Journal of Internet Banking and Commerce
Vol. 12 No. 3 December 2007
http://www.arraydev.com/commerce/jibc/current.asp

======================
From JIBC Publisher Nahum Goldmann
http://www.arraydev.com/commerce/jibc/2007-12/0712-Publ_PDFVersion.pdf
======================

Community Building

I am always amazed by the geographic, cultural and business diversity
of JIBC readers, authors, and our volunteer editors. In contrast to
more traditional methods, Internet publishing truly adds value, not
just assembles together a set of the leading scholars, researchers,
experts and practitioners in the given field. Well-positioned and
respected journals, like JIBC, allow experts from all the corners of
the world to become an integral part of the global community of action
and positive change.

That's not to say that we all have to think alike, or that JIBC
Editorial Board is trying to impose some artificial uniformity. Our
community is always in transition, as the field of our discussion is
new, diverse and frequently controversial - it touches lives of real
people. Some well-tested "common sense" business and commerce ideas do
not stand a chance in the new ebusiness paradigm. Legislation,
technologies, as well as government, social, financial, industrial and
environmental frameworks are sometimes hopelessly out of date.

Dear reader and author - I feel that is our joint responsibility, a
unique opportunity, and an honour to contribute to the global
prosperity. This we can do by deriving novel ecommerce and ebanking
solutions that the generations to come can use in making their life
better.

Blessed are those few who can afford to live and function outside of
the modern commercial and financial frameworks. For the rest of us
(i.e., the absolute majority of global population), financial and
business consideration are often a source of everyday effort and
concerns. Hopefully, our Journal contributes in a modest way to
resolving important business and commercial issues of the day; and,
with some luck, of the years to come.

Again, I am asking each and every one of you, our readers and
subscribers, to email JIBC to at least 3 of your colleagues, friends
and discussion groups that you are participating at, and recommend
that they also subscribe. On page
http://www.arraydev.com/commerce/JIBC/current.asp you will find links
to posting our publication to Digg this, del.icio.us and Slashdot.
Please share information about JIBC articles with the Internet
community and suggest to us new ways to promote JIBC among the
academic and professional communities around the globe.

As well, I am challenging all the current and past authors and editors
to email your own articles - along with the rest of JIBC edition - to
at least 10 of your peers and colleagues in academia, government and
industry. Make sure they are aware of your articles and the Journal of
Internet Banking and Commerce. Recommend that they also subscribe to
email editions. After all, we send it around just 3-4 times a year.

A special appeal to ecommerce/ebusiness students to pass a word about
JIBC to your professors and classmates and, more important, to ask
them to supply new articles and tell everybody to subscribe.

Please contact us with the suggestion of how to submit information on
JIBC to other leading search engines and academic reference
publications. Also, if you notice publications referring to JIBC
articles, please let us know. Let's spread the word!

======================
From JIBC Editor-in-Chief Nikhil Agarwal
http://www.arraydev.com/commerce/jibc/2007-12/EditorialNote.pdf
======================

In last editorial I have spoken about subprime tremors and global
warming of economy. As expected, these tremors and global warming
signals have their first victims. Citigroup, UBS, Soc Gen every bank
balance sheet is in red. Reason? Reason may be simple, they were not
smart enough to see the future. Many of you may laugh at the comment
that biggest banks in the world are smart enough ... but think again !!

At Soc Gen a rogue trader has cost them Euro 7.2 billion dollars. I
wonder how can smart and technology savvy bank like Soc Gen have faced
such crisis. How it is possible that anybody has not noticed such
large fund movements, it is against the ERP rules of workflow. I would
term it social engineering. In end Feb, I am speaking at 10th Fund
Compliance Summit at Luxembourg. The theme of my presentation is
'Methods to Evade Social Engineering Attacks and how to create
checks/balances to avoid human errors'. It is easier to create a
world-class IT infrastructure, but we should not forget that the
management is still in hands of human being. Therefore, it is
essential to have human-system-chain methodology to avoid blunders in
future.

