ORGANIZATION AND PARENTAL PERCEPTIONS OF ELECTRONIC PAYMENTS BY SELECTED SEVENTH-DAY ADVENTIST (SDA) INTERNATIONAL SCHOOLS IN THAILAND By CHALERMSRI RITTHITRAIPHOP An Independent Study Project Submitted in Partial Fulfillment of the Requirements For the Degree of Master of Business Administration (Accounting Emphasis) Faculty of Business Administration Asia-Pacific International University April 2019
Title of Study Organization and Parental Perceptions of Electronic Payments by Selected Seventh-day Adventist (SDA) International Schools in Thailand By Chalermsri Ritthitraiphop APPROVAL BY ADVISOR: ------------------------------------------- Dr. Wayne Hamra May 2, 2019 Date Approved
DEDICATION To my father, Prasit Hanwiriyakit, who always encouraged me to continue my education. He said, “Education is never ending; the more you study, the more you are improving.” I would not have completed this MBA course without your love and encouragement. To my husband and my four dearest children, you are always my inspiration. Thank you for your understanding, your love, and your support.
i Research Title: Organization and Parental Perceptions of Electronic Payments by Selected Seventh-day Adventist (SDA) International Schools in Thailand Author: Chalermsri Ritthitraiphop Research Advisor: Dr. Wayne Hamra Program: MBA Academic Year: 2018-2019 ABSTRACT This research project explored the use of electronic payments by selected Seventh-day Adventist International Schools in Thailand, and investigated factors such as their benefits, trust, self-efficacy, ease of use, and security that affected parental perceptions of these payments. There were two group of respondents in this study. The first group consisted of 319 parental respondents who had previously made electronic payments to the schools, and the second group of respondents were eight Finance Department staff members from these schools who were interviewed. The results indicated that all factors - benefits, trust, self-efficacy, ease of use, and security - were rated at the “High” level. The highest mean score was benefits (4.16), followed by self-efficacy (3.91), ease of use (3.89), trust (3.81), and security (3.55). All factors – except for self-efficacy – were was also related to parental perceptions toward e-payments at the 0.05 level of significance.
ii Findings from the group interviews of the finance staff at each school revealed that ease of use, trust, security, and benefits affected their perceptions of electronic transaction especially the payments, both receiving and disbursing funds. Each school has started utilizing e-receipts and e-payments to provide service more efficiently to organizational stakeholders, and they have already developed guidelines to enhance best internal control practices and minimize the risk of fraudulent use of these electronic services. Keywords: Electronic Transactions, Internal Control Practices, E-Payments, EReceipts, Fraud Prevention, Perception of E-Payments, Benefits, Trust, Self-efficacy, Ease of Use, Security, International Schools in Thailand
iii ACKNOWLEDGEMENTS I would like to thank God for opening the door for me to do my MBA Program. I wish to express my appreciation to Adventist International Mission School for graciously allowing me to work and study. I wish to thank my project advisor, Dr. Wayne Hamra, for giving me valuable advice and suggestions for this research project. Without this assistance, I would not have been able to finish this project within the specified timeframe. I also wish to express my sincere appreciation to Mr. Glen and Karen Sugihara for their prayers, financial assistance, and words of encouragement. I want to thank the Finance Departments of the three schools that allowed me to collect the data that I needed for this study. I also would like to express my gratitude to all respondents of both qualitative and quantitative research for sharing their insight and completing the questionnaire. Moreover, I would like to thank the teachers at AsiaPacific International University and friends who have shared their knowledge and advised me specially the statistician Mr. Alwyn Chacko, Dr. Prapai Plainete, and Assistant Professor Dr. Wanlee Putsom for helping with the study instrument validation. Lastly, I sincerely thank my parents and my family who have always supported and encouraged me during my long journey through the MBA Program. Chalermsri Ritthitraiphop
iv TABLE OF CONTENTS ABSTRACT....................................................................................................................i ACKNOWLEDGEMENTS......................................................................................... iii TABLE OF CONTENTS..............................................................................................iv List of Tables ................................................................................................................vi List of Figures..............................................................................................................vii CHAPTER 1: INTRODUCTION..................................................................................1 1.1 Research Background..........................................................................................1 1.2 Problem Statement ..............................................................................................5 1.3 Research Objective..............................................................................................7 1.4 Research Questions.............................................................................................7 1.5 Hypotheses..........................................................................................................8 1.6 Scope of the Study...............................................................................................9 1.7 Definition of Terms.............................................................................................9 1.8 Conceptual Framework .....................................................................................12 1.9 Significance of the Study ..................................................................................12 CHAPTER 2: THEORY AND LITERATURE REVIEW..........................................14 2.1 Concept of Electronic Transactions ..................................................................14 2.2 Electronic Payments and Electronic Collections ..............................................15 2.3 Risks Related to Electronic Transactions..........................................................23 2.4 Factors Affecting Parental Perception toward Electronic Payments ................26 2.5 Conclusions.......................................................................................................33 CHAPTER 3: RESEARCH METHODOLOGY .........................................................35 3.1 Research Design................................................................................................35 3.2 Population and Sample Size..............................................................................35 3.3 Research Instruments ........................................................................................37 3.4 Data Collection..................................................................................................38 3.5 Data Analysis ....................................................................................................39 3.6 Instrument Reliability and Validity...................................................................40 3.7 Ethical Considerations.......................................................................................41
v CHAPTER 4: RESULTS OF STUDY ........................................................................42 4.1 Results from Exploratory Research...................................................................44 4.2 Results from Descriptive Research ...................................................................48 4.3 Hypothesis Test Results....................................................................................56 4.4 Conclusion.........................................................................................................60 CHAPTER 5: CONCLUSION, DISCUSSION AND RECOMMENDATION..........62 5.1 Conclusion and Discussion ...............................................................................62 5.2 Recommendations and Suggestions..................................................................67 5.3 Limitations of the Study....................................................................................72 5.4 Recommendations for Future Research ............................................................72 References....................................................................................................................74 Appendices...................................................................................................................81 Appendix 1: Reliability, Validity of Questionnaire, Correlations, Multiple Regression. .........................................................................................81 Appendix 2: Questionnaire......................................................................................89 Appendix 3: Interview Guide..................................................................................92 Appendix 4: Informed Consent...............................................................................93 Appendix 5: Permission to Collect Data ................................................................94 Appendix 6: Example of Bill Payment Form..........................................................96 Appendix 7: Example of Mobile Banking via Applications..................................97 Biography...................................................................................................................100
