Benefit and Sacrifice Factors Determining Internet Banking Adoption in Iraqi Kurdistan Region

Abstract

Internet banking experience varies across different situations in various countries and, in turn, generate dissimilar attitudes and behaviours of banking customers. One region that is experiencing difficulties related to Internet banking and where bank managers remain unsuccessful in persuading bank customers to adopt Internet banking is Iraqi Kurdistan Region (IKR). To enhance the extant knowledge of the reasons behind this issue, the current research focused on identifying the determinants of Internet banking adoption in IKR and sought to investigate the effect of benefit factors (perceived usefulness, perceived ease of use, and perceived system quality) and sacrifice factors (perceived cost and perceived risk) on behavioural intention to use and, in turn, actual use of internet banking in IKR. To achieve this aim, this research conceptualized a model inspired by Technology Acceptance Model (TAM). The study conducted a quantitative approach and used a self-administrated questionnaire as the research instrument. Data were collected from 412 respondents. Structural Equations Modelling (SEM) was applied as the suitable inferential analytical method for analysing the data. The results generated revealed the significant role of perceived usefulness, perceived ease of use, perceived system quality and perceived risk on behavioural intention to use Internet banking. This research theoretically and practically contributed to knowledge through clarifying the perception of bank customers toward adopting Internet banking in IKR and revealing the importance of benefit and sacrifice factors in explaining behavioural intention to use Internet banking. Keywords: Benefit Factors, Sacrifice Factors, Internet Banking Adoption.