Assessing the Success of Mobile Banking in Saudi Arabia: Re-Specification and Validation of the DeLone and McLean Model

Assessing the Success of Mobile Banking in Saudi Arabia: Re-Specification and Validation of the DeLone and McLean Model

Olfa Bouhlel, Karim Garrouch, Mohamed Nabil Mzoughi
Copyright: © 2023 |Pages: 24
DOI: 10.4018/IJESMA.318088
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Abstract

This study aims at re-specifying and extending the DeLone and McLean information systems success model and verifying the extended model in the context of mobile banking applications. The model integrates a relationship-driving indicator, namely perceived value and a condition that permanently predicts the use of technology: usefulness. This framework derives its originality from the integration of these variables and verification in timely and innovative service, namely mobile banking applications. The results allowed to accept the hypotheses assuming the impact of the perception of usefulness and value, as well as system and service quality on satisfaction. The latter has a significant influence on continuance intention. However, the impact of information quality was insignificant, and hypotheses assuming the dependence of continuance intention on usefulness and service quality are rejected. These results are discussed, and the conclusion deduces managerial recommendations and directions for future research.
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Introduction

Information technology and automation enable cost reduction, and efficiency enhancement, and help to scale up the financial sector by ensuring security and consistency (Chopra et al., 2015). Accordingly, the wide adoption of mobile technologies and advancement in their capacity for use in transactions has enabled consumers to migrate from Internet-based (Dwivedi et al., 2021) to mobile-based digital services (Al-Amin et al., 2022; Bui et al., 2022; Singh & Srivastava, 2020; Chopra et al., 2013; Dwivedi et al., 2022; Eneizan et al., 2023; Karjaluoto et al., 2021). As a result, this has led the banking sector to be aligned with information technology to provide innovative financial services to customers using technology (Dwivedi et al., 2022) and particularly to shift in favor of mobile banking (MB) markets (Gong et al., 2020; Jebarajakirthy & Shankar, 2021; Singh & Srivastava, 2020). The banks adopt more advanced technologies and innovations to meet consumers’ and stakeholders’ needs (Dwivedi et al., 2021) and encourage them to use MB services (Aslam et al., 2022). This can be explained by a strive to “keep up with the current trends and satisfy users’ need for efficiency”, to “enhance users’ experience through mobile technology” and to make the “banking experience easier and more beneficial” (Elhajjar & Ouaida, 2020, p.352).

The long-term success of this sector does not rely only on user acceptance, recognizing that it may lead to target customers using MB just once or a few times. The long-term success of the MB system requires sustained use after initial adoption (Franque et al., 2020). For instance, Gong et al. (2020) reported that despite the successful implementation of mobile payment services, providers were struggling to drive consumers to trust these services.

This study highlights the potential factors predicting customers’ successful and continuous adoption of MB services. DeLone and McLean’s (2003) Information Systems Success Model (ISSM) has received much attention from information systems (IS) researchers. Initially, it was used to evaluate e-commerce (Rokhman et al., 2022). It provides the foundation for research in the field of MB. Although many studies have applied it to several IS environments, such as online shopping (e.g., Chen & Cheng, 2009), e-learning (e.g., Rokhman et al., 2022), and online communities (e.g., Lin & Lee, 2006), a few studies have examined the DeLone and Mclean model in the context of the latest mobile banking applications (MB apps). According to Noh and Lee (2015, p. 274), “the DeLone and McLean IS success model has not been validated in the smartphone-based mobile environment.” Consequently, it is important to test and validate the model in this specific context. Our research applies the updated ISSM to MB apps to confirm its validity.

The study aims to:

  • − Verify the relationships between the essential dimensions of MB apps’ success.

  • − Integrate two important variables as net benefits. The first is a relationship-driving indicator which is the perceived value. The second is a permanent condition of using technology, namely usefulness.

  • − Validate the model using the partial least square-structural equation modeling (PLS-SEM) method.

The paper is structured as follows. In section 1, we examine the theoretical background, focusing on MB technology and IS success model constructs. Section 2 presents the conceptual research model and the hypotheses. Section 3 deals with research methodology. In section 4, we present data analysis and results. Section 5 discusses the findings. Then we present the limitations and suggest potential new avenues for future research.

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