vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENTS
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xiv
LIST OF FIGURES
xvi
LIST OF ABBREVIATIONS
xviii
LIST OF APPENDICES
xxi
INTRODUCTION
1
1.1 Introduction
1
1.2 Background of the Study
2
1.3 Research Gap and Opportunity
8
1.4 Research Problem Statement
13
1.5 Research Questions
18
1.6 Research Objectives
19
1.7 Justification of Study and Motivation
19
1.8 Scope of the Research
23
1.9 Significance of the Study and Contribution
24
1.9.1 Significance and Contributions to
Academic Research
25
viii
1.9.2 Significance and Contributions to Practice
2
27
1.10 Definition of Key Terms
28
1.11 Structure of the Thesis
31
1.12 Summary
33
OVERVIWE OF ELECTRONIC BANKING IN
YEMEN
34
2.1
Introduction
34
2.2
Country Profile
34
2.2.1 Location
35
2.2.2 Population and Demography
36
Banking and Finance Development in Yemen
37
2.3
2.3.1 Historical Back Ground of Banking and
Finance in Yemen
2.3.2 Banking System Structure in Yemen
2.4
38
39
Development Electronic Banking Services in
Yemen
41
2.4.1 Electronic Banking Services in Yemen
42
2.4.2 Mobile Banking (SMS) and Telephone
Banking (TB) Services
2.5
2.6
3
42
2.4.3 Automated Teller Machine (ATM)
43
2.4.4 Interne Banking (IB)
44
Evaluation of Electronic Banking Services in
Yemen
48
Summary
50
LITERATURE REVIEW
51
3.1
Introduction
51
3.2
Innovation Diffusion Theory (IDT)
53
3.2.1 Limitation of IDT
55
3.2.2 Research on IDT in Technology
Acceptance
3.3
Theory of Reasoned Action (TRA)
55
57
ix
3.3.1 Limitation of TRA
58
3.3.2 Research on TRA in Technology
Acceptance
3.4
59
Theory of Planned Behavior (TPB)
61
3.4.1 Limitation of TPB
62
3.4.2 Research on TPB in Technology
Acceptance
3.5
63
Technology Acceptance Model (TAM)
65
3.5.1 Limitations of TAM
66
3.5.2 Technology Acceptance Model 2 (TAM 2)
67
3.5.3 Limitation of TAM 2
69
3.5.4 Technology Acceptance Model 3 (TAM 3)
69
3.5.5 Limitation of TAM 3
71
3.5.6 Researches of the TAM, TAM 2, and
TAM3 in Technology Acceptance
3.6
71
Decomposed Theory of Planned Behavior
(DTPB)
75
3.6.1 Limitations of DTPB
77
3.6.2 Research on DTPB in Technology
Acceptance
3.7
77
Unified Theory of Acceptance and Use of
Technology (UTAUT)
80
3.7.1 Limitation of UTAUT
81
3.7.2 Research on UTAUT in Technology
Acceptance
3.8
82
Technology Readiness (TR)
85
3.8.1 Research on TR in Technology Acceptance
89
Internet Banking (IB)
92
3.9.1 History of Internet Banking
93
3.9.2 Definition of Internet Banking
94
3.9.3 Types of Internet Banking
95
3.9.4 Advantages of Internet Banking
96
3.10 Internet banking Acceptance Research
97
3.9
x
3.10.1
Research Applying the IDT in Internet
banking Domain.
