MOBILE BANKING ADOPTION: THE ROLE OF PERFORMANCE AND TRUST

Rosdiana Sijabat

doi:10.37641/riset.v6i2.2115

Rosdiana Sijabat Atma Jaya Catholic University of Indonesia

DOI: https://doi.org/10.37641/riset.v6i2.2115

Keywords: Performance, Trust, Mobile Banking Adoption

Abstract

This study examines the impact of performance and trust on the acceptance of mobile banking services in Indonesia. This study employs a survey questionnaire administered to 183 individuals in Indonesia who have adopted mobile banking services. The methodology employed is Partial Least Squares Structural Equation Modelling (PLS-SEM) to assess the correlation between latent and measured variables. The research findings indicate that performance has a notable and beneficial influence on trust. Additionally, trust plays a mediating role in the connection between performance and the adoption of mobile banking. These findings highlight the significance of achieving high performance to enhance user trust and promote the acceptance of mobile banking services. Therefore, banks and financial institutions must prioritize enhancing technical efficiency and establishing and upholding consumer confidence.

Downloads

Download data is not yet available.

References

Abdennebi, H. Ben. (2023). M-Banking Adoption from The Developing Countries Perspective: A Mediated Model. Digital Business, 3(100065), 1–16. https://doi.org/10.1016/j.digbus.2023.100065

Addison, J. T., & Teixeira, P. (2020). Trust and Workplace Performance. British Journal of Industrial Relations, 58(4), 874–903. https://doi.org/10.1111/bjir.12517

Afshan, S., & Sharif, A. (2016). Acceptance of Mobile Banking Framework in Pakistan. Telematics and Informatics, 33(2), 370–387. https://doi.org/10.1016/j.tele.2015.09.005

Alalwan, A. A., Dwivedi, Y. K., & Rana, N. P. (2017). Factors Influencing Adoption of Mobile Banking by Jordanian Bank Customers: Extending UTAUT2 with Trust. International Journal of Information Management, 37(3), 99–110. https://doi.org/10.1016/j.ijinfomgt.2017.01.002

Allen, M. R., George, B. A., & Davis, J. H. (2018). A Model for The Role of Trust in Firm Level Performance: The Case of Family Businesses. Journal of Business Research, 84, 34–45. https://doi.org/10.1016/j.jbusres.2017.10.048

Almaiah, M. A., Al-Otaibi, S., Shishakly, R., Hassan, L., Lutfi, A., Alrawad, M., Qatawneh, M., & Alghanam, O. A. (2023). Investigating The Role of Perceived Risk, Perceived Security and Perceived Trust on Smart m-Banking Application Using SEM. Sustainability, 15(13), 9908. https://doi.org/10.3390/su15139908

Almajali, D., Al-Radaideh, A. T., Nussir, N. A., Eid, A. A., Al-Fakeh, F. A., & Masad, F. (2023). Antecedents of Mobile Banking App Adoption During COVID19: A Perspective of Jordanian Consumer. International Journal of Data and Network Science, 7(1), 477–488. https://doi.org/10.5267/j.ijdns.2022.8.011

Ampauleng, & Abdullah, S. (2022). Improving Employee Performance: The Role of OCB Between Personal Trust and Leadership. Jurnal Manajemen, 25(3), 364–379. https://doi.org/10.24912/jm.v25i3.755

Burucuoglu, M., & Erdogan, E. (2016). An Empirical Examination of The Relation between Consumption Values, Mobil Trust and Mobile Banking Adoption. International Business Research, 9(12), 131–142. https://doi.org/10.5539/ibr.v9n12p131

Cardoso, A., & Cardoso, M. (2024). Bank Reputation and Trust: Impact on Client Satisfaction and Loyalty for Portuguese Clients. Journal of Risk and Financial Management, 17(277), 1–23. https://doi.org/10.3390/jrfm17070277

Carter, J. A. (2022). Trust as Performance. Philosophical Issues, 32(1), 120–147. https://doi.org/10.1111/phis.12214

Chaouali, W., & Hedhli, K. El. (2019). Toward a Contagion-Based Model of Mobile Banking Adoption. International Journal of Bank Marketing, 37(1), 69–96. https://doi.org/10.1108/IJBM-05-2017-0096

Chawla, D., & Joshi, H. (2020). The Moderating Role of Gender and Age in The Adoption of Mobile Wallet. Foresight, 22(4), 483–504. https://doi.org/10.1108/FS-11-2019-0094

Dash, G., & Paul, J. (2021). CB-SEM vs PLS-SEM Methods for Research in Social Sciences and Technology Forecasting. Technological Forecasting and Social Change, 173(121092), 1–11. https://doi.org/10.1016/j.techfore.2021.121092

Garson, G. D. (2016). Partial Least Squares: Regression & Structural Equation Models. Asheboro: Statistical Publishing Associates. https://www.smartpls.com/resources/ebook_on_pls-sem.pdf

