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With the entry to WRO and development of IT, banks in China are adjusting their competitive strategies to meet the competition. Internet banking has become a kind of strategic choice to response to the entry to WTO. Based on relevantly selective reviews of literature of strategy theory and research, a model is developed to study banks strategic response to entry to WTO. According to a survey of 192 sets of questionnaires, this study finds that external pressure, business strategy and perceived benefits of Internet banking would influence banks perceived increase in Internet banking investment. And banksperceived increase in Internet banking investment has no difference between big banks and small banks.