The effect of e-strategy on the adoption of online banking in Malaysian

• Main Authors: Abdullah, Shahmir Sivaraj, Abdullah, Haim Hilman
• Format: Article
• Language: English
• Published: 2016
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/21363/1/GBSE%202%204%202016%20251-264.pdf; http://repo.uum.edu.my/21363/; http://gbse.com.my/isiokt16/GBSE%202(4),%20251-264%20(July%202016).pdf

Online banking has predominantly been studied in relation to adoption and its relationships with trust or in combination with other technology adoption theories such as the technology adoption model (TAM).This study however looked at the influence of E-strategy on the adoption of online banking by consumers.Most studies on strategy have tended to look at this from the perspective of the organization itself but this study has done the exact opposite i.e. it has studied strategy from the consumer’s point of view. E-strategy here is posited as the electronic strategy that is adopted by firms to increase the uptake of services offered by banks through the use of the internet from the consumer’s home.To this end, a systematic random sampling of residents in and around various cities in Malaysia was used as the study’s sample. A Pearson correlation followed by a multiple regression, and later a bootstrap of the regression output was used to test the hypotheses that were generated.The dimensions of estrategy (customer perspective, internal processes, competitive strategy) were studied for their influence on adoption (Attitude, behavioral intention). The regression analysis indicated a significantly positive relationship between the individual dimensions of E-strategy and subsequently the E-strategy variable itself with adoption in the context of consumer online banking adoption. The study has provided useful insights on the dimensional attributes of Estrategy and its influence on the consumer. The study implied that E-strategy has a strong and significant impact on adoption and as such positively influences the intention to adopt online banking in Malaysia.Recommendations for future research are suggested at the end of the article.