Skip to main content
SpringerLink
Log in

Adopting e-finance: decomposing the technology acceptance model for investors

  • Theoretical article
  • Published:
Service Business Aims and scope Submit manuscript

Abstract

Services through the Internet channel are becoming increasingly popular in the business sector. The Stock Exchange of Iran has implemented Internet trading as a new electronic service delivery channel, but the acceptance by securities investors has not yet been measured to assess the value of the implemented system. The purpose of this study was to determine factors influencing the investors’ intention to adopt Internet stock trading platform in Iran. 385 active investors in Tehran stock market participated in this cross-sectional study. We developed a questionnaire as the measurement tool in this research. The questionnaire was administered using self-report approach. Based on the decomposed technology acceptance model (DTAM), the study integrates two new constructs of economic value (time saving and cost reduction) and perceived trust as antecedents of investors’ intention to adopt Internet platform. The structural equation model by Amos software version 19 was used for analyzing and interpreting the data. We found significant relation between perceived usefulness (β = 0.32); ease of use (β = 0.48), trust (β = 0.43) as well as cost reduction (β = 0.33) and investors intention. Attitude was found to be a partial mediator for the effect of perceived usefulness on investor’s intention to adopt online stock trading. Our Findings confirm that the DTAM can be successfully applied to the domain of e-business service in developing countries such as Iran and other countries with similar status of e-finance adoption. Findings could be considered as guidelines for decision makers in stock exchange to develop better strategies and practical procedures.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

References

  • Abroud A, Choong YV, Muthaiyah S (2010) Preparation of measurement tools of the effective factors for the acceptance of online stock trading. Eur J Econ Finance Admin Sci 4(19):34–41

    Google Scholar 

  • Abzari M, Safari A (2005) Electronic stock exchange and its development in Iran. Electron New Comm 2(2):86–106

    Google Scholar 

  • Adela L, Jerome Y, Patrick YKC (2001) Adoption of online trading in the Hong Kong financial market. J Electron Comm Res 2(2):54–71

    Google Scholar 

  • Agarwal R, Prasad J (1999) Are individual differences germane to the acceptance of new information technologies? Decis Sci 30(2):361–391

    Article  Google Scholar 

  • Ajzen I (1985) From intentions to actions: a theory of planned behavior. Springer, New York, pp 110–139

    Google Scholar 

  • Ajzen I (2001) Nature and operation of attitudes. Ann Rev Psychol 52(2):27–58

    Article  Google Scholar 

  • Ajzen I (2002) Perceived behavioral control, self-efficacy, locus of control and the theory of planned behavior. J Appl Soc Psychol 3(2):1–20

    Google Scholar 

  • Allameh SM, Jafari N, Esfahani SS (2010) The essential infrastructure preparation assessment for establishing an electronic stock exchange In Iran. Int J Manag Inf Syst 14(2):53–71

    Google Scholar 

  • Aslam L, Lakshini P, Rnhut (2005) Trust in e-commerce Communication of ACM 48(2):25–91

  • Bagheri A (2006) Electronic stock exchange: standards and intelligence systems. paper presented at the national electronic stock exchange conference, Iran, 16–26

  • Baron RM, Kenny DA (1986) Moderator-mediator variables distinction in social psychological research: conceptual, strategic, and statistical considerations. J Pers Soc Psychol 51(6):1173–1182

    Article  Google Scholar 

  • Bhattacherjee A (2000) Acceptance of e-commerce services: the case of electronic brokerages. IEEE Trans Syst 30(4):411–420

    Google Scholar 

  • Brown M, Bitner S, Meuter ML (2000) Technology infusion in service encounters. J Acad Mark Sci 1(28):138–149

    Google Scholar 

  • Chan S, Lu M (2004) Understanding Internet banking adoption and user behavior: a Hong Kong perspective. J Glob Inf Manag 12(3):21–39

    Article  Google Scholar 

  • Chen L, Gillenson MX, Sherrell DL (2002) Enticing online consumers: an extended technology acceptance perspective. Inf Manag 2(39):705–719

    Article  Google Scholar 

  • Cheng T, Lam DYC, Yeung ACL (2006) Adoption of Internet banking: an empirical study in Hong Kong. Decis Support Syst 42(3):1558–1572

