Introduction
Background
Mobile financial services offer customers enhanced convenience and efficiency, while banks seek to expand their market reach through these services Traditionally, banking transactions were primarily conducted through offline retail banking; however, the advent of wireless technology is transforming the delivery of personal financial services In Vietnam, retail banks have increasingly adopted mobile banking systems to enhance the quality of life for customers and improve operational efficiency Mobile banking (m-banking) enables users to conduct transactions anytime and anywhere, resulting in better service quality for banks and significant benefits for customers, including time savings, immediate access to information, and greater convenience With m-banking, users can easily check account balances, pay bills, and transfer funds using their mobile devices, eliminating the need to visit physical bank locations or rely solely on computer-based internet banking.
As of 2015, smartphone penetration in Vietnam was at 30%, with mobile banking transactions accounting for only 10% of total banking transactions, indicating a modest adoption rate compared to other countries Despite the advantages that mobile banking offers to customers, its usage in Vietnam remains low, suggesting that the adoption of mobile banking is still in its early stages when compared to other banking services.
2 backdrop understanding consumer intention toward m-banking will be crucial for the marketing strategy of banking institutions
Despite its rapid growth and strong economic performance, the Vietnamese business community faces significant challenges to sustainable development, particularly in social and environmental areas due to aggressive industrial practices and inadequate regulations Recent scandals, such as Vedan's pollution of the Thi Vai River and Coca-Cola Vietnam's tax evasion tactics, have led to consumer boycotts, illustrating the public's intolerance for violations of Corporate Social Responsibility (CSR) Additionally, the toxic waste leak from the Formosa steel factory in 2016, which caused extensive marine life deaths and health safety issues, has heightened concerns over CSR in Vietnam, emphasizing the need for corporations to adhere to ethical practices.
A Nielsen report indicates that 73% of Vietnamese online consumers are willing to pay a premium for products and services from companies that demonstrate a commitment to positive social and environmental impact, surpassing figures from Europe (40%), Latin America (63%), North America (42%), and Singapore (48%) This research aims to explore the influence of Corporate Social Responsibility (CSR) initiatives—encompassing economic, social, and environmental dimensions—on the behavioral intention to utilize mobile banking, with a focus on customer trust.
Research indicates that trust plays a vital role in business relationships, particularly in mobile commerce, as it helps to mitigate uncertainty This is especially important for mobile banking service providers, where establishing initial trust among users is crucial for success.
Concerns about the risks associated with online banking services are escalating globally, as these services operate in an open environment that exposes them to various security and privacy threats, including phishing, malware, spyware, spoofing, and password-sniffing Recent years have witnessed a significant rise in internet-based attacks, underscoring numerous incidents of theft, fraud, breaches of personal privacy, and hacker attacks.
The perception that online services carry greater risks than traditional transaction methods has contributed to customer concerns about personal security Many individuals believe that engaging in online activities such as mobile banking, e-ticket booking, and online shopping may compromise their safety.
Recent research indicates that perceived costs significantly influence consumer acceptance of mobile banking in countries like Australia, Iran, and Taiwan (Wessels & Drennan, 2010; Hanafizadeh et al., 2014; Yu, 2012) In Vietnam, customers exhibit strong sensitivity to pricing, which plays a crucial role in their purchasing decisions Consequently, this study utilizes the Technology Acceptance Model (TAM) as a foundational framework, adapting it to incorporate trust and three dimensions relevant to the mobile banking landscape in Vietnam.
CSR (Economic responsibility, social responsibility, environmental responsibility), perceived risk and perceived cost factors to enhance understanding of m-banking adoption intention of Vietnamese customers
This study distinguishes itself from previous research by addressing the use of mobile banking applications on smartphones and tablets, an area largely overlooked in prior studies that primarily focused on SMS banking in developing countries (Shaikh & Karjaluoto, 2015) Additionally, while most past research has explored the relationship between trust and the intention to use mobile banking, this study is among the first to investigate how Corporate Social Responsibility (CSR) influences m-banking adoption through trust Furthermore, while many studies have highlighted CSR's critical role in fostering customer trust within the Hospitality and Food industries, this research examines its impact specifically within the banking sector, particularly in mobile banking, a topic that has yet to be explored The findings may offer valuable insights for bank managers in developing effective planning strategies and marketing campaigns that promote sustainable growth.
Research questions and objectives of the study
The study seeks to investigate the influencing factors of m-banking in Vietnam Thus, it addresses the following questions:
Question 1: What are the main factors influencing customer behavioral intention to use m-banking services?
Question 2: How does the user in Vietnam perceive risk and cost with regards to m-banking?
Question 3: What is the perception of m-banking users in Vietnam about the bank‟s CSR initiatives?
Question 4: How important is trust to behavioral intention to use m-banking services?
The study aims to investigate the role of perceived usefulness and perceived ease of use in the adoption of m-banking in Vietnam, while also assessing the influence of perceived risk, perceived cost, and trust on customers' behavioral intentions Additionally, it will evaluate how the three dimensions of Corporate Social Responsibility (CSR)—Economic, Social, and Environmental Responsibility—affect customer trust The research will further explore the mediating role of trust and identify the most significant factors impacting the intention to use m-banking.
Significance of study
While traditional branch-based retail banking remains popular, m-banking offers an alternative for financial management services, enhancing accessibility to basic financial services by reducing the time and distance to bank branches The rapid growth of the mobile sector globally presents a unique opportunity to deliver social and financial services via mobile networks With over four billion mobile phone subscriptions worldwide, the mobile network can effectively meet the growing demand for convenient banking solutions.