vi List of Tables Table 3.1 Population and Sample Size ........................................................................37 Table 3.2. Respondents Classified by School..............................................................39 Table 3.3 Reliability Coefficients for Study Subscales (n = 319) ...............................41 Table 4.1. Demographic Background of Respondents (n = 319) ................................50 Table 4.2. Types of Online Activities (Multiple Answers, n = 406) ...........................51 Table 4.3. Parental Perceptions of Electronic Payments .............................................52 Table 4.4. Factor Average Scores for Parental Perceptions of Electronic Payments ..54 Table 4.5. Variation Inflation Factor (VIF) values for all variables............................55 Table 4.6. Relationships between Variables (Pearson Correlation Coefficients).......55 Table 4.7a. Stepwise Multiple Regression Using Ease of Use to Predict Perception of E-Payments...............................................................................................57 Table 4.7b. Stepwise Multiple Regression Using Ease of Use and Trust to Predict Perception of E-Payments.........................................................................57 Table 4.7c. Stepwise Multiple Regression Using Ease of Use, Trust, and Security to Predict Perception of E-Payments ............................................................58 Table 4.7d. Stepwise Multiple Regression Using Ease of Use, Trust, Security, and Benefits to Predict Perception of E-Payments..........................................58 Table 4.8. Multiple Regression Testing for All Factors Affecting Perception of E-Payments................................................................................................59
vii List of Figures Figure 1: Growth in Number of Internet Users in World Regions during 2017............2 Figure 2: Proportion of Internet Usage via Mobile Phones in Each Country in 2017...2 Figure 3: 20-Year Plan for Thailand’s Digital Landscape.............................................3 Figure 4: The Proportion of Transfers via Different Channels in 2015-2016. ............18 Figure 5: Quantitative Growth and Value of Online Spending in 2016 ......................21 Figure 6: Steps for Using QR Codes for Payments ....................................................23
1 CHAPTER 1: INTRODUCTION 1.1 Research Background Technological progress has increased rapidly in the past few years, and electronic payment systems are rapidly becoming part of our daily lives. The government of Thailand is trying to push Thailand to be a “Cashless Society” according to the National e-Payment Master Plan, which includes government and private institutions. One factor that helps Thailand to become a “cashless society” faster is the increasing number of smartphone users. Telecommunication networks cover all areas better and easier for conducting online financial transactions after the government committed to launching a “National e-Payment System. All sectors are trying to adopt electronic payments in their businesses because they see the advantages of modern technology, including convenience and speed that make shopping easier (Siriwatthanakun, 2018). The advancement of technology and communication in the past seem to have generated tremendous awareness from those involved in payment systems, such as payment service providers who are competing to develop their mobile applications via internet to meet customer needs. Using the Internet has become part of many peoples’ daily lives. People use the Internet for communication, online shopping, searching for information, and to access social media networks through various devices. Internet usage around the world continues to increase rapidly. According to a survey conducted by Digital Age Magazine (2017), use of the global Internet on each continent increased by 15 percent in the Asia-Pacific region, 15 percent in the Middle
2 East, 8 percent in America, 4 percent in Africa, and 3 percent in Europe. Details are presented in Figure 1 below. Figure 1. Growth in Number of Internet Users in World Regions during 2017 Source: Digital in 2017 Global Overview. www.slideshare.net. In Thailand, use of the Internet has becoming more widespread as the economy has grown. Based on a survey by Digital Age Magazine (2017), the proportion of Internet usage via mobile phones alone in Thailand is 66%. Figure 2. Proportion of Internet Usage via Mobile Phones in Each Country in 2017 Source: Digital in 2017 Global Overview. www.slideshare.net. 15% 15% 8% 4% 3% 0% 2% 4% 6% 8% 10% 12% 14% 16% ASIA PACIFIC MIDDLE EAST AMERICA AFRICA EUROPE Growth in Number of Internet Users in World Regions during 2017 81% 79% 78% 69% 66% 61% 57% 57% 56% 55% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Nigeria India South Africa Indonesia Thai Turkey United Arab Emirates Poland China Saudi Arabia The Proportion of Internet Usage in Each Country in 2017
3 Clearly, mobile phones have already become a key component in the lives of Thai people. From the perspective of business, however, E-commerce is a challenge that needs to be addressed, and strategies for survival need to be developed as consumers increasingly use the Internet. Electronic payment systems are being developed to meet the needs of customers better. The Government of Thailand has also promoted use of the Internet through its Digital Economy Plan to improve economic growth and this Plan encourages businesses to shift their operations to digital platforms that involve more technology in their operations, and it has been divided into four phases to be incorporated over a 20-year period (Bukht & Heeks, 2018). The plan is shown in Figure 2 below. Figure 3. 20-Year Plan for Thailand’s Digital Landscape Source: Siriruchatapong (2016)
4 The ICT Ministry’s Digital Development Plan for Economy and Digital Society or National Digital Economy Master Plan sets goals to be achieved over this period via six strategies are the following (Siriruchatapong, 2016): 1. Build a country-wide high-capacity digital infrastructure 2. Boost the economy with digital technology 3. Create a knowledge-driven digital society 4. Transform government services so that they are digital 5. Develop a workforce for the digital era 6. Build trust and confidence in the use of digital technology Electronic payments require a reliable Internet connection to work. Today, electronic payments have become a popular way for people to make online purchases. Growth of the Internet has significantly impacted and facilitated development of online payments, which have become quite popular (Teoh, Chong, Lin, & Chua, 2013). Since schools are businesses, they have also started using information technology tools such as high-speed Internet access in order to meet the needs of their customers. The increasing popularity of electronic payments in Thailand has led to an increasing number of service providers and service methods (Orratai, 2015). Muangling (2015) found that 89% of respondents used electronic transactions, like mobile banking applications, because of the convenience of being able to carry out transactions at any time when Internet access is available. Many International Schools have initiated processes that involve new technology in their receipting and payment processes to provide more efficiency and convenience for their customers. These provide more channels for parents to pay tuition and fees for their children, or for the school to use in managing its cash disbursement processes. Since technology is increasingly used to process financial transactions, International Schools need to update
5 and improve their internal control systems to promote effective operations, prevent fraud, reduce risk, and achieve organizational objectives. 1.2 Problem Statement Usage of information technology is growing very rapidly, including communication devices, computers, and Internet networks, which are not only connected to computers, but especially to smart phones with high transmission speeds of 4G. At present, protocols have been developed to improve the convenience, effectiveness, and security of e-payments in business sectors such as payments for utilities, and payments to partners for goods and services. As cited by Siriwattanakun (2018), in Bangkok, the capital city of Thailand, 41% of transactions are currently cashless. Less reliance on cash is helping the country’s economy grow rapidly and to increase the efficiency and potential of international competition (Boonmeesuwan, 2018). As Internet usage has rapidly grown, it has also become a channel for people to commit fraud, through use of malware, spyware, phishing schemes, money mules, keystroke logging, or denial of service messages (Ananbunpakit, 2013). To prevent the types of fraud mentioned above, it is necessary to adopt internal control measures that are especially designed for electronic transactions. At present, the number of electronic financial transactions is rapidly increasing. Electronic payments in schools offer benefits for organizations and students’ parents. Both electronic payments and receipts of funds are more convenient, save time and cost, and reduce the risk of holding cash. Electronic payments also increase the efficiency of financial management, because the service is an online and real time payment system, therefore increasing the convenience in case of urgent payment requests. Travel time to
