Examining Theory of Reasoned Action in Internet Banking Using SEM among Saudi Consumers

This study examines the applicability of theory of reasoned action (TRA) in a context of internet banking intention using structural equation modeling (SEM), hence it is intended to test whether the theory is acceptable or not in a newly context among none western culture, thus, emic measures of etic latent constructs are required. The simplified theory is tested using survey data from 350 respondents. Out of these, only 304 questionnaires are found to be usable whilst the rest are omitted owing to the incomplete responses or due to statistical circumstances. Results suggest that Compared to the TRA model, our generating model can create a much better understanding of actual internet banking behavior among Saudi consumers in Riyadh. The results indicated that direct paths from attitude to actual behavior and when adding a path from SN to attitude would improve the predictive power of the model and convincing improvement in fit, more so than what had been established by the original TRA model.