SPSS AMOS INVARIANCE ANALYSIS ACROSS CULTURES CASE STUDY: INTERNET BANKING ACCEPTANCE

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SPSS AMOS INVARIANCE ANALYSIS ACROSS CULTURES
CASE STUDY INTERNET BANKING ACCEPTANCE

• Bander AlSajjan and
• CHARLES DENNIS

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AGENDA

• Importance of Internet Banking
• Theory of Reasoned Action
• Technology acceptance models
• Theory of Planned Behaviour
• Cross-cultural comparison
• Conclusions

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INTERNET BANKING (IB)

• Banking is a natural service for the Internet
• Intangible
• Information-based
• 85 of UK bank customers use IB
• Take-up is slow in many countries
• Saudi Arabia is 25th ranked country by GDP
  
• Only 20 of Saudi Arabias bank customers use
  IB (Grais Kantur, 2003)

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THEORY OF REASONED ACTION (TRA)

• Simple basis for identifying how to target
  consumers behaviour change attempts (Sheppa
  rd et al, 1988)
• Peoples behaviour is governed by
• Attitudes
• Social factors and
• Intention towards performing the behaviour
  (Ajzen Fishbein, 1980)

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TECHNOLOGY ACCEPTANCE MODEL

• Models adoption of IS in the workplace
• Users do not use a system for its own sake but
  rather
• Evaluate the benefits and expect a certain
  utility
• Less the disutility of using the system
• TAM refers to these as
• Usefulness
• Ease of use (EOU) (Davis, 1989)

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PERCEIVED USEFULNESS

• Perceived usefulness affects attitudes and
  intentions (Shih Fang, 2004)
• H1 Perceived usefulness has a positive effect
  on attitudinal intention

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Improves banking performance
Easier to conduct banking
Perceived Usefulness
Useful for banking transactions
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ATTITUDINAL INTENTIONS

• Intentions have two components
• Positive evaluation of the behaviour and
• Facilitating conditions equivalent to
  Perceived Behavioural Control (PBC) from the
  Theory of Planned Behaviour orPerceived ease
  of use (from TAM) (Venkatesh et al, 2003)
• Analogous to loyalty
• Attitudinal loyalty the preference vs
• Behavioural loyalty subject to external
  constraints (Beerli et al, 2004)

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ATTITUDINAL INTENTIONS

• Positive evaluation and attitude are conceptually
  equivalent, which we termAttitudinal Intentions

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PERCEIVED MANAGEABILITY

• Attitude and social factors cannot be the sole
  determinants of behaviour when control is
  incomplete
• Theory of Planned Behaviour (TPB) aims to improve
  on TRA by adding perceived behavioural control
  (PBC) (Ajzen, 1991)
• PBC is equivalent to computer self
  efficacy (Argarwal et al, 2000)
• We combine these concepts as Perceived
  Manageability

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PERCEIVED MANAGEABILITY

• Perceived ease of use (PEOU) operates mainly
  through perceived usefulness (Ha Stoel,
  2008)
• H2 Perceived manageability has a positive
  effect on users perceived usefulness
• PEOU affects trust (Gefen et al, 2003)
• H3 Perceived manageability has a positive
  effect on users users trust

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TRUST

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TRUST

• A willingness to rely on an exchange partner in
  whom one has confidence
• (Moorman et al, 1992)
• Trust is central to e-commerce intentions
  (Fortin et al, 2002)
• Lack of trust is an obstacle to e-commerce
  intentions (Liu et al, 2004)

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TRUST

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TRUST

• A willingness to rely on an exchange partner in
  whom one has confidence
• (Moorman et al, 1992)
• Trust is central to e-commerce intentions and
  attitudes (Fortin et al, 2002 Pavlou, 2003)
• Lack of trust is an obstacle to e-commerce
  intentions (Liu et al, 2004)
• H4 Trust has a positive effect on users
  attitudinal intentions towards IB

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TRUST

• At higher levels of trust, customers perceive a
  website as more useful (Stewart, 2003)
• H5 Trust has a positive effect on users
  perceived usefulness

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SOCIAL FACTORS

• Subjective norms also influence intentions
• Belief that important others dictate whether one
  should e-shop
• Motivation to comply with important others

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SUBJECTIVE NORMS (SN)

• The effect of SN tends to be fully mediated
  (Vankatesh Davies, 2000)
• As a social force, we argue that SN acts through
  a social belief - trust
• H6 SN has a positive effect on users trust

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SUBJECTIVE NORMS (SN)

• Important others influence perceptions about
  manageabilityI will give it a try if my
  significant other says that its easy to
  do
• H7 SN has a positive effect on users perceived
  manageability

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H2
Perceived Manageability
Perceived Usefulness
H1
H5
H3
Attitudinal Intentions
H7
H4
Trust Belief
Subjective Norms
H6
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METHOD

• Sample undergraduate students
• Younger and better educated, matching typical
  Internet early adopters
• Paper questionnaires
• Arabic questionnaire back-translated
• In capital cities

