The Cultural Dimensions Of Internet Banking Business Essay Example

to the customs and beliefs of a country that endure for many years, and it is not easily changed. The culture of a country can also impact the cultures within that country, such as organizational culture and educational culture. Each country has its own unique foundations to enter the technology world and use technology as a tool in their lives. Therefore, the following questions arise based on the above explanation.

General study objectives:

The main objective of this study is to discover the role of culture in accepting new technology. This can be understood as the role of culture in the Technology Acceptance Model.

In addition to the main objective, this survey has the following aims:
2. Providing the global ranking of Hofstede Cultural Dimensions in different countries based on their Power Distance Index, Individualism/Collectivism, and Uncertainty Avoidance.
3. Creating an opportunity for those working in IT and IS implementation to communicate across transnational and international organizations.
4.

Managing the task of harmonizing in a multi-cultural society based on each individual's cultural background.

Research Questions:

The main question of this study can be defined as: What is the main effect of Culture on TAM? This question serves as the basis for further inquiries in this study. In relation to the Tam dimension, the above question expands into the following inquiries:

• Is there an effect of Hofstede cultural dimensions (PDI, IND/CLV, UAI) on Perceived Usefulness (PU)?
• Is there an effect of Hofstede cultural dimensions (PDI, IND/CLV, UAI) on Perceived Ease of Use (PEOU)?
• Is there an effect of Hofstede cultural dimensions (PDI, IND/CLV, UAI) on Subjective Norm (SN)?
• Is there an effect of Hofstede cultural dimensions (PDI, IND/CLV, UAI) on Perceived Behavioral Control (PBC)?
• Is there

an effect of Hofstede cultural dimensions (PDI, IND/CLV, UAI) on Behavioral Intention (BI) to utilize internet banking?

The following section clarifies the main objectives of this study.

Research Aims:

Based on the overall goal of the study and the above questions, the specific objectives can be explained as follows: To investigate the effect of Hofstede cultural dimensions (PDI, IND/CLV, UAI) on Perceived Usefulness (PU).

In order to understand the effects of Hofstede cultural dimensions (PDI, IND/CLV, UAI) on Perceived Ease of Use (PEOU), Subjective Norm (SN), Perceived Behavioral Control (PBC), and Behavioral Intention (BI) towards internet banking utilization, it is important to lay the groundwork for this study. Hence, it is appropriate to present an overview of past research undertaken in this area.

The following section presents the literature review of this study.

Literature Review:

This chapter comprises background information and previous research on the Technology Acceptance Model, Hofstede cultural Dimensions, and the influence of culture on TAM. This chapter will demonstrate the unique contribution of this study.

Technology Acceptance Model

The Technology Acceptance Model is an extension of the Reasoned Action theory developed by Ajzen and Fishbein. TRA was used to investigate customer acceptance of a new technology based on two dimensions: perceived usefulness and ease of use.

According to the TRA, an individual's behavioral intention, which leads to actual behavior, is influenced by individual subjective norm and attitude, and the attitude is influenced by individual beliefs (Ajzen & Fishbein, 1980). According to Davis (1989), the Technology Acceptance Model (TAM) suggests that behavioral intention is a significant determinant of actual system usage, and that behavioral intention is determined by two relevant beliefs, perceived usefulness and perceived ease of use. In TAM, an individual's perception

determines their attitude toward using the system. The attitude forms the intention to use. Perceived usefulness is associated with productivity while perceived ease-of-use is associated with effort (Venkatesh, 1999).

The main finding of Davis's survey was the strong correlation between Usefulness and Usage. Users of an engineering system may try to cope with system problems, but issues with usage can hinder the acceptance of a useful system. No amount of ease of use can compensate for a system that does not perform a useful function. TAM, which has been used in various IS studies, has proven helpful in understanding technology acceptance, particularly in explaining computer usage behavior. The Technology Acceptance Model (TAM) has been widely utilized to predict user acceptance and usage based on perceived utility and ease of use (Davis, 1989). TAM posits that behavioral intention is a key determinant of actual system usage and that behavioral intention is influenced by two main beliefs: perceived usefulness and perceived ease of use.