Mobile banking (m-banking) has the potential to reach 61% of the global population, yet its adoption remains low in Vietnam despite over 90% mobile phone usage Many consumers express concerns about the safety and practicality of internet-based transactions, associating them with fraud Conversely, others view m-banking as a safer and more flexible option for managing finances anytime and anywhere Investigating the factors influencing the adoption or rejection of m-banking services is essential, particularly regarding risk perception and trust, as previous studies have highlighted these elements as critical barriers to uptake Notably, issues related to risk and privacy have been identified as significant obstacles, even though some consumers do not perceive m-banking as particularly risky Understanding these factors is crucial for overcoming the challenges associated with m-banking adoption.
Trust in the banking industry is closely linked to risk and privacy, which are crucial for banks aiming to expand their customer base and enhance services through technological innovations Despite existing research, there are significant limitations, particularly regarding the geographical focus, as most mobile banking studies have been concentrated in developed countries like the United States and Canada This study aims to address these gaps and contribute valuable insights to the field.
Understanding the key determinants of customer acceptance of mobile banking is crucial for researchers, developers, and managers aiming to enhance m-banking adoption rates in developing countries, particularly in Vietnam Insights into these factors can provide practical value for Vietnamese banks, as a significant increase in m-banking users can validate their investments in this technology and boost their return on investment (Lee & Chung, 2009) By identifying the barriers to mobile banking adoption, banks can effectively improve their services and better meet customer needs (Zhou et al.).
Thesis structure
This study is structured into six chapters: Chapter 1 introduces the background, significance, research question, and objectives Chapter 2 reviews relevant literature and establishes the conceptual framework Chapter 3 presents the research hypotheses and outlines the research model Chapter 4 details the methodology employed in the study Chapter 5 discusses the findings from the structural equation model analysis Finally, Chapter 6 summarizes the key findings, discusses implications, acknowledges limitations, and suggests directions for future research.
Literature Review and Theoritcal Background
Vietnamese market at a glance
Vietnam's remarkable transformation is a testament to its development success, driven by the Đổi Mới reforms initiated in 1986 These political and economic changes have lifted the country from extreme poverty, with a per capita income of approximately US $100, to achieving lower middle-income status, reaching around US $2,100 by the end of 2015.
Since 1990, Vietnam has experienced one of the fastest per capita GDP growth rates globally, averaging 5.5 percent annually, with an impressive 6.4 percent in the 2000s In 2015, the country's economy showed continued strength, achieving an estimated GDP growth rate of 6.7 percent for the year.
Overview of banking sector in Viet Nam
2.2.1 Short history of banking sector
Since its establishment in 1990, Vietnam's banking industry has evolved significantly from a mono-banking system to a comprehensive network of banks and financial institutions Over the past 24 years, the Vietnamese government has implemented numerous reforms aimed at enhancing the efficiency and competitiveness of the banking sector, particularly through the privatization of state-owned banks However, the government continues to maintain control over these banks, retaining at least 65% ownership in them.
Prior to 1990, the State Bank of Vietnam (SBV) functioned as both a central bank and a commercial bank Following the 1990 Ordinance on
1 http://www.worldbank.org/en/country/vietnam/overview
The State Bank of Vietnam (SBV) has restructured its banking activities by delegating functions to four newly established state-owned commercial banks (SOCBs), each focusing on distinct economic segments The Vietnam Industrial and Commercial Bank (Vietinbank) emerged from the central bank's industrial and commercial lending department, while the Vietnam Bank for Agriculture and Rural Development (Agribank) was formed from the agricultural department The Bank for Foreign Trade of Vietnam (Vietcombank) took over the international trade department, and the Bank for Investment and Development of Vietnam (BIDV) was created from the infrastructure department Today, the SBV's responsibilities are limited to central banking functions, which include formulating monetary policies, managing foreign exchange reserves, and supervising credit institutions, as financial intermediation tasks have been transferred to the commercial banks.
Vietnam's banking reforms have been largely driven by its integration into international trade and investment agreements, notably the US-Vietnam Bilateral Trade Agreement in 2001 and its WTO accession in 2007 These reforms have facilitated the deregulation of the banking sector, allowing for increased foreign bank presence, which has enhanced competitiveness among local banks In a significant move, the State Bank of Vietnam issued licenses for wholly foreign-owned banks in 2008 Furthermore, in January 2014, the ownership limit for individual foreign investors was increased from 15% to 20%, while the total foreign ownership cap was set at 30%.
In addition, there has been a growing partial privatization of the SOCBs and
10 greater efforts to achieve compliance with the international capital standards under the Basel capital accords
The Vietnamese banking sector features a wide range of institutions, from large state-owned banks to smaller private entities, with a total of 48 banks and collective assets amounting to VND 6.28 trillion as of November 2014 Among the top investment choices in the Vietnamese stock market are VCB and MBB VCB stands out due to its strong market position and significant non-interest income, alongside a conservative approach to bad debt classification and proactive provisioning Meanwhile, MBB is distinguished by its quality client base, robust growth rate exceeding industry averages, effective management, low funding costs, and superior profitability compared to competitors.
