As a result of the ever changing environment in the-business sector and changing customer demands as well as achieving sustainability in competition, organisations have sourced ways to improve-business processes to create overall satisfaction. A way of achieving this is by the integration of internet technology into office activities. According to Porter (2001), internet technology creates opportunities for strategic positioning than did previous generations of information technology. In this light, we see Phan (2002) who noted that, the most successful business models are those that incorporate internet technology to all activities of the enterprise wide value chain. It cannot be over emphasised the significance of technology because it transforms the nature of products and processes as well as competition (Porter & Miller 2001,Porter,1989).The use of internet technology offers a whole lot of options for businesses which if properly applied, could bring great advantage in strengthening competition (Buhalis,2003). A well managed internet technology, can generate tremendous value for organisations(Lee,2001) although Pepperd et al. (2006) believes that all information technology projects have outcomes but not all the outcomes are beneficial to the organisation which means some information technology project produce negative outcomes. Still, internet technology has become an extremely important technology because it has emerged as marketplace where-business transactions take place. An example of such a business transaction is Electronic business (E-business) (Beynon Davis, 2004, pg 2).
According to Enders et al. (2005), e-business can be defined as the use of electronic means to conduct business activities internally or externally. There are several categories of e-business for example, business to business, customer to business, customer to customer, people to people etc. All e-business operations are performed using computer networks in the absence of physical operations.
The benefits of the use of e-business are so great that many believe e-business is the new economy that will decide the success or failure of business organisations (Phan, 2002).
Business organisations employ the use of e-business for several reasons. E-business creates possibilities for companies to provide better customer satisfaction (Rodgers et al, 2002) . It has become common knowledge that organisations have become more customer oriented by constantly exchanging information with customers to create a better understanding of their individual needs (Wu et al., 2003).The use of e-business, gives competitive advantage over rival businesses by creating operational effectiveness by doing the same things as competitors but doing it in a unique way(Porter 2001) and also increases profit for businesses (Lal, 2004). However, it has been revealed that some firms implementing the use of e-business have made little or no profit from their e-business ideas (Gordijn & Akkormans,2003).Finally e-business creates a path into a new global market (Papazoglou & Ribbers,2006) .With e-business, customers can be reached irrespective of location without having to spend so much on marketing (Barua et al.,2001).
A major industry that have gone online in doing their business is the banking industry which is called online banking or electronic banking (E-Banking). This allows customers and the banks to conduct financial transaction over the internet. For the purpose of these studies, emphasis will be paid to e-banking only which will be discussed in the next heading.
Having mentioned the benefits of the use of e - business, it doesn't come without flaws. The adoption of e-business can be very expensive and since personal information of customer is required electronically, customer security is limited and the system is vulnerable to hackers (Rodgers et al., 2002, Warrington et al., 2000). It is therefore advised that firms looking to adopt e-business should ensure the provision of tight security measures and control. (Warrington et al., 2000)
Electronic Banking
E-Banking is the provision of variety of retail banking products and services via electronic channels ranging from the common automatic teller machine (ATM) services and direct deposit to automatic bill payment (ABP), electronic transfer of funds (EFT), and computer banking (PC banking) (Kolodinsky et al., 2004).
The ICT revolution in the bank industry can be traced back to the early 1970s with the introduction of the credit card, the ATM and the ATM networks (Gan et al., 2006). Shortly after, telephone banking and cable television banking was introduced in 1980s; this was followed by PC banking in the late 1980s and in the early 1990s (Giannakoudi, 1999).
Information technologies opened up new electronic channels for delivery banking services that would traditionally be carried out over the counter (Boateng & Molla, 2006; Giannakoudi, 1999). With further technological advancements, banks were able provide services to customers via personal computers using the intranet. However, the customers benefitting from these services were corporate customers rather than retail customers.
Today, the adoption of e-banking is growing rapidly all over the world. Banks are making enormous investments shifting from traditional banking channels to electronic banking channels in order to increased customer base, development of non-core businesses, marketing and communications, mass customization and product innovation and the rendering of services regardless of geographic area and time (Giannakoudi, 1999).
E-Banking Delivery Channels
These are the electronic mediums that allow banking operations to be conducted. The major channels used in e-banking are:
Automatic Teller machines (ATM): According to Cracknell (2004), ATMs can be cash dispensers only or can be fully functional teller machines that accept deposits, dispense cash or programs with other functions. They are mostly found in designated locations to allow customers to withdraw money and check their account balances. ATMs are very expensive to own but are a much cheaper way of processing withdrawals than over the counter (Cracknell, 2004). They are typically online; hence they require reliable and efficient communication and power (Cracknell, 2004).
Internet banking: This allows customers to carry out a wide range of bank transaction electronically via the bank's website with the development of asynchronous technologies and secure electronic transaction technologies (Tan & Teo, 2000). It service both as a medium of delivery of banking services and as a strategic tool for business development.
