50
1.15 DELIMITATIONS ............................................................................................................................ 51
1.16 CONCLUSION AND SUMMARY OF CHAPTERS ........................................................................ 52
2 LITERATURE REVIEW .............................................................................................. 53
2.1 INTRODUCTION .................................................................................................................................. 53
2.2 DEFINING TRUST ................................................................................................................................ 53
2.3 TYPES OF TRUST ................................................................................................................................ 56
2.3.1 TECHNOLOGY TRUST ............................................................................................................. 58
2.3.2 IMPORTANCE OF TECHNOLOGY TRUST IN MOBILE BANKING TECHNOLOGY
ADOPTION ................................................................................................................................................ 59
2.4 TECHNOLOGY ADOPTION, TRUST AND DEMOGRAPHC RELATIONSHIPS ............................ 61
2.4.1 TECHNOLOGY TRUST AND GENDER ................................................................................... 61
2.4.2 TECHNOLOGY TRUST AND AGE ........................................................................................... 63
2.4.3 TECHNOLOGY TRUST AND OCCUPATION AND INCOME LEVEL.................................. 64
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2.4.4 TECHNOLOGY TRUST AND EDUCATION LEVEL .............................................................. 65
2.4.5 TECHNOLOGY TRUST AND TECHNOLOGY COMPETENCE ............................................ 66
2.4.6 FACTORS OF TECHNOLOGY TRUST ..................................................................................... 67
2.5 USER ADOPTION AND TECHNOLOGY ACCEPTANCE ................................................................ 69
2.5.1 THE THEORY OF REASONED ACTION (TRA) ...................................................................... 69
2.5.2 THE THEORY OF PLANNED BEHAVIOUR (TPB) ................................................................ 72
2.5.3 TECHNOLOGY ACCEPTANCE MODEL ................................................................................. 75
2.5.4 THE DIFFUSION OF INNOVATION THEORY (DOI) ............................................................. 81
2.6 CONCEPTUALIZATION OF AN INTEGRATIVE MODEL ............................................................. 101
2.7 THE THEORETICAL MODEL ........................................................................................................... 106
2.8 CONCLUSION .................................................................................................................................... 109
3 METHODOLOGY ....................................................................................................... 111
3.1 RESEARCH PHILOSOPHY ............................................................................................................... 111
3.2 RESEARCH APPROACH ................................................................................................................... 112
3.2.1 QUANTITATIVE APPROACH ................................................................................................ 112
3.3 RESEARCH DESIGN .......................................................................................................................... 113
3.4 INSTRUMENT DEVELOPMENT ...................................................................................................... 114
3.4.1 Q-SORT EXERCISE .................................................................................................................. 114
3.5 DATA SAMPLING AND COLLECTION METHODS ...................................................................... 117
3.6 ETHICAL CONSIDERATIONS ......................................................................................................... 119
3.7 DATA PREPARATION....................................................................................................................... 121
3.8 STRUCTURAL EQUATION MODELLING ...................................................................................... 122
3.8.1 THE MEASUREMENT MODEL .............................................................................................. 123
3.8.2 CONFIRMATORY FACTOR ANALYSIS ............................................................................... 124
3.9 GOODNESS OF FIT INDICES ........................................................................................................... 128
3.10 THE STRUCTURAL MODEL ....................................................................................................... 130
3.11 CONCLUSION ............................................................................................................................... 130
4 RESULTS AND ANALYSIS ....................................................................................... 132
4.1 INTRODUCTION ................................................................................................................................ 132
4.2 DEMOGRAPHIC PROFILE OF RESPONDENTS ............................................................................. 132
4.3 ANALYSIS OF DATA AND INTEPRETATION OF RESULTS ....................................................... 134
4.4 THEORETICAL MODEL A ................................................................................................................ 135
