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Determinants of Internet Banking Adoption among Customers of Commercial Banks: An Empirical Study in the Jordanian Banking Sector

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  • Hussain Alwan
  • Abedlhalim Al-Zubi

Abstract

The study aimed at investigating the adoption of Internet banking by customers of Jordanian commercial banks, the barriers restraining its growth, and the solutions to some of the main hindrances that face this innovative technology. A sample of 476 customers having accounts in thirteen local commercial banks and using Internet banking was randomly selected. The self-administered questionnaire relying on a 5-point scale was used to solicit the primary data. The factor analysis-varimax rotation was used to determine the dimensions of the study items whereas the simple regression was employed to determine the relative influence of perceived privacy and security, perceived ease of use, service quality, customer trust, and customer feedback on Internet banking adoption. All the independent variables have significant impacts on Internet banking adoption whilst the best predictor of the adoption is accounted for the website quality followed by customer trust. However, the adoption rate is low and is tracked mainly by customers of high education levels and high ability in using computer applications and internet experiences. Also, the study provides some recommendations and future research to resolve the obstacles facing Internet banking adoption by customers of commercial banks in Jordan.

Suggested Citation

  • Hussain Alwan & Abedlhalim Al-Zubi, 2016. "Determinants of Internet Banking Adoption among Customers of Commercial Banks: An Empirical Study in the Jordanian Banking Sector," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(3), pages 1-95, February.
    • Handle: RePEc:ibn:ijbmjn:v:11:y:2016:i:3:p:95
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    References listed on IDEAS

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    1. Syed Ali Raza & Syed Tehseen Jawaid & Ayesha Hassan, 2015. "Internet banking and customer satisfaction in Pakistan," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 7(1), pages 24-36, February.
    2. Hatice Jenkins, 2007. "Adopting Internet Banking Services in a Small Island State: Assurance of Bank Service Quality," Development Discussion Papers 2007-07, JDI Executive Programs.
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    Cited by:

    1. Pankaj Tiwari, 2021. "Electronic banking adoption in Ethiopia: an empirical investigation," SN Business & Economics, Springer, vol. 1(9), pages 1-28, September.
    2. Hanif, Yasmeen & Lallie, Harjinder Singh, 2021. "Security factors on the intention to use mobile banking applications in the UK older generation (55+). A mixed-method study using modified UTAUT and MTAM - with perceived cyber security, risk, and tru," Technology in Society, Elsevier, vol. 67(C).
    3. Shivani Inder & Kiran Sood & Simon Grima, 2022. "Antecedents of Behavioural Intention to Adopt Internet Banking Using Structural Equation Modelling," JRFM, MDPI, vol. 15(4), pages 1-18, March.

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    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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