3.10.2
Research Applying the TRA in Internet
banking Domain
3.10.3
101
Research Applying the DTPB in Internet
banking Domain
3.10.6
100
Research Applying the TAM in Internet
banking Domain
3.10.5
99
Research Applying the TPB in Internet
banking Domain
3.10.4
98
102
Research Applying the UTAUT in
Internet banking Domain
104
3.11 Overall Limitation of Technology Acceptance
Theories/Models
105
3.12 Research Model
107
3.12.1 Decomposing Attitude
3.12.1.1 Relative Advantage
109
110
3.12.1.2 Perceived Ease of Uses
(PEOU)
112
3.12.1.3 Compatibility
113
3.12.1.4 Trialability
114
3.12.1.5 Perceived Risk
116
3.12.1.6 Trust
118
3.12.2 Decomposing Subjective Norm (SN)
120
3.12.2.1 Mass Media Influence
121
3.12.2.2 Friends’ Influence
122
3.12.2.3 Colleagues/Peers’ Influence
123
3.12.2.4 Family’s Influence
124
3.12.3 Decomposing Perceived Behavioral
Control (PBC)
126
3.12.3.1 Self-efficacy
127
3.12.3.2 Technology Support
129
3.12.3.3 Government Support
130
xi
3.12.4
Technology Readiness (TR)
3.13 Research Hypotheses Development
4
131
137
3.13.1 Attitude
137
3.13.2 Subjective Norm (SN)
139
3.13.3 Perceived Behavioral Control (PBC)
140
3.13.4 Technology Readiness (TR)
141
3.13.5 Relative Advantage
143
3.13.6 Perceived Ease of Use (PEOU)
145
3.13.7 Compatibility
146
3.13.8 Trialability
148
3.13.9 Perceived Risk
149
3.13.10 Trust
151
3.13.11 Mass Media Influence
153
3.13.12 Friends’ Influence
154
3.13.13 Colleagues/Peers’ Influence
155
3.13.14 Family’s Influence
156
3.13.15 Self-efficacy
157
3.13.16 Technology Support
158
3.13.17 Government Support
160
3.13.18 Optimism
161
3.13.19 Innovativeness
162
3.13.20 Skepticism
163
3.13.21 Discomfort
164
3.13.22 Technology Readiness Effect
167
3.14 Summary
167
RESEARCH DESIGN AND METHODOLOGY
168
4.1
Introduction
168
4.2
Research design
169
4.3
Sampling Method and Sampling Frame
173
4.3.1 Research Population
173
4.3.2 Sampling Procedures
174
4.3.3 Sample Size
176
xii
4.4
Method of Study
179
4.5
Development of the Questionnaire
180
4.5.1 Translation Process
183
4.5.2 Pre-testing
184
4.5.3 Pilot study
185
4.6
Administering the Survey (Data Collection)
187
4.7
Data Coding and Entering
189
4.8
Analyzing the Data
189
4.8.1 Data Preparation
193
4.8.1.1 Missing Data
193
4.8.1.2 Outlier Detection
194
4.8.1.3 Normality
195
4.9 Validation of the Measures (Reliability & Validity)
4.9.1
4.9.2
5
196
Reliability
197
4.9.1.1 Individual Item Reliability
197
4.9.1.2 Scale Reliability
198
Validity Test
299
4.9.2.1 Content Validity
200
4.9.2.2 Construct Validity
200
4.9.3 Unidimensionality
202
4.9.4 Goodness-of-Fit Measures for This Study
203
4.10 Hypothesis Testing
204
4.11 Summary
205
DATA ANALYSIS AND RESULT
206
5.1
Introduction
206
5.2
Data Preparation and Screening
207
5.2.1 Missing Data
208
5.2.2 Outliers
209
5.2.3 Normality
209
5.3. Descriptive Statistics
210
5.4
Overall Sample Demographic Profile
211
5.5
Measurement Model Evaluation
213
xiii
5.6
6
5.5.1 Reliability
218
5.5.2 Validity
220
Structural Model
223
5.6.1 Hypotheses Results
224
5.7 Summary
229
DISCUSSION AND CONCLUSIONS
230
6.1
Introduction
230
6.2
Discussion of the Research Hypotheses
231
6.3
Contributions and Implications of the Study
255
6.3.1 Contribution to Academic Research
255
6.3.2 Contribution to Practice
259
6.4
Limitation of the Study
265
6.5
Directions for Future Research
266
6.6
Conclusion
267
REFERENCES
Appendices A - F
268
301-330
xiv
LIST OF TABLES
TABLE NO.
