Strategic Contributions of Information Technology: an Empirical Study of ATM Networks
نویسندگان
چکیده
This paper presents an empirical study of the strategic contributions of automated teller machines (ATMs) to improving a bank branch‘s local deposit market share at the expense of its competitors. By extending previous models of deposit market share in branch banking to incorporate ATM technology variables, we develop a tool to provide answers and insights on key questions involving the evaluation of strategic impacts of information technology (IT) that have not previously been measured in this context. Our results suggest that a bank’s ATM network membership decision is crucial to its later success in enhancing deposit market share. However, we find little evidence that branch ATMs provide additional competitive leverage to increase a branch‘s local deposit share.
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