The concept of perceived usefulness in the context of a system is the belief that using it would enhance job performance (Davis 1989). Similarly, perceived ease of use is the belief that using a system would require minimal physical and mental effort (Davis 1989). In the Technology Acceptance Model (TAM), an individual's attitude towards using a system influences their intention to use it, which in turn affects their actual technology usage. TAM has been adapted by researchers to investigate its applicability in the convergence context following the rise of the internet and convergence technologies. Multiple extensions of TAM have been proposed by various researchers.

Moon and Kim (2001) propose a model that takes into account perceived

enjoyment as a significant factor in shaping attitudes towards web surfing. They note that previous studies on the Technology Acceptance Model (TAM) focused mostly on extrinsic motivation and disregarded intrinsic motivation. Expanding on this, Morris and Dillon (1997) found that TAM can predict individual software usage. Davis, Bagozzi, and Warshaw's (1992) motivational model centers around two crucial factors: extrinsic and intrinsic motivation.

Extrinsic motivation, as defined by Venkatesh and Speier (1999), refers to the performance of an activity with the aim of achieving outcomes unrelated to the activity itself, such as improving job performance or increasing salary. Conversely, intrinsic motivation involves performing an activity purely for the sake of performing it. In technology acceptance studies, extrinsic motivation can be illustrated by perceived utility. Davis et al. (1992) discovered a significant correlation between perceived enjoyment and perceived ease of use in their research.

In the research on information systems usage purposes, Heijden (2004) also adds perceived enjoyment to the TAM theoretical model. The following section of literature explores the Hofstede cultural dimensions and the significance of its index.

Hofstede cultural dimensions:

"The collective programming of the mind which distinguishes the members of one group or class of people from another is defined as culture" (Hofstede, 1997, p. 5). In 1980, Hofstede presented his famous description of cultural dimensions. Geert Hofstede collected data from IBM employees and analyzed it between 1967 and 1973, including more than 70 countries.

Geert Hofstede conducted a survey using the 40 largest states initially, and later expanded it to include fifty states and three parts. Based on his preliminary findings and subsequent research, Hofstede proposed a theoretical model consisting of four primary cultural dimensions: Power Distance Index

(PDI), Individualism/collectivism (IND), Masculinity/femininity, and Uncertainty Avoidance (UAI). Additionally, Hofstede identified another dimension after conducting an international survey with Chinese employees and managers. The following lines provide a description of each of the Hofstede cultural dimensions:

Power Distance Index (PDI) refers to the degree to which less powerful members of organizations and institutions (such as the family) accept and expect that power distribution is uneven (Hofstede, 1980).

This paragraph discusses the concept of inequality and its relation to power and individualism in different societies. The author states that inequality is a symbol of societal disparities, which are influenced not only by leaders but also by certain factors. They argue that power and inequality are integral aspects of every society, and people who have international experience can confirm that all societies are unequal, though to varying degrees. The author further explains that individualism and collectivism are two opposing dimensions, with Bolshevism representing the opposite of individualism. In societies characterized by individualism, people have loose ties with others and are expected to take care of themselves and their immediate family. On the other hand, Bolshevism represents societies where individuals are strongly integrated into cohesive groups, such as extended families, who provide protection in exchange for unwavering loyalty.

The concept of Masculinity/Femininity refers to the extent society distinguishes gender roles. Masculine societies emphasize separate gender roles and individuality. Males prioritize assertiveness and material values, while females prioritize compassion and the overall quality of life. In contrast, feminine societies embrace overlapping gender roles and cooperation as the standard.

According to Hofstede (1980), men and adult females are expected to prioritize material things and be concerned with quality of life. The Uncertainty Avoidance Index

(UAI) measures a society's tolerance for uncertainty and ambiguity. It indicates the level of discomfort or comfort people feel in unstructured situations. Uncertainty accepting cultures, on the other hand, are more tolerant of unfamiliar activities. They prefer fewer rules and have a relativist perspective on philosophical and spiritual matters, allowing various ideologies to coexist. In these cultures, individuals are more indifferent and reflective, and they are not pressured by their environment to express their emotions.

The final part of literature involves revisiting previous studies that explored Tam based on Cultural dimensions.

