The Role of E-Banking Services in Achieving Competitive Advantage -

Foreign Banks in Jordan

ZAKARIA AHMED ATYAT

Department of Business Administration,

Al-Balqa Applied University,

JORDAN

ORCID iD: 0000-0003-1568-2860

JORDAN

JORDAN

services in achieving competitive advantage. Finally, the study formulated recommendations for foreign

commercial banks to offer more electronic services and to utilize technology to attract more customers.

Key-Words: - E-financial services, E-Banking, competitive Advantage, foreign commercial banks, mobile

banking, electronic credit, Jordan

Received: September 8, 2022. Revised: August 3, 2023. Accepted: September 5, 2023. Published: September 25, 2023.

engaged in traditional work. There is a shortage of

capital. Foreign banks help in overcoming these

obstacles and promoting the economy of such

countries. Recently, the development of

technological tools has changed the significance

and objectives of communication and supported

new connection channels. Nevertheless, this

improvement is called up in its opportunities and

challenges for marketers and communication,

especially in all sorts of business. This has led to a

research aims to find the role of these services by

foreign banks in their daily business to achieve a

competitive advantage.

promote their services. The banking sector in

Jordan is considered one of the largest, most

efficient, and highly competitive sectors in Jordan.

Technology and social media forced commercial

banks to the development of online banking

services because they play an important role for

them to achieve their competitive advantage. They

are investing huge amounts of money to achieve

progress in their business strategies to achieve

competitive advantage by offering E-banking such

1. What are the E-banking services offered by

foreign banks?

2. What is the level of competitive advantage in

foreign banks?

3. What is the role of the study of the independent

variables on the dependent variable?

2. The study provides a theoretical model that can

improve the understanding of the variables used in

this research.

3. Significance results, which can help the

decision-makers in the foreign commercial banks in

Jordan in determining the E-services to take

advantage of these services to achieve competitive

advantage in their work.

2. To determine the role of the study of the

Descriptive and analytical methodologies are used

in this research. Data analysis is implemented to

investigate the role of the independent variables on

the dependent variable. The scientific research

method is used for the practical side by answering

research questions, examining the hypotheses, and

getting the results out of a questionnaire that is

developed by the researchers.

formulas used for this purpose.

Statistical tools that will be used in this research:

1. Frequencies.

2. Percentages.

3. Means: The average is perhaps the most

commonly used method to describe a central

tendency.

Based on the research problem, a hypothetical

study model that illustrates the role of independent

variables on the dependent variable can be

explained in Figure 1.

banking sector individually, while most of the

previous studies take each variable separately. The

model which is developed by the researchers

concentrates on the E-services as the independent

variable and competitive advantage as the

dependent variable.

traditional, customer service is an area that carries a

competitive advantage that makes the bank

preferable to other banks and adds to it a

competitive strength and an advanced position in

the market, which makes banking services increase

the competitiveness of banks for banks that use

electronic services, [5]. It can be said that the

successful bank is the one that seeks the new

banking thinking that requires change and does not

fear it and fight it. Modernization and development

Electronic financial services are conducting

banking operations by electronic means, i.e., using

technology, communications, and new machines.

Under this pattern, the customer will not be forced

to move to the bank if he can do the business he

wants from his bank from anywhere and at any

1- Automatic Teller Machine (ATM)

They are computerized communication devices that

enable clients of financial institutions to access the

financial services provided by those institutions

without directly dealing with people from those

institutions. Such as the expiration date and the

personal identification number, the machines are

distributed in different places connected to the

bank’s computer networks and used to obtain many

different services, [7].

the required banking services, [6].

3- Electronic credit cards

It is a card issued by a bank to a beneficiary and

used for purchases with a delay in the payment

process, [8].

4- E-Banking:

It was defined as a bank that allows customers to

conduct their banking transactions at any time and

place without having to go to the bank’s

headquarters or branches, and this is done through

are constantly taking place on the account, and

according to Al-Hakim’s study, this service is also

called the “Mirsal” service, [7].

It was indicated by, [10], that it is the work, skills,

means, and resources that an organization uses to

outperform its competitors. In, [11], the author

organization can create for its customers, as it can

take the form of a low price or provide distinct

benefits in the demolition compared to competitors,

[12]. According to Porter, there are three ways to

gain a competitive advantage for any organization,

which are: the cost advantage, as the organization

which provides better services at the same prices as

others.

Competitive advantage is usually built through a

set of sources which are the following:

1- Cost:

It is when the organization provides the same

service as the competitors, but at lower costs, [13].

2- Quality:

profits, [14].

3- Creativity:

management of all activities that include the

generation and development of technology, the

manufacture, and marketing of a new product or its

improvement, or the manufacture of a process or

equipment.

It is not only a new idea, the creation of a new

device, nor the development of a new market, but

the process of creativity is all these things in an

integrated manner.

4- Responding to customers:

Customer response has been defined as a set of

values related to speed, flexibility, and reliability of

Banking reputation consists of:

- The efficiency of the bank: that is, having the

skills and knowledge required to complete the

service.

