Document Type : Original Research
Authors
Department of Economics and Management, Xi’an University of Technology, Xi’an, China
Abstract
Since the internet became freely accessible everywhere in recent years. As banking transactions changed and shifted to online banking, banks paid more attention to how to make the best use of it, reduce operating expenses, and boost profitability. Online banking is a method of doing business that has frameworks that are properly connected with various customer-oriented services offered while also lowering costs and raising profits. The current study sought to investigate the impact of internet banking on Nepali banks' performance in terms of the mediating effect of training and development. It focuses mostly on how training and development affect bank performance in Nepal. Additionally, it emphasizes how crucial online banking can be for improving bank financial performance.The data were selected from 150 respondents of commercial banks located at Khathmandu, Bhaktapur, and Lalitpur. As the primary source of quantitative data for the present research, participants completed a self-administered questionnaire. Additionally, partial least squares structural equation modeling (PLS-SEM) was used to examine the data obtained through the use of questionnaires. The findings suggest a favorable association between online banking and bank performance. According to the findings, training and development significantly impact bank performance. The findings also indicate that the association between online banking and bank performance is mediated by training and development. To meet the intended profitability ratio from online banking, increase customer satisfaction, and produce strong financial performance, management should work to put focus on the training and development process.
Keywords
Main Subjects
COPYRIGHTS
©2023 The Author(s). This is an open access article distributed under the terms of the Creative Commons Attribution (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, as long as the original authors and source are cited. No permission is required from the authors or the publishers.
Alsafadi, Y., & Altahat, S. (2021). Human resource management practices and employee performance: the role of job satisfaction. The Journal of Asian Finance, Economics and Business, 8(1), 519-529.
Bagozzi, R. P., Yi, Y., & Phillips, L. W. (1991). Assessing construct validity in organizational research. Administrative Science Quarterly, 421-458.
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173.
Bhatt, T. K., Ahmed, N., Iqbal, M. B., & Ullah, M. (2023). Examining the determinants of credit risk management and their relationship with the performance of commercial banks in Nepal. Journal of risk and financial management, 16(4), 235.
Birdi, K., Allan, C., & Warr, P. (1997). Correlates and perceived outcomes of 4 types of employee development activity. Journal of Applied Psychology, 82(6), 845.
Bradley, L., & Stewart, K. (2003). The diffusion of online banking. Journal of Marketing Management, 19(9-10), 1087-1109.
Bryman, A. (2006). Integrating quantitative and qualitative research: how is it done? Qualitative research, 6(1), 97-113.
Chin, W. W. (1998). Commentary: Issues and opinion on structural equation modeling (pp. vii-xvi): JSTOR.
Eren, B. A. (2021). Determinants of customer satisfaction in chatbot use: evidence from a banking application in Turkey. International Journal of Bank Marketing, 39(2), 294-311.
- Hair Jr, J., Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European business review, 26(2), 106-121.
Finstad, K. (2010). Response interpolation and scale sensitivity: Evidence against 5-point scales. Journal of usability studies, 5(3), 104-110.
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics: Sage Publications Sage CA: Los Angeles, CA.
Gao, T., Rohm, A. J., Sultan, F., & Huang, S. (2012). Antecedents of consumer attitudes toward mobile marketing: A comparative study of youth markets in the United States and China. Thunderbird International Business Review, 54(2), 211-224.
Haenlein, M., & Kaplan, A. M. (2004). A beginner's guide to partial least squares analysis. Understanding statistics, 3(4), 283-297.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing theory and Practice, 19(2), 139-152.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2-24.
Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the academy of marketing science, 40, 414-433.
Hair Jr, J. F., Babin, B. J., & Anderson, R. E. (2010). A global p-erspect-ivie. Kennesaw: Kennesaw State University.
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., Ray, S., & Hair, J. F. (2021). An introduction to structural equation modeling. Partial least squares structural equation modeling (PLS-SEM) using R: a workbook, 1-29.
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing New challenges to international marketing (Vol. 20, pp. 277-319): Emerald Group Publishing Limited.
Hussain, H. A., & Al‐Ajmi, J. (2012). Risk management practices of conventional and Islamic banks in Bahrain. The Journal of Risk Finance.
Iqbal, M. B., Li, J., Yang, S., & Sindhu, P. (2022). Value-driven Career Attitude and Job Performance: An Intermediary Role of Organizational Citizenship Behavior. Frontiers in Psychology, 6591.
Jahangir, N., & Begum, N. (2008). The role of perceived usefulness, perceived ease of use, security and privacy, and customer attitude to engender customer adaptation in the context of electronic banking. African journal of business management, 2(2), 32.
Kirkpatrick, D. L (1994) Evaluating Training Programs: The Four Levels San Francisco: CA: Berrett‑Koehler.
Kothari, C. R. (2004). Research methodology: Methods and techniques: New Age International.