In this issue we have 12 articles. S Arumuga from India gives a
glimpse of the need & role of virtual trainer in the organization. The
paper talks about the new trend in implementing virtual trainer in
Multiuser Virtual Reality system. Tariq Bhatti from UAE explores the
factors influencing the adoption of mobile commerce. Blanca
Hernández-Ortega from Spain discusses the analysis of Web Navigability
in Spanish Internet Banking. In this paper authors have analysed
empirically all the Spanish banking entities with a presence on the
Internet and have measured the level of navigability in the sector.
Geoffrey H. Tanakinjal from Malaysia has shared an analysis of mobile
devices and communication. Authors believe that their research will
contribute to the mechanism used by telecommunication service
companies to communicate about their services. George Rigopoulos from
Greece talks about Technology Acceptance Model Framework to Evaluate
Users' Perception towards Online Electronic Payments.

Our regular contributor Hanudin from Malaysia explores the technology
acceptance of Internet banking among undergraduate students in
Malaysia. Hong-Jen Lin from US, his article adopts the complementary
assets model to analyze the environmental issues of international
e-finance under the new Basel Accord. In another interesting article
that gives different dimension and extension of Technology Acceptance
Model; Muniruddeen Lallmahamood of Mauritius gives an examination of
individual's perceived security and privacy of the Internet in
Malaysia and the influence of this on their Intention to use
e-commerce. Jarunee Wonglimpiyarat from Thailand gives overview of the
business strategy in managing payment innovations. His study looks at
the smart card - electronic cash (e-cash) innovation in the financial
service industry. Ghulam Muhammad Kundi discusses the opportunities
and threats of eBusiness in Pakistan.

Overall a very strong issue with global footprints. Enjoy the New Year
and hope the global warming of economy should see another Al Gore.

=============================
PEER REVIEWED RESEARCH PAPERS
=============================

USA: The Strategies of International E-Finance Under Basel II: A
Complementary Assets Approach
(By Hong-Jen Lin)
http://www.arraydev.com/commerce/jibc/2007-12/HongJenLin_Final.pdf

This article adopts the complementary assets model to analyze the
environmental issues of international e-finance under the new Basel
Accord (Basel II). The capability of a bank to comply with Basel II is
regarded as the complementary assets and the e-finance is treated as
the innovative new technology in the model. Based on the analysis,
several strategies that bankers may take are suggested. The analysis
shows that Basel II will obviously foster more e-finance investments
and the use e-finance will make the supervisory work under Basel II
regulations a challenge.

AUSTRALIA: An Examination of Individual's Perceived Security and
Privacy of the Internet in Malaysia and the Influence of This on Their
Intention to Use E-Commerce: Using An Extension of the Technology
Acceptance Model
(By Muniruddeen Lallmahood)
http://www.arraydev.com/commerce/jibc/2007-12/Muniruddeen_Final.pdf

This study explores the impact of perceived security and privacy on
the intention to use Internet banking. An extended version of the
technology acceptance model (TAM) is used to examine the above
perception. A survey was distributed, the 187 responses mainly from
the urban cities in Malaysia, have generally agreed that security and
privacy are still the main concerns while using Internet banking. The
research model explains over half of the variance of the intention to
use Internet banking [R2 = 0.532 (adjusted)], the unexplained 47
percent of variance suggests that the model may have excluded other
possible factors influencing the acceptance of Internet banking.
Interaction in the local language (Bahasa Malaysia) did not have an
impact on the ease of use of Internet banking. Internet security,
Internet banking regulations and customers' privacy would remain
future challenges of Internet banking acceptance. The value of this
study may provide an updated literature in the field of Internet
banking acceptance in Malaysia.