Vietnam's retail banking sector has significant growth potential, driven by the increasing wealth of its young population and the relatively underdeveloped state of retail banking Currently, corporate lending dominates the banking landscape, comprising nearly 50% of total loans, while individual loans account for only 28% Furthermore, data from the State Bank of Vietnam reveals that just 22% of the population holds a bank account This indicates a substantial opportunity for banks to enhance their retail banking activities, thereby expanding their loan and deposit portfolios in the country.
For banks to expand their retail sector, they could target at the young population in Vietnam who has a growing income and greater spending
2 http://www.duxtonam.com/wp-content/uploads/2015/01/Vietnam-Banking-
3 http://www.kaavpublications.org/journals/journal-1/article/article-470.pdf
A McKinsey study reveals that Vietnamese young adults aged 21 to 29 are more receptive to modern banking methods, such as internet and mobile banking, compared to older generations Currently, 43 banks in Vietnam offer internet banking, while 32 provide mobile banking, with mobile banking accounts totaling only half of internet banking accounts (Dezan Sliira and Associates, 2014) This demographic is also more willing to borrow, indicating significant untapped opportunities for retail and online banking services in Vietnam's growing and dynamic population.
2.2.3 Growing Vietnamese card payment channel
Vietnam's economic growth has significantly shifted consumer preferences from cash to card payments, with card transactions skyrocketing by nearly 200% between 2009 and 2013 During this period, the number of circulating cards surged from 21.7 million to 67.8 million Projections indicate that the value of card transactions will continue to increase by over 50% until 2018, driven largely by the rising popularity of e-commerce This trend presents banks with a valuable opportunity to enhance transaction values by leveraging technological advancements.
The surge in e-commerce popularity in Vietnam is primarily due to the increasing number of internet users, with 43.9% of the population currently online, surpassing the Southeast Asian average of 35% according to the World Bank The Vietnam e-Commerce and Information Technology Agency (VECITA) forecasts that nearly 50% of the population will be connected to the internet in the near future.
4 http://www.thanhniennews.com/business/banks-shift-from-businesses-to-individual- customers-in-vietnam-29002.html
12 compared to the current 39 % by 2015 5 As a result, it is important for banks to reach out to their customers through internet and online payment channels
2.2.4 Regulation related to mobile banking in Vietnam
This section addresses the legal framework governing mobile banking in Vietnam Currently, there is no dedicated legislation specifically for mobile banking; instead, it falls under the broader category of e-commerce, which is regulated by Vietnamese e-commerce laws Notably, Decree No 35/2007/ND-CP outlines the regulations for electronic banking transactions, encompassing mobile banking activities in the country.
Since the introduction of the Internet in Vietnam in 1997, the rapid development of electronic transactions has emerged, prompting the government to establish regulations In response to this growing demand, the Vietnamese government enacted Law No 51/2005/QH11, which governs transactions conducted through electronic means.
In 2007, the Government of Vietnam established decree no 35/2007/ND-CP, proposed by the Governor of the State Bank of Vietnam, to regulate banking e-transactions This decree was issued in accordance with law no 51/2005/QH1, which governs e-transactions Since its implementation, e-transactions conducted through mobile banking have been included under the regulations of decree no 35/2007/ND-CP.
Decree No 35/2007/ND-CP consists of 5 chapters and 30 articles that provide guidelines for regulating banking e-transactions It defines banking e-transactions as those conducted electronically in relation to the banking activities of banks and credit institutions, specifically excluding transactions related to the insurance of bills of exchange.
5 http://asean.org/storage/2012/05/Consumer-Credit-Banking-Module-Final-21Dec15.pdf
The decree outlines the framework for banking e-transactions as specified in the Law on the State Bank of Vietnam (01/1997/QH10) and the Law on Credit Institutions (02/1997/QH10) It details the requirements and responsibilities of participants in these transactions, the specifics of banking e-documents, and the implementation of related regulations Serving as a guideline, this decree ensures that all individuals, organizations, and parties involved adhere to the standards set forth by the State Bank of Vietnam.
2.2.5 Current usage and customers behavior on mobile banking in Vietnam
Mobile banking was introduced to the Vietnamese market in 2010, six years after internet banking, and has since experienced rapid growth Today, 32 banks in Vietnam provide mobile banking services, with over 3 million customers actively using these services According to data from Smartlink Card Services Joint Stock Company, mobile banking transactions reach approximately 14 to 15 million each month.
2014) With 22 percent of Vietnamese have bank accounts and more than
In Vietnam, 30% of the population owns at least one smartphone, highlighting a significant demand for mobile banking, particularly among young customers aged 18 to 34 (Nguyen, 2014) This demographic is quick to embrace new technology; however, the current adoption of mobile banking remains below its potential A representative from Smartlink card services indicates that the growth of mobile banking will require more time to align with consumer demand, as many customers continue to rely on traditional payment methods Additionally, a lack of awareness regarding modern payment services and concerns about security further hinder the adoption of mobile banking in the country.
6 https://m.vietnambreakingnews.com/tag/sihanvina-bank/
Mobile banking background
M-banking has received a considerable attention in academic research and thus several conceptualization of m-banking currently exists As the conceptual agreement is essential requirement for comprehensive discussion regarding the phenomenon (Sinisalo et al., 2006), literature on m-banking was referred for establishing commonly accepted definitions
M-banking (m-banking) is defined as an application of m-commerce (Kim et al., 2009), an innovative method for accessing banking services (Xin Luo et al., 2010) that offers additional value for customers by providing “anytime, anywhere” access to banking service (Lee and Chung,
In 2009, Kim et al identified mobile banking (m-banking) as a promising platform for automated banking and financial services This technology allows customers to access their bank accounts via mobile devices or personal digital assistants, enabling them to perform various bank-related transactions, including checking account balances, monitoring account statuses, and transferring funds.
