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Management innovation and cultural adaptivity in international online banking

Daniel Singer, Albert Avery and Babu Baradwaj
Department of Finance, Towson University, Towson, Maryland, USA
Abstract
Purpose The purpose of this paper is both to determine Citibanks response to cultural diversity in the dynamic, highly competitive global market for online banking facilities and services, and whether or not international online bank web sites are constructed in a manner sensitive to the culture of their host country. Design/methodology/approach This paper takes the perspective of managing innovation for shareholder wealth maximization where consumer behavior is mediated through the technology acceptance model (TAM) belief constructs. The incorporation of variables reflecting Hofstedes fourfactor framework in 45 country-specific web sites operated directly by Citibank are compared with those variables in 189 web sites of indigenous banks. Findings The results suggest that culture has an important influence on international online banking web sites and that Citibank has adapted the form and content of its web sites to local cultural influences in a manner comparable to that of the indigenous banks. Further, the role of each of Hofstedes four cultural dimensions is seen to influence the form and content of online bank web sites. This finding confirms earlier research about the role of culture in the TAM. Research limitations/implications The results of this study are constrained by the extent to which the Hofstede framework actually captures the relevant dimensions of culture and the extent to which the measures of web site cultural attributes used in this study are valid. Further, the results are also limited by the fact that 23 of the Citibank web sites were located in countries for which Hofstede data were not available and by the small size of this study. Practical implications Success in the burgeoning and highly competitive online banking environment requires bank management to adapt their web sites to local cultural conditions. Small differences in language, the portrayal of individuals, and the background used in the site can significantly impact the acceptance of this distribution channel by the target population. This study confirms the importance of the cultural values of individualism, masculinity, uncertainty avoidance, and power distance with respect to consumer acceptance of online banking. Originality/value These findings provide guidance for bank managers as they expand their online banking operations into the international arena. They also support research confirming the importance of culture in determining international consumer behavior within the TAM. Keywords Banking, Online operations, Cultural studies Paper type Research paper

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Management Research News Vol. 31 No. 4, 2008 pp. 258-272 # Emerald Group Publishing Limited 0140-9174 DOI 10.1108/01409170810851339

1. Introduction The globalization of banking facilities raises interesting questions about how a bank should structure the form and content of its web sites in different countries. Traditional banking activities centered upon physical locations vary significantly from country to country (Huang, 2007; Eun and Resnick, 2004; Smith and Walter, 2003). The style of the buildings, the nature of policies, procedures, and services provided vary to reflect the different economic conditions and cultural norms encountered. Should bank web sites in different countries mirror these differences or are there compelling reasons for a greater degree of uniformity on the Internet? The emergence of online banking as an important channel of distribution for conventional banking products and services has created challenges for banks

