The Nexus between Operational Failure and Mobile Banking Usage in Malaysia: A Conceptual Framework
Keywords:
Mobile Banking, Function Failure, System Failure, Information Failure, Service Failure.
Abstract
Mobile banking has become a common method used by banks in delivering their products and services to customers. However, operational issues occur in the use of mobile banking, including function failure, system failure, information failure, and service failure. Therefore, this research aims to explore the factors that could affect mobile banking usage in Malaysia. Hence, this research presents a conceptual framework on the effects of operational failure (function failure, system failure, information failure, and service failure) on mobile banking usage. Research hypotheses are proposed based on the theorised relationship among the variables in this research. Significant relationships are expected between function failure, system failure, information failure, service failure, and mobile banking usage. It is hoped that this research will provide insights to the banks in effectively managing their mobile banking platform in serving the customers.
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References
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Hazée, S., Van Vaerenbergh, Y., & Armirotto, V. (2017). Co-creating service recovery after service failure: The role of brand equity. Journal of Business Research, 74, 101-109.
Kamboj, S., Sharma, M., & Sarmah, B. (2022). Impact of mobile banking failure on bank customers' usage behaviour: The mediating role of user satisfaction. International Journal of Bank Marketing, 40(1), 128-153. https://doi.org/10.1108/IJBM-10-2020-0534
Laukkanen, T., & Kiviniemi, V. (2010). The role of information in mobile banking resistance. International Journal of Bank Marketing, 28(5), 372-388.
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Merhi, M., Hone, K., Tarhini, A., & Ameen, N. (2021). An empirical examination of the moderating role of age and gender in consumer mobile banking use: A cross-national, quantitative study. Journal of Enterprise Information Management, 34(4), 1144-1168.
Migacz, S. J., Zou, S., & Petrick, J. F. (2018). The “terminal” effects of service failure on airlines: Examining service recovery with justice theory. Journal of Travel Research, 57(1), 83-98.
Mugo, D.W. (2021). Effect of top management support on implementation of mobile banking projects in commercial banks in Kenya. Journal of Entrepreneurship & Project Management, 1(1), 27-33.
Mustafa, S. Z., Kar, A. K., & Janssen, M. F. W. H. A. (2020). Understanding the impact of digital service failure on users: Integrating Tan’s failure and DeLone and McLean’s success model. International Journal of Information Management, 53, 102119. https://doi.org/10.1016/j.ijinfomgt.2020.102119
Nedeljkovi?, I. (2022). Determinants and consequences of user trust in mobile banking. Bankarstvo, 51(3/4), 170-201. https://doi.org/10.5937/bankarstvo2204170N
Okpa, M.-O, O. (2022). An assessment of cybercrime in commercial banks in Calabar metropolis. Ibom Journal of Social Issues, 11(4), 20-35. https:/ doi.org/10.60787/ijsi.v11i2.44
Povera, A., & Borhan, N. (2024, March 7). Banks are exploring ways for mobile banking apps to better address malware issues on devices. New Straits Times. https://www.nst.com.my/news/nation/2024/03/1022571/banks-exploring-ways-mobile-banking-apps-better-address-malware-issues#google_vignette
Rahi, S. (2017). Research design and methods: A systematic review of research paradigms, sampling issues, and instrument development. International Journal of Economics & Management Sciences, 6(2), 1-5. https://doi.org/10.4172/2162-6359
Rahman, S., Arshid, N., Ayaz, Z., Watara, S., Iqbal, M., Ahmad, S., & Ali, R. (2024). Failures and repairs: An examination of software system failure. Bulletin of Business and Economics, 13(1), 465-474. https://doi.org/10.61506/01.00229
Rouse, M., Bátiz-Lazo, B., & Carbó-Valverde, S. (2025). Trust and socio-demographic influences on mobile banking adoption in South Africa: A longitudinal study. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-08-2024-0458
Serrah, E. A., & Maideen, M. B. H. (2022). E-banking services and customer satisfaction: Focus on a private bank in Malaysia. International Journal of Academic Research in Business and Social Sciences, 12(10), 1489-1499. http://dx.doi.org/10.6007/IJARBSS/v12-i10/13077
Shaikh, A. A., Karjaluoto, H., & Chinje, N. B. (2015). Continuous mobile banking usage and relationship commitment–A multi-country assessment. Journal of Financial Services Marketing, 20, 208-219.
