This study was conducted to evaluate the awareness of customers towards Internet Banking in the Sri Lanka in general and how HNB bank react to these factors. Further how HNB gear up its digital strategies to attract new customers while maintaining the current customer base. . In this chapter, the methodology selected in this case study has been critically discussed and justified. The research approach, strategy and data collection methods used in this case study are also evaluated and discussed in detail. Finally, the validity and reliability of the research instrument are also discussed.
3.2 Research Perspective:
Three factors need to be considered to describe the respective research perspective.
• Ontology: What is reality?
• Epistemology: What is the composition of acceptable knowledge?
• Methodology: How to examine this acceptable knowledge?
Here, the research perspective is Positivism in terms of Ontology because the reality can be observed objectively by an unbiased researcher. The research is hermeneutic. This means that collected data will be interpreted in order to gain in-depth understanding of research phenomenon. (Saunders et al., 2009)
In this research, author believes that research is purely based on facts and considers the world to be external and objective. Moreover this report is unbiased and it is not be touched by the author’s emotions or tastes.
3.3 Research Purpose
Research can be categorized to different types depending on the nature of the purpose and research problem. The purpose of the academic research can be exploratory (ambiguous problem), descriptive ( aware of problem) or explanatory (clearly defined problem).(Yin,1994; Zikmund, 2000). Saunders et al. (2009) argued that more than one purpose can be employed in a study, Yin (1994) highlight that the boundaries between categories are not always clear.
The starting point of the dissertation was the research problem. Then author tried to find the factors affecting to the adoption of Internet Banking. Depending on a research problem, literature review was constructed to support the research problem and the framework. According to the research problem and the frame work, this research can be considered as descriptive dissertation.
3.4 Research Approach
Lancaster and Geoffrey (2009) have noted two types of research approaches for conducting of a research. These are inductive and deductive research approaches. This study was deductive since theories are already exists and conclusions are drawn with respect to the existing theories. The deductive research approach was suitable for this task due to limited time and also low risk involved.
3.5 Work Flow
The following figure shows the steps of conducting the Case study.
Figure 8 – Workflow of Dissertation
Source – Self creation
3.6 Choice of topic
According to Fisher (2007, p. 31) the topic of thesis should be interesting, relevant and durable to sustain the motivation and there should be enough literature available on that. Author believe that this analysis is rather interesting, relevant and highly significance in the current and future era. Eagerness of analyzing this case study further increased by my personal interest towards this industry where I have worked for more than 12 years.
Fisher (2007, p. 33) also states it is important to consider that there are enough resources available in terms of literature, IT, software and skills. Author believed that there was enough literature available on the topic and author was able to access information without difficulties.
3.7 Choice of theories
In order to provide sound analysis, author has selected several theoretical frameworks to the study. Author has applied some established e-business models that have direct connection with the research questions of this case study. Moreover author wanted to clarify the most important factors that can influence the adoption of Internet Banking from the customers in general. Subsequently to achieve the goal, following theoretical models used in the thesis namely Theory of Reasoned Action (TRA), Technology Acceptance Model (TAM), and Theory of Perceived Risk(TPR).
3.8 Research Design
According to the Saunders et al., 2009) explained, deductive approach is used for this study.
Further under this approach, hypothesis are developed from existing theories and models and tested statistically or mathematically for the approval or disapproval of the hypothesis.
Since this case study intended to predict the awareness of Internet Banking in HNB bank using the conceptual frame work and analyzing secondary data to identify HNB’s contribution in line with its digital vision, quantitative method was selected as the research design. Author specifically seeks to include more literature to the case study to improve the quality of the study.
The concepts of the study can put in a conceptual framework. The conceptual framework consists of concepts that are placed within a logical and sequential design. By considering about the literature review, the researcher got the knowledge regarding the main concepts of the study and developed the conceptual framework accordingly (Perera, 2018).
3.9 Data Collection Procedure
Lancaster et al (2009) have noted that there are two types of data. These are identified as primary data and secondary data. The primary data refers to the data which is collected by the researchers through interactive research instruments such as surveys and interviews. In this case, Author rarely used primary data, limited only a few informal interviews. Secondary data refers to information which is present in the earlier sources (Saunders et al, 2009). The main characteristics of secondary data include high bias factor, low cost and easy accessibility. In this particular study, secondary data has been included to discuss the theoretical models regarding online banking. This literature review of this study has been constructed with recent secondary data.