attempting to develop an international presence (Crede, 1998; Smith and Walter, Ch. 14). While many of the larger US banks have had a presence overseas, it has been mostly on the investment banking side. Confronted by the maturation of the domestic US market, many US banks are in the process of expanding their retail banking operations internationally. It is clear that . . . the Internet opens a low-cost, high growth channel to the international investor . . . (Otalvaro et al., 1998, p. 251). For most US banks this attempt is on an ad hoc basis, with a focus on taking advantage of unique opportunities in a particular country. While banks have historically enjoyed a protected regulated environment, competition has been driven at an accelerated pace by deregulation. Much of this competition takes place in the online venue with non-bank financial corporations ever pressing at the boundaries of traditional banking products (Singh and Kundu, 2002). These competitive forces drive banks to a posture where they must correctly assess consumer needs, desires, tastes and preferences in order to make their web sites competitive (Bruno-Britz, 2006). On line retail banking has instigated a desperate positioning battle among competing companies from all different sectors of the financial services industry. (Kalakota et al., 1998, p. 19). As the second largest bank in the world (UBS is first) and the largest bank in the US, Citigroup, Inc., is a $1.5 trillion (in assets) holding company whose principle retail banking activities are conducted through Citibank, which provides financial services to consumer and corporate customers worldwide. While many US banks have expanded internationally, none has attempted to do so as systematically as Citibank. The US Citibank home web page (www.Citibank.com/us/d.htm) provides direct links to 68 country-specific web sites, from Algeria to Zambia. Citibank is committed to aggressive growth. It sees as the key to that growth its ability to develop a truly global banking franchise. We estimate that approximately 750 million potential new consumer customers, largely outside the United States, will emerge over the next five years an unprecedented opportunity . . . for Citigroup. (Annual Report, 2005, p. 4). The competition for the emerging international market will be ferocious. In the coming free-for-all, it is certain that success in developing an online banking facility will play a critical role in a banks success in this competition (IRBF, 2006). The pressing question for Citibank is not whether a global online strategy should be implemented, but how it should be implemented. Whatever form this strategy takes, it is clear that banking activity over the Internet will play an increasingly important role in Citibanks future growth (Rapp, 2000). To overcome inertia and to effectively grapple with constantly changing technology in this dynamic and highly competitive market will be difficult and require innovative management (Knemeyer, 2004). How should Citibank respond to the need for constant adaptation in a continually changing market? In answering this question, Citibank must recognize a tradeoff between uniformity across national boundaries and the local requirements for success. The general advantages of a uniform international presence include capturing economies of scale, developing business associated with international trade, increasing market power, and developing a more powerful brand image. This one size fits all approach would have the advantage of giving the bank absolute control over the web sites technology, content and form. Both as a matter of regulation and organizational culture bank management has historically placed a high value on control to reduce risk (Huang, 2007, pp. 114-20). Banks are fully experienced on how to accomplish this

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with the physical side of their operations, but global online banking presents a different set of challenges (Mead, 1994). However, there is a case to be made for local adaptation of online banking web sites. One argument is that the web site has an inherent moral component (Cooper, 2006). Therefore, to be creditable, the site moral values must be reflective of the target population. The second argument arises from the fact that the ultimate success of a web site is whether or not existing or potential customers will use it. (Rai and Jain, 2006; Singh et al., 2006b; Huang, 2007, p. 149). There is substantial evidence that new technology attracts consumers when that technology is perceived as both easy to use and useful (Venkatesh et al., 2003). The tradeoff between technologically driven innovation and its acceptance by consumers, based on perceived ease of use (PEOU), is explicitly recognized in the Worlds Best Bank Competition (Rombel, 2005). Al-Mudimigh (2007) found Citibank successful in making this tradeoff in the United Arab Emirates by developing an e-business strategy that compliments usability with functionality. 2. Literature review 2.1 Managing innovative processes The international context of online banking is that of accelerating technological change as banks move toward Web 2.0 platforms accompanied by ever increasing competitive pressures (Bruene, 2006). In this environment, innovative management is required for organizational success. Innovation may be seen as the successful implementation of creative ideas within the organization (Amabile et al., 1996; Miles, 2000). As change is ongoing in the online banking arena, what is needed is the management of the innovation process. This implies a continual process in which technological shocks and changing market structures require constantly reconfiguring perceptions and assumptions. Taking advantage of technological innovation and changed market structures requires a companys acceptance of knowledge management (KM) practices (Liao, 2003). Tiago et al. (2007) found that Internet-based KM has a positive impact on e-business performance. Successfully evolving an Internet strategy will require creative, multilevel, and non-linear management thinking. A comprehensive theory of innovation process management has yet to be forthcoming. Current thinking on this perspective of innovation is shaped by case studies and case histories (Slappender, 1996). Within such an ambiguous and uncertain milieu, a key success factor is keeping policies and practices tightly linked to organizational objectives. As a practical matter, this means that online banking strategies should be driven not by technology or IT protocols, but by the larger needs of the organization (Jaska and Hogan, 2006). In a comprehensive review of web site models, Goi (2007) found that good web site design is a function of not just the developers perception, but of both the developers perception and consumer acceptance and perception. Companies cannot grow through cost reduction and reengineering alone . . . . Innovation is the key element in providing aggressive top-line growth, and for increasing bottom-line results. (Davila et al., 2006). Thus, managers at Citibank are charged with the responsibility for implementing the online banking growth engine in a manner that maximizes shareholder wealth. This responsibility requires a sophisticated tradeoff between the risks associated with this new technology and a potential stream of earnings over time.

