The moderating effect of electronic strategy (e-strategy) on the relationship between perceived usefullness and the intention to adopt online banking in Malaysia

Abstract

Strategy is an important element in enhancing management competitiveness which directly influences firm performance. Therefore, contemporary business environments which are driven by technology require urgent and sustained attention by firms seeking to enhance their competitiveness. Simply put, technology is the tool through which a firm's strategy is achieved. Online banking is an example of a technology driven business environment. It is therefore important for the banks who offer this service to understand that the strategy they adopt influences the uptake of the service being offered. The level of adoption of online banking is an indication of the success of the strategy that has been adopted by banks. Consumer perception of the service has a strong influence on its actual usage. This study has used the perceived usefulness (PU) and behavioural intention to adopt (ADO) construct from the technology adoption model and the e-strategy construct to study online banking adoption in Malaysia. The moderation effect of e-strategy on the relationship between PU and ADO was examined. To achieve this, a random sampling of urban residents in the cities Ipoh, Georgetown, Alor Setar and Kangar in Malaysia was used. A total of 2560 questionnaires were distributed but only 360 usable questionnaires were received. The analysis was conducted by using SPSS 24 and Hayes SPSS process macro. From the analysis that was conducted it was found that e-strategy had a positively significant moderating effect on the perceived usefulness of adopting online banking by the consumer. The study found that e-strategy had a stronger effect on PU when applied effectively by banks. The study therefore confirms the hypothesis that the element of strategy influences online banking adoption rates in Malaysia.

Impact of Digital Marketing Capabilities on Market Performance of Small to Medium Enterprise Agro-Processors in Harare, Zimbabwe

“…Organisations that fail to define clearly their strategies miss opportunities, and waste resources (Chaffey, 2015). In a study to assess adoption of online banking in Malaysia, Abdullah et al (2019) found that e-strategy influence customer perceptions on intention to adopt online banking.…”

“…Vorhies and Morgan (2005) found strategy development and implementation capabilities to influence market performance. In another study, Abdullah et al (2019) found e-strategy to influence consumers' online banking adoption. Marketers cannot afford to ignore the value of research and strategy in the digital marketing environment (WSI, 2015).…”

Inclusive Digital Innovation in South Africa: Perspectives from Disadvantaged and Marginalized Communities

“…The government uses e-strategy to reach out to and influence the course of actions of its stakeholders (i.e., citizens included). If the strategy is misplaced, it may negatively affect the acceptance and adoption of such services [39]. A sound and responsive e-strategy are required by both governmental and non-governmental organizations to guide their digital transformation agenda and address societal and business needs [39].…”

“…If the strategy is misplaced, it may negatively affect the acceptance and adoption of such services [39]. A sound and responsive e-strategy are required by both governmental and non-governmental organizations to guide their digital transformation agenda and address societal and business needs [39]. The level of acceptance and adoption of digital transformation technologies by citizens is hypothesized to a certain degree as a measure of how effective the strategy was, while the adoption and use of d-commerce by the broader society has a proven record for improving the socio-economic status [40].…”

“…The NCPF-NeS [42] provides a framework for a safe, secure, robust, and trustworthy cyber environment that mitigates and counteracts cybercrimes and cyberwarfare, building citizens' awareness, education, trust, and confidence in d-commerce through effective policy implementation. Abdullah et al [39] hypothesized that there is a gap between convention (i.e., e-strategy) and the practice of d-commerce. As such, the relevant government entities and online service providers must develop a 'customer-centric' e-strategy that addresses stakeholders' needs and promotes widespread acceptance and adoption.…”