MALAYSIA: ICT Adoption in Malayasian SMEs from Services Sectors:
Preliminary Findings
(By Alam. S. S. Mara and Nilufar Ahsan)
http://www.arraydev.com/commerce/jibc/2007-12/Syed_accepted.pdf

The purpose of this research was to investigate the extent to which
small and medium size businesses in the southern region in Malaysia
are prepared for ICT adoption. Most of the businesses have now
accepted ICT as an important tool to increase its business in the
domestic as well as global market place. In future ICT will grow more
rapidly in the Malaysian SMEs sectors. In order to increase the
effectiveness of ICT, companies can use Internet to present almost
unlimited information about their products and services in cyberspace.
Through judgment sampling SMEs from service sectors of northern region
was selected as the research area for this study. This study
investigates the rate of usage of ICT by the SMEs. The survey was
conducted by mail and the findings are summarized herein.

UAE: Exploring Factors Influencing the Adoption of Mobile Commerce
(By Tariq Bhatti)
http://www.arraydev.com/commerce/jibc/2007-12/bhatti_Final.pdf

This study presents an extended technology acceptance model that
integrates innovation diffusion theory to investigate what determine
user mobile commerce acceptance. This paper models the factors
relationships such as perceived usefulness, perceived ease of use,
personal innovativeness, subjective norms, behavioural control and
intention to adopt mobile commerce. The proposed model was empirically
tested using data collected from a survey of mobile commerce
consumers. Empirical data from regression analysis reflects users ease
of use influence behavioural intention to adopt mobile commerce. The
majority of positive relationships between perceived ease of use,
subjective norms, behavioural control and intention to adopt are
supported by empirical data. Results also reveal that behavioural
control and subjective norms influence perceived ease of use that
affects then their adoption intention. The paper concludes some
important implications for the practitioners.

SPAIN: An Analysis of Web Navigability in Spanish Internet Banking
(By Blanca Hernandez-Ortega, Julio Jimenez-Martinez and Jose Martin de
Hoyos)
http://www.arraydev.com/commerce/jibc/2007-12/Blanca_Final.pdf

The Internet has an ever-growing importance in the banking sector
because of the advantages it brings to both the entities and their
customers. However, not all the financial entities that have adopted
e-banking have been successful, often because of an inadequate website
design. A navigable website allows the users to find the information
they want and carry out their operations quickly. The objective of
this paper is to analyse the navigability of the websites of Spanish
financial entities. To do so, different e-tools that determine web
navigability have been identified, defining their importance for a
correct interaction between the entities and the customers.
Furthermore, we have analysed empirically all the Spanish banking
entities with a presence on the Internet and have measured the level
of navigability in the sector.

MALAYSIA: Mobile Devices and Communication: An Analysis
(By Geoffrey H. Tanakinjal, Hanudin Amin, Nelson Lajuni and Jetol
Bolongkikit)
http://www.arraydev.com/commerce/jibc/2007-12/Geoffrey_Final.pdf

Communication through mobile devices is no longer treated as a new
phenomenon. Nevertheless, consumers' attitude towards electronic
marketing applications is still vague from the perspective of
acceptance. Text messaging is currently the best way to keep in touch
when the environment is not conducive to talk which includes being in
a noisy bar, on a crowded train, in a meeting or just do not want to
be overheard. The purpose of this paper was to determine factors that
influence consumer behaviour (mobile phone owners) in communicating
via SMS services. Indirectly, this research will contribute to the
mechanism used by telecommunication service companies to communicate
about their services. By identifying the influential factors and
isolating approaches that will not attract consumer, this can
eventually contribute to the success of introducing new or modified
products and services.

