Is the use technology management important in a business organization? And
Is technology management necessary?
Technology is creation and use of means that are technical and draws on subjects such as engineering, industrial arts, and pure science. Additionally, the applications of the aforementioned knowledge encompass technology.
On the other hand, management entails directing, planning, evaluating, and related activities. It also covers responsibility, accountability, and authority. Management of technology entails the responsibility of making decisions, which ensure that an organization is successful. As a manager, some of the roles that are related to management of technology include hiring the employees to manage business technology (like IT experts), developing products, buying technological equipment, and making upgrades to the existing technological structure.
The use of technology in the workplace is inevitable in the 21st century. According to Teece (2010), the advent of IT changed the way people conduct business in addition, the way in which business is conducted: This includes the way in which employees work, relate, and communicate (with both consumers, fellow employees and other entities). It has also revolutionized the way organization is managed, the way change is managed, service delivery, customer loyalty retention, business correspondences, meetings, project evaluation, etc., are performed in an organization (Ajjan et al,, 2013).
Use of technology can be used in various ways as revealed above. In this paper, we will look at how technology is used in an organization, the importance of technology, and management of technology for maximum benefit of an organization.
By looking at the use of technology in organizations and its importance, I will be able to cover, sufficiently, the two-research question. I will make use of literary works on technology and management and how various authors and researchers have proved this. In taking this approach, the paper underscores the importance of technology management, its important, and any shortcoming that may be associated with technology.
The Benefits of using of Technology in Business Organizations
Maizlish & Handler (2010) point out that technology is important in business communication, and advanced use for technology has enabled real time passing of information by a click of a button, business correspondences and decisions are able to be passed faster and hence prompt and quick action and measures can be taken for instance to mitigate an emergency like customer complaints. The use of technology enables multi-level communication (Guffey & Loewy, 2010, August 23).
Example technology makes it easier for multinational employees to access information at a go regardless of the miles that the branches are away. Crews & Stitt-Gohdes (2012) reveal that importance of social media, such as Twitter and Facebook, in communication. Adding that the trick is to manage social media sites well and update regularly to keep the followers updated; For example ‘’Nordstrom’’(2015), one of America fashion retail uses Facebook in updating the followers on discounts and new items (see facebook.com/Nordstrom). This reveals the importance and necessity and the need for technology management.
Planning and ROI
Technology has a role in planning and return of investment (ROI) (Tapscott, 2008). He opines that technology is very crucial as a planning. It is needed to sequence completion of a particular business strategy, change, or investment. If a business seeks to make use of technology in products and service improvements, both the manager and the employees have an easy time to plan as compared to conventional physical panning (Turban et al, 2008). Gartner (2013) argues that incorporating technology is expensive as business budget is largely comprised of IT and planning is important to ensure that there is return.
We see the importance of technological planning in Software and Gaming companies like Ubisoft that has multiple studios (Montreal, Shanghai, Paris, Toronto, japan, etc.). For better planning the company has to use technology in order to coordinate between the various studios in relation to launching, deadlines, series and development (Ubisoft, 2015).
Increase Customer Service
Lovelock et al (2009) reveals one of the main purpose of business is to ensure desirable customer service, and adds it has been easier by the use of technology and platforms such as social media and websites, customer data can be secured and used in products and service improvements (website cookies and survey).
Additionally, Campbell & Frei (2010) reveal that, technology if managed properly can be used to simplify and fasten the payment of goods and services and processing of payments, for example technology enables businesses such as Alibaba, e-Bay and Amazon to conduct e-commerce. The success of this can be seen in Alibaba; it command over 80% of china commerce, has a market cap of over 215 billion (September 2014) in the range of big tech companies like Apple, Google and Microsoft (Forbes, 2014). This is no doubt because the company uses its technology well and takes advantage of internet use to expand its connectivity, revealing the importance of technology.
Mahalik & Nambiar (2010) add that technology, if well managed, increases of production in both quality and quantity. As compared to human labour that may be affected by sickness, emotions, and fatigue, technology, when managed well, is effective and fast. Many businesses that are in the producing business are always aware of the terms-efficiency and time. This can only be made possible by the use and proper management of technology. An improvement is advancement always translates to increased quality and output of products and production respectively. Thus, technology management ensures that technology saves time for example automation.
A clear illustration is the way Microsoft is using its Windows 10 Preview to receive feedback from user after installation so as to build and better interface for Windows 10. The technology has ability to record bugs, send updates and feedback to Microsoft server, additionally; a user can also review the Operating System or give manual feedback on any improvement.
Many business nowadays use technology in their Human Resource, this includes in key areas such as recruitment, whereby many businesses such as Deloitte, KPMG, Total, etc. have online recruitment portals for recruiting graduates and experienced labour (KPMG, 2015). Moreover, Human resource manager may use technology is assigning tasks to fresh employees and tests (Aptitude Tests). To add on, Gardner, Gino, & Staats (2012), argue that technology plays an important role in monitoring the behaviour of employees and performance using CPM (Computerized performance monitoring). Lastly, proper management of integrated technology can help in training, workshops, and seminars (Alge & Hansen, 2013).