4.4.1 EVALUATION OF MODEL A ................................................................................................. 136
4.4.2 MEASUREMENT LEVEL FOR MODEL A ............................................................................. 139
4.5 THEORETICAL MODEL B ................................................................................................................ 142
4.5.1 EVALUATION OF MODEL B.................................................................................................. 144
4.6 THEORETICAL MODEL C ................................................................................................................ 147
4.6.1 EVALUATION OF MODEL C.................................................................................................. 148
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4.7 RELIABILITY AND VALIDITY OF MEASUREMENT ITEMS ...................................................... 152
4.7.1 RELIABILITY ........................................................................................................................... 152
4.7.2 VALIDITY ................................................................................................................................. 154
4.8 STRUCTRUAL EVALUATION OF MODEL A. ................................................................................ 158
4.8.1 INTRODUCTION OF CONTROL VARIABLES ..................................................................... 163
4.8.2 STRUCTURAL MODEL MODIFICATION AND REVALUATION ...................................... 163
4.8.3 HYPOTHESIS EVALUATION ................................................................................................. 165
4.9 CONCLUSION .................................................................................................................................... 172
5 DISCUSSIONS, IMPLICATIONS AND FUTURE WORK .................................... 176
5.1 INTRODUCTION ................................................................................................................................ 176
5.2 DISCUSSION OF KEY FINDINGS .................................................................................................... 176
5.2.1 ANTECEDENTS OF TECHNOLOGY TRUST ........................................................................ 177
5.2.2 TECHNOLOGY TRUST, PERCEIVED EASE OF USE AND INTENTION TO ADOPT ...... 183
5.2.3 TECHNOLOGY TRUST, PERCEIVED USEFULNESS AND INTENTION TO USE ........... 184
5.2.4 TECHNOLOGY TRUST AND INTENTION TO ADOPT ....................................................... 186
5.2.5 INTENTION TO USE AND ACTUAL USE ............................................................................. 187
5.2.6 ADOPTION AND TIME ............................................................................................................ 188
5.3 IMPLICATIONS AND CONCLUSION .............................................................................................. 189
5.3.1 THEORETICAL IMPLICATIONS ............................................................................................ 190
5.3.2 TECHNOLOGY AND POLICY IMPLICATIONS ................................................................... 191
5.4 LIMITATIONS .................................................................................................................................... 195
5.5 FUTURE WORK ................................................................................................................................. 196
6 REFERENCES ............................................................................................................. 198
7 APPENDIX A ................................................................................................................ 218
8 APPENDIX B ................................................................................................................ 261
9 COPYRIGHT STATEMENT ..................................................................................... 268

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TABLE OF FIGURES
Figure 1:1: Cost of cash to the Nigerian financial system (CBN, 2012) ................................. 14
Figure 1:2: Direct cost of cash to the Nigerian economy in 2009 (CBN, 2012) ..................... 14
Figure 1:3: Architecture of electronic card infrastructure (Richard Sullivan, 2013) ............... 21
Figure 1:4: Service and technology evolution of mobile banking (Infosys, 2009) ................. 27
Figure 1:5: Reasons for not adopting mobile banking in Nigeria (EFINA, 2013) .................. 40
Figure 2:1: Factors of technology trust (Hwang et al, 2007) ................................................... 68
Figure 2:2: Theory of Reasoned Action. (Fishbein & Ajzen, 1980) ....................................... 70
Figure 2:3: Theory of Planned behaviour (Icek Ajzen, 1991). ................................................ 73
Figure 2:4: Technology acceptance model (Venkatesh & Davis, 1996) ................................. 75
Figure 2:5: Technology acceptance model with integrated trust (Wend & Tseng, 2011) ....... 78
Figure 2:6: The adoption decision process (Sahin Ismail, 2006)............................................. 86
Figure 2:7: Adopter Categorization on the Basis of Innovativeness (Everett Rogers, 2003) .. 89
Figure 2:8: Adopter Categorization showing propensity to adopt (Les Robinson, 2009) ....... 89
Figure 2:9: Conceptual research model ................................................................................. 108
Figure 4:1: Theoretical Model A ........................................................................................... 135
Figure 4:2: Theoretical model B ............................................................................................ 143