15 selling stocks For the current study, this definition was considered as it represents the m-banking scenario in the best possible mode
Goswami and Raghavendran (2009) highlight that the primary objective of m-banking is to facilitate access to financial institutions via mobile phones This innovation empowers consumers to perform a wide range of financial activities, including micropayments to merchants, utility bill payments, person-to-person (P2P) transfers, business-to-business (B2B) transactions, business-to-person (B2P) transfers, and long-distance settlements.
2.3.2 Review of theories and models based on mobile banking adoption and usage
There was a multitude of theoretical foundations used in m-banking adoption empirical studies Following are examples of several theories and analytical models used as theoretical foundations in m-banking studies
Theory of reasoned action (TRA)
The Fishbein and Ajzen (1975) TRA was the first widely accepted theory used in studies on adoption of information system technology Introduced in
Developed by Fishbein and Ajzen in 1975, the Theory of Reasoned Action (TRA) was initially applied in social psychology (Zhang et al., 2012) The core premise of the theory is that individuals are more likely to adopt computer-related technologies when they perceive positive benefits from them Additionally, the TRA suggests that two key factors influence behavioral intentions: the individual's attitude toward the behavior and their perception of social pressure, encapsulated in the concept of subjective norm.
The Technology Acceptance Model (TAM) builds on the Theory of Reasoned Action (TRA), which posits that beliefs shape attitudes, subsequently influencing behavioral intentions, and ultimately leading to actual behavior (Dimitriadis & Kyrezis, 2010) This sequential framework highlights the importance of understanding how individual beliefs can impact technology adoption and usage.
The extended Theory of Reasoned Action (TRA) contributed to the development of the Theory of Planned Behavior (TPB), which incorporates perceived behavioral control as a third key determinant alongside attitude toward behavior and subjective norms.
2010) Generally, researchers analyzing user acceptance of new technological applications have used TPB to some extent, but overwhelmingly the TAM (Tsai et al., 2011)
The Technology Acceptance Model (TAM), derived from the Theory of Reasoned Action (TRA) by Fishbein and Ajzen (1975), serves as a theoretical framework to explain user acceptance of new information technologies Introduced by Davis in 1986, TAM has been validated as an effective model for predicting user behavior towards emerging technologies, as supported by research from Liu et al (2009), Qi et al (2009), and Cheng et al (2010).
In 1989, Davis hypothesized that perceived usefulness and perceived ease of use are key factors influencing individuals' decisions to adopt information technology, based on prior research across various disciplines A lab study with 40 participants and two graphic systems demonstrated that both constructs significantly impacted user attitudes towards new technology, with perceived usefulness showing a stronger correlation to actual usage than ease of use Consequently, Davis concluded that these two factors are crucial predictors of technology adoption Over time, the Technology Acceptance Model (TAM) has emerged as a robust and effective framework for predicting user acceptance of technology, as supported by Venkatesh and Davis in 2000, establishing TAM as the leading model in this area of research.
Information system adoption, particularly in the context of m-banking, has been explored by various researchers (Jaradat & Twaissi, 2010; Lindsay et al., 2011; Liu et al., 2009; Singh et al., 2010; Sripalawat et al., 2011; Tobbin, 2012; Yung-Cheng et al., 2010) For instance, Amin et al (2012) utilized the Technology Acceptance Model (TAM) as a foundational theory to investigate m-banking adoption in Malaysia Their study, which involved data collection from bank customers in Kota Kinabalu, revealed that factors such as perceived credibility, enjoyment, and self-efficacy significantly influence the adoption of m-banking services in the region.
The U.S Federal Reserve Board of Governors (2012) report highlights the effectiveness of the Technology Acceptance Model (TAM) in predicting user acceptance of information technology (Lindsay et al., 2011), making it the foundation of this study TAM is recognized as a robust and established model for forecasting user acceptance (Shen et al., 2010) A meta-analysis by Zhang et al (2012) revealed that the Theory of Reasoned Action, TAM, and the Innovation Diffusion Theory (IDT) are the most significant frameworks in technology adoption research.
Extending the Technology Acceptance Model (TAM) involves incorporating additional factors to enhance the prediction of user acceptance (Daud et al., 2011) While TAM offers a cost-effective method for assessing individual perceptions of a system, it falls short of fully explaining all dimensions of technology acceptance (Gu et al., 2009) Key constructs such as perceived usefulness and perceived ease of use remain central to understanding user engagement.
18 original Davis (1989) TAM alone may not fully explain all the facets of customers‟ behavior toward m-banking adoption (Daud et al., 2011)
Numerous scholars, including Al-Jabri & Sohail (2012), Chong (2013b), and Lee & Chung (2009), have expanded the Technology Acceptance Model (TAM) by integrating it with various theories and models A notable example is the work of Koenig-Lewis et al (2010), who enhanced TAM by combining it with the Innovation Diffusion Theory (IDT) to investigate mobile banking adoption among young individuals in Germany This study introduced additional constructs to the original perceived usefulness and ease of use components of Davis's (1989) TAM, thereby creating a more robust theoretical framework Importantly, researchers have consistently upheld the reliability and validity of the original TAM while extending it to diverse contexts, as evidenced by Lindsay et al (2011) The literature highlights a significant number of TAM extensions specifically focused on mobile banking adoption.