The use of technology is very important especially for the innovation team. The level of innovation can be highly increased with internet that enables the innovators to come up with new ideas, create new products, and improve of the existing ones. In addition, in order to understand competition, a business must understand the market, the similar products that are in the market among other issues. This enables an organization to be able to learn on new technology, improve on it, or come up with new ways of making a product that is faster and less costly.
Lastly, it has enables organization reach market that were inaccessible using print. The use of E-marketing, e-mails, e-newsletters, social media marketing (YouTube, Facebook, Google, etc.) have made this possible (Friel, 2009). A success story is marketing is shared by Grisak (2014) of Freedom House LLC; a company which increase subscriber, registrations per month, customer retention rate and the number of online visitors from 1000 to 12000 per month using e-marketing tools.
Shortcomings on Technology Use
To understand the importance of technology management, we also need to looks at some of the shortcoming that are associated with use and overreliance of technology in business organization.
One shortcoming of having technology, especially cutting-edge, is cost. There is the initial cost of purchase, training of staff, and regular and ongoing maintenance of the technology. Additionally there must be a backup just in case there is system failure so that production is not halted.
Technology such as internet, email, e-banking, e-commerce is always at the mercy of hackers and cybercrime. Technologies that make use of consumers’ data are always prone to abuse as the data may be used to steal from the very customer who the company is trying to retain (Shaw et al. 2012).
This is in relation to the employees of an organization; it is true that technology can be used to help the Human Resource Manager in recruitment, evaluation, and performances of employees. However, the same can cause distractions to the same employees and affect their level of production (Amit & Zott, 2010). This interruption consists of emails and instant messages, online games, pornographic content, music and videos. Since distractions take up time, which could have been used for constructive business work, the company performance may suffer.
The Constant Need to Upgrade
Many technologies have features, which need constant and regular upgrades. This as a result leads to additional costs and expenses for the business. Example many companies make use of computers in the offices, this computers may become outdated or the software may need upgrading, for instance from Window 7 to 8, and to the recent Windows 10. The need for upgrade is also related to security, an upgrade may be needed to boost the security with the advancement of hackers and fraudsters.
Effects on Customers
The use of technology is has a flipside. Since the technology is can be used to bridge the communication gap with customers, it may also act as a barrier. This means that it has both negative and positive impacts on the consumer.
Some customer will really prefer the convenience and time saved on paying online, while for other it boils down to privacy. In the same way some consumers prefer talking to customer service personnel on phone than via email and may be frustrated with technology-after all not all people are tech savvy.
Thus technology is key to business success and the manner in which the technology is managed will determine the level of technological success and failure; making technology management necessary in business organizations.
Conclusion: Recognizing the Importance of Technology Management
Looking at the role which technology play in the life of a business, it goes unopposed that presently it is impossible for it to survive and compete equally without employing technology.
Technology helps in key aspects, daily aspects, such as communication, planning, innovation, etc. However, in the same way it has its downside in a business organization. These include expense, security, distractions, and constant upgrades among others. It is through these shortcomings that the aspect of technology management comes in, here it enables an organization to identify the correct technology, train its staff and upgrades.
The technology management ensures that the shortcomings such as the impact on customers do not affect business. Managers have to ensure that the technology is user friendly and easy to use for both the employees and customers. If it is a manufacturing or processing technology, it should be easy to use for the operators to use.
Technology management should be a continuous process to ensure efficiency. This is very important is areas such as security and privacy. Hence, websites, payment systems, customer data, and important business secrets have to be protected through upgrades and technological change.
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Should Government Monitor Network Usage to Support National Defense?
Advancing technology has posed great difficulties in assessing threats to national security. The most serious acts of violence via the internet are cyber-war and cyber-terrorism, which have raised concern with security agencies in the governments of most countries. This essay will focus on the essence of the governments to monitor network usage in order to reduce civil crime and acts of terrorism via the internet in support of national defense. In addition, the essay will discuss the actions that national security agencies have taken in their efforts to curb the threats, as well as which specific networks they monitor.
In today’s modern society, internet networks are becoming an important way for both individuals and businesses to enhance communication. The productivity and social interaction of our society depend a great deal on this tool to foster relations and national development. However, as internet usage is rapidly growing, it is becoming more and more difficult to evaluate its effects. This poses a danger to both individual privacy and to national security.
Surveillance programs such as the Communications Assistance for Law Enforcement Act (CALEA) have become important strategies to combat and prevent criminal activity through computer-based networks. With the rapid change and revolutions of technology, governments are finding it very easy to put any personal information of the public under close watch with programs such as CBS (computers and biometric software) and Total Information Awareness Programs (TIAP). Even as the government is struggling to put safeguards in place, the American and most other world governments are still at risk from possible threats imposed by computer networks, and most Americans are losing their privacy due to the government’s efforts to minimize these threats (Stanley and Steinhardt, 2003).