    Article  Google Scholar 

  • Chi-Shing Y, Kevin G, David E (2007) Factors affecting the adoption of Internet banking in Hong Kong implications for the banking sector. Int J Inf Manag 2(4):336–351

    Google Scholar 

  • Christy C, Zhu L, Timothy K, Gloria WC, Imayem M (2005) A critical review of online consumer behavior: empirical research. Paper presented at the 16th Bled E-Commerce Conference E-Transformation Bled, Hong Kong, 1–19

  • Davis RJ (1989) Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quart 13(3):319–340

    Article  Google Scholar 

  • Davis RJ, Bagozzi RP, Warsaw PR (1989) User acceptance of computer technology: a comparison of two theoretical models. Manag Sci 35(8):982–1003

    Article  Google Scholar 

  • Davis RJ, Edgar C, Gefen D, Straub DW (2000) The relative importance of perceived ease of use in is adoption: a study of e-commerce adoption. Inf Manag 1(8):45–86

    Google Scholar 

  • Delafrooz N, Paim LH, Khatibi A (2009) Developing an instrument for measurement of attitude toward online shopping. Eur J Soc Sci 7(3):16–25

    Google Scholar 

  • Devaraj S, Fan M, Kohli R (2002) Antecedents of B2C channel satisfaction and preference: validating e-commerce metrics. Information Systems Research 13(3):316–333

    Article  Google Scholar 

  • Dillman DA, Smyth JD, Christian LM (2009). Internet, mail, and mixed-mode surveys: the tailored design method. Wiley, Hoboken, New Jersey

  • Fan M (2001) Electronic commerce and the revolution in financial markets. South-Western Coll Pub 4(8):29–33

    Google Scholar 

  • Fishbein M, Ajzen I (1975) Attitudes towards objects as predictors of single and multiple behavioral criteria. Psychol Rev 81(1):59–75

    Article  Google Scholar 

  • Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. J Mark Res 18(1):39–50

    Article  Google Scholar 

  • Gefen D, Karahanna E, Straub DW (2003a) Inexperience and experience with online stores: the importance of TAM and trust. IEEE Trans Eng Manag 50(3):307–321

    Article  Google Scholar 

  • Gefen Dd, Karahanna E, Straub DW (2003b) Trust and TAM in online shopping: an integrated model. MIS Quart 27(1):51–89

    Google Scholar 

  • Goldman A, Johansson J (1978) Determinants of search for lower prices: an empirical assessment of the economics of information theory. J Consumer Aff Res 1(5):176–186

    Article  Google Scholar 

  • Gopi M, Ramayah T (2007) Applicability of theory of planned behavior in predicting intention to trade online some evidence from a developing country. Int J Emerg 2(4):348–360

    Google Scholar 

  • Hair JF, Tatham RL, Anderson RE (1998) Multi-variate data analysis. Prentice-Hall, New York, pp 65–212

    Google Scholar 

  • Hair JF, Anderson RE, Tatham RL, Black BC (2006) Multivariate data analysis. Prentice-Hall, Upper Saddle River, pp 316–342

    Google Scholar 

  • Hawes J, Mast KW, Swan JE (1989) Trust earning perceptions of sellers and buyers. J Pers Sell Sales Manag 1(9):1–8

    Google Scholar 

  • Heinsman H, Hoogh A, Koopman PL (2007) Commitment, control, and the use of competency management. Use Competency Manag Sci 3(6):609–628

    Google Scholar 

  • Helander MG, Khalid HM (2000) Modeling the customer in electronic commerce. Appl Ergonom 13(6):609–618

    Article  Google Scholar 

  • Hsing W (2005) The role of personality traits in UTAUT model under online stocking. Contemp Manag Res 1(1):69–82

    Google Scholar 

  • Ing-Long W, Jian-Liang C (2005) An extension of trust and TAM model with TPB in the initial adoption of on-line tax: an empirical study. Hum Comput Stud 62(6):784–808