6 make payments is eliminated, and payees are able to receive and manage money within a short period of time (Kaewtan, 2014). Many schools provide many electronic payment channels for students’ parents when paying tuition and fees to the school’s account, such as via bill payment form, ATM transfer, payment by debit and credit card, QR code, or Internet and mobile banking application Electronic transfers on a website or paying employees by direct deposit are other examples of such payments. Some International Schools use bank services such as making electronic payments to suppliers, checking account balances, viewing current and past transactions, money transfers between banks or within banks, and making payments for goods and services. Since many consumers purchase products over the Internet, many schools have set up online systems so that students’ parents can make electronic payments for tuition and fees. These measures have been taken in an effort to provide better service for their customers. By using electronic transactions, schools are able to communicate quickly with their customers, as well as create more convenience for both customers and suppliers. However, electronic transactions – especially transactions through Internet service providers – may be susceptible to fraud or human error. For example, funds may be transferred to a wrong account, or the wrong amount may be transferred. When using the Internet for financial transactions, organizations may also face the risk of internal or external fraud. According to Teoh et al. (2013), there are several factors that affecting consumers’ perception of electronic payments, including benefits, trust, self-efficacy, ease of use and security. It is interesting to explore these factors, particularly in the Seventh-day Adventist International Schools in Thailand. The researcher wished to explore the factors that have a significant relationship associated with the parental
7 perception toward electronic payments, and to understand the problems related to such transactions, internal control systems, and suggested best practices to protect against risks and prevent fraud that may occur via electronic transactions. 1.3 Research Objective This study was conducted to explore the perceptions of electronic transactions for receiving and disbursing funds by selected Seventh-day Adventist International Schools, and to study the relationship of each factor affecting school and parental perceptions toward electronic payments (e-payments). 1.4 Research Questions Research questions were based on the objectives of this study. Research questions #1.4.1 and 1.4.2 were mainly for respondents from the finance departments of the selected Seventh-day Adventist (SDA) International Schools. Research question # 1.4.3 was mainly for the parents of students in the three selected Seventh-day Adventist International Schools. This study seeks to find answers to the following questions: 1.4.1 What is the perception of electronic payments by financial staff in the selected Seventh-day Adventist International Schools? 1.4.2 What problems have been encountered by selected Seventh-day Adventist (SDA) International Schools in Thailand and students’ parents when using electronic payments? 1.4.3 What factors have a statistically significant relationship with parental perceptions of electronic payments? 1.4.3.1 Is there a significant relationship between benefit and parental perception toward electronic payments?
8 1.4.3.2 Is there a significant relationship between trust and parental perception toward electronic payments? 1.4.3.3 Is there a significant relationship between self-efficacy and parental perception toward electronic payments? 1.4.3.4 Is there a significant relationship between ease of use and parental perception toward electronic payments? 1.4.3.5 Is there a significant relationship between security and parental perception toward electronic payments? 1.5 Hypotheses Hypotheses in this study were developed to answer question #1.4.3 to find out the factors that have a statistically significant relationship on parental perception toward electronic payment of the selected Seventh-day Adventist (SDA) International Schools in Thailand. These were based on the five factors that affected consumers’ perception of electronic payments in the study conducted Teoh et al. (2013). Alternative Hypothesis: There is a statistically significant relationship between benefit, trust, self-efficacy, ease of use, security and parental perception toward electronic payments. H1 There is a significant relationship between benefit and parental perception toward electronic payments. H2 There is a significant relationship between trust and parental perception toward electronic payments. H3 There is a significant relationship between self-efficacy and parental perception toward electronic payments.
9 H4 There is a significant relationship between ease of use and parental perception toward electronic payments. H5 There is a significant relationship between security and parental perception toward electronic payments. 1.6 Scope of the Study The scope of this study explored the use and perception of electronic transactions for payment of tuition and fees. It also found some problems that have been encountered when using electronic transactions, and identified the factors affecting the perception of these electronic transactions. It also encompassed the control practices over electronic transactions implemented by the selected Seventh-day Adventist (SDA) International Schools in Thailand. It concentrated on the use of electronic transactions and control over these transactions, which included electronic payments and receipts. It analyzed the best control practices of financial departments of these schools by examining the perceived effectiveness of their control systems. The period of time that this study was conducted was from April 2018 to April 2019. 1.7 Definition of Terms The definitions of terms used in this research study are shown below. After studying how these terms are used in the literature (please see Chapter 2 for details), the author has developed definitions related to the topic of parental perceptions of electronic payments for use in this study. Benefits – refers to an advantage or something gained or perceived usefulness of using electronic payments system such as convenience, saving times and costs and usefulness in daily life.
10 Cash Management – refers to bank services or processes that help an organization with efficient collection or disbursement of cash in an organization, while ensuring that it has sufficient cash available for future use. Detection – refers to the work of a detective in investigating financial fraud, or the action or process of identifying the presence of something concealed. Ease of Use – refers to the use of electronic payment systems is easy; accessing and processing electronic payments is not complicated. Users can learn on their own, and they can use them on an ongoing basis. Electronic Transaction – refers to any activity that occurs between a business entity, a private enterprise, or a governmental organization for the purpose of business, trade, or governmental contact. For example, buying and selling products through the Internet, e-commerce, online subscription, contracting, buying and selling, network agreement, automatic money transfer through a network, or electronic communication through a network [Electronic Transaction Development Agency (ETDA), 2011]. Efficiency – refers to an action designed to achieve something with the least waste of time, effort, or competency in performance. Electronic Payment (E-Payment) – refers to a way of paying for goods or services electronically, instead of using cash or a check, in person, or by mail, such as paying tuition and fees via a QR code, credit card, or online transfer through mobile banking. Electronic Receipt (E-Receipt) – refers to a way of receiving payment for goods or services electronically. A receipt is created in a computerized cash register or by an online retailer; it usually shows the date and time when the payment was made, how payment was made, and other details of the sale.
11 Fraud – when someone gains something of value, usually money or property, from a victim by knowingly making a misrepresentation of a matter of fact. International School – refers to an educational institution that uses a foreign curriculum, a curriculum with modified course details, or a self-developed curriculum that is not that of the Ministry of Education. A foreign language is used as the medium of teaching and learning, students are enrolled without restriction or limitation on nationality or religion, and it does not undermine moral standards or the stability of Thailand (Thai Ministry of Education, n.d.). Internal Control Practices – refers to the processes effected by the entity’s board of directors, management and other personnel designed to prevent fraud, detect risks, and provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance (Committee of Sponsoring of the Tread way Commission (COSO) Framework, 2013). Information Technology – refers to the use of any computers, storage, networking and other physical devices, infrastructure and processes to create, process, store, secure and exchange all forms of electronic transaction (Rouse, 2015). Parental Perception – refers to a belief, attitude or opinion, often held by many people and based on how things seem or the way that someone thinks and feels about a company, product, and service. (Cambridge Dictionary) Prevention – refers to a method or an action designed to stop something before it actually occurs. Trust– refers to the confidence in using electronic payment or electronic receipt services regarding the efficiency performance of the provider such as the school and the bank. Self-Efficacy – refers to an individual belief and capability to do some tasks.