2.2 Technology acceptance model (TAM) The TAM addresses the behavior of individuals in confronting the inherent riskiness of interacting directly with hi-tech software and hardware (Davis et al., 1989). End users may choose not to interact with such systems for reasons that have to do with perception rather than the underlying technology. As originally postulated, the TAM argues that its belief constructs of perceived usefulness (PU) and PEOU fully mediate the influence of external variables on IT usage behavior (Davis, 1989). The TAM represents an extension of the widely used Theory of Reasoned Action (Fishbein and Ajzen, 1975) to the high technology area (Singh et al., 2006b). Attempts at empirically verifying the TAM have led to numerous tests and extensions of the TAM model (Venkatesh and Davis, 2000; Venkatesh, 2000; Agarwal and Prasad, 1999; Straub et al., 1997). Despite some criticism (Plouffe et al., 2001) of the TAM, most studies found it to be robust in explaining consumer behavior. The general consensus is that the TAMs belief structures are correct, but incomplete. Most of this concern has focused on the need to include the individual attributes of potential users (e.g. sex, attitude, experience, emotion). A number of relevant extensions of the TAM to online banking include culture as a factor impacting either, or both, the PU and the PEOU, depending on how the model was constructed and tested (Al-Gahtani, 2001; Singh et al., 2006a,b,c; Singh et al., 2005; Guriting and Ndubisi, 2006). This literature demonstrates that culture is an important factor in the belief constructs of TAM, but does not suggest how the different attributes of culture affect PU or PEOU. It is worth noting that the constructs of TAM pertain not just to the consumers of online products and services, but to the producers as well. Ramayah and Lo (2007) found that the shared beliefs (organizational culture) confronting enterprise resource planning (ERP) software impact both the PU and PEOU of that software and, thus, managements willingness to use it. This research confirms numerous earlier studies using TAM to explore the difficulties associated with computer usage. (Adams et al., 1992; Ignatius and Ramayah, 2005; Amoako-Gyampah and Salam, 2004). The constructs of TAM have not yet been integrated into process innovation management, however this area could prove a fertile field for further research. 2.3 Hofstedes cultural dimensions Culture (the shared values, beliefs, and behavior patterns characterizing a group of people) is a powerful, yet amorphous concept (Samuel and Douglas, 2006). With respect to marketing, the thought is that these shared attributes reveal themselves in different consumption behaviors across nations (Clark, 1990). Hofstede (1983) has identified four dimensions of those national cultures which generate significantly different behavioral responses. Hofstede (2001, 2007) analyzed a large data base of employee values scores collected by IBM between 1967 and 1973, covering more than 70 countries. As a result of additional work and refinement, the editions of Hofstedes work since 2001 list cultural dimension scores for 74 countries and regions (Hofstede, 2007). Hofstedes comment on his central finding and its implications for international business are For those who work in international business, it is sometimes amazing how different people in other cultures behave. We tend to have a human instinct that deep inside all people are the same but they are not. Therefore, if we go into another country and make decisions based on how we operate in our own home country the chances are well make some very bad decisions (Hofstede, 2007).

