Purpose -The purpose of this paper is to examine the impact of online banking intensity on the financial performance of community banks. Design/methodology/approach -This study estimates online banking intensity and bank performance indices using a combination of primary and secondary data. Online banking intensity is specified as a latent construct and estimated using web feature data collected from bank websites. An empirical profit function of a nonstandard Fourier flexible form is estimated using bank's financial data to derive a theoretically consistent performance measure. The actual impact of online banking on performance is measured by regressing the profit efficiency index against a number of correlates including online banking intensity measure. Findings -Study results indicate that the increasing use of internet as an additional channel of marketing banking services has significantly improved the financial performance of community banks. Practical implications -These results show that online banking improves the financial performance and should encourage community banks to adopt new information technologies and offer targeted online services. Originality/value -This paper is the first of its kind that applies a structural equation modeling framework to develop a comprehensive online banking intensity measure, which accounts for a wide array of products and services offered online by a bank, and utilizes the estimated index in measuring the impact of internet banking intensity on bank performance.

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This project investigates the use of information systems by small business firms. Five research objectives guided the analysis of this project. These objectives are: 1) sectoral differences relative to information systems usage; 2) impact of firm size on the level of software sophistication; 3) hardware capacity and remote processing capability; 4) the relationship between software satisfaction and software sophistication; and 5) fact finding nature of MIS applications.

Export promotion programs are intended to help U.S. exporters enter, maintain, and expand foreign markets, but little is known of their success in achieving each of these goals. In this paper we attempt to determine the effectiveness of export promotion in increasing both U.S. market share and total import consumption using apple imports by Singapore and the United Kingdom as case studies. Estimates of a two-stage Linear Expenditure System (LES)/Almost Ideal Demand System (AIDS) model show that promotion increases consumption of apples in both the United Kingdom and Singapore, but increases U.S. market share only in the United Kingdom. The results suggest that free-riding on U.S. promotion can be significant. Copyright 1997, Oxford University Press.