The proceedings of The International Seminar, Indonesia-Malaysia, “The Role of Harmonization of Economics and Business Discipline in Global Competitiveness

Abstract

Technology Acceptance Model (TAM) has been used extensively in research that looks at the acceptance of new technology (Davis, 1989; Venkatesh, 1996). This paper looks at the applicability of TAM in predicting intention to use internet banking among current users and future users. We begin with the argument that the TAM model is more applicable in predicting intention to use (adoption) and usage for users than non users of a particular technological innovation. A survey of 180 bank customers (Users=136 and Non users=44) showed that when both the groups were used in the analysis, about 24.1% of the variation in the intention to use can be explained by perceived usefulness and perceived ease of use. When the sample was split and analyzed separately, 39% of the variation in intentions among users can be explained whereas only 5.2% of the variation in intentions among non-users can be explained by perceived ease of use and perceived usefulness. This lends support for our argument that the TAM model is more useful in predicting intention to use among users than non users. The research also confirmed the importance of perceived usefulness which has been found to be a significant predictor in most technology acceptance research with perceived ease of use showing no significant effect on intention to use. Implications are further discussed.