JYVÄSKYLÄ STUDIES IN BUSINESS AND ECONOMICS 172 AijKaza rAe hNmoervda Sphalaoikh Examining Consumers’ Intention, Behavior, and Beliefs in Mobile Banking Adoption and Continuous Usage JYVÄSKYLÄ STUDIES IN BUSINESS AND ECONOMICS 172 Aijaz Ahmed Shaikh Examining Consumers’ Intention, Behavior, and Beliefs in Mobile Banking Adoption and Continuous Usage Esitetään Jyväskylän yliopiston kauppakorkeakoulun suostumuksella julkisesti tarkastettavaksi yliopiston Agora-rakennuksen Lea Pulkkisen salissa joulukuun 16. päivänä 2016 kello 12. Academic dissertation to be publicly discussed, by permission of the Jyväskylä University School of Business and Economics, in building Agora, Lea Pulkkinen hall, on December 16, 2016 at 12 o’clock noon. UNIVERSITY OF JYVÄSKYLÄ JYVÄSKYLÄ 2016 Examining Consumers’ Intention, Behavior, and Beliefs in Mobile Banking Adoption and Continuous Usage JYVÄSKYLÄ STUDIES IN BUSINESS AND ECONOMICS 172 Aijaz Ahmed Shaikh Examining Consumers’ Intention, Behavior, and Beliefs in Mobile Banking Adoption and Continuous Usage UNIVERSITY OF JYVÄSKYLÄ JYVÄSKYLÄ 2016 Editors Tuomo Takala Jyväskylä University School of Business and Economics Pekka Olsbo, Ville Korkiakangas Publishing Unit, University Library of Jyväskylä URN:ISBN:978-951-39-6893-9 ISBN 978-951-39-6893-9 (PDF) ISBN 978-951-39-6892-2 (nid.) ISSN 1457-1986 Copyright © 2016, by University of Jyväskylä Jyväskylä University Printing House, Jyväskylä 2016 ABSTRACT Shaikh, Aijaz Ahmed Examining consumers’ intention, behavior, and beliefs in mobile banking adoption and continuous usage. Jyväskylä: University of Jyväskylä, 2016, 104 p. (+ articles) (Jyväskylä Studies in Business and Economics ISSN 1457-1986; 172) ISBN 978-951-39-6892-2 (nid.) ISBN 978-951-39-6893-9 (PDF) Changing consumer behavior continues to have a profound impact on digital banking adoption and prolonged usage in developed and emerging markets. Several factors influence the consumer decision journey when choosing any specific digital channel or combination of channels. Among a variety of digital banking channels, this dissertation research seeks to contribute to the mobile banking (m-banking) literature by examining consumer behavior in m-banking services as well as technology (application) adoption and continuous usage, especially after considering the fact that financial service institutions have entered a time when offering mobile-based services is no longer a novelty but a necessity. This dissertation analyzes and synthesizes a plethora of literature on information systems/information technology and m-banking and their adoption and usage across various strata of populations in developed and emerging countries. The dissertation provides useful insights into the drivers of adoption and continuous usage of m-banking services and application. The most valuable findings indicate that the m-banking adoption and usage literature is fragmented and lacks a clear road map or agenda. The extant literature appears limited by its narrow focus on SMS banking in developing countries. More surprisingly, no studies address the use of m-banking applications via smartphones or tablets or consider the consequences of such usage. Self-congruence is significantly related to perceived value (PEVA) and addresses a critical gap in the extant literature, which does not seem to have analyzed the effect of self-congruence on m-banking continuous usage. Overall, PEVA is significantly associated with increased m-banking usage, and PEVA is a significant antecedent of the intention to use for consumers in a mature market. On a different note, the main motivation for the continuous usage of m- banking is convenience. The results also indicate positive changes in bank customers’ relationship commitment after using m-banking services. Keywords: mobile banking, consumer behavior, pre-adoption, post-adoption, perceived value, relationship commitment, Finland, South Africa Author’s address Aijaz A. Shaikh Jyväskylä University School of Business and Economics P.O. Box 35 FI-40014 University of Jyväskylä, Finland e-mail: [email protected] Supervisor Professor Heikki Karjaluoto Jyväskylä University School of Business and Economics Reviewers Dr. Tommi Laukkanen Professor of Marketing, University of Eastern Finland Business School Payam Hanafizadeh Associate Professor, Allameh Tabataba'i University, Iran Opponents Dr. Tommi Laukkanen Professor of Marketing, University of Eastern Finland Business School ACKNOWLEDGEMENTS A few individuals deserve my appreciation and heartfelt thanks for their academic and professional guidance in making my dream of a doctoral degree a reality. First and foremost, I am grateful to my supervisor, Prof. Heikki Karjaluoto, who dedicated extra hours and kept me motivated and engaged in pursuing and completing my doctorate within the stipulated time period and with a valuable set of publications. I am thankful to Mr. Tommi Laukkanen and Mr. Payam Hanafizadeh as the pre-examiners of my dissertation. Their valuable insights, suggestions, and feedback were instrumental in improving and shaping my dissertation. Loving thanks to my parents, my wife, Shabnam Shaikh, and my children for providing me continuous support, love, kindness, and motivation in completing my doctoral studies within the stipulated time frame. I especially thank the Foundation for Economic Education (Liikesivistysrahasto) for generous research grants during my doctoral studies. I would like to express my gratitude to my teachers, Professor Kimmo Alajoutsijärvi, Matti Leppäniemi, Mari Suoranta, and Marjo Siltaoja as well as my colleagues at the Marketing Department, who provided me required guidance, advice, and stimulus during my research journey to achieve this milestone. I shall always remember the continuous administrative and logistic support provided by the Admin Department at the Jyvaskyla University School of Business and Economics (JSBE). Special thanks to Tapio Ruokolainen (Head of Student and Academic Affairs), Marja Wollenberg (Study Advisor), Raija Siltanen (Departmental Secretary), Pirjo Hämäläinen (Departmental Secretary), Katja Mielonen (Coordinator), and Satu Pölkki (Departmental Administrator). I express my deep gratitude to Mr. Mika Haapanen (Coordinator of JSBE Doctoral School) for his generous and unwavering support as well as for responding to my email inquiries on time. Thank you all. (cid:45) Jyväskylä, December 2016 Shaikh, Aijaz A. FIGURES FIGURE 1 Relative transaction cost per alternative delivery channel usage ……………………………………………………………. 12 FIGURE 2 Birds-eye view of retail banking system including alternative delivery channels ………………………………… 12 FIGURE 3 How individual articles are built on each other ……………. 22 FIGURE 4 Mobile banking ecosystem ………………..………………….. 37 FIGURE 5 Snapshot of the theories, models, and frameworks developed over the last seven decades ……………………… 41 TABLES TABLE 1 Research questions .…………………………………………… 20 TABLE 2 Scope and coverage of branch-oriented banking and alternative delivery channels ………………………………… 32 TABLE 3 A snapshot of the article included in the dissertation ……... 54 TABLE 4 Summary of the key theoretical implications………………. 72 TABLE 5 Key factors influencing consumer behavior and attitude in adopting and using m-banking services and applications in Finland ………………………………………………………….. 82