PurposeTo 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/approachA 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.FindingsThe 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/implicationsThe 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 implicationsFindings of the study should benefit organizations in improving their use of IT as a strategic weapon, especially for the banking industry.Originality/valueThis study is the first empirical research on internet banking in mainland China from a strategic perspective.

Productivity and people maintenance values have traditionally been considered to contribute to leader effectiveness but the dynamics by which they have their effects have not been clarified. This study proposes that cooperative and competitive goal interdependence mediates the relationship between these values and outcomes. Working in organizations in Shanghai, China, 103 managers indicated their productivity and people values and 206 employees indicated their goal interdependence, leader effectiveness, and their commitment. Structural equation analysis suggested that productivity and people maintenance values affect goal interdependence which in turn results in leader effectiveness and employee commitment. Findings refine the theorizing by suggesting that leader values reduce competitive and independent goals but may not themselves strengthen cooperative goals. Results also suggest that leader values may directly induce employee commitment. The study’s findings and previous research were interpreted as suggesting that productivity and people values coupled with cooperative goals provide a foundation for effective leadership.