Technology Acceptance from Cultural Dimensions Perspective

Cross-cultural researchers have traditionally relied on Hofstede's definition of culture (1980, 1997), which focuses on comparing one culture to others. This definition is considered an etic perspective on culture. Researchers who adopt an etic approach in cross-cultural consumer research typically seek universal or culture-free theories and concepts.

In cross-cultural psychological science and other comparative societal scientific disciplines, researchers search for variables and concepts that are common to all civilizations. They aim to detect how these civilizations are different from or similar to each other. This approach was utilized by Luna and Gupta (2001) in their research. In a study conducted in 1997, Straub, Keil, and Brenner applied the TAM theoretical model in three different countries: the United States, Japan, and Switzerland. The purpose of their research was to analyze how cultural factors influenced the acceptance of technology, specifically mobile technology. Straub et al. (1997) also examined the impact of Hofstede's cultural dimensions on technology acceptance and adaptation.

The level of discomfort with uncertainty and avoidance of uncertainty within a society can impact engineering credibility by influencing choices between computer-based media and traditional media,

as well as cultural differences. Uncertainty avoidance can specifically affect how individuals choose media for their communication tasks. Previous research has primarily focused on uncertainty and ambiguity as key factors in predicting media usage for organizational communication behavior. According to information overload theory (1984; 1987), individuals select a communication medium based on matching the task's information needs to the media's information overload. The richness of a medium is determined by the feedback channel's interactivity, the source's personal characteristics, and the interface's ability to convey implications.

When it comes to tasks involving uncertainty and ambiguity, such as negotiations and conflict resolution, people tend to prefer using rich channels of communication like face-to-face interactions. Conversely, for tasks with low levels of uncertainty and ambiguity, such as information memos and simple information exchange, simpler channels of communication are sufficient. Electronic media like email are considered simple channels because they only convey literal information without the personal presence or force of the communicator. Overall, one consequence of media choice is that cultures with individuals who avoid uncertainty (i.e., high uncertainty avoidance index or UAI) are expected to use electronic media less frequently since these media aren't well-suited for reducing uncertainty compared to face-to-face interactions and other rich channels (Straub et al; 1997). Straub's study also showed that power distance, another important cultural dimension, can affect technology acceptance. In societies where there is a large power distance between managers and workers, the equalizing effect of computer-based media isn't perceived or valued as desirable.

In civilizations with a high power distance index, individuals may show respect to authority by refraining from using media that do not allow face-to-face contact or access to a

richer set of cues than simple textual messaging. Therefore, the use of technologies like E-mail and other electronic media should be limited according to these social norms. Workers in cultures with a relatively smaller power distance will therefore have more freedom in using these technologies for communication purposes. Another cultural index that Straub identified as having an impact on the acceptance of new technology is individualism/collectivism.

Low individuality (low IDV) may impact a society's use of computer-based communications because these mediums diminish the impact of the group. People in collective societies may not easily interpret social cues from computer-based media and, therefore, would prefer face-to-face communication for all tasks. Straub (1997) also identified Masculinity/femininity as an influential factor in technology acceptance. A high Mas Index indicates a strong connection to interpersonal presence. According to Straub, it can be predicted that media that do not convey the social presence of the communicator, such as email, would not be favored in cultures where masculinity is highly valued.

According to the findings of the Straub (1997) survey, it was evident that while the Technology Acceptance Model (TAM) could successfully explain the experiences of the United States and Switzerland, it was not applicable to the Japanese context. Despite the rational benefits offered by the technology, cultural factors such as a preference for avoiding uncertainty, hierarchical power dynamics between managers and employees, leftist ideologies, and traditional gender roles may hinder the use of email in Japan and disconnect its utility from its actual usage (Straub, 1997). Straub provided a specific explanation regarding how cultural dimensions impact technology adoption.