TITLE
PAGE
2.1
Population (million) and Demography of Yemen
37
2.2
Banking System Structure in Yemen.
40
2.3
Electronic Banking Services in Yemen
47
3.1
Researches Related to the Innovations Diffusion Theory
(IDT)
3.2
Researches Related to the Theory of Reasoned Action
(TRA)
3.3
56
Researches Related to Theory of Planned Behavior
(TPB)
3.4
Researches Related to the TAM, TAM2, and TAM3
3.5
Researches Related to Decomposed Theory of Planned
59
63
72
Behavior (DTPB)
78
3.6
Researches Related to the UTAUT
83
3.7
Differing Beliefs of Technology Adoption Segments
87
3.8
Researches Related to the Technology Readiness (TR)
89
3.9
Summary of Researches that Have Been Used IDT in IB
Domain
3.10
Summary of Researches that Have Been Used TRA in
IB Domain
3.11
98
99
Summary of Researches that Have Been used TPB in IB
Domain
100
xv
3.12
Summary of Researches that Have Been Used TAM in
the IB Domain
3.13
Summary of Research that Have Been Used DTPB in IB
Domain
3.14
101
103
Summary of Researches that Have Been Used
UTAUT in the IB Domain
104
4.1
Feature of Positivistic and Phenomenological Paradigm
170
4.2
Banks and e- Banking Services in Yemen
174
4.3
Development of the Instruments
182
4.4
Summary of the Translation Process Steps
184
4.5
Cronbach's alpha (Pilot Test)
186
4.6
Banks’ Branches that Provide IB in Yemen
187
4.7
Distribution of the Questionnaire to the Targeted
Population
189
4.8
Summary of Goodness-fit-indices
204
5.1
Observations Farthest From the Centroid (Mahalanobis
D2 for Outliers)
209
5.2
Descriptive Statistics for All Variables
211
5.3
Demographic Profile of Respondents
212
5.4
Fit Indices for the Measurement Model (first order)
214
5.5
Items Deleted (Indicator Reliability Less Than 0.5)
216
5.6
Items Deleted (Standardized Residual Greater Than
2.58)
217
5.7
Fit Indices for the Measurement Model (Second Order)
217
5.8
Composite Reliability and Average Variance Extracted
220
5.9
Average Variance Extracted (AVE) and Inter-construct
Correlations (IC)
222
5.10
Fit Statistics of Structural Model
223
5.11
Path Statistical Results (Unstandardized Coefficient)
225
5.12
Squared Multiple Correlation for Endogenous Variables
227
5.13
Model Summary for Multiple Regression
228
6.1
Summary of the Hypothesis Results
254
xvi
LIST OF FIGURES
FIGURE NO.
TITLE
PAGE
1.1
Structure of the Thesis
33
2.1
Yemen Map
35
3.1
Innovation Diffusion Theory (IDT) (Rogers, 2003)
54
3.2
Theory of Reasoned Action (TRA) Fishbein and Ajzen
(1975)
58
3.3
Theory of Planned Behavior (TPB) (Ajzen, 1991)
61
3.4
Technology Acceptance Model (TAM) (Davis, Bagozzi
and Warshaw, 1989)
3.5
Technology Acceptance Model 2 (TAM2) (Venkatesh
and Davis, 2000)
3.6
76
Unified Theory of Acceptance and Use of Technology
(UTAUT) (Venkatesh, Morris, Davis and Davis, 2003)
3.9
70
Decomposed Theory of Planned Behavior (DTPB)
(Taylor and Todd, 1995a)
3.8
68
Technology Acceptance Model 3 (TAM 3) (Venkatesh
and Bala, 2008)
3.7
66
80
Drivers of Technology Readiness (Parasuraman and
Colby, 2001)
86
3.10
Decomposing of Attitude
110
3.11
Decomposing of Subjective Norms.
