Effect of Facilitating Conditions on Intentions and Actions Towards Digital Banking Adoption: A Multivariate Analysis

Abstract

Organizational infrastructure consisting of institutional structure, practices, processes and technical infrastructure which encompasses physical IT assets, operating systems & firmware, data storage, and security related to IT infrastructure significantly affect acceptance of innovative digital technology by the customers. In this context, present research examines the significance of facilitating conditions towards intentions and actions of digital banking adoption in the context of Sri Lankan commercial banks. Sample was drawn from the students of University of Kelaniya, who possess digital banking facilities. Duly completed questionnaires totaling to 268 were considered for data analysis. Unified theory and theory of reasoned action have been adopted and dimensions of the variables were measured by five-point likert scale. MANOVA, ANOVA with contrast tests and discriminant function analysis were also used as analysis tools. Empirical evidence supported the hypotheses indicating the significance of facilitating conditions whilst specifying the importance of organizational infrastructure, in particular. Restrained sample selection and using only a quantitative method were limitations of the present study. Nevertheless, findings of the research would be beneficial in uplifting the status of digital banking adoption in Sri Lanka amidst the prevalence of COVID-19 pandemic which hindered the growth of the entire banking sector. Multivariate analysis and incorporation of related models/variables would contribute towards originality of the study. Similarly, future research could be performed in different contexts by integrating interrelated models and variables seeking novel findings.