Venkatesh and Davis (2000) were pioneers in enhancing the original Technology Acceptance Model (TAM) by developing TAM2, which aimed to clarify the factors influencing perceived usefulness and usage intentions through social influence and cognitive instrumental processes They incorporated additional constructs, such as subjective norm, voluntariness, image, job relevance, output quality, and result demonstrability, to create a more robust framework In TAM2, they theorized that subjective norm and image positively impact perceived usefulness via internalization and identification processes Furthermore, they suggested that as users become more familiar with the new system over time, the influence of these factors evolves.
19 subjective norm on both, perceived usefulness and behavioral intention would evaporate (Venkatesh & Bala, 2008)
In their 2008 study, Venkatesh and Bala developed TAM3, an integrated model that enhances TAM2 They conducted data collection by training participants on a new system and administering paper questionnaires at three intervals: immediately after training (T1), one month post-implementation (T2), and three months later (T3) The findings indicated that perceived ease of use, subjective norm, image, and result demonstrability significantly predicted perceived usefulness across all periods Venkatesh and Bala concluded that system-related characteristics improved usability by facilitating quicker task performance, while a user-friendly system increased the likelihood of user adoption and boosted users' self-efficacy Additionally, the literature indicates that numerous scholars have further developed the original TAM model to enhance its applicability in various studies.
Corporate social responsibility (CSR)
Corporate Social Responsibility (CSR) posits that companies hold not only economic and legal duties but also social responsibilities that go beyond these obligations (McGuire, 1963).
Corporate Social Responsibility (CSR) involves utilizing resources and engaging in activities aimed at boosting profits while adhering to ethical standards Companies must operate within the framework of open and fair competition, ensuring that their actions are transparent and free from deception or fraud (Friedman, 1970).
CSR involves companies incorporating and responding to all kinds of demands transcending economic, technical and legal requirements to achieve social as well as economic objectives (Davis, 1973)
CSR is the obligation for managers to act to protect and improve society‟s broader welfare alongside the interests of their organization (Davis and Blomstrom, 1975)
Corporate Social Responsibility (CSR) encompasses the economic, legal, ethical, and discretionary expectations that society holds for organizations at any given time It asserts that companies have responsibilities to societal stakeholders beyond just their shareholders, extending beyond mere legal requirements or union agreements.
CSR is a mechanism in which companies assume the economic, legal, ethical and discretionary responsibilities that various stakeholders have imposed upon corporate activities (Maignan et al., 1999)
The CSR concept refers to corporate activities and commitments relating to perceptions of its obligations toward society or parties with a stake in its
29 activities (Brown & Dacin, 1997; Sen & Bhattacharya 2001; Luo & Bhattacharya, 2006)
CSR refers to corporate actions that are conducive to societal welfare, above and beyond the company‟s own interests or legal obligations (McWilliams & Siegel, 2001)
Social responsibility encompasses the relationships a company has with its stakeholders, highlighting key aspects such as community investment, employee relations, job creation and preservation, environmental stewardship, and overall financial performance.
CSR is the commitment by a company to improve the welfare of its community by implementing certain discretionary practices and increasing the availability of its resources (Kotler & Lee, 2005)
Corporate Social Responsibility (CSR) involves managing a business to meet or surpass the ethical, legal, commercial, and societal expectations placed upon it by the community.
Over the past few decades, corporate social responsibility (CSR) has been widely studied in both academic and business contexts, leading to various attempts to categorize its activities (Maignan & Ferrell, 2001; Smith, 2003) Despite the ongoing uncertainty regarding the definition and scope of CSR, there is a consensus among scholars that the primary objective of business is to generate profits for shareholders, which constitutes economic responsibility Additionally, adhering to laws and regulations, as well as maintaining ethical business practices, are seen as essential responsibilities that society expects from companies For a comprehensive overview, refer to Table 3, which summarizes key CSR models and their primary domains.
Carroll's (1998) four dimensions of Corporate Social Responsibility (CSR)—economic, legal, ethical, and philanthropic responsibilities—have gained widespread acceptance and will be explored in detail in the following section.
Table 2: Summary Research Findings of Various Domains in CSR Activities
Carroll (1979,1998, 2000) Economic, Legal, Ethical, Philanthropic (=discretionary) Leigh et al (1988); Salmones et al., (2005); Spitzek (2005)
Ethical-legal, Philanthropic, Ecological impact
Commercial self-interest, Expanded self-interest with immediate benefits, Expanded self-interest with long- term benefits, Promoting the common good
Lantos (2001) Economic, Legal, Ethical, and Altruistic
Some scholars believe that a company's primary obligation is to generate profits for its shareholders, aligning with the economic dimension of Corporate Social Responsibility (CSR) as outlined by Friedman (1970) Novak (1996) elaborates on economic responsibility, emphasizing the need for companies to provide high-quality products at fair prices while satisfying customer needs He identifies seven key economic responsibilities: delivering valuable goods and services, ensuring fair returns for investors, creating new wealth that can benefit non-profit organizations and alleviate poverty, generating jobs, fostering upward mobility to combat envy, promoting innovation, and diversifying economic interests to prevent majority tyranny (also summarized by Lantos, 2001).
Business ethics and legal responsibilities are essential components of management studies (Carroll, 2000; Spitzek, 2005) that organizations must consistently uphold Breaching these responsibilities can lead to significant negative publicity While many scholars often group legal and ethical responsibilities under the umbrella of corporate social responsibility (CSR), it is important to recognize that they can differ substantially (Lantos, 2001).
