Factors affecting customers’ adoption of green banking: an interpretive structural modeling approach

Purpose This study aims to recognize and analyze factors affecting consumers’ adoption of green banking. These identified factors are organized into a hierarchical structure to establish a contextual interconnectedness between them through the application of the interpretive structural modeling (ISM) technique. Design/methodology/approach Through an extensive review of the literature and experts’ opinions, this study identified 13 influential factors. Using the dual approach of ISM and Matrice d‘Impacts Croisés Multiplication Appliquée à un Classement (MICMAC), this study delves into the interrelationships between these factors in terms of their driving and dependence power. Findings The ISM model highlights customer guilt and attitude as crucial factors with high driving power, which amplify other factors. Behavior intention is positioned at the top of the hierarchy due to its highest dependence power. On the other hand, perceived value, environmental concern and perceived consumer effectiveness are higher-level factors directly impacting customers’ behavior intention toward adopting green banking. Research limitations/implications The results of this research may help banking institutions in strategically allocating their resources toward key areas that can amplify the uptake of green banking among customers. Moreover, it also suggests policymakers to implement incentives to encourage banks and customers to adopt green banking practices. Originality/value To the best of the authors’ knowledge, this study is the first to adopt dual methodological approach to identify the influential factors from literature review and expert opinions and model their impact on green banking adoption using ISM and MICMAC analysis.