The E-Banking and the Adoption of Innovations from the Perspective of the Transactions Cost Theory: Case of the Largest Commercial Banks in Lebanon

Abstract

Based on the transactions cost theory, this article aims to explore the adoption and the integration of innovations and e-banking by the largest commercial banks in Lebanon. Referring to Rogers’ models (Diffusion of innovations. The Free Press, A Division of Macmillan Publishing Co., Inc., New York, 1983 [16]; Diffusion of innovations. New York Free Press, 1995 [17]), we studied the effects of this adoption on transactions costs and we presented the key role played by information and communications technology (ICT) in organizations, especially at the cost level. Using a qualitative approach, our study reveals the complexity of this concept, particularly regarding the integration strategies of the latest technological innovations within the banking sector, which appear to be essential for the development and the continuity of the sector at the national and regional levels.