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It should be noted that there appear to be methodological problems with Hofstedes survey and his conclusions are not universally accepted (McSweeney, 2002). In addition, there is evidence that the recent internationalization of commerce has mitigated cultural differences in Europe and elsewhere from the time of Hofstedes survey (Gooderman and Norhaug, 2007; Samuel and Douglas, 2006). Despite the criticisms, Hofstedes framework stands as a paradigm for understanding crosscultural behavior. A good example of the power of this framework is presented by Singh (2006), who found three of Hofstedes cultural dimensions linked to innovative behavior by consumers. It is precisely these cultural dimensions which have the ability to show how culture affects consumer behavior within the context of the TAM. The four cultural dimensions originally developed by Hofstede include the power distance index (PDI), the individualism index (IND), the masculinity index (MAS) and the uncertainty avoidance index (UAI). The PDI measures the extent to which individuals in a society accept that, as the normal state of affairs, power is distributed unequally. Thus, a higher index represents the extent to which inequality among individuals is the accepted norm. A lower index represents the extent to which equality among individuals is expected and accepted. The underlying notion behind this cultural dimension is that society has some fundamental notion as to what the right distribution of power is. All societies are characterized by some degree of inequality, but some much more than others. The IND may be contrasted with the opposite notion collectivism. While all societies are pluralistic to some extent, the allegiance the individual feels to the group is what varies among different societies. In particular, it is the importance of the individual, compared to the importance of the group. In a more individualistic society, the focus of the individual is more on their own rights and needs. In a collectivist society, the group needs are paramount. A higher IND value is associated with greater individualism; a lower IND value is associated with a reduced emphasis on the individuals importance compared to that of the group. The MAS may also be better understood by contrasting it with the opposite concept feminism. Hofstede has observed that individuals in some societies are generally more competitive and assertive than in others. Similarly, individuals in some societies are generally more caring, nurturing, and modest than in other societies. Whatever the general orientation of that society, within that society, men tend to be more competitive and assertive, and less caring, nurturing and modest than women. Hence, Hofstede has defined this cultural attribute in terms of its two poles: masculinity and femininity. A higher MAS Index means the society is more masculine. The UAI deals with a societys acceptance of uncertainty and ambiguity. Some societies are more comfortable with uncertainty and ambiguity. In other societies, identifying the objective truth is a greater social imperative. Societies that are comfortable with uncertainty and ambiguity tolerate unstructured situations well. Unstructured situations can result in novel, unknown, surprising or different outcomes from that expected. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, and, on philosophical and religious levels, by a belief in absolute truth, i.e. There can only be one truth and we have it. People in uncertainty avoiding countries are also seen to be more emotional, and motivated by inner nervous energy. Uncertainty accepting cultures are more tolerant of different or unaccustomed opinions; they try to have as few rules as possible; and on philosophical and religious levels, they are relativist and allow for many currents of thought. People within uncertainty accepting cultures are

less demonstrative, more contemplative, and not expected to express emotions within their environment. Table I is illustrative of the range of these dimensions on Hofstedes scale. 3. Hypotheses The first objective of this study is to test the ability of Citibank managers to construct web sites that respond to the cultural imperatives of the individual countries to which their financial services and products are targeted. The objective is not to test the TAM on the web site target populations. Rather, the ability of Citibank managers to address the cultural proclivities, which effect PU or PEOU, is being tested. Assumption 1 is that the Citibank managers are sufficiently proactive and knowledgeable to recognize the need to customize the individual web site according to the expectations of the local population. Assumption 2 is that the web sites constructed by the indigenous banks will incorporate those same cultural imperatives into their online bank web sites. Therefore: H1. Citibank web sites show the same cultural manifestations as the web sites of indigenous banks.

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It is anticipated that Citibank and indigenous bank web sites manifest different cultural attributes relative to their host countries. Putting this in the form of a null hypothesis: H2. Citibank managers are too rigid and inflexible to depart from a generalized bank web site model of one size fits all.

The second objective of this study is to understand how culture impacts the attributes of bank web sites categorized into the three main categories of language, people and background.

Average World values Country values United States Australia Brazil Canada Chile Denmark Egypt France Germany Greece Hong Kong India Japan Norway Poland United Kingdom Source: Hofstede (2007)

PDI 55

IND 43

MAS 50

UAI 64

35 41 64 34 59 12 75 67 31 54 62 72 53 25 51 80

88 86 32 80 29 67 32 66 62 30 31 43 42 62 53 82

59 58 45 48 32 9 47 39 62 51 52 51 91 3 60 61

41 48 72 43 80 38 62 81 61 93 23 35 88 42 72 98

Table I.
Hofstedes four cultural dimensions selected countries

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For example, in cultures with a high UAI, the presence of males, females, or families on a banking web site may be expected to create anxiety. Therefore, in countries with a high UAI, individuals or family groupings are less likely to be depicted than in countries with a low UAI. Similarly, in countries with a high UAI, the need for conducting business in the native language (as opposed to English) would result in a greater reliance on the native language at that site. Therefore: H3. H4. Web sites in high UAI cultures will feature fewer females than in low UAI cultures. Web sites in high UAI cultures will feature less use of the English language.

