Determinants of Technology Adoption: Evidence from the Chinese Banking Industry

Dongwei He, Kai You, Wenqing Li and Jun Wu

Emerging Markets Finance and Trade, 2021, vol. 57, issue 11, 3167-3189

Abstract: The decision on online banking adoption is a strategic choice by banks with multiple purposes. Using panel data on banks with hand-collected information on adoption decisions from 2002 to 2016, this article is the first to examine the determinants of online banking adoption in China. We first construct a theoretical model to illustrate banks’ online service adoption strategy and then test the determinants of online banking adoption decisions. Our model compares the patterns of online banking adoption decisions at large national banks and small banks. The model and empirical results show that banks with a larger geographic market adopt online banking earlier, and banks’ online banking adoption may be motivated by having competitors that have already adopted this technology. We also find evidence that online banking is a substitute for physical branches. Our results shed light on the banks’ effective management of online and offline services.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2019.1678027 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:57:y:2021:i:11:p:3167-3189

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2019.1678027

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().