Internet banking can be categorized into three depending on the degree of services rendered to customers (Yibin, 2003). First the basic Internet banking involves websites that solely provide information on banking product and services rendered to customers. Secondly, the simple, transactional e-banking involves website that permit customers make queries on their account balances, submit application for various services, and submit instruction to the bank. However, they do not allow any fund transfer. Thirdly, the advanced transactional e-banking involves technology that permits customers to transfer funds electronically, pay bills and execute online banking transactions.
Phone banking: This permits the customer or branch to call another branch to conduct a transaction. It is an active technology that has undergone an evolution, from calling the bank and talking to the person to a customer service representative to calling an automated account management system (Kolodinsky et al., 2004). However, the phone banking is the least popular e-banking channel (Wan et al., 2005).
Mobile banking: It gives customers the opportunity to operate virtual bank accounts through mobile phones, either through menu-driven system or through SMS (short message service) technology which is already being used by millions (Cracknell, 2004). Depending on the functionality of the mobile phone, bank services that can be access range from stock trading, fund transfers between accounts, to making micropayments and confirmation of direct payments through the phones micro-browser (Mallat et al., 2004).
Implementing E banking initiatives may be a herculean task as a result of the effects on banks structure, business processes as well as product and value flow among banks and their respective clients (Kerem, 2003). Electronic banking has potential demerits which includes indirect costs to customers and increased insecurity of transactions (Al Sukkar & Hassan.,2005).These insecurities are as a result of risk concerns (palmer et al.,2000) and trust related issues (Lee and Turban,2001).
E-Trust
To establish a relationship between customers attitude towards e banking, it is necessary to understand the concept of trust. According to Mayer et al (1995), trust is the ability of an individual or a party to willingly succumb to actions of another individual or party based on belief that the other will not take advantage, but will perform a particular action irrespective of the ability to monitor and control that party. It can also be said to be the willingness to rely on someone with confidence (Moorman et al., 1993) and the perception that their partners will not act opportunistically (Morgan and Hunt, 1994). In the concept of E banking, trust can be defined thus, willingness of customers to perform on line transactions, believing that the bank will fulfil its obligations ,irrespective of their ability to control or monitor a particular banks actions (Yousafzai et al.,2005)
According to Tapscott et al (2000), trust is the sine qua non of the digital economy. It has been identified as the key to the success of e banking (Keen et al.,2000) because it is essential wherever interdependence is present (Mayer et al.,1995).Trust has been established as a tool for fast buyer seller transactions that can provide customers with high retail satisfaction (Hawes et al.,1989).Thus, lack of customers trust in the attributes of the bank and in online environment in general, has been and still remains a hindrance in the widespread acceptability of E banking (Yousafzai et al.,2005).It is difficult for customers to trust E banking because it does not create an opportunity for customers to have face to face communications with bank staff as well as eye contact, assurance mechanisms which humans depend on during uncertainties (Ba et al.,1999).To further complicate issues, there is concern about the reliability of the technology as a whole and fear of fraudulent activities on the internet, this further increases apprehension as regards adoption of E banking. There is also the issue of security being an obstacle in the adoption of E banking (Aladwani,2001 and Bestavros,2000).Customers fear for the security of their bank details and personal data and as a result are sceptical towards the use of the internet for any banking transactions.
Although many bank customers are still suspicious about using an electronic means for conducting financial transactions, there are still many willing to use the services(Tee,2000).This could be partly as a result of convenience and flexibility of the medium (Asher,1999) and assumed benefits(Tilden,1996) or familiarity of use.
ICT & Institutions
There is no precise or comprehensive definition of institutions. For the purpose of this research, Institutions are formally defined as permanent social entities that exert control and influence the conduct of social agents (King et al., 1994). The idea of trust is still very important in order to better understand the relationship between ICT and institutions. According to Winch & Joyce (2006) trust is a social construct and has been described by Castelfranchi & Falcone (2000) to go hand in hand with control.
Institutional concept of control and influence reveals that a substantial degree of trust is required for people to have the unyielding experience of being served by their institutions (Greenleaf, 1977). This implies that trust is essential in engaging people in participating in services being rendered and also plays a crucial role in the establishment of institutions.
An important notion of trust cited in literature is the distinction between trustworthiness and trust. Trust mirror the truster's beliefs about the trustworthiness of an entity while trustworthiness is an element of an institution or an entity which illustrate the commitment in serving the interest of prospective truster, and a competence in the environment over which trust is being given (Levi & Stoker, 2000). Hence, it's possible for a system to be trusted because it is perceived as trustworthy while the organisation is not (Maiye & McGrath, 2007).