In this study, secondary data was relating to Internet Banking services, which included the type of the services offered by banks, number of users from origin, user’s trend etc. which was gathered through websites of those banks, annual reports and quarterly reports of the Central Bank of Sri Lanka, reports of the Information Communication Technology Agency (ICTA), and other relevant web sites. However in some instances, further secondary data were accessed through EBSCO and Marketline, to gather additional knowledge about the factors and IB adoption concepts.
3.10 Applying Hypothesis Testing according to the previous studies
Based on the deep analysis of the scholars researches of Perera (2013), Gunarathnam et al. (2017), Shiraj (2015), De Silva et al. (2012), Perera (2018) and Alwan et al.(2015) studies , Author could be able to proposed the following hypothesis. This proposed hypothesis is further strengthened by the previous researches which used TAM model and TPR models with the view of searching IB adoption. Perceived benefits’ and ‘perceived risks’ was the most common factors to impact on usage of online banking (Kumari,2016) as theorized in TAM and TPR .Use of Internet Banking services was chosen as the dependent variable in the model. This is in line with other studies, in which actual usage had been selected as the measure of use (Pikkarainen et al., 2004). In this research, author identified Internet Banking usefulness, ease of use, security, attitude, internet knowledge and age as independent variables.
By using above theories , Literature review and the previous researches, hypothesis can be proposed as follows.
Figure 9 – Conceptual Framework
Source – Self creation according to the previous researches
3.11 Hypotheses to be tested
According to the Literature Review and the previous researches. Researcher has developed the following hypotheses.
H1: Higher perceived ease to using internet will be positively related to the adoption of Internet Banking.
H2: Higher perceived usefulness to use internet will be positively related to the adoption of Internet Banking.
H3- User’s attitude toward change will be related to the adoption of Internet Banking.
H4 – Lower perceived risk ( High Security and Privacy) of using internet will be positively related to the adoption of Internet Banking.
H5: User’s information technology knowledge will be positively related to the adoption of Internet Banking.
H6 – User’s age will be moderately related to the adoption of Internet Banking.
3.12 Method of Analysis
In this study, secondary data from different reviewed journals and articles are considered on the basis of most important factors regarding Internet Banking adoption i.e. factors which are most frequently cited by different authors. Basically author extracted the descriptive and inferential statistical analysis data mainly regression and correlation data and respective significance level data. Correlation Coefficient is measured the extent to which two or more variables fluctuate together. Multiple linear regression (MLR) is a statistical technique that uses several explanatory variables to predict the outcome of a response variable. (Investopedia). The objective of using multiple regression analysis in this present study was to predict the changes in the dependent variable (Awareness of Internet Banking) in response to changes in the independent variables.
Hypothesis testing was facilitated of generating probability statement about population parameters. According to the Hypothesis testing theory, H0 will be rejected if p value; ? which is the significance level.
3.13 Validity, Reliability and Generalisability of the Research Plan
Reliability means that the scores of an instrument are stable and consistent. The scores should remain the same when the instrument is administered repeatedly at different times, and it should remain consistent. Validity, on the other hand, means that the individual scores of an instrument are meaningful and allow the researcher to draw good conclusions from the sample population being studied (Creswell, 2005).
According the data used for analysis, mainly based on five previous researches, generalizability ranked as average. Although the respondents were selected from different sectors but still generalization is not much satisfactorily. However, generalizability could be enhanced if research is systematically extracted from a more data from various geographical areas.
Pikkarainen (2004) stated that an acceptable value of Cronbach alpha can vary between 0.5 and 0.95 depending on the type of research. It was clearly revealed that Cronbach alpha of all independent factors used as secondary data ranging between the stipulated ranges in our study. In addition to that some of scholars have tested varimax rotation method to test the suitability of the selected variables and they have confirmed that factor analysis were adequate.
3.14 Ethical and Compliance Considerations
Since my research is not concern with racial, ethnic background, health information, sexual or crime or information related with individual private life, I do not have to take permission from any authorities.
In addition, the research method used for this research ensured the following:
• The BES ethical requirements were maintained in this research.
• I consulted my supervisor if any ethical issues things need to be considered in this research.
3.15 Chapter summery
In this chapter, Author could able to organize the study and deeply discussed the each and every components of the methodology. Further Author conceptualized the hypothesis according to the previous knowledge.