The efforts of the government to control threats to national security through the use of surveillance still receive much criticism from individual citizens. Individuals see these efforts as an invasion of their privacy and into the privacy of companies. Although the government has the ability to monitor the usage of networks in an attempt to reduce risks before a security breach occurs, efforts to achieve this goal may still be fruitless (Whitehead, 2009). Nevertheless, major steps are being taken by the government’s intelligence agency to monitor networks in the interest of the public. These efforts are intended to prevent hacking and subsequent leaks of sensitive data in order to protect the privacy of individuals. This effort to increase safety and at the same time protect individual privacy is a necessary step towards achieving the government’s goal to support national defense.
Vulnerability to threats such as cyber-terrorism and cyber war pose a great danger to national security
While such cyber attacks are increasing, the government is making many efforts to monitor systems in the interest of national defense. Statistics reveal that by March 2013 over 38.8% of the world’s population will access the internet with over 65% online in developed countries (IWS, 2013). This diversity of networks has posed many problems that are made worse by weak government policies. Because of this, there is a need for the government to come up with strong policies to aid in keeping national defense intact.
One form of cyber attacks that has threatened American society and its companies is cyber-terrorism. Cyber-terrorism has multiple definitions. The most narrow definitions describes it as the intentional use of computers and computer networks that causes damage to people, information, property, or even an intimidation by another government with an attempt to cause destruction or economic loss (Matusitz,2005). Cyber-terrorism has the potential to damage industrial leaders who wish to protect their products. This is why most government and security agencies are motivated to combat the problems through the monitoring of all public networks.
As opposed to cyber-terrorism, cyber-warfare is more political in nature and involves a specific threat aimed at attacking a financial institution or company, leading to financial loss. Some of the latest reported victims of this type of cyber-attack were The Wall Street Journal and The New York Times, and these types of threats are extending into the roots of the U.S. government. These two prominent U.S publications received a major loss due to a compromise by a Chinese news syndicate hacking their operations (Szakmary, 2013). The kind of systems that control computer networks is becoming a major platform for cyber-terrorism, and indeed pose a threat to national security. Consequently, the threat is increasing and leading to political instability, economic loss and even loss of life. Because of this, the government has put policies in place in an that allow it to monitor public networks in order to reveal the nature and source of similar attacks in support of national defense.
The stuxnet worm is an example of cyber-terrorism on computer systems and the networking on which many organizations rely. This is a major culprit in Estonia and in Saudi Arabia affecting the infrastructure of the oil industry and was created by the U.S and Israel governments with the aim of applying it in uranium enrichment facilities. This is one of the dangerous malware created by the U.S government, and there are speculations that the government was targeting the power structure of Iran.
This worm attacked the Supervisory Control and Data Acquisition (SCADA) systems that control industrial communications, including power plants and gas pipelines (Zetter, 2011). This planned attack caused 100,000 computers to be attacked by malware, posing dangers to the industrial infrastructure of Iran. Many believe that it was the intention of the U.S government to destroy the industrial control systems of Iran. If the right monitoring techniques had been employed, such a spread of malware could have detected at early stage and controlled. This shows how the monitoring of networks is essential to detect the source of such threats and to avoid similar attacks in order to protect the interests of the nation.
Another possible threat to the government is the high degree of dependence on social networks. This includes Facebook, twitter, and blackberry. Social networks have been blamed for major riots that have occurred in major cities in the U.K. and have been particularly widespread in London (Potgieter, 2011). Freedom of expression and the rights of the media contribute to the increase in these threats. The efforts of the authorities to monitor the networks could reduce the violence and threats posed by social networking services.
Tracing crimes via the social networking media is also another challenge in implementing effective monitoring systems to prevent possible threats. If the government were to put monitoring systems in place, this would help detect criminal activity and reveal the location of planned attacks as well as assisting with the prosecution of the criminals in the judicial systems. This would help to reduce both cyber-terrorism and cyber-war. This demonstrates how the government’s role in monitoring computer networks would be effective in supporting national defense and the public interest of a nation.
Government authorities have put several security agencies in charge of monitoring networks to reduce possible threats. In order to prevent the use of captured data for unintended purpose, harsh regulations and laws publicized by these security agencies would restrict personal use of such information by employees and journalists. This demonstrates that governments understand how important it is to put such policies in place in order to monitor networks and support national defense.
In the United States, the National Security Agency (NSA) is the largest security agency that does mass surveillance. Current sources reveal that NSA secret programs survey millions of data from American’s and foreign national’s phone calls and internet communications (Greenwald, 2013). After 9/11, The Patriot Act was implemented, which mandated the NSA to spy on individuals without first obtaining a search warrant from the court. Although they are intruding in the private life of individuals, safety is paramount in the interest of the nation as a whole.
Another security agency that involves partnership between different states is UKUSA. Member states involved are the U.S, New Zealand, Canada and Australia (Schimid, 2001). ECHELON is a security intelligence collection and analysis network that UKUSA member states partner with in their operations. The system is able to identify communications between criminals and terrorists.
