Internet banking capabilities and performance of small business: The IT business value from the perspective of external capabilities

Abstract

The purpose of this research is to identify the extent to which Internet Banking Capabilities are related to the performance of small business (bank customers) at the processes and firm levels. As a research method, a survey with small businesses which use internet banking has been conducted. For data analysis, we used Structural Equation Modeling estimated with Partial Least Squares (PLS). The results indicate the direct impact of Internet Banking Capabilities on process performance, which sequentially impacts the performance at the firm level. On the other hand, there is no direct impact of Internet Banking Capabilities on firm performance. Limitations and research opportunities are included in the conclusions.

Keywords: IT value, Internet Banking Capabilities, process performance, firm performance.