12 Security – refers to the technical aspects that ensure integrity, confidentiality, information protection, and avoidance of data risk, such as setting up an access code that must be entered before an account may be used. 1.8 Conceptual Framework The conceptual framework of this study encompassed the parental perception of the selected Seventh-day Adventist (SDA) International Schools in Thailand. This study focuses on five factors that affect parental perception toward electronic payments, which are Benefits, Trust, Self-Efficacy, Ease of Use, and Security. Independent Variables Dependent Variable 1.9 Significance of the Study This study may help finance managers and organizations to understand better the key factors that affect parental perceptions toward electronic payments for tuition and fees. The results of this study may provide best practices or guidelines for financial management in schools that plan to promote, support and increase the number of users of electronic payments. This will enable them to know which channels are used to make most electronic payments, and so schools will be able to provide suitable services or Benefits Self-Efficacy Trust Ease of Use Security Parental Perception toward E-Payments
13 channels that will satisfy parents’ needs and improve efficient payment methods in the school. They may also assist managers who wish to develop control initiatives in the digital economy to prevent fraud and minimize the risk that these problems will occur in their finance departments if electronic payments are used instead of traditional payments. Lastly, banks and smart phone companies can use these results about the factors affecting parental perceptions to develop their security and efficiency to better meet customer needs, and increase the number of smart phone users who make electronic payments.
14 CHAPTER 2: THEORY AND LITERATURE REVIEW In 2016, the Bank of Thailand participated in the development of electronic payment system infrastructure under a strategy to develop a national e-Payment Master Plan aimed at promoting the use of e-payments in all sectors. At present, people are interested in using more electronic transactions. A report from the Bank of Thailand shows that growth in the use of e-payments in Thailand increased by 19% on average from 2012-2016 (Bank of Thailand, 2016). To explore the organization and parental perception toward electronic payments by selected Seventh-day Adventist International Schools in Thailand, the researcher mainly focused on the following topics: 2.1 Concept of Electronic Transactions 2.2 Electronic Payments and Electronic Collections 2.3 Risks related to Electronic Transactions 2.4 Factors Affecting Parental Perception toward Electronic Payments 2.5 Summary of Literature 2.1 Concept of Electronic Transactions The term “electronic transaction” refers to any activity that occurs between a business entity, a private enterprise, or a governmental organization for the purpose of business, trade, or governmental contact. Examples include buying and selling products through the Internet, e-commerce, online subscriptions, contracting, buying and selling, network agreements, automatic money transfers through a network, and electronic communication through a network (ETDA, 2011). The Electronic Transactions Act of B. E. 2544 (2001) of Thailand also defines “Electronic transaction” as a transaction in which an electronic means is used in whole
15 or in part. According to the Electronic Transactions Development Agency of Thailand (2011), “Electronic transaction” refers to the use of landline phones, mobile phones, fax or internet to access the transaction process. “Technologies have now evolved from large stand-alone mainframe environments that process batches of transactions to highly sophisticated, decentralized and mobile applications involving multiple real-time activities that cut across myriad systems, organizations and processes. More sophisticated technology can impact how all components of internal control are implemented.” (COSO, 2013 p.3). 2.2 Electronic Payments and Electronic Collections A Cashless Society is a new trend to reduce using cash in daily life for the security and the convenience of people. It also enhances efficiency by reducing costs from cash transactions and increasing transparency in the financial system. Electronic spending would have a positive impact on economic growth through increased consumer spending. Moody’s Analytics found that spending via E-Payments would have a positive impact on economic growth by increasing public consumption (Setthasakdasiri, 2018). Electronic Payments are defined as “financial transactions that are often initiated through the use of computer terminals, online banking automated phone systems, or other methods of electronic funds transfer” (Government Finance Officers Association, 2008). (Peter & Babatunde, 2012) defined an e-payment as any payment method in a non-cash form or transfer via the Internet, while Brooks (2011) sees epayment as a method assisted by banks and inter-switch houses that enable organizations and individuals to electronically exchange money. From another perspective, Teoh, Chong, Lin, and Chua (2013) viewed e-payments as channels to transfer funds or value from a payer to payee through electronic means that allow them to access and manage their bank accounts and transactions. Using e-payments, users are able to realize capital transition or monetary exchanges by themselves or by an
16 authorized person (Tella & Abdulmumin, 2015). The government of Thailand is trying to push for more digital policies for financial systems through the national e-payment master plan project, which will encourage and push schools to use more technology in their finance departments. This is designed to reduce the cost of hiring employees for schools, minimize risk of using manual transactions, improve the potential resulting in speed, and provide convenience for users who are the students’ parents. International Schools provide a variety of electronic formats and channels for parents to pay tuition and fees. Some schools are now using software provided by the bank called “cash management”; other banks call it “cash link”, and it is provided by banks to enhance control over expenditures. Electronic payments or e-payments record all transactions, which makes it easy for managers to check for unusual transactions. Cash Management refers to bank services or processes that help organizations with all payment systems, efficient collection, and disbursement of cash in an organization. These include transferring money to suppliers and collecting tuition and fees from the parents of students by using banks’ cash management services. These services support mobile banking payments, Internet payments, bill payment, debit and credit cards, and others – and are likely to increase. In addition, payment services or bill payment through counter service is also popular due to the large number of service points and service hours available. 2.2.1 Payment Systems Payment System means, “Any system or other management process for transfer clearing or settlement” (Payment System Act, 2017, p.2). Payment management systems are bank services that are offered to users, who – for the purpose of this study – are schools. A user needs to send information or a document file, which includes the name of the receiver and the amount received, through the bank’s software application.