Maignan & Ferrell (2001) outline key legal responsibilities for businesses, which include the accurate reporting of performance, compliance with product standards, non-discrimination in hiring and compensation practices, and adherence to environmental regulations These legal duties emphasize the importance of obeying laws and maintaining ethical business practices.
Laws and regulations often fall short in promoting responsible business practices, as they establish only a moral baseline for conduct Instead of being proactive in guiding positive actions, they tend to be reactive, outlining what should not be done Consequently, compliance is frequently achieved involuntarily, highlighting the limitations of legal frameworks in fostering ethical behavior in the business environment.
Ethical duties surpass the confines of legal responsibilities by emphasizing morality, justice, and fairness, while also prioritizing the respect for individuals' rights and the prevention of harm (Smith & Quelch, 1993) While not always enshrined in law, these ethical responsibilities encompass societal expectations, including both positive duties that promote good and negative duties that prevent wrongdoing (Carroll, 2000) Their authority is rooted in religious beliefs, moral traditions, and the principles of human rights.
According to Lantos (2001) and Novak (1996), there are 32 commitments related to ethical responsibilities, as outlined by Maignan & Ferrell (2001) These responsibilities include implementing a code of conduct, organizing ethics training programs, integrating integrity into employee performance evaluations, and ensuring full transparency in product information for customers Today, there is a general consensus among business professionals that corporations are expected to uphold their legal and ethical obligations.
Carroll‟s (1998) philanthropic responsibility, also known as discretionary responsibility, is the most controversial issue raised over the legitimacy of CSR
Philanthropy involves the voluntary giving of time and money to enhance societal well-being, reflecting the expectation that businesses actively contribute to social improvement beyond basic economic, legal, and ethical obligations Over the last fifty years, companies have been evaluated not only on their financial and ethical performance but also on their social impact Philanthropic responsibilities encompass a range of activities, including work-family programs, community outreach, and donations to charitable organizations.
Cause-related marketing (CRM) highlights the philanthropic efforts of companies, showcasing their commitment to social causes such as aiding children globally, supporting the homeless, and providing shelter for animals Through these initiatives, businesses aim to foster a positive brand image while making a meaningful impact in their communities.
33 which may lead a customer to purchase a product from the company (Cornwell & Coote, 2005; Nan & Heo, 2007; O‟Cassand Lim, 2001)
Effects of CSR
2.5.1 Effects of CSR on customers’ attitudes
Recent research suggests that socially responsible organizational behavior can positively affect consumers‟ attitudes toward the
Research shows that consumer awareness of a company's corporate social responsibility (CSR) practices positively affects their attitudes toward the brand, enhancing its image, reputation, and product evaluations This influence operates both directly and indirectly through customer-company identification For instance, a consumer buying products from a company partnered with an environmental organization may be perceived as environmentally conscious This dynamic is crucial as many consumers seek to express their self-image through the brands and products they choose.
Companies' CSR initiatives can positively influence customer attitudes, but this effect is not guaranteed Research by Becker-Olsen et al (2006) highlights the importance of perceived fit between a company's mission and its CSR activities, as well as the timing of these initiatives A low perceived fit can lead to negative consumer beliefs, attitudes, and intentions, while even high-fit initiatives may backfire if perceived as reactive rather than proactive Therefore, it is crucial for companies to select CSR actions that align well with their mission and are viewed as proactive by consumers to foster positive responses.
2.5.2 Effects of CSR on customers’ behaviors
Research indicates that Corporate Social Responsibility (CSR) can enhance customer-company identification (CCID), lead to repeat purchases, and foster customer loyalty and trust However, consumers are increasingly discerning and may not accept CSR initiatives as genuine, potentially leading to negative repercussions for companies perceived as insincere Therefore, it is crucial for businesses to meticulously evaluate their CSR practices and strategically determine how to integrate them into their marketing communications.
Mohr and Webb's (2005) study investigated how varying prices and different dimensions of corporate social responsibility (CSR) affect consumer responses By manipulating two CSR domains—environmental and philanthropic—and setting prices above and below the average, the researchers found that both CSR dimensions positively influence customers' purchase intentions Notably, the environmental aspect had a more significant effect on purchase intent compared to price.
Numerous studies indicate that Corporate Social Responsibility (CSR) positively influences key stakeholder groups, including employees, consumers, distributors, and shareholders (Sen & Bhattacharya, 2004; Sen et al., 2006) Research highlights that consumers respond favorably to companies' CSR initiatives, enhancing cognitive and emotional aspects such as beliefs and attitudes, while also driving behavioral outcomes like patronage and loyalty (Anisimova, 2007; Bhattacharya & Sen, 2003; Barone et al., 2000; Brown & Dacin, 1997).
McDonald & Rundle-Thiele, 2008; Salmones et al., 2005) is still the most dominant criteria in consumers‟ purchasing decision (Boulstridge
Picture of CSR activities in Viet Nam
In the past decade, international economic integration has provided Vietnamese businesses, particularly small and medium enterprises (SMEs), with significant opportunities for global expansion The private sector, which represents only 30% of national assets, contributes 40% to GDP, 30%-40% to export turnover, and employs 50% of the workforce, playing a crucial role in the country's economic development However, despite this growth, the Vietnamese business community faces pressing challenges related to sustainable development, including waste management, energy efficiency, workplace safety, and worker well-being Recent pollution scandals, such as those affecting the Thi Vai River, and health safety issues like tainted milk and toxic consumer goods, have heightened concerns regarding corporate social responsibility (CSR) in Vietnam Additionally, export-oriented companies are grappling with the need to adopt ethical business practices, as foreign investors and buyers increasingly demand respect for people, communities, and the environment, exemplified by the U.S.-Vietnam textiles agreement signed in May 2003, which imposed obligations on Vietnamese authorities.