The security agency in charge of monitoring computer networks in the U.K is the Government Communications Headquarters (GCHQ). The operations of this agency are not limited to snooping of data (Leppard, 2008). GCHQ is the first line defense in the national security of Britain, as well as the top-most eavesdropping agency that monitors private communications through direct taps into fiber optic cables. Current developments show how the NSA and GCHQ are working together to perform mass surveillance. The case of Edward Snowden, a former U.S. security intelligence contractor, revealed that there is possibility of the government interfering with people’s private lives.
U.K. programs that were recently mandated allowing security authorities to track emails and website visits and to record communications in order to combat terrorism have remained a question of debate. Such plans are underway, although people still argue about how invasive it is to people’s privacy. The government has since put in place measures necessary to protect the public. Those who log visit certain web pages have to do so with an internet protocol (IP) addressees so that the government only records the activity on suspected pages.
Even though the debates about personal privacy are becoming intense, the agencies mentioned have seen the need to monitor various broad computer-based networks to counter terrorism in support of national defense.
The common and largest networks under surveillance by security agencies are Local Area Networks (LAN) and Wide Area Networks (WAN). These are large collections of internet networks, which have different purposes depending on the topology and user needs. The usage of the internet is high, and broad in terms of information which is why the government concentrates so much on monitoring the internet in order to support national defense.
Other areas of internet networks to which the government is extending its monitoring programs are electronic mail, the World Wide Web (WWW) and social networks. Social networks such as twitter, LinkedIn, and Facebook are linked with increasing crimes in both the U.K. and the U.S. It is very difficult for users of such networks to detect possible threats. Thus, the government sees it as necessary to monitor communications data with the fast- changing technology. According to Booth (April, 2012), 95% of serious organized crimes are detected by government counter-terrorism programs with the contribution of communication data.
This demonstrates how monitoring communication data, which includes the numbers dialed for a phone call, time, and email addresses, is compatible with the government’s goal of storing civil information and restricting the liberties of individuals in the interest of national defense.
Governments are also putting more effort into monitoring telecommunication networks, which involves mobile and landline phones. According to the Guardian newspaper, the government of the U.K. introduced a new law in 2012 mandating security services and allowing the police to put telecommunication networks under surveillance (Booth, 1 April 2012). The Strategic Defense and Security review of 2010 supported this law through the government’s program to allow security intelligence and law enforcement agencies to obtain communication data from phones and to terminate suspicious communications. This is an indication of the government’s commitment to counter-terrorism through monitoring all forms of communications media in order to support national defense.
Various technologies are used to monitor networks depending on the type of communications done
The government monitors network usage is by asking the communication providers for usage information. Since internet networks have a client-server model, the servers of Internet Service Providers process all requests from its multiple clients. Nevertheless, sometimes ISPs are reluctant to reveal such information, as they believe it is not their job to regulate the internet (Clayton, 2005). The best example of this is the technology used by Chinese Golden Shield, known as the Chinese Shield Firewall. The government designed it to hide information aimed at destroying the Chinese government from the Chinese public. The system only allows traffic to pass through several routers at the ISP level before being blocked. At present, Skype conversations provide evidence in support of this organization.
Individual companies also assist in the monitoring of employees and pass any suspicious information to the government. This is helpful in supporting national defense in the event that employees are planning any malicious or terrorist acts. Technical staff can also assist in viewing employees’ laptops and in case of any suspicious information they can pass it on to the management and thereafter to the police, who will pass it to the relevant national defense agencies.
In reported news in Toronto, seventeen people suspected of acts of terrorism were arrested following these kinds of monitoring exercises (Geist, 2006). The number of people under surveillance has increased, indicating that the systems governments use to monitor networks and support the government in national defense are productive.
It is better for government monitoring networks to be well informed by joint intelligence committees from U.K. and in the U.S. the senate select committee. They should be responsible for ensuring that the monitored information is handled correctly and securely, and the handling of such information procured from relevant bodies.
In conclusion, cyber-warfare and cyber-terrorism are becoming a major threat to national security. This is due to the increasing usage of the internet, therefore creating a stage for such acts executed as threats to state-run security. Cyber-based threats require no weapons, personnel or any form of explosives, but rather consist of unauthorized intrusion and an overload of worms and viruses to computer based networks systems through methods too difficult for governments and individual state members to comprehend today (Gable, 43).
The structural challenge for many governments is to come up with systems of security that fit the fast growing technology of the 21st century. Efforts to institute proper educative cyber norms and produce specialized managers have lagged behind due to improper planning and allocation of resources. In addition, with the fast technological developments, governments end up lagging behind the rapid changes in technology. As this trend continues, governments on the other side are increasing their efforts to combat the problem in support of national defense.
If terrorists are using the internet for their acts of violence and posing dangers to a nation, the government should invest more resources and invest in security technology systems for curbing terrorism. To achieve this, they will need sound educational institutions to produce specialized and skilled managers to counteract the acts of cyber attacks among the public. This will mean mobilizing IT expertise in the country and training them on how to prepare for the possibility of cyber attacks in the interest of national defense.