In cultures with a high MAS, it might be expected that web sites would feature the display of fewer people (men, women and children) on a web site because the culture is so competitive that individuals react negatively to any threat of competition. It might also be expected that in high MAS culture individuals would have a preference for the English language. This may reflect the fact that users of online banking facilities in those cultures are affluent and highly educated, and thus find a competitive advantage in their command of the English Language. Therefore: H5. H6. Web sites in high MAS cultures will display fewer people than in low MAS cultures. Web sites in high MAS cultures will either be more likely to be entirely in the English language or to offer an English language version of its site.

Cultures exhibiting a high value for individualism might prefer to be served by web sites that make no distinction between different classes of customers. Web sites in these cultures might be expected to serve all customers and not reserve a special site for elite customers. Customers in highly individualistic cultures might also respond favorably to a web site available only in the native language and not English, because English fluency may also connote elitism. Professional environments might also be seen as a form of elitism. In contrast, the display of scenic features (mountains, meadows, seashore) may well suggest pleasures to be enjoyed by all and, consequently, not elitist. Therefore: H7. H8. H9. H10. Web sites in high IND cultures would tend not to present opportunities to access elite web sites. Web sites in high IND cultures would tend not to offer English language versions of their web sites. Web sites in high IND cultures would tend to avoid depicting a professional environment or offices. Web sites in high IND cultures would tend to depict scenic environmental tableaus.

Cultures with a higher PDI Index would be more likely to project a professional scene on their web site as this would convey the elitist thought that some people are professionals and some are not.

Therefore: H11. Web sites in high PDI cultures would be more likely to show a professional environment than in low PDI cultures.

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4. Methodology The data for study was collected in January, 2007, and is comprised of evaluations of 234 online bank web sites in 63 countries, including 45 Citibank country-specific web sites. The selection of bank web sites was not random, but rather focused on the most prominent banks in that country in order to capture banks with an international exposure. The web sites were surveyed for an array of 19 cultural attributes (Appendix I) based an authors experience in working with bank management. The survey instruments were completed by the authors. Interpretation of languages in which the authors lacked fluency was undertaken by native speaking faculty at Towson University. The definitions of the cultural dimensions used by Hofstede are very broad. The approach taken in this paper is to assume that the actual culturally relevant characteristics and attributes of online banking web pages are subsumed within the four cultural dimensions. While this approach is supported by the relevant literature and the following findings, further research needs to be done on how the specific characteristics and attributes of these web pages are linked to the cultural values of the target indigenous population. In each country, Hofstedes cultural dimensions were defined as the difference between world values (Table I) and the value for that specific country. This approach overcomes the difficulties of comparing Hofstedes scale across countries. Measuring cultural dimensions across countries by means of the difference between world values and specific country values converts the Hofstede scale from an absolute value to a relative value. Since there are more banks in more populous countries, the average Hofstede values for the set of countries used in this survey differed from the unweighted world values. These are presented in Table II. As can be seen from Table II, the countries surveyed tend to have a slightly higher PDI and lower MAS than world averages. A notable difference between Citibank sites and other bank sites appears to be the lower degree of individualism in Citibank countries. One reason for this difference is that only one Citibank site is in the US whereas 21 banks surveyed were located in the US, and the US is the most individualistic culture in the survey. The same explanation may be used for the UAI, as the US is one of the lesser uncertainty avoiding cultures. An analysis of variance (ANOVA) is conducted with a dummy variable for Citibank (Citibank 1) as the categorical independent variable and the country specific values for power distance (PDI), individualism (IND), masculinity (MAS) and uncertainty avoidance (UAI) as the dependent variables.
PID Citibank sites (45 countries) Other Bank sites (63 countries) 0.98 0.78 IND 5.84 0.28 MAS 4.07 2.57 UAI

