Title: Is e-banking a competitive weapon? A causal analysis

Authors: Kuang-Hsun Shih

Addresses: Department of Banking & Finance, Chinese Culture University, No. 55, Hwa-Kang Road, Yang-Ming-Shan, Taipei 11411, Taiwan

Abstract: This study considers the coherence of the financial service sector and adopts different observational variables to identify innovation capital (training and R&D density) and process capital (IT system sufficiency). The results show that human capital has a direct impact on both innovation capital and process capital, which in turn affect customer capital, while finally, customer capital affects business performance. In addition, there is a negative relationship between process capital and customer capital in the financial service sector. It suggests that in the financial service sector, customer satisfaction relies on a sufficient degree of training and R&D density. Intemperate investment on the support of e-banking operation systems may not be a good answer.

Keywords: financial services; financial institution management; intellectual capital; e-banking; business performance; knowledge management; electronic finance; e-finance; electronic banking; online banking; training; R&D; research and development; customer satisfaction; innovation capital; process capital; customer capital.

DOI: 10.1504/IJEF.2008.017539

International Journal of Electronic Finance, 2008 Vol.2 No.2, pp.180 - 196

Published online: 16 Mar 2008 *

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