Factors influencing banks’ adoption and development of e-Banking: case of Algeria
Anas B. Zerhouni
Brunel University London

Abstract: Electronic banking solutions have gained extensive adoption across the world. The case, however, is different in less developed countries such as Algeria. Several studies in both developed and developing countries have revealed the importance, benefits and issues related to e-banking adoption for both banks and their clients, and have extensively investigated customers’ attitudes toward e-banking in general and internet banking in particular. Nevertheless, it has been noted that there is a lack of studies on banks’ adoption of e-banking.

Therefore, this study aims to address this gap and uncover the key factors influencing the adoption and development of e-banking by banks, based on the combination of the Technology, Organization, and Environment “TOE” framework and Institutional theory, to examine and explore the relationship between these factors, identify their role in e-banking adoption and present them in a conceptual framework summarising their relationships.
This study adopts a pragmatic paradigm to answer the research questions and uses a mixed data gathering approach in a way that the quantitative method and analysis was in the second phase to reinforce and validate the findings of the main qualitative case study approach in order to gain a better understanding of the studied phenomenon.

Evidence collected in this study confirmed that some factors selected from the literature were found to have either little or no impact on e-banking take up in this context. Moreover, it was revealed that electronic banking adoption and development by banks is affected by contextual factors that include technological, organisational and environmental variables. Furthermore, the literature suggests that organisations are affected by three types of institutional pressures while adopting new technologies: coercive, normative, and mimetic pressures; however, in this context it was revealed that in terms of electronic banking adoption; coercive forces including pressures made by Central bank, Government, legal framework, underground economy, political reforms are the main influential factors to e-banking take up.

Keywords: Electronic banking (e-banking), TOE framework, Institutional theory, Coercive Pressures, Normative Pressures, Mimetic Pressures, Mixed Method, Pragmatism.