It should also be the responsibility of the law-abiding citizen to ensure that any information seen on the internet that is suspected to be related to a terror campaign attack be reported to the relevant authorities. This will ensure that the government gets enough information to fully combat the situation. It is a good idea for citizens to be comfortable enough for the government’s effort to protect the nation than to worry so much about his/her personal privacy. Attempts by the government to monitor networks and support national defense will only be fruitful if individuals of the state abide by and cooperate with the government’s policies.
In summary, for the public to agree that the government should monitor networks in the support of national defense is of prime importance. Knowing about and detecting threats from the internet is difficult, And it is only through the investment of vast technology relevant to the situation that we can foster the development communication that will help to curb threats to national security. Thus, irrespective of any concerns about the invasion of privacy, government monitoring of networks in the support of national defense should not be postponed.
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The Adoption Rate of E-Mobile Banking is an Impact of Customers’ Acceptance of Information Technology in the Banking Sector
The information and telecommunications industry had been a key enabler of productivity across the societies and economies. The IT innovation is not only a significant contributor to the economies of a state, but also towards the growth of the industries. In the present days, banking industries have felt the influence of the telecommunications by a margin among other industries. The emerging information technology trends in across states had been a concern of the researchers. Precisely, m-banking services have had an uptake as the banking industry have enhanced access of service with convenience and ease to use cell phones. This thesis study is aimed to an extensive provide research on the most influencing factors affecting adoption of the technology in banking industry. In this case therefore, the research will place focus on the m-banking services in Australian banking sector (Drennan et al., 2009). The study incorporates Technology Acceptance Model to derive a conceptual framework in order to address its objective and research questions. In this study, data will be gathered from literature reviews and analysts, questionnaires, and interviews. The collected information from interviewing 40 respondents through a survey questionnaire will be used to compare and provide discussion on the factors influencing m-banking adoption rate. Data analysis methods will include weighted mean calculation, for analyzing the questionnaire data, and regression method to test the correlations and significance of factors influencing adoption rate of m-banking.
Chapter One: Background Of The Study
Banking industry in the contemporary world has been intensive users of technologies. Since its emergence, technologies have rendered essential roles to industries to deliver quality products and services. Particularly, their essence had risen from financial technologies such as information and telecommunications across nations. In comparison of the recent IT and telecommunications services with those provided in early 1970s, it is clear that, there had been a complete transformation of technology acceptance and adoption rate in banking industries. This way, there had been numerous researches as an area of interest to scholars, managers, and scientist to explore as the apparent world has taken a new face of technology (Drennan et al., 2009).
This research paper, therefore, places attempt to further past research basing on the past theoretical views of technology acceptance model.
The adoption rate of e-mobile banking is an impact of customers’ acceptance of information technology and telecommunications innovation in the banking sector.
Statement of the problem
The adoption rate of any advancement of technology is not guaranteed that it will translate into consumer adoption. However, consumers’ acceptance and their willingness to adopt new technology have been evidence to be a crucial aspect to the banking industry. This is especially in implementation of new product development and marketing. In which technology diffusion is partially determined whether potential users accept and adopt the technology employed.
Significance of the study
Not only scarce research on the technology acceptance and adoption had been a hindrance to the banking sector, but also a limit to managers to understand the priorities of the formation of intentions to accept and adopt mobile e-services. Precisely, this research study focus on the factors affecting technology acceptance model as proposed by Fred Davis. It seeks to expand research on the significance of the factors affecting TAM. This knowledge helps stakeholders in realizing the prevailing environment and its trends in the subject sector.
Objectives of the study
To determine the significance of the factors affecting adoption of m-banking industry.
To determine the significance of the factors influencing technology acceptance model.
To understand consumer behaviors influence on the product development and marketing.
To understand better on how adoption of m-banking has impacted financial services in the banking industry.
To offer recommendation towards designing of effective m-banking marketing strategies.
Do the potential customers perceive the relevance of the e-mobile banking?
Do the potential customers perceive mobile e-service easy to use?
Does the cell phone banking influence users attitude towards adoption.
Does the intention to adopt the e-mobile banking influence consumer behavior.
Chapter Two: Literature Review
Internet mobile banking
Internet banking and mobile banking are both essential subsets of e-banking services. According to Lassar (2005, p. 177), internet banking can be defined as an electronic system that allows potential customers to perform various banking services electronically through bank’s website. It is an internet features which in the present day; mobile phones have been provided web surfing capabilities. It is an apparent trend of adoption of new mobile phones technologies that can enable users to access internet through their hand-held devices. The mobiles phones capabilities are enhanced by the wireless application protocol (WAP) cell phone banking with a similar inter-face to internet banking. Only that, the hand-held device is supported by the GPRS, WAP, EDGE, or 3G.
Internet mobile banking had been a fundamental change in the banking sector in the recent years. It is evidenced by the consumer movement from the conventional branch banking into more stand-alone banking services via electronic delivery channels than office branch. However, following the acceptance and intention to adopt new technology Chan (2001, p.10); modified the initial definition of mobile banking. His argument posits that mobile internet banking is an electronic transaction service via bank’s website by using a computer a computer and a modem to access internet. It is a field of study that researchers have considered the influence and the adoption of e-mobile banking. according to Suoranta & Mattila (2004, p. 364).typical e-mobile banking users will continue to use the wired channel while the current users of the automated bill payment and the branch offices will be shifted to mobile phone banking.