- Credibility: It represents honesty, trust, and

reputation in the management of the bank that

provides its services.

is linked to the confidentiality of customer

information related to their accounts.

As the researchers mentioned in the theory above,

commercial banks have adopted and are working to

adopt a set of new electronic financial services, and

these types of electronic services had a prominent

role in enhancing their competitive advantage,

levels because the world has become

interconnected with this technology. It also

contributed to reducing costs for both the banks and

the customers who benefited from these electronic

services, and it enhanced the reputation of banks in

the Jordanian market, which increased its market

time and place reducing efforts made by them, in

for using electronic financial services is to meet the

needs of competition to meet the demands of

customers with the greatest degree of satisfaction

and contentment. He also added that the

competitive advantage of any bank is a main

incentive for other banks to keep pace with it or

sometimes surpass it, due to the similarity and

conformity of banking services in all banks to a

large extent.

Table 1 (Appendix): Percentage Distribution of

The stability of the questionnaire was measured by

extracting the Cronbach Alpha coefficient to

measure the coefficient of consistency of the scale

paragraphs, and the value of the Cronbach Alpha

coefficient among the toles was (0.975), and the

variable of E-banking services (0.945), and for

Competitive advantage (0.974). These values

The validity of the study's performance was tested

using the Guttmann Split-Half Coefficient, where

the value of the validity coefficient was (0.848),

which indicates the validity of the study tool.

The estimates were given so that the number (5)

means strongly agree, the number (4) agrees, the

number (3) is neutral, the number (2) disagrees, and

the number (1) strongly disagrees. To assess the

degree of approval, it was carried out according to

the following steps:

Dividing the average scale by the number of

required levels, which are three (high, medium, and

low), 4 ÷ 3 = 1.33, which is the length of the

category, and thus the levels become:

arithmetic mean (4.53) and standard deviation

(0.50) and states " The Management relies on the

speed of service providing as a competitive

advantage". While the lowest degrees of approval

for paragraph No. (9) came with an arithmetic

mean (3.79) and a standard deviation (1.19), and

hypotheses, linear regression analysis was used,

and for the use of linear regression analysis, two

conditions must be met, namely, there is no

correlation between the independent variables, and

the other is to follow the data of the independent

variable for a normal distribution, so the VIF,

Tolerance, and Skewness test were conducted to

ensure that the data fit the assumptions of the

regression analysis, as follows:

- It was confirmed that there was no high

- It was confirmed that the data follow the normal

distribution by calculating the Skewness

of significance (0.000). The value of the coefficient

of determination (R²) indicates that (72.7%) of the

variance in competitive advantages is due to the E-

banking services (automatic teller machine, mobile

banking, credit card, e-banking, and short message

services). The values of (T) indicate that just the

(Sig=0.001).

Table 9 (Appendix): Results of a simple regression

statistically significant effect, as the value of (F)

reached (6.893) and with a level of significance

(0.011). The value of the coefficient of

determination (R²) indicates that (11.1%) of the

variance in competitive advantages is due to mobile

competitive advantage. The results of the simple

regression analysis indicate the existence of a

positive effect of E-banking in achieving

competitive advantage, as the value of the

correlation coefficient reached (0.748), which is a

statistically significant effect, as the value of (F)

determination (R²) indicates that (56.0%) of the

variance in competitive advantage is due to E-

banking. The value of the regression

coefficient(B=0.795) indicates the positive effect,

where the value of (T=8.358) is statistically

significant.

Ho4: There is no statistically significant role of

Electronic Credit Cards in achieving

achieving competitive advantage, as the value of

the correlation coefficient reached (0.836), which is

a statistically significant effect, as the value of (F)

reached (127.602) and with a level of significance

(0.000). The value of the coefficient of

determination (R²) indicates that (69.9%) of the

variance in competitive advantage is due to the

Electronic Credit card. The value of the regression

coefficient (B=0.909) indicates the positive effect,

where the value of (T=11.296) is statistically

significant.

Ho5: There is no statistically significant role of

short message services in achieving competitive

advantage (α≤0.05).

Table 12 (Appendix): Results of a simple

regression analysis of short message services in

achieving competitive advantage. The results of the

simple regression analysis indicate the existence of

a positive effect of short message services in

where the value of (T=7.313) is statistically

significant.

of the E-Banking services in general and the results

competitive advantage in general.

credit cards have a positive impact on the

competitive advantage with (T = 3.391) and (sig. =

0.001). The results of the simple regression

analysis indicate the existence of a positive impact

ATM in achieving competitive advantage as the

level of significance (0.000). The results also

(0.000), and (0.000) respectively.

Based on the results, the study revealed the

following recommendations:

- The top management in foreign commercial banks

should use the latest technology of services to

attract more customers, especially after COVID-19.

- Foreign commercial banks must conduct

the latest technology to improve their knowledge

and their skills to serve customers within no time.

- Foreign commercial banks should use the

methods of distance services by increasing the

number of online services.

- Foreign commercial banks should fix more ATMs

in different places in the capital Amman and

governorates.

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