Table II.
1.17 5.04 Average Hofstede meandifference values

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5. Findings As can be seen from Table III, the ANOVA results indicate a lack of significant difference (at p .05) between Citibank and indigenous bank web sites with respect to Hofstedes cultural dimensions. If the assumption is granted that Hofstedes dimensions actually reflect cultural values relevant to the success of consumer acceptance of the web site (as suggested in the above TAM literature review), then the implication of this analysis is that there is no significant difference between the cultural acclimatization of Citibank and indigenous banks. This conclusion implies that Citibanks management has been successful in proactively addressing cultural issues at the country level or at least as successful as the indigenous banks. Note that ANOVA tests the null hypotheses that group means do not differ. It is not a test of differences in variances, but rather assumes relative homogeneity of variances. Therefore, we accept the null hypothesis H1 and reject H2 from above. Citibank management has demonstrated its ability to be as successful as indigenous banks in adapting to local cultural imperatives and in resisting the traditional one size fits all approach. The issue then becomes the extent to which bank web sites are, in fact, sensitive to the measures of Hofstedes cultural dimensions used in this study. The ANOVA results for the 19 variables used in this survey reveal nine significant relationships between the web site attributes used and Hofstedes cultural dimensions. These relationships may be examined by testing hypotheses H3 through H11 above. H3 suggests web sites in high UAI cultures will feature fewer females than in low UAI cultures. H4 suggests web sites in high UAI cultures will feature less use of the English language. These results confirm H3 and H4. The results are not only significant, but the size of the coefficients suggests the importance of the uncertainty avoidance cultural influence. H5 implies that web sites in high MAS cultures are less likely to display people than in cultures with low MAS values. H6 suggests web sites in high MAS cultures will be more likely to be either entirely in the English language or to offer an English language version of its site. The results in Table IV confirm H5 and H6. Note that in Table V, English is seen as a negative factor in high uncertainty avoidance cultures, while the coefficient for English language presence is positive in high MAS cultures. With respect to the IND, H7 suggests web sites in high IND cultures would tend not to offer access to elite web sites. H8 suggests web sites in high IND cultures would tend not to offer English language versions of their web sites, or at least to offer an alternative to the English language. H9 suggests web sites in high IND cultures would tend to avoid depicting professional offices on their web sites. H10 suggests web sites in high IND cultures would tend to depict scenic environment tableaus.
Dependent variable F 0.048 3.75 0.93 1.58 P-value 0.826 0.054 0.335 0.210

Table III. ANOVA results for Citibank dummy (234 Bank web sites)

Power distance index Individualism index Masculinity index Uncertainty avoidance index

The results in Table VI confirm H7, H8, H9 and H10. The cultural value held for a greater or lesser degree of individualism appears to have a wider significance for web site acceptance than the other Hofstede cultural dimensions. H11 suggests web sites in high PDI cultures would be more likely to use professional environment scenes on their web sites than in low PDI cultures. The ANOVA results in Table VII confirm H11. Note that the use of a professional background on a web site is a positive factor in high PDI countries, but a negative factor in high IND countries. 6. Conclusion Within the limits of this research, this study suggests that the form and content of international online banking web sites are sensitive to the cultural factors of individualism, masculinity, power distance and uncertainty avoidance. The use of language, the depiction of individuals and the background displayed are all seen as factors sensitive to these cultural constructs. It appears that the intense competition for market share in international online banking compels banks to address the issue of cultural values in constructing those web sites. Citibank is seen as aggressively pursuing success in this market, at least in part, by attempting to respond to local cultural values as well as the indigenous banks do in their local online facilities. Citibank web sites adapt language, people, and background to local preferences with respect to the cultural attributes of uncertainty avoidance, power distance, individualism and masculinity.
Independent variable Females presence English language Coefficients 7.11 9.35 F 6.27 8.94 P-value

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Table IV.
0.013 0.003 ANOVA results for UAI (234 Bank web sites)

Independent variable People English language

Coefficients 4.58 11.5

F 4.91 12.78

P-value

Table V.
0.034 0.000 ANOVA results for MAS (234 Bank web sites)

Independent variable Elite web site English language Professional environment Scenic environment

Coefficients 6.18 9.35 10.8 9.6

F 7.15 8.94 4.91 5.40

P-value 0.008 0.003 0.028 0.021

Table VI.
ANOVA results for IND (234 Bank web sites)