• Degree of UAI
• Degree of PDI
• Degree of MAS
  

Despite numerous studies on TAM in various countries, there is a significant lack of research on the cultural dimensions as an important factor influencing technology acceptance. This leads to the following research gap:

Problem statement ( literature gap ):

Based on previous discussions, although internet banking penetration is increasing rapidly, there is still some insecurity associated with it. This indicates that there are other factors besides utility, ease of use, and subjective norm that can affect the acceptance and adoption of a technology. While considerable research has been conducted to understand the acceptance and diffusion of IT (Prescott and Conger, 1995), there have been limited studies exploring the impact of culture on the acceptance and diffusion of new information technologies (Raman and Wei, 1992). Research on the influence of corporate culture on IT acceptance offers valuable insights (Cooper, 1994; Kydd and Jones, 1989), but cultural or national culture research undoubtedly possesses unique characteristics. The current problem is that there is inadequate research investigating the effect of national culture on technology acceptance.

This survey explores the impact of civilization on the acceptance of a technology through the application of the Technology Acceptance Model (TAM). It seeks to provide a comprehensive understanding of Hofstede Cultural Dimensions (Power distance index, Individualism/collectivism, Uncertainty avoidance) in relation to technology acceptance. The aim is to draw conclusions and provide insight for managers and individuals looking to incorporate technology into their lives and work. The study is organized as follows.

Methodology

This chapter explains the research model, hypotheses, data collection approach, and data analysis methods.

Model

To explore the role of

cultural dimensions in technology acceptance, this paper adopts the frameworks of Davis (1980), Pavlou & Chai (2002), and Straub et al.The research conducted by McCoy, Everard, and Jones (2005) will serve as the basis for the cultural model that explores the relationship between TAM and Hofstede's cultural dimensions. This study aims to examine the variations and similarities in behaviors towards TAM across different levels. The proposed model, shown in Figure 1.1, encompasses Cultural Dimensions, Behavioral Intention to Use Internet banking, Perceived Ease of Use, Perceived Behavioral Control, and Subjective Norm. To achieve the objectives of this study, a table is created using Hofstede's scores for various countries. The design of this table takes into account the countries' scores in PDI, IND/CLV, and UAI dimensions. Countries are categorized based on their scores in these three dimensions: Low to Moderate for Power Distance Index, and Moderate to High for Power Distance Index.

Two graduated tables, one Low to High and one High to Low, were defined in order to measure the dimension of states in IDV/CLV once again. For engineerings like Internet Banking and Mobile Banking, UAI is a significant dimension due to the high level of uncertainty, security, privacy, and personal information associated with these technologies (Pavlou and Chai, 2002). Given the nature of these technologies where direct interaction with bank staff is not possible, an uncertainty level was established. It is therefore crucial to carefully score states in these dimensions. This study utilized three distinct scales to categorize states based on their UAI scores.

States were divided into three categories: moo, chair, and high degree. They were then revised based on two other indexes, resulting in two

degrees. Once again, states were arranged according to their three dimensions: PDI degree, IND/CLV degree, and UAI degree. By following this method, each state found its place in a table that displayed its PDI degree, IND/CLV degree, and UAI degree. After the states were classified based on the above criteria, a table with 12 cells was created. This table organized states with similar dimensions into each cell.

That means cells of this tabular array show states with similar cultural dimension in each cell. In order to explicate the above tabular array, Malaysia selected as a sample. Based on the Hofstede tonss and above definition, Malaysia is considered as a state with high mark in power distance index, low in IND index and low in UAI index. Iran is considered a state with moderate degree in UAI, low degree in PDI, and low in IND. By designing the above tabular array it is time to open the hypothesis of this study.

Developing hypothesis:

According to the figure 2.1, perceived usefulness, easiness of usage, subjective norm and sensed behavioral control and behavioral purpose to utilize cyberspace banking are this study's concepts.

The main focus of this study is to explore the cultural effects on the Technology Acceptance Model (TAM) and determine if they result in different behaviors across various dimensions. The chief hypothesis of the survey is that cultural dimensions have an impact on TAM. Based on this hypothesis, the following conclusions can be drawn: The cultural dimensions of Power Distance Index (PDI) in low and high degrees, Individualism (IND) in low and high degrees, and Uncertainty Avoidance Index (UAI) in low, moderate, and high degrees can lead to different behaviors

regarding the concept of usefulness in TAM. Similarly, the cultural dimensions in different degrees of PDI (low and high), IND (low and high), and UAI (low, moderate, and high) can also lead to varying behaviors in the concept of ease of usage in TAM. Additionally, it is important to note that the interaction of these dimensions can also result in different behaviors in the Subjective Norm concept within TAM.