To gain access to the U.S market, exporting companies are encouraged to adopt Corporate Social Responsibility (CSR) codes In contrast to other nations, Vietnam faces severe environmental challenges due to its history of conflict, rapid industrialization, and inadequate environmental regulations Annually, approximately 220,000 tons of industrial waste are discharged into the Mekong River, endangering the livelihoods of local fishermen who work alongside polluting industries, contributing to alarming cancer rates in the region.
Poor mining practices and industrial activities have severely contaminated the soil and water in the country, leading to significant challenges in accessing safe drinking water The long-lasting effects of Agent Orange from the Vietnam War continue to hinder ecological recovery, while climate change has intensified typhoons that devastate coastal communities Additionally, frequent flooding is wreaking havoc on numerous farms in the Mekong River Delta.
Vietnam's factories have embraced Corporate Social Responsibility (CSR) by showcasing the consequences of neglecting it The country has historically attracted Western nations for outsourcing due to its affordable labor and lower labor rights standards As many Vietnamese manufacturers supply goods to Western corporations, they must adhere to the stringent CSR standards prevalent in fully developed economies, particularly in Europe.
The impact of Western buyers on Vietnam's economy has led to significant changes in major businesses, driving increased attention to Corporate Social Responsibility (CSR) at the political level through external funding.
In 2004 Vietnam Government adopted the Strategic Orientation for Sustainable Development, which identifies 19 prioritized areas under the
The three pillars of corporate social responsibility—economic, social, and environmental—clarify the government's role in CSR and have driven the creation of Vietnam's "Green Growth" strategies for the period of 2011 to 2020.
In recent decades, Vietnam has witnessed a shift in consumer behavior, with "green consumption" emerging as a dominant global trend Consumers increasingly seek high-quality products that are not only safe and environmentally friendly but also produced by reputable and responsible companies Environmental issues have evolved into significant social concerns, particularly highlighted during the 1990s, often referred to as the "Earth Decade." Numerous studies have shown a growing awareness of environmental issues among individuals, which positively influences consumers' purchasing intentions.
Despite the persistence of unfair labor practices and environmental pollution in some factories, Vietnam is committed to enhancing its Corporate Social Responsibility (CSR) efforts Unlike a decade ago, tangible progress is now evident, as the country actively strives to fulfill its sustainability commitments Vietnam is working towards establishing businesses that not only promote sustainable development but also improve the quality of life for its citizens.
Therefore, it can be concluded CSR is a relatively new matter in Vietnam Nevertheless, recently, with the environmental disasters and the negative
The urgent need for corporate social responsibility (CSR) in Vietnam stems from the significant consequences enterprises have on society The Vietnamese government, business owners, and consumers are increasingly recognizing the importance of CSR, aligning it with sustainable development goals Recent consumer reactions highlight the growing attention to CSR within communities For instance, the annual "Corporate Social Responsibilities Award" celebrates corporations that excel in their CSR initiatives.
In recent times, consumers have become increasingly willing to boycott companies that violate Corporate Social Responsibility (CSR), as seen in the cases of Vedan and Coca-Cola Vietnam, which faced backlash for environmental pollution and tax evasion, respectively This shift has prompted companies to recognize CSR as a vital marketing strategy that enhances their image, trust, and reputation, ultimately leading to sustainable development and competitive advantages A notable example is Vietcombank (VCB), one of Vietnam's largest state-owned commercial banks, which actively engages in social welfare and charity initiatives, including programs like “Nghia tinh Truong Son” and “Noi vong tay lon.” In 2015 alone, VCB contributed over 2,566 billion VND to social welfare efforts, demonstrating its commitment to community support and overall societal development.
40 society Hence, from 2012 to 2016 VCB was chosen the most favorable bank in Vietnam
Since its inception in September 1996, VIB has actively engaged in various community-oriented activities (CSR) throughout the country, alongside its banking operations These initiatives are designed to enhance local people's development and improve their social well-being.
In recent years, VIB has actively participated in impactful social programs focused on Education, Environment, and Enrichment The bank has made significant donations to support victims of the Can Tho Bridge collapse, aid in the construction of hospitals for the underprivileged in Kien Giang province, and contribute to the Operation Smile Fund, among other initiatives for those affected by flooding in central provinces Notably, VIB has sponsored the Academy of Banking's "Future Bankers" program, the "Glorify Vietnam" initiative, and a program aimed at nurturing talented primary school students from low-income backgrounds nationwide In recognition of its efforts, VIB received "The Excellence of Corporate Social Responsibility" award from the Ministry of Planning and Investment and the Economics & Forecast magazine in 2013.
This study aims to explore the relationship between Corporate Social Responsibility (CSR) activities and consumer intentions to use mobile banking in Vietnam, focusing on three key dimensions: economic, social, and environmental.
