Journal of International Information Management


This paper reviews how existing and potential uses of Internet technology can generate a competitive advantage for rural community banks. To do so, it offers a framework for analyzing Internet technology investment decisions. Organizations in this segment of the banking industry are often more removed from centers of technology and have traditionally been more conservative in their approaches to information technology (among other things). Banking Associations have developed in the U.S., such as the Independent Bankers Association, to try and help community banks coordinate marketing, legislative, and other issues that they have in common. The use of Internet technology can and will have a great strategic impact on the operations, management, and marketing for these banks and their associations. After a review of current technologies and their uses, the paper will identify specific opportunities for inter-, intra-, and extranet applications that could be used to enhance the internal and external competitive factors of these more isolated businesses and their associations. The paper will then present a framework for evaluating investment decisions in this new technology.