Internet banking adoption in India structural equation modeling approach

Sujeet Kumar Sharma*, Srikrishna Madhumohan Govindaluri

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

62 Citations (Scopus)


Purpose - The purpose of this paper is to understand the factors influencing adoption of internet banking in urban India. Design/methodology/approach - A model has been proposed based on the technology acceptance model (TAM). The proposed model is referred to as extended TAM and is better suited to identify and quantify the important factors that influence adoption of internet banking technology in India. Primary data relating to the variables affecting technology adoption and demographic profile are collected using a questionnaire survey. Data were collected from 344 individuals who are either current/prospective internet banking users. Structural equation modeling was used to identify the important factors affecting internet banking technology adoption. Findings - The factors of perceived usefulness, perceived ease of use, social influence, awareness, quality of internet connection and computer self-efficacy are primary determinants of the attitude toward the use of internet banking in urban India. The attitude toward the use of internet banking can be used to predict the intention to use internet banking systems by users.Practical implications - This research enables internet banking service providers in urban India to design new service offerings or modify current service offerings to achieve higher adoption rates in internet banking. Originality/value - The paper investigates the adoption of internet technologies by banking users by proposing an extended TAM model that is more appropriate to capture the issues related to adoption in urban India. The paper is of value to researchers in the area of technology adoption and banking service providers in urban India.

Original languageEnglish
Pages (from-to)155-169
Number of pages15
JournalJournal of Indian Business Research
Issue number2
Publication statusPublished - Jan 1 2014


  • Factor loadings
  • India
  • Internet banking
  • Structural equation modeling
  • TAM

ASJC Scopus subject areas

  • General Business,Management and Accounting


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