    Article  Google Scholar 

  • Joo Eng L, Ho PS (2003) A retail investor’s perspective on the acceptance of internet stock trading. Paper presented at the Proceedings of the 36th Hawaii international conference on system sciences (HICSS’03), 12–18

  • Kalakota R, Whinston A (1996) The executive director of trading and information technology of the stock exchange of Hong Kong (SEHK). Electron Comm 2(1):125–190

    Google Scholar 

  • Keeney RL (1999) The value of Internet commerce to the customer. Manag Sci 45(4):533–542

    Article  Google Scholar 

  • Kennickell AB, Starr-McCluer M, Surette B (2005) Recent changes in U.S. family finances: results from the, 1998 Survey of Consumer Finances. Bulletin 86(2):1–29

    Google Scholar 

  • Kim S, Chung-gu S (2004) Factors influencing customers use of electronic commerce in stock trading :an empirical study in Korea. Project T.F.T 4(5):61–73

    Google Scholar 

  • Kline RB (1998) Principles and practice of structural equation modeling. The Guilford Press, New York, pp 215–294

    Google Scholar 

  • Kline RB (2005) Principles and practice of structural equation modeling, 2nd edn. Guilford, New York, pp 213–261

    Google Scholar 

  • Kolekofski KE, Heminger A (2003) Beliefs and attitudes affecting intentions to share information in an organizational setting. Information & Management 40:521–532

    Article  Google Scholar 

  • Lederer A, Maupin D, Sena M, Zhuang Y (2000) The technology acceptance model and the World Wide Web. Decis Support Syst 29(3):269–282

    Article  Google Scholar 

  • Lee SH (2000) Securities transactions in changing: online stock transactions in Korea. Capital Market 11(2):321–326

    Google Scholar 

  • Lee M (2005) Effects of attitude and destination image on association members ‘meeting participation intentions: development of meeting participation model. Kansas State University, Pages

    Google Scholar 

  • Lee J-N, Pi Jae-Nam, Minh Q (2003) The contribution of commitment value in internet commerce: an empirical investigation. J Assoc Inf Syst 4(1):39–64

    Google Scholar 

  • Li P (1999) Elementary introduction of Internet based stock trading. Dealers Assoc Bimonthly 4(5):27–37

    Google Scholar 

  • Liang T, Lai H (2002) Effect of store design on consumer purchases: van empirical study of online bookstores. Inf Manag 39(6):431–444

    Article  Google Scholar 

  • Limayem M, Khalifa M, Frini A (2000) What makes consumers buy from Internet? A longitudinal study of online shopping. Syst Hum 30(4):421–432

    Article  Google Scholar 

  • Lynch JG, Ariely D (2000) Wine online: search costs and competition on price, quality, and distribution. Mark Sci 19(1):83–103

    Article  Google Scholar 

  • Madhoshi M, Niyazi (2005) The role of information technology in the development of Iran’s stock exchange. Paper presented at the 4th international management, Teharan, Iran, 9–17

  • Mayer RC, Davis JH, Schoorman FD (1995) An integrative model of organizational trust. Acad Manag Rev 20(3):709–734

    Google Scholar 

  • Ming-Chi Lee (2009a) Predicting and explaining the adoption of online trading: an empirical study in Taiwan. Decis Support Syst 47(2):133–142

    Article  Google Scholar 

  • Ming-Chi Lee (2009b) Factors influencing the adoption of Internet banking: an integration of TAM and TPB with perceived risk and perceived benefit. Electron Commer Res Appl 8(3):130–141

    Article  Google Scholar 

  • Morganosky M, Cude B (2000) Consumer response to online grocery shopping. Int J Retail Distribut Manag 28(1):17–26

    Article  Google Scholar 

  • Ndubisi N, Chukwunonso N (2004) On-line learning adoption intention: comparing the predictive power of two competing models. pp 242–251

  • Nunnally JC (1978) Psychometric theory. McGraw-Hill, New York, pp 231–260

    Google Scholar 

  • Park J (2003) Understanding consumer intention to shop online Dissertation. Columbia, MO University of Missouri 6(2):68–80

    Google Scholar 

  • Patrick Y, Chau K, Lau A, Yen J (2001) Adoption of online stock trading in the Hong Kong Financial market. J Electron Comm Res 2(2):58–60