Singh, N., Srivastava, S., & Sinha, N. (2017). Consumer preference and satisfaction of M-wallets: A study on North Indian consumers. International Journal of Bank Marketing, 35(6), 944-965.
Sosa, L., Abhari, K., Pesavento, M., Koobchehr, F., Xiao, B., Kohsuwan, P., & Olivares, F. (2021). Service failure recovery in the sharing economy: A case study of Airbnb. Proceedings of the 54th Hawaii International Conference on System Sciences.
Su, L., Stepchenkova, S., & Kirilenko, A. P. (2019). Online public response to a service failure incident: Implications for crisis communications. Tourism Management, 73, 1-12.
Subedi, P. (2016). Using Likert-type data in social science research: Confusion, issues and challenges. International Journal of Contemporary Applied Sciences, 3(2), 36-49. http://www.ijcar.net/assets/pdf/Vol3-No2-February2016/02.pdf
Tam, C., & Oliveira, T. (2016). Understanding the impact of m-banking on individual performance: DeLone and McLean and TTF perspective. Computers in Human Behavior, 61, 233-244.
Tan, C.-W., Benbasat, I., & Cenfetelli, R. (2016). An exploratory study of the formation and impact of electronic service failures. MIS Quarterly, 40(1), 1-29. https://doi.org/10.25300/MISQ/2016/40.1.01
Wixom, B. H., & Todd, P. A. (2005). A theoretical integration of user satisfaction and technology acceptance. Information systems research, 16(1), 85-102.
World Bank Group. (2010). Mobile banking in Indonesia: Assessing the market potential for mobile technology to extend banking to the unbanked and underbanked. World Bank. https://documents.worldbank.org/en/publication/documents-reports/documentdetail /728801495012734121/mobile-banking-in-indonesia-assessing-the-market-potential-for-mobile-technology-to-extend-bankingto-the-unbanked-and-underbanked
World Bank Group. (2021). The Global Findex Database 2021. https://openknowledge.worldbank.org/bitstream/handle/10986/37578/9781464818974.pdf
Xu, J. D., Benbasat, I. & Cenfetelli, R. T. (2013). Integrating service quality with system and information quality: An empirical test in the e-service context. MIS Quarterly, 37(3), 777-794.
Zhou, Q., Lim, F. J., Yu, H., Xu, G., Ren, X., Liu, D., Wang, X., Mai, X., & Xu, H. (2021). A study on factors affecting service quality and loyalty intention in mobile banking. Journal of Retailing and Consumer Services, 60, 102424.
Apau, R., Titis, E., & Lallie, H. S. (2025). Towards a better understanding of Mobile banking app adoption and use: Integrating security, risk, and trust into UTAUT2. Computers, 14(4), 144. https://doi.org/10.3390/computers14040144
Azemi, Y., Ozuem, W., Howell, K. E., & Lancaster, G. (2019). An exploration into the practice of online service failure and recovery strategies in the Balkans. Journal of Business Research, 94, 420-431.
Baabdullah, A. M., Alalwan, A. A., Rana, N. P., Kizgin, H., & Patil, P. (2019). Consumer use of mobile banking (M-Banking) in Saudi Arabia: Towards an integrated model. International Journal of Information Management, 44, 38-52. https://doi.org/10.1016/j.ijinfomgt.2018.09.002
Bank Negara Malaysia. (2023). Financial inclusion framework 2023-2026: Strategy paper. https://www.bnm.gov.my/documents/20124/55792/SP-2nd-fin-incl-framework.pdf
Birruntha, S. (2024, August 14). Bank Negara fines two banks, Maybank and others, for e-banking service outages. New Straits Times. https://www.nst.com.my/business/corporate/2024/08/1091515/bank-negara-fines-two-banks-maybank-and-other-e-banking-service
Bitner, M. J. (1990). Evaluating service encounters: The effects of physical surroundings and employee responses. Journal of Marketing, 54(2), 69-82.
Chong, A. Y. L. (2013). Understanding mobile commerce continuance intentions: An empirical analysis of Chinese consumers. Journal of Computer Information Systems, 53(4), 22-30.