This way, cell phone banking users, cannot be drawn from the heavy internet banking users probably, because, they will continue using internet banking. Besides, he posit rationality for banks not to invest convincing its regular internet users to adopt a new electronic, but they should or rather attempt to enable potential customers outside this segment to be interested with the advantages of mobile phone banking. Precisely, the relevant performance of the new technology should be inessential issue of concern to the banking industry influence a change in accordance to customers on taste and preference.
Technology acceptance model
The initials steps required for adoption of the emerging information technology had been a hindrance of banking performance. It involves establishing which purpose the intended new system will address and what functionality the bank requires. This way, for any e-portfolio system the bank need to establish which one size fits all; corresponding to a series of standard functionalities (Zhang, et al., 2007).
Technology acceptance and its usage had been a focal point in a wide range of research studies. In this case, TAM application enabled understanding of conceptual issues related to the e-portfolio use. In which several theoretical models have been applied to provide sufficient study on user acceptance and usage behavior of emerging information technology trends. Several studies, including Roger’s diffusion theory, Theory of Planned Behavior, and Theory of Reason Action (TRA) gave inception of the Technology Acceptance Model. TAM has emerged to be preferable model that represents the preceding theories of technology usage through the profound beliefs related to the perceived usefulness and its ease of a technology. The previous researches have shown the powerfulness of TAM over other theories of the as a basis to explain the variance in systems use (Davis, 1989).
(Pearlson& Saunders, 2006) argues that, the use of TAM is predicted on the decision on or rather attention of individuals having control whether or not they accept the use of the system. The factors in the model are perceived usefulness, perceived ease of use and the attitude towards the usage of the system and adoption. The behavioral intention to use by the potential customers is the essentials factor that draws whether the users will actually utilize the information technology introduced. This way, the firm may draw critical decisions-making to enhance its performance especially in the banking sector (Ajzen& Fishbein, 2000).This theoretical view, therefore, derives the of propositions below;
Technology Acceptance Model and study of e-mobile banking
The mobile services convenience and promptness to customers had been growing concerns to academic researchers. Accordingly, a past growing body of academic research has examined the determinants of the cell phone banking acceptance and its utilization (Arora et al., 2011),.
Dillon and Morris (1998, p.5) portrays the technology acceptance as the demonstrable willingness of individuals within a group to employ IT for the designed task as intended to support. Basically, the research investigated the instrumental influences involving beliefs on how to utilize technology. This way, it results in the objectives hence improvements in the performance. (Thompson, et al., 2006) argue that non-instrumental factors may be limiting factors on the acceptance of the technology. However, the TAM posits that, perceived usefulness and perceived ease of utility are the fundamental detriment that influences an individual behavioral intention (Hu et al. 1999).
According to Laurin and Lin (2005, p. 878) research; it extended the technology acceptance model. Their perspective towards understanding of the behavioral intention to the utility of the mobile banking survey was conducted in Taiwan included the perceived credibility, perceived self-efficacy and the perceived financial costs in m-banking context (see figure 1).In their research, they revealed that, all stated factors have effects on the behavioral, and the perceived credibility is evidenced to be the most contributing factor to intention. However, on later study to generalize their earlier m-banking acceptance model, Wang, Lin and Laurn (2006) adopted an extended constructs. That is perceived usefulness had a significant contribution followed by the perceived ease of usage contributed behavior attention.
Another study by Cheong and Park (2008) carried out research on reluctance factors of the Korean’s to adopt m-banking services. In addition to the conventional TAM factors included additional constructs; facilitating conditions and the switching barriers. The findings in the research show that facilitating conditions affluence the positively the intention to use m-payment, whilst switching barriers negatively affected the behavioral intentions. Besides, Gu et al., (2009) research in Korea examined the determinants of the mobile banking. The authors introduced another factor; it considered trust as an additional key construct of the behavioral intention to utilize an introduced technology. In addition to self-efficacy, social influence, facilitating conditions, system quality, structural assurance, familiarity with the bank, and calculated-based on trusts were indicated as the key constructs of behavioral intentions. However, perceived usefulness and ease to use were the most contributing factors on behavioral intentions.
Another stream of research in developing countries was carried out to understand the socio-economic and technological impacts of m-banking adoption. Research placed study that m-banking in developing countries is considered as a complimentary service offered by the banking industry. It is considered an alternative of ATMs and internet banking. However, important criteria such as convenience and ease to use seemed to be important when they consider adopting m-banking. The appeal for the cell phone banking in developing countries revealed that influence on the convenience may be less than accessibility and affordability due to the network quality connection, coverage, and costs (Donner and Tellez, 2008). However, Laforet and Li (2005) investigation in developed countries; examined consumer behavior, motivation, attitude, and cultural influence on the m-banking in China. In the findings, customers in China do not attach much importance on m-banking convenience but perceived risks and technological skills are the most influential factors.