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QUESTIONNAIRE ITEMS

• Intention (Venkatesh Davis, 2000)
• Attitude (Suh Han, 2002)
• PU PEOU (Wang et al, 2003)
• Self-efficacy Control (Wang et al, 2003)
• Trust (McKnight et al, 2002)

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SAMPLE
UK Saudi Arabia
N 232 386
Response rate 49 82
Female 44 43
Years Internet experience 4.3 3.3

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PRINCIPLE COMPONENTS ANALYSIS

• 6 factors extracted at Eigen gt 1
• Matching the hypothesised constructs
• No cross-construct loadings gt 0.3
• Good discriminant validity
• Factor loadings gt 0.5
• (except for 2 items, which were dropped)
• Convergent validity

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AMOS STRUCTURAL EQUATION MODEL FIT
UK Saudi Arabia Across groups
Chi ² 181 212 396
df 107 107 216
CFI 0.96 0.97 0.96
RMSEA 0.055 0.050 0.037

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AMOS STRUCTURAL EQUATION MODEL

• The path coefficients for H1 H7 are significant
• p lt 0.03
• Mediators
• Perceived usefulness and
• Trust
• fully mediate the impact of
• Perceived manageability and
• Subjective norm

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0.6
Perceived Manageability
Perceived Usefulness
UK 0.5
KSA 0.7
0.3
0.5
Attitudinal Intentions
0.3
KSA 0.18
UK 0.6
Trust Belief
Subjective Norms
0.16
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INVARIANCE ANALYSIS
Multiple Group Analysis

Parameter subsets
Models
Measurement weights
v
v
Structural weights
v
OK
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INVARIANCE ANALYSIS

• Do the measures have the same meaning for the two
  groups of respondents?
• Assuming that the unconstrained model is
  correctMeasurement weights are invariant across
  groups
• ? chi ² 21
• ? df 12
• p 0.08
• Only the 2nd perceived usefulness item reduces
  fit
• Chosen as the constrained value

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REGRESSION PATHS INVARIANCE

• Since we have metric invariance, we can test
  regression path invariance
• Comparing UK and KSA with all regression paths
  constrained equalSignificantly different, i.e.
  non-invariant across groups
• ? chi ² 16
• ? df 7
• p 0.02

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INVARIANCE ANALYSIS
Manage Models

Model Name
Structural weights
Parameter constraints
b1_1 b1_2 b2_1 b2_2 b3_1 b3_2 b4_1
b4_2 b5_1 b5_2
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INVARIANCE ANALYSIS
Manage Models

Model Name
Structural weights
Parameter constraints
b3_1 b3_2
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REGRESSION PATHS INVARIANCE

• Which regression paths are significantly
  different?
• Each regression path in turn constrained equal
  across the 2 groups
• All others freely estimated

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NON-INVARIANT REGRESSION WEIGHTS
? Chi ² ? df p
Perceived usefulness ? Attitudinal intentions 5.9 1 0.02
Trust belief ? Attitudinal intentions 6.5 1 0.01

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NON-INVARIANT REGRESSION WEIGHTS

• Saudi customers perceive system usefulness as
  more important than do UK customers
• UK customers perceive a banks trustworthiness as
  more important than do Saudi customers

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CULTURE DIFFERENCES (Hofstede, 1980)

• Saudi customers perceive system usefulness as
  more important than do UK customers
• In countries that tend to be more feminine,
  personal relationships are more valued (KSA),
• Need more convincing of usefulness
• In the more masculine and assertive UK, the
  low social presence media are more accepted
• Usefulness of Internet Banking may be taken for
  granted (Straub et al, 1997)

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CULTURE DIFFERENCES (Hofstede, 1980)

• UK customers perceive a banks trustworthiness as
  more important than do Saudis
• People in high collectivism cultures (KSA) tend
  not to trust people outside their group
• More likely to derive trust from relationships
  (Yamagishi Yamagishi, 1994)
• Individualistic cultures (UK) trust others
• Rely on the environment to determine whether it
  is in anothers (i.e. the banks) interest to
  behave well (Bhawuk Brislin, 1992)

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CONCLUSIONS

• Cross-cultural questionnaires are feasible
• The Internet Banking model has relevance across
  cultures
• Behavioural models may vary psychometrically
  between cultures

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CONCLUSIONS

• Perceived manageability forms a single construct,
  aggregating the previous
• Perceived ease of use
• Self-efficacy
• Perceived control
• Attitude is implicit in behavioural intentions
  
• 80 of the variance in Attitudinal Intention is
  explained by
• Perceived usefulness and
• Trust

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MANAGERIAL IMPLICATIONS

• Internet Banking is influenced by important
  others
• Marketing communications need to consider word of
  mouth
• Social networks?

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SPSS AMOS INVARIANCE ANALYSIS ACROSS CULTURES
CASE STUDY INTERNET BANKING ACCEPTANCE

• Bander AlSajjan and
• CHARLES DENNIS