Adoption and Implementation Problems of E-Banking: A Study of the Managerial Perspective of the Banking Industry in Oman

Abstract

This article explores the potential impeding factors that could inhibit the wide adoption and use of electronic commerce (EC) applications in the Omani banking industry. Data were collected using a survey questionnaire complemented with using semi-structured interviews, and review of internal banking documents. The participants in the study were IS executives and managers. The results provide a pragmatic picture on the adoption and use of EC applications in this country's core sector. One of the major inhibiting factors in this study is the lack of top management support. Information privacy and security issues were identified as serious inhibiting factors on the successful adoption and use of electronic banking applications in the financial sector. Other factors such as power relationships (e.g., conflict between managers that arise during the process of IS/IT adoption), and lack of investment in EC applications were found less significant as inhibiting factors. Although this is a context specific research, the findings should be relevant to other businesses in Arab countries in particular and developing countries in general when contemplating their EC strategies.