121
3.12
Decomposing of Perceived Behavioral Control
127
3.13
Decomposing of Technology Readiness
134
xvii
3.14
Conceptual Research Model
136
3.15
Research Hypotheses
166
4.1
Flowchart Showing the Steps of Research Methodology
172
4.2
Structural Equations Modeling Process (Hair et al,. 2010)
191
4.3
Summary of the Methods Used to Establish Measures’
Validation
196
5.1
Data Analysis Process
207
5.2
The Final Model Results (Standardized Coefficient)
226
xviii
LIST OF ABBREVIATIONS
AB
-
Arab Bank
AMOS
-
Analysis of Moment Structures
AT
-
Attitude
ATM
-
Automatic Teller Machine
AVE
-
Average Variance Extracted
CAC
-
Cooperative and Agricultural Credit Bank
CAIB
-
Credit Agricole Indosuez Bank
CBY
-
Central Bank of Yemen
CFA
-
Confirmatory Factor Analysis
CFI
-
Comparative Fit Index
CO
-
Compatibility
CR
-
Critical Ratio
DS
-
Discomfort
DTPB
-
Decomposed Theory of Planned Behavior
EU
-
Ease of Use
FL
-
Factor Loading
FR
-
Friend
FY
-
Family
GOF
-
Goodness-Of-Fit
GS
-
Government Support
HCB
-
Housing Credit Bank
IA
-
Innovativeness
IB
-
Internet Banking
xix
IBD
-
Islamic Bank for Development
IBY
-
International Bank of Yemen
IC
-
Inter-construct Correlations
IDT
-
Innovation Diffusion Theory
IN
-
Intention
KSB
-
Alkuraimi Islamic Microfinance Bank
MB
-
Mobile banking
MM
-
Mass Media
NBY
-
National Bank of Yemen
NFI
-
Normed Fit Index
OP
-
Optimism
PBC
-
Perceived Behavioral Control
PBC
-
Perceived Behavioral Control
PE
-
Colleagues/Peers
EU
-
Perceived Ease of Use
POS
-
Point of Sale
PU
-
Perceived Usefulness
QNB
-
Qatar National Bank
RA
-
Relative Advantage
RB
-
Rafidain Bank
RFI
-
Relative Fit Index
RMSEA
-
Root Mean Squared Error of Approximation
RS
-
Perceived Risk
SBYB
-
Shamil Bank of Yemen and Bahrain
SE
-
Self-Efficacy
SEM
-
Structural Equation Modeling
SIB
-
Saba Islamic Bank
SK
-
Skepticism
SN
-
Subjective Norm
TAM
-
Technology Acceptance Model
TAM2
-
Technology Acceptance Model 2
TAM3
-
Technology Acceptance Model 3
TB
-
Telephone Banking
xx
TIB
-
Tadamon Islamic Bank
TL
-
Trialability
TLI
-
Tucker-Lewis index
TPB
-
Theory of Planned Behavior
TR
-
Technology Readiness
TR
-
Technology Readiness
TRA
-
Theory of Reasoned Action
TS
-
Technology Support
TU
-
Trust
UBL
-
United Bank Ltd
UTAUT
-
Unified theory of Acceptance and Use of Technology
X2
-
Chi-square
X2/df
-
Normed Chi-Square per degree of freedom ratio
YBRD
-
Yemen Bank for Reconstruction and Development
YCB
-
Yemen Commercial Bank
YGB
-
Yemen Gulf Bank
YKB
-
Yemen-Kuwait Bank for Trade and Investment
xxi
LIST OF APPENDICES
APPENDIX
TITLE
PAGE
A
English Questionnaire
301
B
Arabic Questionnaire
310
C
Assessment of Normality
319
D
Descriptive Statistics for Study Constructs
320
E
Items Retained for Analysis
323
F
Official Letters for Data Collection
326
F-1
Official Letter to Cooperative and Agricultural
Credit Bank (CAC)
F-2
327
Official Letter to Yemen Commercial Bank
(YCB)
328
F-3
Official Letter to Arab Bank (AB)
329
F-4
Official Letter to Yemen Gulf Bank (YGB)
330