Extending UTAUT2 in M-banking adoption and actual use behavior: Does WOM communication matter?

Milad Farzin,Hedyeh Ruholahpur,Marzieh Sadeghi,Fatemeh Yahyayi Kharkeshi,Majid Fattahi

doi:10.1108/ajeb-10-2020-0085

Abstract

Purpose The purpose of this study is to investigate important factors that help explain customer willingness to adopt mobile banking (M-banking). To this end, the unified theory of acceptance and use of technology 2 (UTAUT2) was applied and to more accurately predict customer behavioral intentions, it was attempted to extend it. Design/methodology/approach The research data were collected from 396 customers of Iranian private banks who had the experience of using M-banking. The structural equation modeling technique was used to test the research hypotheses. Findings Findings suggest that performance expectancy, effort expectancy, social influence, facilitating conditions, habit, hedonic motivation, perceived value and trialability are endorsed as proponents of M-banking adoption intention. On the other hand, M-banking adoption intention has also had a significant positive effect on actual use behavior and word-of-mouth (WOM). WOM has also influenced actual use behavior and mediated the relationship between M-banking adoption intention and actual use behavior. Research limitations/implications The present study focuses on private banks, therefore, although it is sufficient, it is limited to private cases. This study contributes to the literature on M-banking services and actual use behavior. By appropriately focusing on M-banking adoption intention and the service quality provided, banks can strengthen their relationships with customers, thereby stimulating actual customer behavior such as actual use behavior and WOM. Originality/value From theoretical and managerial aspects, this study has particular value for the literature on M-services’ intention in general and banking in particular. The present study provides a conceptual framework for M-banking adoption intention, which could be used in M-banking services. In addition, this study sought to extend UTAUT2 and to examine the mediating role of WOM in actual use behavior motivation as well.

Highlights

Banks have used the Brick-and-Mortar approach to expand their geography and gain more market share (Tan and Teo, 2000)
This research attempted to test the UTAUT2 constructs to further the understanding of M-banking adoption in Iran together with the trialability construct
The study showed that the UTAUT2 model can predict customers’ tendency to adopt M-banking properly

Summary

Introduction

Banks have used the Brick-and-Mortar approach to expand their geography and gain more market share (Tan and Teo, 2000). Since the 1990s, the banking industry has attempted to shift from traditional financial services to autonomous media and self-service delivery channels (Pikkarainen et al, 2004). Along with the development of the internet, this movement became faster and allowed banks to gain more market access (Tan and Teo, 2000). The competitive nature of banking services has made it important to adopt new technologies in this industry (Luo et al, 2010). Banks have been able to provide better services to their customers through the adoption of technological innovations (Afshan and Sharif, 2016). ATMs, that facilitate transactions for customers, are the result of these technological advances (Adesuyi et al, 2013)

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