17 The bank will check the information, and deduct a specified amount from the user’s account to pay for services or payments, such as employee payroll taxes, social security contributions, electricity, or make a direct transfer to a supplier’s account. This helps users to save time and money, and it is a real-time transaction. 2.2.2 Collection Systems Collection Management is a service whereby a bank will deduct money from the accounts receivable of a counterparty to collect bills for users, and report these transactions to the user. The user will be able to get accurate information easily that can be completely inspected. To make it more convenient for parents, many schools have provided several channels for parents to pay tuition and fees directly to the school’s bank account. The researcher found five electronic methods for E-payment transactions to schools, consisting of the following channels: a. Money Transfers through Automated Teller Machines (ATM) Money transfers through ATMs take place when a customer uses a debit or credit card at an ATM machine to transfer money for tuition and fees payments; this may be done in cases where it is inconvenient to conduct transactions at the bank. To do this, a parent must correctly choose the school code and enter the student ID number to ensure the accuracy of the transaction. The transaction fee is usually not more than 10 Baht per transaction. In 2016, a Bank of Thailand report shows that the percentage of ATM transactions declined from 41.6% in 2015 to 30.2% of total transactions in 2016 (See Figure 4)
18 Figure 4. Proportion of Transfers via Different Channels in 2015-2016 Source: Bank of Thailand (2016) b. Credit Cards A credit card is a card via which the card issuer gives credit to the cardholder. When the cardholder uses the credit card, interest will be charged on purchases by the card issuer’s bank. The card issuer will send a payment statement to the cardholder at the end of each period to be settled. It is based on the cardholder’s promise to the card issuer to pay for the balances so incurred, plus other agreed-upon charges. c. Bill Payment Bill Payment is a service provided by banks for products and services through which customers use a form to pay bills at a bank counter. In this way, the customer (a student’s parent) does not spent his/her time to bring payment to the cashier (school). The customer is able to pay the invoiced tuition and fees on time. Many
19 parents prefer to conduct such transactions at the bank counter instead of going to the school. The bank requires a form to be filled out called “Bill Payment.” The parent needs to fill out this form correctly with the student’s name, ID number, and the amount to be transferred. When using the Bill Payment form, a minimum rate of 10 Baht per transaction will be charged. Some banks limit the amount to be transferred; however, others provide this service with no limit for the amount to be transferred. This depends on the agreement and between institution and the bank. The study of Orratai (2015) found that factors affecting the satisfaction of those using bill payment services were personal factors, such as ease of use, ability to solve errors, reliability, and the distribution channel factor, which means that this service is not complicated. d. Mobile Banking and Online Transfers via Internet Sheetal, Purohit and Anup (2019, p. 35) define Mobile Banking as “A facility provided by a bank or other financial institution that permits its customers to perform different types of financial transactions using a mobile device such as a mobile phone or tablet. It uses software, usually called an app, provided by the banks or financial institution. User can download the app and use it by providing their login credentials.” The Bank of Thailand has explained that mobile phones can be used as a channel to provide a variety of financial services. They are easy to use and provide convenient access to financial services anywhere and anytime. Mobile Banking and Internet Banking Transfers are other methods provided by many schools that allow parents to pay tuition and fees because they save time, and parents can use a software application from the bank through a computer or mobile phone. A parent can select the option to “pay bill”, choose the school name or company code, and enter the student ID number and the amount to be paid. Parents of students can transfer money within 24 hours through this online banking service. The school cashier can immediately track
20 who transferred the tuition and fee payment to the school’s account. There is no fee for this service. Srisomasajjakul (2016) indicated that most mobile payment applications were well-designed, simple, and easy to learn how to use. Respondents who did not install these applications were generally not comfortable providing personal financial information when it was required during the registration process. The trend of using electronic payments is increasing. According to a report from the Bank of Thailand (2016), there were 3,215.3 million electronic transactions in 2016. During the years from 2012-2016, the average growth rate of E-Payment transaction by volume in each channel showed that 97% used mobile banking, 24% used debit cards, 23% used Internet banking, 22% used e-money, 9% used credit cards, 6% used direct credits and 5% direct debits, funds transfers, and bill payment at ATM. The average growth rate in use of e-payments from 2012-2016 was 19% (Bank of Thailand, 2016). Sheetal, Purohit, and Anup (2019) define Internet banking as an online transaction or electronic payment that enables customers to carry out transactions through a website. It includes a secure platform that includes a unique ID and password when each user perform electronic transactions. Today, Internet banking is used as a strategic tool by the global banking sector to attract and retain the customers. Internet banking is the latest and most innovative service offered by the banks. The transformation from the traditional banking to e-banking has taken a 'leap change' (Pathania & Singh, 2015). The trend of increasing electronic payments through online channels is evident when considering the growth in value and volume of online spending. Mobile banking accounted for the highest growth rates of 122.6% and 114.6%, respectively, due to the increasing popularity of smart phone transactions. Secondly, online debit card spending has become increasingly popular. The commercial
21 banks have recently been promoting the use of debit cards for online payments. The growth rates in terms of quantity and value were 59.5% and 47.8% respectively. Figure 5: Quantitative Growth and Value of Online Spending in 2016 Source: Bank of Thailand (2016) e. Online Payment via Quick Response (QR) Codes A Quick Response Code (QR Code) is a barcode that can be read by webcams or smart phones. There are some advantages to becoming a cashless society. According to Boonmeesuwan (2018), a cashless society would help the country’s economy grow more rapidly, as it enhances international competitiveness. Financial technology (FinTech) was developed to increase the country’s competitive ability to satisfy customer needs, give fast service, and lower service cost. Financial technology refers to the process of using technological innovation to develop products and financial services in a wider area to be more efficient and to lower service costs (Bank of Thailand, 2016). Quick Response is one of the FinTech methods of electronic payments through mobile phones that is convenient and reduces the use of cash. "QR code for payment
22 and transfer" means the two-dimensional bar code that appears on a document or screen of modern equipment such as a smart phone for payment / transfer of money to pay for goods and services (Bank of Thailand, 2017b). Satithanakornkaew, Phokiew, Poonpermpong, Bumrungrat, Udomsinkha, and Srisang-on (2018) reported that the Bank of Thailand launched the standard QR code on 30 August 2017 in response to the Thailand 4.0 policy. It was developed to modernize the country’s banking and financial systems and speed up their work flow. Standard QR Code promises to stimulate the Thai economy and answer the needs of many small and medium Thai enterprises. In 2018, use of Quick Response (QR) codes was still a new payment method for International Schools; only certain banks had started offering this service, such as Kasikorn Bank, Siam Commercial Bank, Krung Thai Bank, Bangkok Bank and the Government Saving Bank (Bank of Thailand, 2017b). Smart phones require a free application, such as Red Laser, to scan the barcode. A school can generate its own QR codes, and using QR codes to make payments via mobile applications is easier, faster, and less costly than other methods (Bank of Thailand, 2016). As per the study of Satithanakornkaew et al. (2018), the relevant organization such as the Bank of Thailand and commercial banks should boost public awareness of the ease-of-use and usefulness of QR Code payment technology in mobile banking applications. It will give people good attitudes toward such technology and increase its acceptance, and the Banks should further develop QR code payment technology for mobile banking applications so that it becomes even easier to use. When people find the technology more convenient, acceptance of such technology will grow.
