Mobile Banking Adoption: Application of Diffusion of Innovation Theory

Journal of Electronic Commerce Research, Vol. 13, No. 4, pp. 379-391, 2012

13 Pages Posted: 14 Nov 2014

See all articles by Ibrahim M. Al-Jabri

Ibrahim M. Al-Jabri

King Fahd University of Petroleum and Minerals

M. Sadiq Sohail

King Fahd University of Petroleum & Minerals (KFUPM)

Date Written: 2012

Abstract

Many banks in Saudi Arabia are starting to offer banking services through mobile phones. However, not many studies investigate the factors that may help the bankers to design mobile services, which are suitable for and adoptable by bank customers. This study fills this gap and examines a number of factors affecting the mobile banking adoption. Using Diffusion of Innovation as a baseline theory, data are obtained from 330 actual mobile banking users. It is found that relative advantage, compatibility, and observability have positive impact on adoption. Contrary to the findings in extant literature, trialability and complexity have no significant effect on adoption. Perceived risk has a negative impact on adoption. The findings of this study will have practical implications for banking industry in Saudi Arabia.

Keywords: Mobile Banking, IT Adoption, IT Satisfaction, Diffusion Innovation Theory, Saudi Arabia

Suggested Citation

Al-Jabri, Ibrahim M. and Sohail, M. Sadiq, Mobile Banking Adoption: Application of Diffusion of Innovation Theory (2012). Journal of Electronic Commerce Research, Vol. 13, No. 4, pp. 379-391, 2012. Available at SSRN: https://ssrn.com/abstract=2523623

Ibrahim M. Al-Jabri (Contact Author)

King Fahd University of Petroleum and Minerals ( email )

College of Industrial Management
Department of ACCT & MIS
Dhahran, 31261
Saudi Arabia

HOME PAGE: http://faculty.kfupm.edu.sa/MISAC/imjabri/index.htm

M. Sadiq Sohail

King Fahd University of Petroleum & Minerals (KFUPM) ( email )

Dhahran, 31261
Saudi Arabia

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