Independent variable Professional environment

Coefficients 8.19

F 5.59

P-value 0.019

Table VII.
ANOVA results for PDI (234 Bank web sites)

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Large banks, such as Citibank, see opportunities for growth by using the Internet to extend their reach beyond their traditional market areas. A major component in their efforts will be the construction of online banking facilities capable of attracting new customers in local markets. The success of this effort will depend both on the PU and PEOU of those facilities by the target population. The recognition of Hofstedes cultural dimensions by bank managers in constructing those web sites will provide them with the understanding necessary to develop the form and content which will make such web sites successful.
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Singh, N., Bartikowowski, B., Fassott, G., Chao, M.C.H. and Hoffman, J.A. (2006a), American Marketing Association. Conference Proceedings, Vol. 17, p. 16. Singh, N., Fassott, G., Chao, M.C.H. and Hoffmann, J.A. (2006b), Understanding international website usage: a cross-national study of German, Brazilian, and Taiwanese online consumers, International Marketing Review, Vol. 23 No. 1, pp. 83-97. Singh, N., Fassott, G., Chao, M.C.H. and Hoffmann, J.A. (2006c), A cross-cultural analysis of German, Chinese, and Indian consumers perception of website adaptation, Journal of Consumer Behaviour, Vol. 5 No. 1, p. 56. Singh, N., Zhao, H. and Hu, X. (2005), Analyzing the cultural content of websites: a cross national comparison of China, India, Japan and US, International Marketing Review, Vol. 22 No. 2, p. 129. Singh, N. and Kundu, S. (2002), Exploring the growth of e-commerce corporations (ECCs): an extension and application of the eclectic paradigm, Journal of International Business Studies, Vol. 33 No.4, 679-97. Singh, S. (2006), Cultural differences in, and influences on, consumers propensity to adopt innovations, International Marketing Review, Vol. 23 No. 2, pp. 173-91. Slappender, C. (1996), Perspectives on innovation in organizations, Organization Studies, Vol. 17 No. 1, pp. 371-89. Smith, R.C. and Walter, I. (2003), Global Banking, Oxford University Press, New York, NY. Straub, D., Keil, M. and Brenner, W. (1997), Testing the technology acceptance model across cultures: a three country study, Information and Management, Vol. 33, pp. 1-11. Tiago, M.T.B., Couto, J.P.A., Tiago, F.G. and Vieira, J.A.C. (2006), Knowledge management: an overview of European reality, Management Research News, Vol. 30 No.2, pp. 100-14. Venkatesh, V., Morris, M.G., Davis, G.B. and Davis, F.D. (2003), User acceptance of information technology: toward a unified view, MIS Quarterly, Vol. 27 No. 3, pp. 425-78. Venkatesh, V. (2000), Determinants of perceived ease of use: integrating control, intrinsic motivation, and emotion into the technology acceptance model, Information Systems Research, Vol. 11 No. 4, pp. 342-65. Venkatesh, V. and Davis, F.D. (2000), A theoretical extension of the technology acceptance model: four longitudinal field studies, Management Science, Vol. 46 No. 2, pp.186-204. Further reading Brown, I and Buys, M. (2005), A cross-cultural investigation into customer satisfaction with internet banking security, ACM International Conference Proceedings, Vol. 150, pp. 200-7. Citigroup (2007), Our businesses: retail banking, available at: www.citigroup.com/citigroup/ about/productlines/retailbank.htm Appendix People variables Authority figures. Authority figures would include pictures of the President of the Bank, the Board of Directors, the President of the country or a leading historical figure like George Washington in the US or Charles DeGaul in France (one if present, zero if not present). People. The bank web site presented images of human beings (one if present, zero if not present). Customers. Pictures of customers on an online banking web site would include individuals using the banks services (e.g. cashing a check) or enjoying its products (e.g. a couple using a loan to finance a vacation (one if customers present, zero if no customers present). Males. Pictures of males in any role (one if male present, zero if no male present). Females. Pictures of females in any role (one if female present, zero if no female present).