23 Figure 6. Steps for Using QR Codes for Payments Source: Thai QR Payment (Bank of Thailand, 2017) Steps for Using QR Codes to Make Payments (as shown in Figure 6) 1. Login to Mobile Banking by Username and Password 2. Scan the QR Code 3. Key in the amount of the payment 4. Check the name of school or the shop, and press “Confirm” 2.3 Risks Related to Electronic Transactions Advances in technology have resulted in a growing security gap in information systems and constant changes in style and methods. Due to modern technology, there are risks in various matters, such as the security of transactions. Trzeciak (2017) stated, “Current technology allows seamless collaboration, but also allows the organization's sensitive information to be easily removed from the organization.” Therefore, school administrators need to have an internal control system for electronic transactions to maintain accuracy, security, privacy and convenience for customers who use the service.
24 Wales & Lee (2014) define Internal Control as “the processes and systems designed to reduce risk that embezzlement or misappropriation could occur through electronic transactions and not be detected in a timely manner.” People use electronic transactions more often because it takes less time to complete a transaction. Since it is a fast service, there may be limited oversight of the electronic transaction, and so possible fraud needs to be caught during a review process by a person involved in the whole process, such as the one responsible for approving or recording the transaction. Possible problems include unauthorized transactions, double payments, duplicate deposits, or diverting funds to a personal account (Wales and Lee, 2014). For International Schools that use electronic transactions via the Internet, such as electronic payments or fund transfers, it is possible for risks to occur during the process. This is because the Internet may provide an open channel for commission of the following types of frauds (Ananbunpakit, 2013). Malware and Spyware is software that is intended to damage or disable computers and computer systems. This software enables a user to obtain covert information about another's computer activities by transmitting data covertly from their hard drive. Phishing schemes are fraudulent attempts in an electronic communication to obtain sensitive information such as usernames, passwords, and credit card details (and money), often for malicious reasons, by disguising the perpetrator’s identity as a trustworthy entity. Keystroke logging, sometimes called system monitoring, is a type of surveillance technology used to monitor and record each keystroke typed on a specific computer's keyboard. Keystroke logging software is also available for use on smartphones, such as Apple's iPhone and Android devices. Keystroke logging is often
25 used as a spyware tool by cybercriminals to steal personally identifiable information (PII), login credentials, and sensitive enterprise data. Denial of Service is computer system attacks that are intended to interrupt service of the system. This will result in lower levels of service, or a system may not able to provide service for customers. Yennie (2018) said that “Electronic payments are being used more frequently; like any other payment, electronic payments need to be subject to appropriate internal controls.” According to the Thai Electronic Transaction Act of B.E. 2544 (2001), one problem to be considered when using electronic transactions is the security system for keeping and maintaining information for both the user and the customer. The risk of misappropriation is much higher if all transactions are conducted by non-owners. According to Reed (2019), “employee fraud is a significant problem faced by organizations of all types, sizes, locations and industries”. According to Snyder, Andersen and Zuber (2017) cited in the report of the Nation on Occupational Fraud and Abuse by the Association of Certified Fraud Examiners, Inc., in 2014 the typical organization in the United States loses 5% of its annual revenue each year due to employee fraud. Avoid disabling employee user IDs when on vacation, and remove unnecessary entitlements from employees to make sure that no one person has access to information and the ability to edit accounting and finance data. Review activity reports daily to protect against improper deposits or transfers (Crites, 2008). Set passwords and educate employees never to share passwords or to disclose account or log-in credential information to anyone, and review user access listings to all systems and back-ups of system activity. These actions are very important keys for control over electronic transactions (Flandeers & Braunewell, 2016).
26 Controls over electronic payments are very important tools for management of all institutions to use for protecting against the risk of fraud. Schools need to make sure that internal control procedures are in place to prevent the risk of inside fraud, as well as outside fraud, because control involves fraud prevention. The internal auditor is responsible for ensuring that the internal control system is reasonable and effective. Therefore, it is important for the internal auditor to have a thorough understanding of the theory and concepts or principles of internal control, especially information technology for operations (Ananbunpakit, 2013). 2.4 Factors Affecting Parental Perception toward Electronic Payments 2.4.1 Perception toward Electronic Payments This study focuses on several factors that affect parental perception toward electronic payments, which are benefits, trust, self-efficacy, ease of use and security (Teoh et al., 2013). According to Abrazhevich (2004), users need to trust that payments will be conducted in a proper way, and that their money will not be stolen or misappropriated. Salem, Baidoun, and Walsh (2019) also found that technological leadership, e-trust, e-loyalty, customer’s value for online personalization, customers’ concern for privacy and tendency of technology implementation affect the use of online banking services. The perceived ease of use and usefulness could help answer user acceptance of electronic payments in an e-commerce environment. However, the final decision to utilize a payment system depends upon what the user believes, along with attitudes towards privacy, security, and trust. Therefore, if an organization understands user acceptance of electronic payments system, it has to find out what aspects of electronic
27 payment systems are important to end users, and may determine user attitudes, behavior, and intents to accept the payment technology (Abrazhevich, 2004). 2.4.2 Benefits Benefits in this study referred to advantages gained from the use of electronic payments, which are convenience, fast speed, time saved, and usefulness. Other researchers define Benefit as the usefulness gained from using the Internet for a transaction (Wong, Lo, & Ramayah, 2014). Kim, Ferrin, and Rao (2009) indicated that perceived benefits have both direct and indirect effects on a customer’s decision whether or not to adopt an e-transaction service. According to Wai-Ching (2008), the benefit of using electronic transactions is to save time for doing the transaction, save traveling costs, and to enable them to conduct transactions faster than in real time at any place. It also them to always check their statements and see their transactions to prevent any risks or fraud that may occur. Teoh et al. (2013) found that benefits are significantly associated with a consumer’s perception toward e-payments. Fatonah, Yulandari, and Wibowo (2018) agreed that an electronic transaction system helps users to have faster payouts, better tracking, transparent transactions, reduced time use, cost savings and increased trust of users. The online payment service is a faster way than traditional payment methods. It is easy to learn about online payment services; besides, buying products online is cheaper. All these advantages are important factors that make the buyers turn to use online payments instead of the old style of banking transfers (Jongprasittipol & Subsang, 2009). When people use electronic transactions, especially e-payments and ecollections, they wish to gain some benefits by reducing time spent processing manual payments and providing receipts that are more secure than physical receipts (Wales and
28 Lee, 2014). Teoh et al. (2013) agreed that e-payments are designed to benefit consumers mainly in terms of convenience and lower cost of electronic transactions. In 2016, the Bank of Thailand began promoting the development of electronic payments instead of cash payments. Examples include prompt pay system, online transfers or payments by debit or credit cards for government institution, the business sector, and educational institutions to enhance and increase convenience for people and organizations, as well as reduce the cost of managing cash for businesses and countries (Bank of Thailand, 2016). The Government Finance Officers Association (2008) reported some benefits for electronic payments and electronic collections as follows: Electronic Payments 1. Eliminate the handling, processing and storage of paper checks. 2. Reduce time spent on bank reconciliations. Through electronic payments, the bank will provide a statement of the end of the month to trace each payment. Users can print payment reports from the system to trace each payment from the bank statement. At the same time, users can check details of each transaction from the system. 3. Eliminate the occurrence of lost or stolen checks, and the cost of check reissuance. 4. Enhance internal control of high volume.
