Exploring the Factors Behind the Resistance to Mobile Banking in Portugal

Exploring the Factors Behind the Resistance to Mobile Banking in Portugal

Pedro Cruz (ISG- Business School, Portugal), Tommi Laukkanen (University of Joensuu, Finland) and Pablo Muñoz (Universidad de Salamanca, Spain)
DOI: 10.4018/978-1-60960-607-7.ch011
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M-banking has been highlighted as one of the most promising e-commerce services. However, the adoption of financial mobile services is still far behind market expectations. This study seeks to provide academics and bank managers alike with a better understanding of resistance to m-banking. Based on Ram and Sheth’s (1989) Theory of Innovation Resistance, a SEM model was built to describe resistance barriers. A total number of 3,852 observations, of which 2,344 were effective for SEM analysis, were obtained from an Internet survey at a Portuguese bank. The “functional barriers” revealed more severe barriers than the “psychological” ones. Latent scores were used to compare consumers’ perceptions and behaviour. Results indicate a significantly higher resistance among non-users, and demographic and behavioural profiles were established, promoting wider knowledge and possible enhancement of m-banking adoption. Conclusions and managerial implications are provided.
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Conceptual Framework And Development Of Hypotheses

Current literature is largely concentrated on the adoption of innovation and the factors influencing adoption and dissemination of ICT technological innovations. This adoption process has been systematised in holistic models (Lin, 2003), quantitative structural models like the Technology Acceptance Model (T.A.M., Davis et al., 1989), the Extended T.A.M. or the Unified Theory of Acceptance and Use of Technology (Venkatesh et al., 2003). Other models have focused on the motives lying beneath resistance to innovation adoption (Ellen et al., 1991; Bowman et al., 2007). However, relatively little attention has been paid to the latter approach (the theory of innovation resistance). Some authors, like Sheth (1981), have highlighted the importance of studying the process of resistance to innovation, instead of its adoption.

According to Sheth (1981) and Ellen et al. (1991), consumer decisions on innovation are based on two main aspects: on the one hand, perception of the service’s benefits, and, on the other, the perception of risk. Ram and Sheth (1989) provide a more comprehensive analysis on resistance to innovation, focusing on psychological and functional barriers. This view argues that psychological barriers are reflected in tradition and image barriers; while functional barriers derive from usage barrier, value barrier and risk barrier.

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