Application of Structural Equation Modeling to Investigate Factors Affecting the Intention to Adopt Internet Banking in Jordan

The purpose of this study was to investigate the key determinants of Internet banking adoption in Jordanian context. This study further attempted to validate the appropriateness of the modified Technology Acceptance Model (TAM) within the context of Internet banking in Jordanian context. According to technology acceptance model (TAM), the perceived ease of use (PEU) and perceived usefulness (PU) constructs are believed to be fundamental in determining the acceptance and use of various IT applications, such as Internet banking. Using the technology acceptance model (TAM) as a theoretical framework, this study has introduced “perceived trust” as a new factor that reflects the user's security and privacy concerns in the acceptance of Internet banking. Based on a sample of 317 users, structural equation modeling technique was applied, using AMOS 7.0 (Analysis of Moment Structure), to investigate the suggested model. The results strongly supported the modified TAM in predicting the intention of users to adopt Internet banking. The two main predictors relevant to this study (perceived trust and perceived usefulness) were significant and explained a significant amount (59%) of the variance in predicting a customer's intention to adopt Internet banking. The findings also showed that perceived ease of use had no significant direct effect on behavioral intention; instead, it had indirect effect through the perceived usefulness on behavioral intention to adopt Internet Banking.