The cultural dimensions in different degrees of PDI (low and high), IND (low and high), and UAI (low, moderate and high) can lead to different behaviors in the concept of Perceived Behavior Control in TAM. Additionally, these cultural dimensions can also lead to different behaviors in the concept of Behavior Intention to use Internet Banking.

Data aggregation attack:

To achieve the best results, selecting the right samples is an important task. In this study, the method of collecting samples is by chance, where it is assumed that all samples must be users of Internet banking in the Malaysian infrastructure. Furthermore, it is a simple random sampling method where all samples in the population have an equal chance of being selected.

Beginning of data

A primary source refers to when the data aggregator is the one using the data analysis.

The text below discusses the use of primary sources of information and the sampling method used in a quantitative research study.

Sampling

In this survey, primary sources of information, in the form of distributed questionnaires, are used to collect data. The structured questionnaire is based on a literature review to ensure appropriate information is gathered for this quantitative research study.

To fulfill the main objective of the study, which is to examine the cultural

values and their impact on TAM (Technology Acceptance Model), framework, and table, different samples from different countries residing in Malaysia are required. Data collection for this research includes various stages and levels. Four university students (UM, UTM, MMU) will serve as locations to collect samples. Additionally, the embassies of more than 20 countries in Malaysia are excellent places to gather information from.

Furthermore, the societal webs such as Facebook community in Malaysia serve as another source for gathering samples for this survey.

Sampling Size

Roscoe (1975) suggests that an appropriate sample size for most research should be greater than 30 and less than 500. For this research, a minimum of 180 elements are needed, with at least 15 elements for each cell.

Data Analysis Method

The Statistical Program for Social Science (SPSS) is utilized for data analysis in this quantitative survey.

The information was analyzed using the Design of Experiment method (DOE). To ensure reliability, the cronbach's Alpha was used to check for errors and produce consistent results. Factor Analysis was used to test the validity of each concept. To analyze and obtain results, General Linear Model and 3-way Analysis of Variances were used in this study.

Significance of the Study

Globalization and the widespread presence of the Internet enable online banking activities across countries.

In today's globalized world, with the increasing popularity of transnational corporations and advancements in technology, there is a growing need for more cross-cultural research. As companies expand their operations globally, it is crucial to harness the power of IT to communicate and coordinate activities across diverse locations and countries. Therefore, it is vital for managers to learn about the cross-cultural acceptance

and usage of IT in order to effectively operate in an international context. This research can assist managers in multinational corporations in understanding their employees' attitudes and behaviors towards new technologies and adopting appropriate strategies based on their cultural backgrounds. By implementing a step-by-step approach to technology adaptation, companies can ensure that employees willingly embrace new technologies instead of being forced to use them. This ultimately prevents the failure of IT adaptation in a multicultural company.

Corporations can benefit by recognizing the impact of culture on engineering acceptance and by implementing appropriate and potentially different technologies at their various global facilities. This study identifies various factors to consider when dealing with new technology. By using the findings of this study, corporate leaders can make more informed decisions on technology upgrades and new technology implementations based on the culture of their organization. In today's world, culture and business are closely connected. When entering a new country, it is important for corporations to understand both the business and people cultures in order to effectively market their products and services. Neglecting to consider these cultural factors can result in people rejecting the use of a technology due to their customs and beliefs.

This research can be applied in multi-cultural states where diverse populations with different cultures coexist. It can assist in various job management tasks by providing a comprehensive understanding of cultural divisions.

Decision:

While the TAM method is widely recognized and utilized to study people's behavior towards IT and IS, there is limited research that examines it from a cultural standpoint. This study offers a broader perspective on TAM by exploring the significance of culture

as an important factor. In conclusion, this unique study can serve as a guide for multinational company managers in effectively managing employees from diverse cultures and backgrounds. Additionally, the distinctive findings can be used for future research to investigate the role of culture in the acceptance or rejection of new technologies.