Although it is logical to anticipate the development of trustworthy services to lead to customers trust in private institutions however, Avgerou (2007) assert it does not determine it. Avgerou (2007) notion convey two important ideologies that illustrate:
The customers' willingness to depend on a service is based on their perception of the underlying social context sustaining such service
The customer perception of trustworthiness depends on cognitive and emotional process brought by the experience of indicators and service use to explain the notion of trustworthiness, and information's such as the media.
The possibility of persuasion of the citizens in built in the statement above. Thus, Gasco (2003) speculate that institutions recognise these potentials in their positions in influencing the perception of customers and they do so through various methods by promoting the information systems in use along with the social agenda.
It is based on this idea that this study investigates the adoption of information systems in a developing country using an institutional approach.
Methodology
Theory
This study is based on the adoption of electronic banking in Nigeria. The banks sponsorship of the project makes provides credible case to use the concept of institutional intervention as discussed earlier on. The king et al (1994) institutional framework has been adapted in research papers to investigate the role of institutions in promoting the adoption of information systems in developing countries (see Silva & Figueroa, 2002).
The lack of research in understanding the role of institutions in IT innovation drove king et al to develop a framework for a consistent institution policy in IT innovation (King et al, 1994). The major focus of the framework in examining institutional intervention and IT innovation is the connection between the regulatory powers and influence of institutions and the notion of supply push and demand pull (King et al., 1994).
The supply push for innovation arise from the production of innovation products or product itself while the demand pull forces come up from the willingness of potential users to use innovation (King et al., 1994). The two forces would intermingle and influence each other at the same time.
King et al (994) also describes the notion of influence and regulation in the discourse of the form of instutional interventions. The influence of an organization is the exerting force of persuasive control over the practices, rules and belief systems that are exerted through education and socialization proceses of individuals while regulation by institution is the direct or indirect intervention in behavior of those under the institutions influence, with specific objective of modifying that behavior through sanction or other affirmative means (king et al., 1994).
It is based on the notion of regulation and influence, both adapted from institutional sociology, and the ideas of supply-push and demand-pull both adapted from historic economics that provide the classification of king et al (1994) framework:
Knowledge building: funding of research projects
Knowledge deployment: training programs for individuals and organizations to provide base of skilled talent and use
Subsidy: Direct or indirect provision of complementarities required for use
Mobilization: Program for awareness and promotion
Standards: Establishment of standards under which innovative activity might be encourages
Innovation Directive: Require that specific innovative products or process be used at all times
These classifications that are further explained in the discussion section guided in collecting and categorizing that data regarding the case study. It was then use to explain and discussed interventions and events concerning the case.
Research Approach
Philosophical Perspective
Both qualitative and quantitative studies are based on some assumptions about what amounts to valid study and which research method is appropriate. Orlikowski & Baroudi (1991) suggest three categories based on the underlying research epistemology names: critical, positivist and interpretive. Epistemology is the assumptions of knowledge and how it can be gathered
Critical research is concerned with identifying conflicts, contradictions, power relation and empowering people to eliminate them as sources of domination and alienations (Oates, 2006). The research aims to critique the status quo by the exposing what is believe to be deep rooted, structural contradictions within social systems and thereby transforming these restrictive and alienating social conditions (Orlikowski & Baroudi, 1991).
Positivism underlies what is called the scientific method and is the oldest of the three epistemologies. It is based on two assumptions, our world in regular and order, not random and it can be examined objective (Oates, 2006). Positivist research is generally based on testing theory in order to increase the understanding of the phenomena. Hence, Orlikowski & Baroudi (1991) categorised a positivist studies if there was evidence of hypothesis testing, formal propositions, measures of variables, and the drawing of inferences about a phenomenon from a sample to a stated population.
Interpretive studies according to Oates (2006) is concerned with understanding the society context of an information systems: the social processes by which it is developed and construed by people and through which it influences, and is influenced by, its social setting. In contrast to the positivism, interpretive studies reject the possibility of an "objective" or "factual" account of events and situations, seeking instead a relativistic, albeit shared, understanding of phenomena (Orlikowski & Baroudi, 1991).
However, my research concentrates on the social part of the adoption and usage of an information system. The aim is to investigate the role of institutions in promoting the adoption and use of the information system. The perspective adopted thus requires an investigative approach by virtue of its focus on social phenomena.
Out of the three epistemological information systems research, the interpretive research is the most feasible for my research as it is concerned with understanding the social context of information systems (Oates, 2006). However, the interpretive research is been criticise with the issue of generalisation. Generalisation has been a contested topic in interpretive research although it has been discredited as a positivist notion. According to Lee and Baskerville (2003), generalisation are mistakenly expected to be proven statements, rather than taken as well founded but as yet untested hypothesis. Furthermore, they state that majority of IS research has misapplied and over applied the concept of generalization. In this line of reason, Walsham (1995) proposed four types of generalisation in interpretive research namely: the development of concepts, the generation of theory, the drawing of specific implications and the contribution of rich insights.