Lastly, Sripalawat et al. (2011) carried out to examine positive and negative factors influencing m-banking acceptance in Thailand. The research considered subjective norms, self-efficacy, perceived usefulness, and perceived ease to use as the positive factors. Contrary, the study considered device barrier, lack of information, perceived risk, and financial costs as the negative factors. Their findings not only revealed that positive factors are the most influential than negative factors, but also subjective norms to be the most influential amongst positive factors.
The conceptual framework deduces its constructs from the past literature reviews as from chapter two. The study basis is from the extended Technology Acceptance Model by of Luarn and Lin (2005). Its shows the factors which influence the adoption of cell phone banking. The constructs suggests that the technology user adoption of a new information system fundamentally determined by two factors; perceived usefulness and the perceived ease of use of the system. In addition, perceived credibility, efficacy and financial cost also affects the behavioral intentions of users to adopt m-banking. The model in this case, therefore, states the gaps between the past literatures reviews and the current study.
The successful marketing of the new technology remains one of the crucial aspects of banking industry that employs technology to satisfy customers across border. However, it places challenges when addressing the factors that influence potential customer’s decision to adopt the newly introduced technology. It requires better understanding on behavioral intentions to accept new technology. Specifically, the influence of beliefs of the existing technology moderates its adoption necessary another technology. This way, the study will gain better understanding through the past tentative literature reviews and followed by empirical research amongst customers. Besides, the study will provide extensive information to the field of marketing with possible strategies to m-banking.
Chapter Three: Methodology
This chapter provides discussion on the methodologies and various data collection techniques. These techniques will be employed as demanded by objectives of the study. The research methods were designed owing to the objectives of the study. For this reason, therefore, the strategies which the paper will use are to determine the major significance of the factors affecting adoption rate of mobile banking (Bryman, 2012).
Philosophical approaches enable planning of the research design and the choice of methodology. It provides guide in choosing appropriate research methods regarding to the research objectives and research questions. In accordance, they follow research design choice, performance, assessment of design and the research quality. Besides, they are approaches which provides guide of the choices available from epistemology and ethnology as well (Johnson, 2000). Regarding ethnology, the paper will use realism paradigm to address the hypothesis of the study. This way the paper will adopt realism of factors affecting significantly the behavioral intentions to adopt mobile banking in Australia. On the other hand, the paper will use objectivity as its epistemology approach to base on the assumptions to deduce results without biasness. The researcher, therefore, will carry out the study in a neutral state to address the objectives successfully (Bryman, 2012).
The overview of the research methodology which the study will employ involves three-layer approach (see figure 2). It provides aims of developing an experimental framework to study the empirical findings. It incorporates a combination of both the primary and secondary data necessary to validate the study accordingly. This way, the paper will be able to test null hypothesis about a specific factor influence on the m-banking adoption (Saunders et al., 2012). The hypotheses derive form from the TAM literature review and interview data collected are as below.
H 1: perceived usefulness has a significant influence on the m-banking adoption rate
H 2: Perceived ease of use has a significant influence on the m-banking adoption rate
H 3: Perceived credibility has a significant influence on the m-banking adoption rate
H 4: Perceived self-efficacy has a significant influence on the m-banking adoption rate
H 5: Perceived financial cost has a significant influence on the m-banking adoption rate
Justification of the research methods
Basing the research actual need, qualitative and quantitative analysis will be used. The study sought to choose both techniques because it will employ to determine the significance of the specific factor on m-banking. It will therefore include the weighted mean average and regression analysis of the primary data. Amongst the techniques which will be used, the study will prefer interviews to be most appropriate to facilitate survey questionnaires effectively.
Technology Acceptance Model accommodated the banking industry analysis. Accordingly, it make it best-suited theoretical framework to study the factors affecting cell phone banking. The model will refer to the significance of the factors to determine behavioral intentions of the potential customer to adopt it. This way in provided a conceptual framework to address the hypothesis as it involves lots of internet participant of varied dimensions such as the customers, suppliers and other stakeholders. To improve on the validity and credibility, the study will paper will use both closed and open-ended questionnaires: in which questionnaire form will contain demographic questions, ratings for the constructs influencing m-banking adoptions, and throws open questions to try cover in summary any factor beyond the listed ones (Oppenheim, 2000).
Primary data collection
In order to identify the significance of the key factors affecting the adoption of m-banking in Australia banking industry, respondents from top three bank’s respondents will be selected. This will be the primary source to form the null hypothesis to be tested in the study. The selection is based on the assumption that these respondents understand the nature of the industry banking services especially m-banking. This way, will ensure the result will fit into the context of the study. Besides, the data collection method will follow the questionnaire design mentioned above (see section 3.3).
