Factors Affecting the Adoption of Internet Banking in Jordan: An Extended TAM Model

Abstract

This study aims to investigate how customers perceive and adopt internet banking (IB) in Jordan. An extended Model, based on the Technology Acceptance Model (TAM), was developed. Three more constructs were added to the Model, namely; Perceived Risk (PR), Perceived Trust (PT) and Bank Credibility (BC). To empirically test the Model’s ability to predict customers’ intention to adopt and use internet banking, a questionnaire was developed and used. A randomly 500 graduate students at four Jordanian Universities were surveyed. An exploratory factor analysis, correlation matrix, and a regression analysis were used to test the robustness of the model as well as to test the hypothesized relationships among variables. The results provide support to the extended TAM model and confirm its robustness in predicting customers’ intention to adopt and use internet banking. This study contributes to the body of literature about internet banking, and its results provide useful information for bank managers on how to deal with internet challenges in Jordan. Since this empirical study was performed with a time constraint, it is not without limitation.