GREECE: A TAM Framework to Evaluate Users' Perceptions Towards Online
Electronic Payments
(By George Rigopoulous and Dimitrios Askounis)
http://www.arraydev.com/commerce/jibc/2007-12/George_final.pdf

Technology Acceptance Model (TAM) is capable of explaining user
behaviour across a broad range of end-user computing technologies and
user populations. In its original form TAM has been extensively
incorporated as a methodology to measure attitude towards technology
adoption from users in multiple domains, as well as within financial
domain. TAM variations have also been proposed and applied for
measuring users' attitude towards adoption of several IT based
services. In this paper we demonstrate a revised TAM model for
measuring users' attitude towards online electronic payments adoption.
We present the model developed, as well as initial results from a
relevant survey at a Greek bank's target users group.

THAILAND: E-Payment Strategies of Bank Card Innovations
(By Jarunee Wonglimpiyarat)
http://www.arraydev.com/commerce/jibc/2007-12/Wonglimpiyarat_Final.pdf

This paper is concerned with the business strategy in managing payment
innovations. Particularly, the study looks at the smart card -
electronic cash (e-cash) innovation in the financial service industry.
The smart card e-cash has yet to overcome obstacles to its diffusion.
Given the e-commerce opportunity, banks and non-banks compete to
deploy smart card technology for Internet use. A review of previous
payment innovations is also carried out to provide suggesting
direction on the innovation proliferation. The paper firstly examines
the payment market on the whole (the global review). The subsequent
section discusses the challenges in the e-payment world and the
strategies to support the diffusion of the smart card innovations.

PAKISTAN: E-Business in Pakistan: Opportunities and Threats
(By Ghulam Muhammad Kundi)
http://www.arraydev.com/commerce/jibc/2007-12/Kundi_final.pdf

Several studies of eBusiness in developing countries have emphasized
the influence of obstacles related to PCs-penetration, cultural and
economical infrastructure, and regulatory environment as major
determinants of eBusiness success. IT has revolutionized the way
organizations conduct business round the globe. Now business is
conducted online (eBusiness) instead of conventional means. In
Pakistan, eBusiness is facing both technical and non-technical issues
from management perspectives. A huge body of research is going on to
unfold the key issues of eBusiness. This paper focuses on the key
components of each of the above-mentioned issues, e.g. cultural issues
i.e. language, shopping habits, and use of credit etc.

The primary data collected through structured questionnaires was
analyzed and tested through correlation, regressions' analysis and
t-test. It has been found that all independent variables: economic,
political, business, cultural and marketing is mutually correlated and
has significant impact on shaping and reshaping of eBusiness in
Pakistan. Moreover, management implications along with possible
solutions to the barriers of eBusiness in Pakistan are presented.

MALAYSIA: Internet Banking Adoption Among Young Intellectuals
(By Hanudin Amin)
http://www.arraydev.com/commerce/jibc/2007-12/Hanudin_Final.pdf

The aim of this paper is to study technology acceptance of Internet
banking among undergraduate students in Malaysia. Thus, the
theoretical framework of the paper is based on modified version of
Technology Acceptance Model (TAM). This paper develops a technology
acceptance model for Internet banking, a conceptual framework to
explain the factors influencing undergraduate students' acceptance of
Internet banking.

The model employs perceived usefulness (PU), perceived ease of use
(PEOU), perceived credibility (PC) and computer self-efficacy (CSE).
The first two are two initial constructs for TAM model. The rest are
new constructs to be included in the model in order to have an
extension of TAM model that better reflects the students' view. The
results suggest that PU, PEOU and PC had a significant relationship
with behavioural intention. Further, these measures are good
determinant for undergraduate acceptance for Internet banking. Results
also suggest that PU and PEOU had a significant relationship with CSE.
On the contrary, CSE did not associate with PC. Also, PEOU had a
significant relationship with PU and PC that indicate these scales are
related to PEOU in explaining undergraduate preference. The paper is
useful in providing the understanding of the TAM among undergraduate
from Malaysians' perspective.