29 Electronic Collections 1. Accelerate issuance of receipts and availability of funds. 2. Ease of payment and customer convenience. a. 24-hour access to online payments. b. Reduced costs for envelopes and postage. c. Instant acknowledgement of online payments. d. Opportunity to establish automated recurring electronic payments. 3. Reduce cashiering and accounts receivable costs. 4. Reduce cashiering lines. 5. Simplify preparation of bank reconciliations. The cash management system for electronic collections provides a real time report when students’ parents transfer funds to pay for tuition and fees. The finance department is able to identify each transaction by the student’s ID number, which helps the finance department to spent less time preparing bank reconciliations. 6. Reduce returned check processing costs. In the normal process, when parents pay tuition and fees by check, if the check is incorrect or “bounces”, the school needs to return the check to the parents. In the case of electronic collections, parents just transfer the desired amount to the school’s account. 2.4.3 Trust Trust can be defined as confidence in using electronic payment or electronic receipt services regarding the performance of the providers’ system. It is trust and confidence that customers have regarding an electronic transaction that the provider will have a good system to protect their information, and confirm that an accurate transaction was made. Abrazhevich (2004, p. 37) supported that “trust refers to the
30 degree of customers’ confidence that their money and personal information will be safe, and that all parties involved will not act against users’ interests”. According to Pestek, Resic, and Nozica (2011), trust is the key factor that determines the success or failure of Internet-based operations. Trust bring successful operations to a company because customers trust and believe that their e-transactions will bring positive outcomes, and that the company has enough ability to protect their data from a third party. It is true that if customers have no trust, e-transactions will not occur. Trust is one of the significant factors for successful online interactions as it is in offline communities. It is an important factor to predict the behavior of an entity, and as a criterion for an entity’s selection (Aljazzaf, Perry, & Capretz, 2010). It can, be concluded, therefore, that trustworthiness is vital to e-payment success, and trust is considered a very important issue. As per the study of Abrazhevich (2004), 97.6% of respondents would trust only when the payment system wasintroduced by organization, and 94.4% would refrain from using a system if they felt it was not trustworthy. Without an adequate system that users can trust, it would be extremely difficult for e-payments to achieve widespread usage (Lim et al., 2006). 2.4.4 Self-efficacy Self-efficacy may have different definitions. As cited by Dory et al. (2009), selfefficacy referred to a particular person’s understanding and beliefs, skills and capability to perform a given task. Bandura (1986) as cited by Teoh et al. (2013) noted that the perception one has of his or her abilities to do a particular task would increase the possibility that it will be successfully completed. Studies have found that self-efficacy has a substantial positive effect on perception and behavioral intention to use
31 information system. Teoh et al. (2013) stated that self-efficacy is mainly associated with consumers’ perception toward e-payments. Brown, Malouff and Schutte (2005) said, “People will only try to do what they think they can do, and won’t try what they think they can’t do” (p.13). The theory of Bandura (1977) defined self-efficacy as comprising individuals’ beliefs about their ability to engage successfully in a task to obtain an anticipated result. Brown et al. (2005) cited the work of Bandura (1994) that self-efficacy is important because individuals with high efficiency for a task tend to put more effort and experience more positive emotions related to the task. People with a high sense of efficacy also believe that they can achieve difficult tasks; they perceive them as challenges to be mastered, rather than threats to be avoided. However, Wood and Bandura (1989), as cited in the study of Hsu, Wiklund and Cotton (2017), argues that ones’ self–efficacy belief is principally shaped by mastery experience. Applying this reasoning, it argues that success in a task increases self– efficacy, and thus creates motivation to do similar activities again, while failure demoralizes self–efficacy, and makes people shy away from doing that activity again. 2.4.5 Ease of Use Sanayei, Ranjbarian, Shaemi, and Ansari (2011) defines the term of “Ease of Use” as the degree to which a person believes that using a system will be free from efforts pertaining to the process leading to the end result. Numerous studies have confirmed that a technology will be perceived as more useful when it is easier to use (Legris, Ingham, & Collerette, 2003). The use of electronic payment systems is easy; accessing and processing electronic payments is not complicated. Teoh et al. (2013) cited the study of Davis (1989) that the use of an information system by a person is based on his/her overall attitude that perceived ease of use of that IT application. The
32 study of Suwunniponth (2016) also commented that the easy-to-use features of online payment applications have a positive effect on a person’s intention to use e-payments. The clear steps and the uncomplicated process of online payments increased the confidence of users to adopt this service because of its ease of use, convenience and benefits. Arvidsson (2014) supported that the importance of ease of use is that whether a consumer will adopt something or not is the result of a learning process. 2.4.6 Security Security in this study refers to the technical aspects that ensure integrity, confidentiality, authentication, information protection, and avoidance of data risk, such as setting up an access code that must be entered before an account may be used. Poon (2008) reported that an authorized username and password are extremely important to prevent any risks. Perceived risk affected the perception of customers’ uncertainty to use the service (Suwunniponth, 2016). For example, they may feel insecure concerning the ability of hackers to access their account via pin number. According to Tsiakis and Sthephanides (2005, p. 11), security for online payments is defined as “a set of procedures, mechanisms and computer programs to authenticate the source of information and guarantee the integrity and privacy of the information.” The phases of electronic payments are confidential when all phases of the process are capable of satisfying the needs of participants and their security expectations. However, the nature of security issues is changing with the constant improvement of information technology. Jalil, Talukder, and Rahman (2014) found that security of banking transactions is the primary concern in online and e-banking system. The lack of convincing security in the online transfer of funds may eventually result in serious damage to the banking sector.
33 The awareness level of the Internet banking is 89 percent and increasing day by day. Pathania and Singh (2015) found that the main reasons for selecting Internet Banking are lower service charges, convenience, quick service, safety, and security”. Abrazhevich (2004) also cited the study of Flynn (2001), which found that user factors are the most important issues for security, while technology is becoming increasingly sophisticated and tamper-proof. The majority of all security issues in IT settings are caused or assisted by users inside organizations, rather than hackers and other outsiders. Security experts cited experiences of people exchanging their passwords, attaching notes with logins and passwords to their monitors, or hackers finding these notes in the trash. To avoid this kind of mistakes, experts are talking about implementing security policies in organizations, to be able to address user-related factors in security. 2.5 Conclusions The review of literature on the use of electronic transactions and internal control over electronic transactions in schools has shown that several electronic payment practices help schools to provide efficient service to parents. For schools, electronic payments provide convenient and fast service to their customers and for the organization. However, use of electronic transactions may allow payment fraud or misappropriate transactions to be incurred, so maintaining effective internal control over them is very important for organizations. Internal control comes in two primary forms, which are prevention control and detection control, and one main overarching principle for internal control is to involve two or more people in all processes (Wales & Lee, 2014). In conclusion, use of electronic transactions such as electronic payments and electronic collections offers several advantages and benefits to customers and providers. International schools that are able to establish effective control practices over
34 electronic payments will be able to reduce fraud and other misappropriations of funds by employees. For customers, parents who use electronic payments for tuition and fees will enjoy convenience and save time by conducting transactions via the different channels provided by schools.
