Use of Partial Least Square Structural Equation Modeling (PLS-SEM) in Customer Intention to Reuse Innovative Electronic Payment

Abstract

The purpose of this study is to create a new research instrument for “Innovative Electronic Payment (e-payment)” to fit with Chinese culture through the “Diffusion of Innovation Theory” using Exploratory Factor Analysis (EFA) and to continue the study by testing the impact of four sub factors of innovative e-payment on customers’ intentions to reuse e-payment. Data were collected from 350 respondents, who were working people with experience using e-payment. A survey method was applied via a self-administration technique, to collect the data in Nanning, Guangxi, China, from working people at popular office buildings. In order to test all hypotheses, the Statistical Package of PLS-SEM was applied to test model fit based on convergent and discriminant validity, and to further test all hypotheses. The results showed that trialability, compatibility, complexity, and comfortability of the innovative electronic payment model were found to have a statistically significant impact on customers’ intentions to reuse e-payment.