Integration of DeLone and McLean and self-determination theory in internet banking continuance intention context

• DOI: https://doi.org/10.1108/IJAIM-07-2018-0077
• Date: 05 August 2019
• Published date: 05 August 2019
• Pages: 512-528
• Author: Samar Rahi,Mazuri Abd.Ghani
• Subject Matter: Accounting & Finance,Accounting/accountancy,Accounting methods/systems

Integration of DeLone and

McLean and self-determination

theory in internet banking

continuance intention context

Samar Rahi

Hailey College of Banking and Finance, University of the Punjab,

Lahore, Pakistan, and

Mazuri Abd.Ghani

Universiti Sultan Zainal Abidin –Kampus Gong Badak, Kuala Terengganu, Malaysia

Abstract

Purpose –The proliferation of information technology has changed the banking system globally.

Internet technology has not only allowed banks to offer products and services but also improved their

ability to retain customers. This study aims to examine internet banking user’s continuance intention by

integrating two well-known theories DeLone and McLean information system success model (D&M) and

self-determination theory (SDT).

Design/methodology/approach –The research model was tested using survey data from 398

customers of commercial banks. The respondents were internet banking users. Data were analyzed using

structuralequation modeling.

Findings –The results revealed that internetbanking user continuance intention is jointly determined by

information quality (INFQ), service quality, satisfaction, introjected regulation, external regulation, intrinsic

regulation and identified regulation. The integrated model explained 75.4 per cent variation in customer’s

continuance intention touse internet banking. The results suggested that intrinsicregulation and identified

regulation were the most important human motivation factors that drive customer’s intention toward

continueuse of internetbanking.

Practical implications –The findings imply that managers seeking user satisfaction should focus on

INFQ and service quality to enhanceuser continuance intention. Policymakers should focus on intrinsicand

identified regulation of internet bankingusers. Some of the ways banks can do this is to develop enjoyable

internet banking websitewith kind of reward system, activities that have thecharm of novelty, challenge or

aestheticsignificance will help to improve user’s intentionto continue use of internet banking.

Originality/value –This study contributesto the literature by integrating D&M and SDT in continuance

intention and differentfrom several traditional studies that had investigated the initialacceptance of internet

banking users.

Keywords Continuance intention, Self-determination theory, Internet banking,

Structural equation modeling, DeLone and McLean

Paper type Research paper

1. Introduction

Innovation in technology and the growing number of internet users has changed the

traditional banking system. Now, banks are using web-based internet banking as an

alternative channel to providebanking services (Yuan et al., 2018). In this sense, banks have

to develop or change their computer applications to seek customers attraction and

encourage them to use internet banking services for financial transactions (Liu and

IJAIM

27,3

512

Received9 July 2018

Revised21 July 2018

Accepted5 August 2018

InternationalJournal of

Accounting& Information

Management

Vol.27 No. 3, 2019

pp. 512-528

© Emerald Publishing Limited

1834-7649

DOI 10.1108/IJAIM-07-2018-0077

The current issue and full text archive of this journal is available on Emerald Insight at:

www.emeraldinsight.com/1834-7649.htm

O’Farrell, 2013;Rodrigues et al., 2017). Internet banking enables customers to perform

various financial activitiessuch as online shopping or bill payments through a bank website

(Samar et al., 2017). Similarly,internet banking service also enables banking practitioners to

reduce the pressure in physical branches and lower the operational costs (Liu et al.,2008;

Tsai et al., 2014). Despite potential benefits that internet banking offers to customers, such

as lower online charges, more convenience, higher speed and round-the-clock availability of

banking, the usage of internet banking has been limited and in many cases fallen short of

expectations (Alwan and Al-Zubi,2016;Lee, 2009;Rahi et al., 2018a). It is forecasted that the

growth of internet banking users is expected to be moderate until 2018 worldwide

(eMarketer, 2014). Globally, 423.5 million people accessed internet banking, which is only

28.7 per cent of internetusers (Statista, 2012). Thus, understanding the main determinantsof

internet bankingcontinuance intention is important both for banksand users.

Earlier studies have investigatedthe initial adoption of internet banking or acceptance of

user technology Martinset al. (2014),Mazuri et al. (2017),Razi and Madani (2013),Rodrigues

et al. (2017) and Tarek et al. (2017), much less research has investigated internet banking

service in users continuanceintention (Yuan et al., 2018). Continuance intention is described

as “user’s decision to carry on using a specific Information Technology (IT) that an

individual has already been using”(Nabavi et al., 2016). It is stated that the continuous use

of IT services is more important than initial use (Yuan et al., 2018). According to

Bhattacherjee (2001),cost for developing a new customer may cost as much asfive-time that

for retaining an existing customer.A systematic literature review conducted by Shaikh and

Karjaluoto (2015) indicated that not a single study is found that explained user’s

continuance behavior toward the use of technology in Africa or South Asia (mainly

comprising India, Pakistan, Bangladesh, Nepal and Bhutan). Therefore, the current study

intends to fill the research gap by proposing an integrated model grounded in DeLone and

McLean information system success model (D&M) and self-determination theory (SDT) to

investigate usercontinuance intention toward the use of internet banking services.

2. Literature review

2.1 Internet banking

Internet banking has played a central role in e-payment domain and provides an online

platform to several e-commerce applications such as online bill payment, online shopping and

online banking transaction. According to Rahi et al. (2018b), internet banking is a banking

channel that allows consumers to do a wide range of financial and non-finical services through

a bank website. It is argued that internet banking is using as an alternative channel to provide

banking services (Alwan and Al-Zubi, 2016;Martins et al.,2014;Rahi,2015,2016). According to

Yuan et al. (2018), continuous use of internet banking is more important than initial acceptance.

Extending to this Bhattacherjee (2001) explained that cost for developing a new customer may

cost as much as five-time that for retaining an existing customer. Thus, understanding the

main determinants of customer’s continuance intention to use internet banking is important.

Past studies have focused on internet banking adoption Rahi and Ghani (2016),Mazuri et al.

(2017),Rahi et al. (2017) and Greenberg et al. (2012), therefore, the limited research that

examines internet banking service in continuance intention. Thus, we developed an integrative

perspective technology continuance model that comprises D&M and SDT. The detailed

description of these two theories is stated in the following section.

2.2 DeLone and McLean IS model

The original DeLone and McLean taxonomyis based on Mason (1978) that is an adaptation

of mathematical theory of communication proposed by Shannon and Weaver (1949).

Integration of

DeLone and

McLean

513