Delone, W. H., & McLean, E. R. (2003). The DeLone and McLean model of information systems success: A ten-year update. Journal of Management Information Systems, 19(4), 9-30.
Dwivedi, P., Alabdooli, J. I., & Dwivedi, R. (2021). Role of FinTech adoption for competitiveness and performance of the bank: A study of the banking industry in UAE. International Journal of Global Business and Competitiveness, 16(2), 130-138.
Fidelis, U. A., Ugbah, A. A., Alajekwu, U. B., Onuorah, A. C., Erhijakpor, A. O., & Adegbite, Y. A. (2025). Mobile banking application challenges and continued usage in Nigeria: Mediating influence of information and systems success model. Journal of Posthumanism, 5(4), 1157-1174.
Fintech News Malaysia. (2023). BNM lays out second financial inclusion framework for the next 4 Years. https://fintechnews.my/37202/financial-inclusion/bnm-lays-out-second-financial-inclusion-framework-for-the-next-4-years/
Forbes, L. P., Kelley, S. W., & Hoffman, K. D. (2005). Typologies of e?commerce retail failures and recovery strategies. Journal of Services Marketing, 19(5), 280-292.
Gomathinayagam, S., Bharathi, V., & Azhakappan, C. (2019). Analysis of problems faced by customers during the use of Mobile Banking in Tenkasi. International Journal of Research and Analytical Reviews, 6(2), 977-980. https://ijrar.com/upload_issue/ijrar_issue_20544042.pdf
Hazée, S., Van Vaerenbergh, Y., & Armirotto, V. (2017). Co-creating service recovery after service failure: The role of brand equity. Journal of Business Research, 74, 101-109.
Kamboj, S., Sharma, M., & Sarmah, B. (2022). Impact of mobile banking failure on bank customers' usage behaviour: The mediating role of user satisfaction. International Journal of Bank Marketing, 40(1), 128-153. https://doi.org/10.1108/IJBM-10-2020-0534
Laukkanen, T., & Kiviniemi, V. (2010). The role of information in mobile banking resistance. International Journal of Bank Marketing, 28(5), 372-388.
Mattila, A. S., & Ro, H. (2008). Discrete negative emotions and customer dissatisfaction responses in a casual restaurant setting. Journal of Hospitality & Tourism Research, 32(1), 89-107.
McLeod, S. (2023, July 31). Likert scale questionnaire: Examples & analysis. Simply Psychology. www.simplypsychology.org/likert-scale.html
Merhi, M., Hone, K., Tarhini, A., & Ameen, N. (2021). An empirical examination of the moderating role of age and gender in consumer mobile banking use: A cross-national, quantitative study. Journal of Enterprise Information Management, 34(4), 1144-1168.
Migacz, S. J., Zou, S., & Petrick, J. F. (2018). The “terminal” effects of service failure on airlines: Examining service recovery with justice theory. Journal of Travel Research, 57(1), 83-98.
Mugo, D.W. (2021). Effect of top management support on implementation of mobile banking projects in commercial banks in Kenya. Journal of Entrepreneurship & Project Management, 1(1), 27-33.
Mustafa, S. Z., Kar, A. K., & Janssen, M. F. W. H. A. (2020). Understanding the impact of digital service failure on users: Integrating Tan’s failure and DeLone and McLean’s success model. International Journal of Information Management, 53, 102119. https://doi.org/10.1016/j.ijinfomgt.2020.102119
Nedeljkovi?, I. (2022). Determinants and consequences of user trust in mobile banking. Bankarstvo, 51(3/4), 170-201. https://doi.org/10.5937/bankarstvo2204170N
Okpa, M.-O, O. (2022). An assessment of cybercrime in commercial banks in Calabar metropolis. Ibom Journal of Social Issues, 11(4), 20-35. https:/ doi.org/10.60787/ijsi.v11i2.44
Povera, A., & Borhan, N. (2024, March 7). Banks are exploring ways for mobile banking apps to better address malware issues on devices. New Straits Times. https://www.nst.com.my/news/nation/2024/03/1022571/banks-exploring-ways-mobile-banking-apps-better-address-malware-issues#google_vignette
Rahi, S. (2017). Research design and methods: A systematic review of research paradigms, sampling issues, and instrument development. International Journal of Economics & Management Sciences, 6(2), 1-5. https://doi.org/10.4172/2162-6359
Rahman, S., Arshid, N., Ayaz, Z., Watara, S., Iqbal, M., Ahmad, S., & Ali, R. (2024). Failures and repairs: An examination of software system failure. Bulletin of Business and Economics, 13(1), 465-474. https://doi.org/10.61506/01.00229
Rouse, M., Bátiz-Lazo, B., & Carbó-Valverde, S. (2025). Trust and socio-demographic influences on mobile banking adoption in South Africa: A longitudinal study. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-08-2024-0458
Serrah, E. A., & Maideen, M. B. H. (2022). E-banking services and customer satisfaction: Focus on a private bank in Malaysia. International Journal of Academic Research in Business and Social Sciences, 12(10), 1489-1499. http://dx.doi.org/10.6007/IJARBSS/v12-i10/13077
Shaikh, A. A., Karjaluoto, H., & Chinje, N. B. (2015). Continuous mobile banking usage and relationship commitment–A multi-country assessment. Journal of Financial Services Marketing, 20, 208-219.