Geovanny, A., Tong, I. W., Yang, J. A., & Vianto, V. O. (2021). The Effect of Privacy Concern Towards the Intention to Accept App Permission on Students Mobile Users. Jurnal Teknologi Informasi Dan Pendidikan, 14(2), 124–130. https://doi.org/10.24036/tip.v14i2.455

Grewal, D., Roggeveen, A. L., & Nordfält, J. (2017). The Future of Retailing. Journal of Retailing, 93(1), 1–6. https://doi.org/10.1016/j.jretai.2016.12.008

Guinot, J., & Chiva, R. (2019). Vertical Trust Within Organizations and Performance: A Systematic Review. Human Resource Development Review, 18(2), 196–227. https://doi.org/10.1177/1534484319842992

Guriting, P., & Ndubisi, N. O. (2006). Borneo Online Banking: Evaluating Customer Perceptions and Behavioural Intention. Management Research News, 29(1/2), 6–15. https://doi.org/10.1108/01409170610645402

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). Thousand Oakes: SAGE Publications.

He, D., You, K., Li, W., & Wu, J. (2021). Determinants of Technology Adoption: Evidence from the Chinese Banking Industry. Emerging Markets Finance and Trade, 57(11), 3167–3189. https://ideas.repec.org/a/mes/emfitr/v57y2021i11p3167-3189.html

Hilman, H., Ali, G. A., & Gorondutse, A. H. (2019). The Relationship between TQM and SMEs’ Performance. International Journal of Productivity and Performance Management, 69(1), 61–84. https://doi.org/10.1108/IJPPM-02-2019-0059

Ho, J. C., Wu, C.-G., Lee, C.-S., & Pham, T.-T. T. (2020). Factors Affecting The Behavioral Intention to Adopt Mobile Banking: An International Comparison. Technology in Society, 63(101360). https://doi.org/10.1016/j.techsoc.2020.101360

Kabakuş, A. K., & Küçükoğlu, H. (2022). The Effect of Trust on Mobile Banking Usage. Ekonomski Vjesnik, 35(2), 231–246. https://doi.org/10.51680/ev.35.2.1

Karhapää, S.-J., Savolainen, T., & Malkamäki, K. (2022). Trust and Performance: A Contextual Study of Management Change in Private and Public Organisation. Baltic Journal of Management, 17(6), 35–51. https://doi.org/10.1108/BJM-06-2022-0212

Kitigin, B., Korir, M., & Chepkwony, K. (2021). E-Banking Technology Characteristics and Performance of Micro and Small Enterprise in Kenya. SEISENSE Journal of Management, 4(1), 13–30. https://doi.org/10.33215/sjom.v4i1.480

Kumar, A., Dhingra, S., Batra, V., & Purohit, H. (2020). A Framework of Mobile Banking Adoption in India. Journal of Open Innovation: Technology, Market, and Complexity, 6(2), 1–17. https://doi.org/10.3390/joitmc6020040

Kumar, R., Singh, R., Kumar, K., Khan, S., & Corvello, V. (2023). How Does Perceived Risk and Trust Affect Mobile Banking Adoption? Empirical Evidence from India. Sustainability, 15(4053), 1–21. https://doi.org/10.3390/su15054053

Lafraxo, Y., Hadri, F., Amhal, H., & Rossafi, A. (2018). The Effect of Trust, Perceived Risk and Security on The Adoption of Mobile Banking in Morocco. Proceedings of the 20th International Conference on Enterprise Information Systems, 497–502. https://doi.org/10.5220/0006675604970502

Lin, C. A., & Kim, T. (2016). Predicting User Response to Sponsored Advertising on Social Media via The Technology Acceptance Model. Computers in Human Behavior, 64, 710–718. https://doi.org/10.1016/j.chb.2016.07.027

Malaquias, R. F., & Hwang, Y. (2019). Mobile Banking Use: A Comparative Study with Brazilian and U.S. Participants. International Journal of Information Management, 44, 132–140. https://doi.org/10.1016/j.ijinfomgt.2018.10.004

Mgiba, F. M., & Shukla, S. (2024). Invasiveness, Privacy Concerns and Mobile Banking Services Technology Adoption by Millennials: Emerging Economy Perspective. South African Journal of Business Management, 55(1), 1–13. https://doi.org/10.4102/sajbm.v55i1.4174

Mostafa, M. M., Moghrabi, I. A. R., El-Galfy, A. M., & Benameur, K. B. (2018). Factors Influencing The Utilization of Mobile-Based Technologies: An Empirical Analysis in Kuwait. Journal of Applied Business and Economics, 20(5), 99–108. https://doi.org/10.33423/jabe.v20i5.364

Mufingatun, M., Prijanto, B., & Dutt, H. (2020). Analysis of Factors Affecting Adoption of Mobile Banking Application in Indonesia: An Application of The Unified Theory of Acceptance and Use of Technology (UTAUT2). BISMA (Bisnis Dan Manajemen), 10(1), 21–44. https://doi.org/10.26740/bisma.v12n2.p88-105