Secondary data collection
Apart from the past literature reviews, the study will also use secondary method to source information from the bank managers. It will obtain answers regarding significances of factors affecting m-banking by processing questionnaires avenues such as the number subscribers, m-banking frequencies and customers’ satisfaction feedback messages. Similarly, it will access data from the bank’s customer care desks data concerning the subject matter of the study covering the limited range of two years; the past year of 2013 and to the current records of 2014 (Matthews et al., 2010).
Face-to-face interviews Justifications
Face-to-face interview technique had been most preferable over the past years to date. Researchers, analysts and journals had found it effective for empirical studies. Since it develops life participation in which the informant feels he or she is involved. Hence, attains a sense of ownership of the study too. Put simpler, it is an in-depth direct and a repeated face-to-face interaction between the researcher and the informant. This way, it enables the respondent to share freely and openly their opinion about the subject of the study regarding their experience, attitudes and lifestyles. Therefore the research will be in a position to uncover the respondent’s situations, attitudes and experience effectively (Oppenheim, 2000).
Besides, interviews will be used to draw opinions of the respondents. The interview methods will include Face-to-face interviews which is the preferable over email, and in-world interviews.
In-world interview justifications
In-word environment is a recent times innovations which enables internet users to engage in a virtual environment through avatars. It is more like face-to-face social interaction but it is computer mediated communications feature which participant may as well interact through live chats. This is a marketing platform which banking industry places their products advertisement in an immersive environment such as online gaming, videos and so forth. Perhaps it is adopted for some reasons to embraces the Second Life way of doing things in 21st century. In this case, therefore, the study will engage respondents online through in-world interviews at ease. It is a technique which is essential especially respondents are unavailable to participate in face-to-face interviews.
Email interviews justifications
These are research interviews essentially conducted in rare occasions. Mostly, it is applied in case where the respondent is unavailable at the time of or uncomfortable in having face-to-face interviews. It is a rare instance that considers time constrains in which respondents will participate via email. The researcher will forward mail with semi-structured questions expected to be replied within a period of one week. All the respondents will be assumed that they are computer literate and had access of internet. This is because they on the expectations of the study that if they are using m-baking therefore are computer literate. However, email-based might raise confidentiality, deception and consent, otherwise, resolved to provide confidentially and identity protection (Bryman, 2012).
Sample and sampling size
In order to achieve the desired objectives, sampling strategy is important to be used especially, where qualitative approach is intended to be used. According to this study, the target population will be Australian top three bank’s customers. It will consider thirty respondents between the age of eighteen and seventy five. The study target pre-assumes that the population is the actual customers of the bank with access to the internet, computer literate, bank account and the uses m-banking services (Davies, 2007).
Random sampling method will be employed for the sample selection from the identified banks. This will be a necessary method for the study in order to avoid selection bias. It will create an opportunity in conducting the survey at neutral state for the sample population. The pilot-testing of the model will be conducted prior the study in order to ascertain the strategy performance, reliability and validity.
Methods of data analysis
Data analysis is a logic way of understanding and interpretation of the collected data. It includes two processes; analytical process where the data will be collected, categorized, compared, and integrated. Whilst interpretation process of analyzed employed circularly while making out sense out of the analyzed data (Hassan, et al. 2013). Since the study seeks determine the significances of the factors affecting adoption of m-banking in Australia, it triggers the need to employ statistical method of analysis. Therefore, it will incorporate two methods of data collection;
Weighted mean for the questionnaires
The results of the closed-ended questions will be assessed using TAM constructs significance. They will be scale from 1 to 5; strongly disagreed scores 1, disagree scores 2, neutral scores 3, agree scores 4 and strongly agree will equate 5 scores. To analyze the results obtained from the informants, the weighted mean score will be calculated accordingly. Similarly, open-ended questions will be analyzed at a personal interpretation, but at a neutral state rating the significance of the defined factors of adoption in ranks.
Least square method regression analysis
A least square multiple linear regression will be used to assess the correlation between the predators among the five independent variables and the m-banking adoption intention. This way, their variance will be used to in behavioral intentions to adopt m-banking will be therefore used to analyze the factor’s significance will be ranked accordingly (Smith, 2011).
Validity, Reliability and Ethics
Qualitative research is considered to execute reliability and the credibility of the study. Ethnology choice of realism will enable the stability of the study in conjunction with epistemology positivism approach. Positivism will be essential to deliver a neutral interpretation or measures without bias of the open-ended questionnaires. Use of repeatedly random sampling method and in-depth interview reviews also contributes the reliability of the research study.
While the reliability concerns the consistency of the scores results validity concerns, how the results will be interpreted. Validity will concern how well the study results place support of the theory or the constructs of the research paper. Accordingly, the collection data and analysis techniques will be pilot-tested prior the actual research. Besides, the constructs validity will be assessed by means of convergent and discriminant validity as well. That is, comparison of the similarity of results from different instrument of data analysis methods used.
Considering ethics, the paper will ensure the study will not cause any harm to the respondents by ensuring; their consensus to be part of the study contributors via interviews prior commencement of the study. Secondly, explaining the benefits of the study and guaranteed confidentiality in the procedures. This way, the research will provide their protection rights to respondents accordingly (Walliman, 2010).
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