Singh, N., Srivastava, S., & Sinha, N. (2017). Consumer preference and satisfaction of M-wallets: A study on North Indian consumers. International Journal of Bank Marketing, 35(6), 944-965.
Sosa, L., Abhari, K., Pesavento, M., Koobchehr, F., Xiao, B., Kohsuwan, P., & Olivares, F. (2021). Service failure recovery in the sharing economy: A case study of Airbnb. Proceedings of the 54th Hawaii International Conference on System Sciences.
Su, L., Stepchenkova, S., & Kirilenko, A. P. (2019). Online public response to a service failure incident: Implications for crisis communications. Tourism Management, 73, 1-12.
Subedi, P. (2016). Using Likert-type data in social science research: Confusion, issues and challenges. International Journal of Contemporary Applied Sciences, 3(2), 36-49. http://www.ijcar.net/assets/pdf/Vol3-No2-February2016/02.pdf
Tam, C., & Oliveira, T. (2016). Understanding the impact of m-banking on individual performance: DeLone and McLean and TTF perspective. Computers in Human Behavior, 61, 233-244.
Tan, C.-W., Benbasat, I., & Cenfetelli, R. (2016). An exploratory study of the formation and impact of electronic service failures. MIS Quarterly, 40(1), 1-29. https://doi.org/10.25300/MISQ/2016/40.1.01
Wixom, B. H., & Todd, P. A. (2005). A theoretical integration of user satisfaction and technology acceptance. Information systems research, 16(1), 85-102.
World Bank Group. (2010). Mobile banking in Indonesia: Assessing the market potential for mobile technology to extend banking to the unbanked and underbanked. World Bank. https://documents.worldbank.org/en/publication/documents-reports/documentdetail /728801495012734121/mobile-banking-in-indonesia-assessing-the-market-potential-for-mobile-technology-to-extend-bankingto-the-unbanked-and-underbanked
World Bank Group. (2021). The Global Findex Database 2021. https://openknowledge.worldbank.org/bitstream/handle/10986/37578/9781464818974.pdf
Xu, J. D., Benbasat, I. & Cenfetelli, R. T. (2013). Integrating service quality with system and information quality: An empirical test in the e-service context. MIS Quarterly, 37(3), 777-794.
Zhou, Q., Lim, F. J., Yu, H., Xu, G., Ren, X., Liu, D., Wang, X., Mai, X., & Xu, H. (2021). A study on factors affecting service quality and loyalty intention in mobile banking. Journal of Retailing and Consumer Services, 60, 102424.
Published
2025-08-12
How to Cite
Abdul Aziz, M. R., Khairul Emran, A. R., Mohamed Kamal, M. S., Pishal, N. A., Syahiran, N. A., & Sorfina Hisham, Q. D. (2025). The Nexus between Operational Failure and Mobile Banking Usage in Malaysia: A Conceptual Framework. Information Management and Business Review, 17(2(I)S), 522-529. https://doi.org/10.22610/imbr.v17i2(I)S.4580
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Copyright (c) 2025 Muhammad Ridzuan Abdul Aziz, Ahmad Razieman Khairul Emran, Muhammad Syukri Mohamed Kamal, Nor Atikah Pishal, Nurul Asyikin Syahiran, Qistina Damia Sorfina Hisham
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