======================
OPINION ARTICLES
======================

INDIA: Glimpses for Effective Implementation of Virtual Trainer
(By S. Arumunga Perumal)
http://www.arraydev.com/commerce/jibc/2007-12/Arumuga_perumal_FinAL.pdf

This paper discusses and suggests some ideas and necessary changes in
implementation of virtual trainer in an organization. With the
invention of new technologies like high speed computer networks and
multimedia computers, there is an increasing awareness that direct
face to face teaching is not the only possible mode of training
methodology in an organization. There is a demand for preparing high
quality multimedia training material across all faculties, which can
be used by learners of the course who either cannot attend the live
lectures or prefer to study in an off-line mode. Assignments, Seminars
and evaluations are done though on line mode. A new trend in
implementing virtual trainer in Multi-user Virtual Reality system is
discussed in this paper. The awareness of computer-based training is
analyzed with employees of different categories. This method also
leads to the development of effective implementation of web based
virtual trainer through out the world in the near future.

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=====================
Administrative Notice
=====================

Journal of Internet Banking and Commerce

JIBC is a leading edge publication that informs banking and electronic
commerce professionals and executives on principal developments,
benchmark practices, and future trends in the Internet-based marketing
practices of governments and industry. This free online interactive
journal is a way to keep in touch, to share information, and to
establish business contacts (networking) for worldwide professionals
that specialize in electronic commerce, governance and banking solutions.

In JIBC you will find informed discussion of the latest internet-based
banking and electronic trends and practices from around the world. Our
priority is quality, not quantity. We want to maintain JIBC as a
service that provides substantial information and an effective forum
for your articles, your letters, your insights and ideas.

JIBC invites banking and electronic commerce professionals,
academicians and publishers to submit important announcements,
original articles, guest columns and significant feature
presentations. We also welcome surveys, book reviews and letters to
the Editor. Technical discussions in highly specialized areas of
expertise will be kept to an absolute minimum.

JIBC is formally issued three to four times a year when an email
summary of current articles is distributed to subscribers. The full
text of current articles is posted on the JIBC Web site at
http://www.ARRAYdev.com/commerce/JIBC/current.asp.

The publication is complemented by the Compendium of Internet Banking
and Commerce Initiatives at:
http://www.arraydev.com/frames/f-guest_comp.htm.
We invite readers to provide brief descriptions of products, books,
and services that they think others will find interesting.

The Journal of Internet Banking and Commerce (JIBC) is provided as a
service by ARRAY Development based in Ottawa, Canada. Views expressed
are those of the authors and are not necessarily shared by ARRAY
Development. Firms or individuals interested in sharing sponsorship of
this project may contact array (at) ARRAYdev.com.

The JIBC Web Archive
http://www.arraydev.com/commerce/jibc/articles.htm contains all
articles published to date.

You can reach the Editor-in-Chief Nikhil Agarwal with any questions or
comments by email at:
nikhil.jibc (at) gmail.com

Publisher Nahum Goldmann is at:
Nahum.Goldmann (at) ARRAYdev.com.


=================================
Editorial Board
=================================

Publisher and Member of the Editorial Board: Nahum Goldmann

Editor-in-Chief: Nikhil Agarwal

Deputy Editor-in-Chief: Joshua Fogel

Founding Chief Editor Emeritus and Member of the Editorial Board: Gord
Jenkins

Managing Editor: Xin "Robert" Luo

Mailing List Managing Editor: Anne-Marie Jennings

Contributing Editors
UK Contributing Editor: David G.W.Birch
South America Contributing Editor: Carlo G. P. Bellini
Australia Contributing Editor: Dale Pinto
Japan Contributing Editor: Carin Holroyd
Middle East Contributing Editor: Raed Awamleh
Legal Contributing Editor: Edwin Jacobs
Africa Contributing Editor: Alemayehu Molla
France Contributing Editor: Jean-Michel Sahut
India Contributing Editor: Arun Mohan Sherry
Malaysia Contributing Editor: Bala Shanmugam
Canada Contributing Editor: Arthur J. Cordell


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