However, my research seeks to understand the phenomenon of study and does not aim to generalise in the statistical or universal sense. My propose research setting shows a context in which IS initiatives are put forward for the people in order to stimulate development (human and economic). Interpretive research offers the opportunity to understand human thoughts and actions in organisational context (Klein & Myers, 1999). Thus, my research will therefore adopt the interpretive approach, as it will examine the actions and perceptions of the people within the proposed setting.
My research investigated a phenomenon of study and did not generalise in any universal or statistical sense. My research setting shows a context in which IS project was implemented for customers in order to increase business growth. The interpretive research offers the lens to understand the actions and thoughts of people in an organisational context (Klein & Meyers, 1999). Thus, my study adopted an interpretive approach, as it investigates the perception and actions of people within the organisation setting.
Research methods
The research method is the overall approach to answering your research question. The choice of research method influences the ways data is generated by the researcher. According to Oates (2006), the major qualitative research methods are action research, ethnography and case study.
Action research method is an approach in which the researcher and the client collaborate in the diagnosis of a problem and the development of a solution base on the diagnosis (Bryman & Bell, 2007). The action research method products an extremely significant research results because it combines theory and practices, aimed at solving at immediate problem situation and cautiously informing theory (Baskerville & Wood-Harper, 1996; Baskerville, 1999; McKay & Marshall, 2001; Avison et. al, 1999).
However the action research method has been criticised for its consequent lack of rigour and lack of repeatability and for concentrating too much on organisational action at the expense of research findings (Bryman & Bell, 2007).
The second applicable qualitative research method is the use of case study. According to Benbasat et al. (1991, pg. 370), case study is "a study which examines a phenomenon in its natural setting, employing multiple methods of data collection to gather information from one or a few entities (people, groups, or organisations". Although, the case study is descriptive, the research was conducted in an interpretive manner. In a many case study research, the researcher is an 'outside observer' as opposed to the action research and ethnography where the researcher is an 'involved observer' (Walsham, 2006). This could be an issue because an outside researcher may not get a good in-depth access to people, issues and data and the risk of absence in some occasions.
However, Orlikowski & Baroudi (1991) explained the multiple time studies in which data is gather at different time intervals thus providing more opportunities for the researcher to collect more information. Hence, the case study method was adopted in this study. In the context of my research which is interpretive, an interpretive case study as discussed by Walsham (1995) was the suitable approach to my research.
The organisation that was used as the case study is the United Bank of Africa (UBA). The reason for choosing UBA is because they are have one the best e-banking platform in Nigeria (Financial Nigeria, 2007).
Data collection methods
According to Yin (2003), six sources of evidence that are widely used in conducting case studies are documentation, archival record, interviews, direct observation, participant-observation, and physical artefacts. Amongst all this sources of evidence, the interviews tend to be the one of the most important sources of case study information (Yin, 2003) and are part of most interpretive studies as key ways of accessing the interpretations of informants in the field.
The interview method was adopted as the main source of data collect. Although other forms of forms of data in interpretive study such as press, media, and other publications of the bank was used to supplement the interviews (Walsham, 2006).
Common problems to interviews are bias due to poorly constructed questions, response bias, inaccuracies due to poor recall and reflexivity i.e. interviewee gives what interview wants to hear (Yin, 2003). In this research, the main challenges came from the reluctance of some respondents who were scared of revealing some information they belief to be confidential.
Finally, due to the complex characteristics of qualitative approach, thematic analysis was used to analyse data. It is a suitable method of qualitative data analysis which is a process of encoding qualitative information (Boyatzis, 1998). It allows a researcher using a qualitative method to easily communicate his or her observations, findings, and interpretation of meaning to others who are using different methods (Boyatzis, 1998).
There are two approaches to thematic analysis namely the deductive and inductive approach (Oates, 2006). They differ in their application in the extraction and identification of themes. Those identified from existing theories found in literatures are referred to as deductive approach while those that were derived from categories observed in the data from respondents, authors or other documents being studied are referred to as inductive approach (Oates, 2006).
However, the inductive approach was adopted in this study.
The data in the research was consolidated and categorised into three segments are proposed by Oates (2006): those that are related to the overall research aim, those that are significant to the research focus and lastly those provide a broad description of the research context.
The nVivo software was also used in analysing the interviews, however the use of the software was quite difficult as it was quite broad and there was no enough time to master the whole function of the software due to the submission deadline for the research.
Research Design
The research was conducted at United Bank of Africa, Imo state, Nigeria. It was significant to choose the participants in a methodical manner. This was carried out using the chosen theory to identify the stakeholder to make sure that the opinions of each group were fairly taken into account.
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Zenith, UBA, Skye Bank rated high on e-banking http://financialnigeria.com/NEWS/news_item_detail_archivep.aspx?item=433