35 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research Design This independent study project primarily used a Descriptive Research Design approach to gather the needed data based on quantitative and qualitative methods. This research design allowed the researcher to state the problem being studied, develop data gathering instruments, determine sample size, design data collection procedures, analyze information, and summarize the findings. 3.2 Population and Sample Size The study targeted a population consisting of 2,026 parents at three schools, and the sample consisted of two categories as follows: 1. Altogether 406 parents of students responded to the survey questionnaire from three schools that were located in two provinces of central Thailand. 2. Interview respondents consisted of eight finance office staff who were involved with processing electronic transactions and providing service to students’ parents at the three Seventh-day Adventist International Schools in Thailand. The researcher used convenience sampling to reach out to respondents who could be contacted for the study. The questionnaire was distributed to the parents of student who were in Kindergarten and elementary grades from Pre-School to Grade 6, but one school was extended to Grade 10 because the research data was collected on the parent conference day, and not many Kindergarten and elementary students’ parents attended the meeting. Since the size of the population from each institution was known,
36 the calculation of sample size to represent the population used the formula of Krejcie and Morgan (1970), which provides for a 95 percent confidence level and P = 0.05. = 2(1 − ) 2( − 1) + 2(1 − ) Where; n = the sample size N = the population size e = the acceptable sampling error 2= Chi square for the specified confidence level at 1 degree of freedom and 95% confidence level ( 2 =3.841) p = Population proportion (p=0.5) In this study, the population is 2,026, the sample size was: n = 3.841x2,026x0.5(1−0.5) 0.052(2,026−1))+3.841x0.5)1−0.5) n = 323.02 ≈ 324 From the computation above, an accurate sample for this study should consist of 324 respondents; however, the researcher was able to collect 406 questionnaires. The data revealed that 319 respondents or 78.6% had made electronic tuition and fees payments, and only 87 respondents, or 21.4%, had never made electronic tuition payments. The population and sample size for each school included the parents of students from the selected Seventh-day Adventist (SDA) International Schools inThailand. , and are shown below in Table 3.1
37 Table 3.1 Population and Sample Size Institution Population (No of Families) Sample Size Percentage (%) A 323 118 37% B 631 64 10% C 1,102 224 20% Totals 2,026 406 20% Data was collected from 406 respondents in total, which served as the sample for this study. Because the researcher worked at Institution A, it was more convenient to collect a large sample size. Institutions B and C are located in another province, which made it more difficult to collect a large sample size. 3.3 Research Instruments In this study, primary data was collected. A survey questionnaire (please see Appendix 2) and an interview guide (Appendix 3) were the main research instruments used to gather this data. There was an adjustment made to the income per family question for one school; however, surveys with the original question had already been distributed to the other two schools in different locations. The questionnaire was divided in 2 sections. Section 1. Respondent demographic information. This section consisted of closed-ended questions that asked about respondents’ personal information. There were 10 questions. Section 2. Questions about the factors affecting respondents’ perception of electronic payments that consisted of 25 positive and negative statements. These
38 questions measured five variables, which were Benefits, Trust, Self-Efficacy, Ease of Use, and Security. There were measured using a 5-level Likert scale. The researcher set up criteria for measuring five levels of agreement with statements as follows. Point Scale 5 For “Completely Agree” 4 For “Agree” 3 For “Neutral” 2 For “Disagree” 1 For “Completely Disagree” 3.4 Data Collection 3.4.1 Survey Primary data was collected through a questionnaire distributed to 900 parents from the classes of Prep-Center to Grade 6 for two schools, and the classes of PrepCenter to Grade 10 for another school. These were distributed at the parent-teacher conference, but not many parents attended, so the number of classes was expanded. Altogether 425 parents responded to the survey, but 19 questionnaires were incomplete, and so only 406 questionnaires could be used in this study. Among the group who completed the questionnaire, 319 respondents had previously used electronic payments, which represented 78.6% of the sample size.
39 Table 3.2. Respondents Classified by School School Respondents Percentage (%) A 89 27.9 % B 34 10.7% C 196 61.4% Totals 319 100% 3.4.2 Group Interviews An interview guide was used to gather qualitative data from eight respondents who were financial and accounting office staff that worked at the three selected Seventh-day Adventist International Schools; they served as representatives of the schools. Open-ended questions were asked to the interviewees in order to acquire findings that would help in understanding their perceptions toward and problem regarding electronic transactions. 3.5 Data Analysis After editing and checking the accuracy of data, a statistical software package was used to analyze the data as follows: 3.5.1 The information from questionnaires was coded and keyed into the software package so that the results could be analyzed. 3.5.2 Descriptive Statistics were calculated to describe the data collected in terms of frequency, percentages, means, and standard deviations. Pearson correlation coefficients were used to analyze the relationships between variables, and multiple regression was used to test the study’s hypotheses. The software package was also used to determine which hypothesis should be rejected with a 95% level of confidence. The
40 level of significance was set at 0.05, and therefore anything less than 0.05 was considered significant. The mean score for each factor was interpreted based on the concept of Srisa-art (2002) using the following measurement scale: 4.51-5.00 = Very High 3.51-4.50 = High 2.51-3.50 = Medium 1.51-2.50 = Low Less than 1.50 = Very Low 3.5.3 A narrative approach was used to describe the data collected with a 12- question interview guide from the finance office staff of the selected Seventh- day Adventist International Schools. 3.6 Instrument Reliability and Validity Instrument reliability and validity were reviewed by the research advisor and two other academic professionals. They considered the accuracy, completeness, and appropriateness of the content; since the researcher adapted a questionnaire used by Kewtan (2014) and Teoh et al. (2013), this was deemed sufficient. A test of inter-item reliability was conducted on each set of sub items in each variable using Cronbach’s alpha. Cronbach’s alpha provided a reliability of benefits score of ( = 0.851), the reliability of trust score was ( = 0.870), a reliability of self-efficacy score of ( = 0.857) , a reliability of ease of use score of ( = 0.858), the reliability of security score was ( = 0.870) , and a reliability of perceptions toward electronic payments of ( = 0.850). The overall instrument reliability coefficient was ( = 0.880), or a value greater than 0.70, which indicated that all of the questions in the five factors were valid for this study (Cho & Kim, 2015). Reliability coefficients for all subscales are presented in Table 3.3