Application of Diffusion of Innovation Theory (DIT) towards online banking : An Evidence from Primary School Teachers in Kulim, Kedah

Abstract

This study was conducted to examine the adoption of online banking among primary school teachers in Kulim Kedah, namely: Sekolah Kebangsaan Labu Besar and Sekolah Kebangsaan Taman Mutiara. Specifically, this study applies the Diffusion of Innovation Theory, to understand the relationship of relative advantage, compatibility, triability, complexity, observability,affordability, technological knowledge and adoption of online banking. A total of 120 sets of questionnaires were distributed but only 99 could be used for coding, analyzing and hypothesis testing. Data for all the study variables were collected through self-administrated survey questionnaires and analyzed using SPSS version 18. A total of seven hypotheses were formulated and the results showed that only four hypotheses are supported. The results indicated that : (1) relative advantage is significantly (0.095) related to adoption of online banking, (2) compatibility is significantly (0.031) related to adoption of online banking, (3) complexity is significantly (0.085) related to adoption of online banking, (4) observability is significantly (0.089) related to adoption of online banking. While triability , affordability and technological knowledge have been established as insignificant findings in regression analysis. The implications of the study as well as suggestions for future studies were discussed.