Internet banking: strategic responses to the accession of WTO by Chinese banks

Purpose To assess to what extent Chinese domestic banks' use of internet banking as a strategic response to the entrance of the WTO is affected by factors both external and internal to the banks. Design/methodology/approach A model depicted by a path diagram is developed to test the impact of various external and internal factors considered to have an impact on Chinese domestic banks' strategic response to the accession into the WTO. Survey questions from prior studies were adopted and modified. Structural equation analyses were used for data analysis. Findings The research hypothesis that the increasingly competitive conditions in the banking sector resulting from China's accession into the WTO has a significant effect on Chinese domestic banks' internet banking investment decisions was confirmed. Research limitations/implications The conceptual model and research instrument could be further refined. The sampling frame used could be expanded to cover all banks in the Chinese mainland. Practical implications Findings of the study should benefit organizations in improving their use of IT as a strategic weapon, especially for the banking industry. Originality/value This study is the first empirical research on internet banking in mainland China from a strategic perspective.