Factors Influencing the Adoption of Internet Banking among SMEs

Despite the wide adoption of Internet banking service in developed countries, its application is still low in developing countries like Yemen. Moreover, there is a dearth of empirical research on Internet banking services in Yemen and this makes it necessary to carry out research on adoption of Internet banking service. The purpose of this study is to examine and investigate the main factors which influence the adoption of Internet banking services by Small and Medium Enterprise (SME) managers or owners in Yemen. The research framework consists of seven latent variables, four exogenous variables and three endogenous variables. This study indicates that two factors rooted in TAM (perceived usefulness and perceived ease of use) had a strong influence on intention to adopt IB. It also reveals that ICT readiness, financial institution support and competitive pressure are significant and positive effect towards usefulness and ease of use. It can be concluded that TAM framework is found to be a good and suitable underpinning theory to explain IBSA factors in Yemen by achievement of model goodness of fit for the GOF index. The study also discussed implications for Yemeni contexts.