Factors influencing IT Adoption by Bank Employees: An Extended TAM Approach

The use of Information Technology (IT) in the banking sector has seen a phenomenal growth in India. For its effective use and implementation, employees' acceptance and the consequent use of IT are important. Davis' Technology Acceptance Model (TAM) (1989) explains users' acceptance of electronic systems. By applying the extended TAM approach to this study, the authors aim to uncover various factors that affect the attitude and acceptance of bank employees towards CBS. The TAM model identifies perceived usefulness (PU), and perceived ease of use (PEU) as impacting attitude towards IT and behavioural intention. The model is extended by identifying social influence, computer self-efficacy, and technological facility as factors affecting perceived usefulness and perceived ease of use. The target respondents for this study were bank employees from the public and private sectors banks (State Bank of India, Union Bank, Bank of India, ICICI Bank, and Axis Bank) situated in the National Capital Territory (NCT) of Delhi. Measurement items applied in this study were an adaptation of previously validated measures or were developed on the basis of a literature review. Responses were analysed using the 7-point Likert Scale that ranged from (1) ‘strongly disagree’ to (7) ‘strongly agree’. To test the reliability of the measures, a pilot study was conducted with 20 randomly chosen employees and modified scales. Structural equation modelling was used to analyse the data. Overall, the findings suggest that extended TAM variables positively influence the intention and usage behaviour through PU and PEU. That is, social influence enhances perceived usefulness; and computer self-efficacy and technology facility influence the perceived ease of use. Again, perceived ease of use significantly influences perceived usefulness which in turn has significant effect on behavioural intention and usage behaviour. Social influence of superiors was the prominent determinant of perceived usefulness of the CBS technology. Hence the role of managers as effective communicators is heightened especially in conveying the benefits of using IT and in turn achieving organizational goals.