Antecedents and Adoption of E-Banking in Bank Performance: The Perspective of Private Bank Employees
This paper identifies the antecedents that affect E-Banking (EB) adoption and investigates the relationship between the level of EB adoption and the performance of private banks.
Rapid technological advancement has transformed the business environment dramatically. These advancements particularly the Internet has reshaped the way businesses operate. Over the last decade, the banking industry has become highly complex and competitive and operates in a highly volatile and unpredictable global economy. With the increasing demand for electronic services, banks are harnessing EB technology to improve their products and services.
Quantitative research using Structural Equation Modelling (SEM) was carried out with a sample size of 211 by sending questionnaires to employees of six banks in Khartoum, Sudan. The study is based on different technology theories and models.
The study provides insights into the employees’ perception of EB adoption in their banking transactions.
The results showed that four factors are significant in the adoption of EB in Sudan. However, training and user trust were insignificant in determining its adoption. Moreover, the level of adoption of EB significantly affected private bank performance.
Private banks in Sudan that are interested in EB might find these findings helpful in guiding their technology adoption and application initiatives.
To validate the research model, cross data from different countries are encouraged to apply the model to capture the differences and similarities among them. In addition, a longitudinal research could be conducted to gather data for adoption process over a longer period rather than one point of time, to investigate antecedents and bank performance outcomes by the end of the study period. Other antecedents and outcomes could possibly be included to improve the power of the study model.
This study provides a reference for banks with similar developing country backgrounds in adopting EB to enhance their performance. Moreover, knowledge of antecedents and outcomes of EB adoption could be positively reflected in service quality performance.
This research is limited to the employees’ perspective, and future research could consider the perception of customers from a developing country towards EB adoption.