Lin, S., Wang, C., Wang, Q., Xie, S., Tu, Q., Zhang, H., . . . Redfern, J. (2022). The experience of stroke survivors and caregivers during hospital-to-home transitional care: A qualitative longitudinal study. International Journal of Nursing Studies, 130, 104213.
Malhotra, P., & Singh, B. (2009). The impact of internet banking on bank performance and risk: The Indian experience. Eurasian Journal of business and economics, 2(4), 43-62.
Miller, R. L. (2015). Rogers' innovation diffusion theory (1962, 1995) Information seeking behavior and technology adoption: Theories and trends (pp. 261-274): IGI Global.
Nenty, H. J. (2009). Writing a quantitative research thesis. International Journal of Educational Sciences, 1(1), 19-32.
Nitzl, C., Roldan, J. L., & Cepeda, G. (2016). Mediation analysis in partial least squares path modeling: Helping researchers discuss more sophisticated models. Industrial management & data systems, 116(9), 1849-1864.
Olken, F., & Rotem, D. (1995). Random sampling from databases: a survey. Statistics and Computing, 5, 25-42.
Olsen, L. L., & Johnson, M. D. (2003). Service equity, satisfaction, and loyalty: from transaction-specific to cumulative evaluations. Journal of Service Research, 5(3), 184-195.
Onay, C., & Ozsoz, E. (2013). The impact of internet-banking on brick and mortar branches: The case of Turkey. Journal of Financial Services Research, 44, 187-204.
Pea-Assounga, J. B. B., & Wu, M. (2022). Internet banking and bank investment decision: mediating role of customer satisfaction and employee satisfaction. Paper presented at the Intelligent Computing & Optimization: Proceedings of the 4th International Conference on Intelligent Computing and Optimization 2021 (ICO2021) 3.
Pierce, D. A., & Schafer, D. W. (1986). Residuals in generalized linear models. Journal of the American Statistical Association, 81(396), 977-986.
Rahi, S. (2017). Research design and methods: A systematic review of research paradigms, sampling issues and instruments development. International Journal of Economics & Management Sciences, 6(2), 1-5.
Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. SmartPLS GmbH: Boenningstedt.
Sackett, P. R., & Mullen, E. J. (1993). Beyond formal experimental design: Towards an expanded view of the training evaluation process. Personnel Psychology, 46(3), 613-627.
Sarstedt, M., Ringle, C. M., Henseler, J., & Hair, J. F. (2014). On the emancipation of PLS-SEM: A commentary on Rigdon (2012). Long range planning, 47(3), 154-160.
Schneider, M. R. (2017). Financial Communications: The Federal Reserve System's Contributions. The Handbook of Financial Communication and Investor Relations, 341-354.
Shih, Y. Y., & Fang, K. (2004). The use of a decomposed theory of planned behavior to study Internet banking in Taiwan. Internet research, 14(3), 213-223.
Simmons, H. H. (2006). Training matters. American Bankers Association. ABA Banking Journal, 98(7), 18.
Sitzmann, T., & Weinhardt, J. M. (2018). Training engagement theory: A multilevel perspective on the effectiveness of work-related training. Journal of Management, 44(2), 732-756.
Suh, B., & Han, I. (2002). Effect of trust on customer acceptance of Internet banking. Electronic Commerce research and applications, 1(3-4), 247-263.
Sukkar, A. A., & Hasan, H. (2005). Toward a model for the acceptance of internet banking in developing countries. Information Technology for development, 11(4), 381-398.
Tabachnick, B. G., Fidell, L. S., & Ullman, J. B. (2007). Using multivariate statistics (Vol. 5): pearson Boston: MA.
Uddin, M., Chowdhury, R. A., Hoque, N., Ahmad, A., Mamun, A., & Uddin, M. N. (2022). Developing entrepreneurial intentions among business graduates of higher educational institutions through entrepreneurship education and entrepreneurial passion: A moderated mediation model. The International Journal of Management Education, 20(2), 100647.
Walker, R. H., & Johnson, L. W. (2006). Why consumers use and do not use technology‐enabled services. Journal of services Marketing, 20(2), 125-135.
Warr, P., Allan, C., & Birdi, K. (1999). Predicting three levels of training outcome. Journal of Occupational and Organizational Psychology, 72(3), 351-375.
Warr, P., & Bunce, D. (1995). Trainee characteristics and the outcomes of open learning. Personnel psychology, 48(2), 347-375.
White, B., & Frederiksen, J. (2005). A theoretical framework and approach for fostering metacognitive development. Educational Psychologist, 40(4), 211-223.
Zarzour, H., Jararweh, Y., Hammad, M. M., & Al-Smadi, M. (2020). A long short-term memory deep learning framework for explainable recommendation. Paper presented at the 2020 11th International Conference on Information and Communication Systems (ICICS).
Zhong, X., Chen, W., & Ren, G. (2022). The impact of corporate social irresponsibility on emerging-economy firms’ long-term performance: An explanation based on signal theory. Journal of Business Research, 144, 345-357.
)