Important variable definition of extended TAM
Perceived usefulness is conceptualized as “the degree to which a person believes that using a particular system would enhance his or her job performance” (Davis et al., 1989)
Perceived usefulness is a crucial factor influencing the adoption of technology, particularly in mobile commerce and m-banking A study by Pagani (2004) analyzed individuals' preferences for multimedia mobile services, revealing that perceived usefulness ranks highest among all features This highlights the significance of perceived usefulness in shaping user behavior towards these technologies.
Perceived ease of use refers to the user-friendliness of a device, defined by Davis et al (1989) as the extent to which individuals believe that using a specific system requires minimal effort Kim et al (2007) further elaborated on this concept in the context of mobile devices, highlighting that perceived ease of use encompasses the overall accessibility of the Internet via mobile platforms This is particularly relevant for M-Internet, which operates with limited resources, posing challenges for mobile phone users who face constraints such as smaller screen sizes and the complexities of navigation, thereby increasing both mental and physical effort.
Mobile banking costs refer to the monetary expenses incurred by users when accessing banking services via their mobile phones Since these costs often exceed those associated with traditional wired internet access, it is essential to carefully evaluate subscription, service, and communication fees, as they can significantly impact users' intentions to adopt mobile banking.
Perceived financial cost, including fees and resources, significantly influences the intention to use information systems (Mathieson et al., 2001) Research indicates that perceived fees directly affect perceived value (Zeithaml, 1988; Dodds et al., 1991; Chang & Wildt, 1994) Different providers offer varying rates and additional charges for advanced mobile banking services, making the appropriateness of these charges a crucial factor in determining mobile users' satisfaction with m-banking.
Pavlou (2001) defined perceived risk as the consumer's subjective expectation of potential loss while seeking a desired outcome, highlighting the uncertainty involved in researching and selecting products or services prior to making a purchase (Cox, 1967) When customers notice a discrepancy between their actual buying experiences and their purchasing goals, they tend to perceive a higher level of risk, which is influenced by the extent of their subjective uncertainty regarding the outcomes.
Trust is a complex and multidimensional construct that varies across different research areas, leading to various definitions According to Doney and Cannon (1997), trust involves the willingness to rely on others, while Whitener et al (1998) describe it as a positive behavior towards others Yousafzai et al (2003) further define trust as the belief that a party's promises are reliable and that they will fulfill their obligations in an exchange relationship Understanding these diverse perspectives is essential for clarifying the concept of trust.
Trust in an exchange partner's reliability and integrity is crucial for fostering relationships (Morgan & Hunt, 1994) It involves a willingness to be vulnerable to the actions of another, based on the expectation of their performance, regardless of the ability to monitor them (Mayer et al., 1995) In the context of online transactions, trust refers to the confidence in an online vendor's actions, which encourages consumers to take risks (Gefen, 2000) This belief hinges on the expectation that the vendor will uphold their promises and act with goodwill, even in unforeseen situations (Suh & Han, 2002) Ultimately, trust is a subjective evaluation that one party makes regarding another's reliability in fulfilling their obligations, particularly in uncertain environments (Ba & Pavlou).
Trust is defined as a psychological state characterized by the willingness to accept vulnerability based on positive expectations regarding another's intentions or behaviors, particularly in situations involving risk and interdependence (Rousseau et al., 1998).
Trust and online banking adoption
Numerous studies have established a strong connection between trust and the adoption of electronic banking and e-commerce Trust is defined as the confidence one party has in the reliability and integrity of another (Morgan & Hunt, 1994) For instance, research by Chen & Barner (2007) highlights the crucial role of trust in online purchasing intentions, while Flavian & Guinaliu (2006) emphasize its impact on website loyalty Additionally, Mukherjee & Nath (2003) found that trust influences online banking commitment, and Rexha (2003) noted its significance in electronic banking adoption Furthermore, Chen & Corkindale (2008) identified trust as a key factor in the intention to adopt online information services, reinforcing Yousafzai's (2003) conclusion regarding the importance of trust in electronic banking.
Infrastructure minimizes customers' transaction-related uncertainties and mitigates risks linked to potential opportunistic behavior by banks Trusting relationships lead individuals to expect predictable actions from others, simplifying interactions and enhancing overall confidence in financial transactions.
Research indicates that trust is essential for successful online banking operations, as uncertainty often leads consumers to hesitate in using these services Key elements such as security mechanisms—confidentiality, authentication, and access control—enhance what is termed "technology trust," which is vital for ensuring privacy and accountability in e-commerce transactions Customers' trust in electronic systems reflects their overall confidence in internet banking Additionally, inexperience with online platforms can foster concerns that diminish trust To thrive in the digital marketplace, organizations must establish trust quickly, particularly in the financial services sector, where the complexity of products and the physical separation between advisors and consumers make trust even more critical.
Transactions are normally completed through these technologies and parties will not necessary meet each other face to face
Concerns about the transfer of personal information and funds to third parties without consent are prevalent among users of internet banking (Luarn & Lin, 2005) Trust significantly influences customer attitudes and enhances usability in the online banking environment, making it crucial for fostering secure transactions that involve sensitive information (Alsajjan & Dennis, 2006; Suh & Han, 2002) Unlike offline banking, the online context heightens the importance of trust due to the complexity of financial products and the sensitive nature of the data involved (Bejou, 1998; Diacon & Ennew, 1996) Customers' trust in internet and mobile banking can be adversely affected by perceived risks, even when actual risk levels are low Ultimately, trust serves as a protective measure against potential risks and unforeseen behaviors in financial relationships.