Mutahar, A. M., Daud, N. M., Ramayah, T., Isaac, O., & Aldholay, A. H. (2018). The Effect of Awareness and Perceived Risk on The Technology Acceptance Model (TAM): Mobile Banking in Yemen. International Journal of Services and Standards, 12(2), 180–204. https://doi.org/10.1504/IJSS.2018.10012980

Muttaqien, M. K., Anam, M. K., Tajudin, T. M., & Hamli, H. S. (2023). What Determines Metropolitan Jakarta’s Muslim Intention to Use M-Banking? Jurnal Ilmiah Ekonomi Islam, 9(2), 1765–1772. https://doi.org/10.29040/jiei.v9i2.6888

Nangin, M. A., Barus, I. R. G., & Wahyoedi, S. (2020). The Effects of Perceived Ease of Use, Security, and Promotion on Trust and Its Implications on Fintech Adoption. Journal of Consumer Sciences, 5(2), 124–138. https://doi.org/10.29244/jcs.5.2.124-138

Nedeljković, I. (2022). Determinants and Consequences of User Trust in Mobile Banking. Bankarstvo, 51(3–4), 170–201. https://doi.org/10.5937/bankarstvo2204170N

Norng, S. (2022). Factors Influencing Mobile Banking Adoption in Cambodia: The Structuring of TAM, DIT, and Trust with TPB. Asian Journal of Business Research, 12(3). https://doi.org/10.14707/ajbr.220133

Ohiani, A. S. (2021). Technology Innovation in The Nigerian Banking System: Prospects and Challenges. Rajagiri Management Journal, 15(1), 2–15. https://doi.org/10.1108/RAMJ-05-2020-0018

Oruç, Ö. E., & Tatar, Ç. (2017). An Investigation of Factors that Affect Internet Banking Usage Based on Structural Equation Modeling. Computers in Human Behavior, 66, 232–235. https://doi.org/10.1016/j.chb.2016.09.059

Purwanto, E., Deviny, J., & Mutahar, A. M. (2020). The Mediating Role of Trust in the Relationship Between Corporate Image, Security, Word of Mouth and Loyalty in M-Banking Using among The Millennial Generation in Indonesia. Management & Marketing. Challenges for the Knowledge Society, 15(2), 255–274. https://doi.org/10.2478/mmcks-2020-0016

Recker, J., & Green, P. F. (2019). How Do Individuals Interpret Multiple Conceptual Models? A Theory of Combined Ontological Completeness and Overlap. Journal of the Association for Information Systems, 1210–1241. https://doi.org/10.17705/1jais.00565

Russo, D., & Stol, K.-J. (2022). PLS-SEM for Software Engineering Research. ACM Computing Surveys, 54(4), 1–38. https://doi.org/10.1145/3447580

Saparudin, M., Rahayu, A., Hurriyati, R., & Sultan, M. A. (2020). Exploring The Role of Trust in Mobile-Banking Use by Indonesian Customer Using Unified Theory of Acceptance and Usage Technology. International Journal of Financial Research, 11(2), 51–60. https://doi.org/10.5430/ijfr.v11n2p51

Sharma, S. K., Govindaluri, S. M., Al-Muharrami, S., & Tarhini, A. (2017). A Multi-Analytical Model for Mobile Banking Adoption: A Developing Country Perspective. Review of International Business and Strategy, 27(1), 133–148. https://doi.org/10.1108/RIBS-11-2016-0074

Siagian, H., Tarigan, Z. J. H., Basana, S. R., & Basuki, R. (2022). The Effect of Perceived Security, Perceived Ease of Use, and Perceived Usefulness on Consumer Behavioral Intention through Trust in Digital Payment Platform. International Journal of Data and Network Science, 6(3), 861–874. https://doi.org/10.5267/j.ijdns.2022.2.010

Söllner, M., & Leimeister, J. M. (2013). What We Really Know About Antecedents of Trust: A Critical Review of The Empirical Information Systems Literature on Trust. Psychology of Trust: New Research, 127–155. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2475385

Venkatesh, V., Thong, J., & Xu, X. (2016). Unified Theory of Acceptance and Use of Technology: A Synthesis and The Road Ahead. Journal of the Association for Information Systems, 17(5), 328–376. https://doi.org/10.17705/1jais.00428

Wijaya, F. M. (2023). Evaluation of Mobile Banking Adoption Intention at BCA and Variables Supporting Use Behavior. BALANCE: Economic, Business, Management and Accounting Journal, 20(1), 86–100. https://doi.org/10.30651/blc.v20i1.16381

Zadha, H. A., & Suparna, G. (2023). The Role of Brand Trust Mediates the Effect of Perceived Risk and Brand Image on Intention to Use Digital Banking Service. American Journal of Humanities and Social Sciences Research (AJHSSR), 7(1), 161–175. https://www.ajhssr.com/wp-content/uploads/2023/01/U22701161175.pdf