Development of a mobile cash acceptance model: structural equation approach

Abstract

Development of a mobile cash acceptance model: structural equation approach This study intends to develop a conceptual model integrating the dimensions of mobile service quality (MSQ) in to other determinants of usage intension (UI) of Mobile Cash (MC) services using Partial Least Square – Structural Equation Modeling (PLS-SEM). The Extended Unified Theory of Acceptance and Use of Technology (UTAUT2) has been selected as the theoretical base for the study. Considering both functional and technical quality aspects of MSQ, seven dimensions have been used (Reliability (REL), Responsiveness (RES), Assurance (ASU), Empathy (EMP), Tangibles (TAN), Convenience (CON), and Customer Perceived Network Quality (NQT)). A survey was carried out in a Higher Education Institute with a sample of 272 MC users. The measurement model assessment has revealed an adequate level of reliability, and validity in the measurement instrument. Therefore, eight different models have been formulated and tested using PLS-SEM to identify a statistically significant model. The standardized root mean square residual (SRMR) used as the determinant of model goodness of fit and bootstrapping procedures were used to determine the significant paths within each model. Based on the indications of the Recommended model, it was concluded that only five UTAUT2 variables (Performance Expectancy, Social Influence, Facilitating Conditions, Price Value and Habit) have direct effects (p<0.05) on UI and only the six dimensions that represent the functional quality aspect of MSQ (RES, ASU, CON, TAN, EMP and REL) have shown significant indirect effects (p<0.05) on UI where RES alone showed a negative effect. Since the technical quality dimension (NQT) did not show any significant effect on UI, the service providers are recommended to pay more attention on the functional quality rather than technical quality to improve future usage of Mobile cash services.