Family. Defined as a group including a mother and child, or mother, father, children, or a nuclear family with extended family members (one if present, zero if not present). Middle aged. This age category is defined to include all individuals depicted not obviously teenagers, children or the elderly (one if present, zero if not present.) Background variables Professional background. A professional environment is defined as one which shows an office setting, people working on computers, or any activity in an office setting (one if present, zero if not present). Technical background. A technical environment is one which computers, charts, FX or stock market tapes, are prominently displayed on the web site. The technical background is differentiated from a professional background by its emphasis on objects in an office, rather than people working in an office (one if displayed, zero if not displayed). Scenic background. This environment occurs when the home page presents pictures of mountains, the sea, or some other local geographic feature (one if present, zero if not). Gambling. By virtue of the ubiquitous presence on the Internet, free gambling opportunities appear to be attractive to consumers. Gambling is defined to include any game of chance offered by the bank where the site visitor gets a chance at something for nothing (one if present, zero if not). Building and or safety vault. The presence of a massive bank building or safety vault as the theme of the web site (one if present, zero if not). Elite sites. Banks sometimes offer a link to a more prestigious web site at that bank on their web site (one if offered, zero if not). Colors. Red and blue are generally thought in marketing to be masculine or power colors (at least in US culture). The dominant color scheme at Citibank is red and blue, although this is not necessarily true of other US banks. It appeared to the authors that a distinction should be made between bank web sites which featured a really bold red and blue color scheme and a more muted display of red and blue. Therefore, is this variable was specified as two for really bold and dominant red and blue colors, one for some red and blue (where these do not dominate the white background), and zero some color scheme other than red or blue. The most common non redblue color scheme was tan and green. Language English language. This variables categorizes bank sites whose contents were presented entirely in English, or offered an English alternative to the native language (one if English was present, zero if it was not). Different languages. This variable categorizes bank web sites that offer viewers a choice of languages (one if offered, zero if not). Differing site content when a language choice was offered. Some bank sites offered a different presentation (features, pictures, color scheme) depending on the language chosen. When the site presentations were different, such sites were given a value of one. When no difference existed, a value of zero was given. Mixed language presentation. Where only one language choice was offered, but that site mixed languages. (one if mixed languages present, zero if not). Multiple products. Some bank sites immediately presented an array of products to the site visitor; others provided only linkages to specific products or no mention of the products at all. This variable was specified as follows: If there were more than ten products offered, the site scored as a three. If between three and ten products were offered, the site was scored as a two. If there were less than three products offered, the site was scored as a zero). About the authors Daniel Singer holds a PhD in Economics from the University of Colorado and is a Full Professor in the Department of Finance at Towson University. His scholarly activities include numerous

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books such as The Real Estate Investment Handbook and Successful Web Portals in Retail Banking as well as academic journals such as the Journal of Internet Business and the Business and Society Review. Dr Singer consults in the area of web site design, portfolio management, and real estate investing. Daniel Singer is the corresponding author and can be contacted at: singer@towson.edu Albert Avery holds a PhD in Finance, an MS in Industrial Administration, and a BS in Electrical Engineering from Purdue University and is a Full Professor in the Department of Finance at Towson University. His scholarly activities include an extensive list of works, including the Journal of Internet Business, a book Successful Web Portals in Retail Banking, numerous conference proceedings and four software manuals. Along the way, he has been a successful entrepreneur/owner of a business, having completed the full cycle from purchase, to growth, to sale, with an average rate of revenue growth 50 per cent over his span of ownership. His consulting is primarily in the areas of portfolio management, applied information technology and management of professional conferences. Babu Baradwaj is an Associate Professor of Finance in the Department of Finance at Towson University, Maryland. He has been at Towson University since August 2001. Prior to joining the faculty at Towson, he taught at the University of Wisconsin at Eau Claire from 1990 to 2001. He has a PhD in Finance from Texas A&M University in 1991and a Masters degree in Business from Iowa State University (1986). Dr Baradwaj has published his research in academic Banking journals including the Journal of Banking & Finance and Journal of Financial Services Research. His work on hostile bank takeovers and interstate bank mergers have been widely cited in finance research papers.

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