    Google Scholar 

  • Pavlou P (2003) Consumer acceptance of electronic commerce: integrating trust and risk with the Technology Acceptance Model. Int J Electron Comm 7(3):69–103

    Google Scholar 

  • Ramayah T, Kamel R, Gopi M, Rangel GJ (2009) A decomposed theory of reasoned action to explain intention to use Internet stock trading among Malaysian investors. Comput Hum Behav 25(4):122–130

    Google Scholar 

  • Shi-Ming H, Yu-Chung H, David CY (2005) A study on decision factors in adopting an online stock trading system by brokers in Taiwan. Decis Support Syst 40(2):315–328

    Article  Google Scholar 

  • Singh A (2010) Investors’ adoption of internet stock trading: a Study. J Internet Bank Comm 15(1):14–19

    Google Scholar 

  • Siriluck (2006) Exploring the antecedents of electronic service acceptance: evidence from internet securities trading proceedings. Paper presented at the fourth international conference on e-business, Bangkok, 63–84

  • Steiger H (1990) Structural model evaluation and modification: an interval estimation approach. Multivar Behav Res 25:173–180

    Article  Google Scholar 

  • Taylor S, Todd PA (1995) Understanding the information technology usage: a test of competing models. Inf Syst Res 6(2):144–176

    Article  Google Scholar 

  • Teo S, Wang P, Leong C (2004a) Understanding online shopping behavioral using a transaction cost economics approach. Internet Market Advert 1(1):62–84

    Article  Google Scholar 

  • Teo TSH, Tan M, Peck SN (2004b) Adopters and non-adopters of Internet stock trading in Singapore. Behav Inf Technol 23(3):211–223

    Article  Google Scholar 

  • Urbany JE (1986) An experimental examination of the economics of information. J Consumer Res 13(2):257–271

    Article  Google Scholar 

  • Venkatesh V, Davis F (2000) A theoretical extension of the technology acceptance model: four longitudinal field studies. Manag Sci 46(2):186–204

    Article  Google Scholar 

  • Venkatesh V, Morris MG, Ackerman PL (2000) A longitudinal field investigation of gender differences in individual technology adoption decision-making processes. Organ Behav Hum Decis Process 83(1):33–60

    Article  Google Scholar 

  • Vijayasarathy LR (2004) Predicting consumer intentions to use online shopping: the case for an augmented technology acceptance model. Inf Manag 41(6):747–762

    Article  Google Scholar 

  • Waleed A-G, Sanzogni L, Sandhu K (2010) Factors influencing the adoption and usage of online service in Saudi Arabia. Electron J Inf Syst Develop Countries (EJISDC) 40(1):1–32

    Google Scholar 

  • Wang Y, Lin H, Tang (2003) Determinants of user acceptance of Internet banking: an empirical study. Int J Serv Indust Manag 74(5):501–519

    Article  Google Scholar 

  • WSEF, World Stock Exchange Federation (2010) World stock exchange federation report from operations of world stocks organizations in 2008 Economic world, p. 7

  • World-Stats (2010) Internet users and population statistic for Asia (http://www.internetworldstats.com/stats5.htm). Accessed 2 Jun 2010

  • Zhou L, Chiang WY, Zhang D (2004) Discovering rules for predicting customers’ attitude toward Internet Retailers. J Electron Comm Res 5(4):228–238

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Faculty of Management, Multimedia University, Jalan Multimedia, 63100, Cyberjaya, Selangor, Malaysia

    Alireza Abroud, Yap Voon Choong, Saravanan Muthaiyah & David Yong Gun Fie

  2. Payame Noor University, Shahrekord, Iran

    Alireza Abroud

Authors
  1. Alireza Abroud
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Yap Voon Choong
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Saravanan Muthaiyah
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. David Yong Gun Fie
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Alireza Abroud.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Abroud, A., Choong, Y.V., Muthaiyah, S. et al. Adopting e-finance: decomposing the technology acceptance model for investors. Serv Bus 9, 161–182 (2015). https://doi.org/10.1007/s11628-013-0214-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11628-013-0214-x

Keywords

Search

Navigation