Figure 4:4: Theoretical model C ............................................................................................ 147
Figure 4:5: Tested measurement model ................................................................................. 152
Figure 4:6: Structural model for evaluation ........................................................................... 158
Figure 4:8: Final structural model for this study ................................................................... 174

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TABLE OF TABLES
Table 1:1: Transaction activity of customers in banks for 2010 (CBN, 2013) ........................ 13
Table 1:2: Nigerian mobile subscriber data and teledensity. (NCC, 2014) ............................. 23
Table 2:1: Previous researcher's identified technology trust antecedents ................................ 55
Table 3:1: Variable mapping with number of survey items and literature reference ............ 116
Table 3:2: Variables and respective method of measurement ............................................... 121
Table 3:3: Model fit criteria and literature reference ............................................................. 131
Table 4:1: Demographic profile of respondents .................................................................... 133
Table 4:2: initial factor loadings for model A hierarchical component ................................. 137
Table 4:3: Initial model fit indices for hierarchical component of model A ......................... 138
Table 4:4: Final model fit indices for hierarchical component in model A ........................... 139
Table 4:5: Measurement level values for model A ................................................................ 140
Table 4:6: Latent variable correlations for model A .............................................................. 141
Table 4:7: Model fit indices for model A .............................................................................. 141
Table 4:8: Factor loadings for hierarchical component in model B ...................................... 144
Table 4:9: Model fit indices for hierarchical component in model B .................................... 145
Table 4:10: Comparison between Model A and Model B fit indices .................................... 145
Table 4:11: CFA results for Model C hierarchical component .............................................. 148
Table 4:12: Initial model fit indices for hierarchal technology trust component in model C 150
Table 4:13: Final model fit indices for hierarchical component in model C ......................... 150
Table 4:14: Model fit indices for models A, B and C ............................................................ 151
Table 4:15: Composite reliability and Cronbach alpha table. ................................................ 153
Table 4:16 Convergent validity and construct reliability ...................................................... 155
Table 4:17: Discriminant validity via AVE comparison with covariance ............................. 157
Table 4:18: Summary of constructs, variables and hypotheses ............................................. 159
Table 4:19: Regression weights of structural model.............................................................. 160
Table 4:20: structural model fit indices ................................................................................. 162
Table 4:21: Initial model fit values for model with all covariates. ........................................ 163
Table 4:22: Final model fit indices for structural model ....................................................... 165
Table 4:23: Summary of hypotheses evaluations .................................................................. 165
Table 7:1: Table of constructs, number of items and references ........................................... 218
Table 7:2: Table of shortlisted questions and references for Q-sorting ................................. 220
Table 7:3: Table of shortlisted questions and re-phrased for Q-sorting ................................ 230
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Table 7:4 Q-sorting results for shortlisted questions ............................................................. 237
Table 7:5: Final factor loadings for hierarchical component in model A .............................. 246
Table 7:6: Final factor loadings for model B measurement level .......................................... 247
Table 7:7: Final factor loadings for hierarchical component of model C .............................. 249
Table 7:8: Final measurement level values for model C ....................................................... 251
Table 7:9: Regression estimates of latent constructs with all control variables .................... 253
Table 7:10: Structural model values with only significant control variables ........................ 258

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LIST OF ABBREVIATIONS
ACC: Access control S P S S : S t a t i s tical Package for the Social
Sciences
AU: Actual use
TAM: Technology acceptance model
AUTH: Authentication
TPB: Technology planned behaviour
AVE: Average variance extracted
TRA: Technology reasoned action
BBP: Best business practices

CBN: Central Bank of Nigeria
CFA: Confirmatory factor analysis
CONF: Confidentiality
DOI: Diffusion of innovation
INT: Integrity
IT: Information technology
IU: Intention to use
NCC: Nigerian communications commission
NOI: Ngozi Okonjo-Iweala
NONR: Non-repudiation
PEOU: Perceived ease of use
PIN: Personal identification number
PU: Perceived usefulness
S.E: Standard error
SMS: Short message service
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