Local Function Substitution And Dynamic Evolution Of Performance

The development of electronic banking business has ushered in a new era with the development of Internet information technology.In terms of management function,the electronic bank and offline network business have a high degree of overlap,but electronic banking in the short term still can not completely replace the offline outlets because of the particularity of banking.Both modes will coexist for a long time to realize local functions alternative within the organization.How partial functional substitute contribute to bank performance and how to enhance the performance in online-offline function alternative mutual replacement process have become the concern of various banks.Combining the method of longitudinal case study and qualitative research,this paper conducts longitudinal case study on the evolution process of partial functional substitution of A branch of Bank of China from 2012 to 2016 and the effect of this process on performance.Then it explores the effect results of local functional substitution on performance and influence mechanism path,thus constructing dynamic model of performance.It's found that,substitution effects of local function on performance can be divided into three periods,including weak function alternative negative effect,strong function alternative negative effect and strong function alternative positive effect.In weak functional substitution period,influenced by R&D investment and personnel knowledge,online and offline are attached.The electronic banking business has high cost,and intermediate business has low income,thus partial function substitution can exert negative influence on the performance.In the strong function substitution period,online and offline may face interest conflicts in value creation link due to target interests,organizational processes,cognitive and other factors.Both sides are negatively relied and exert negative effect on performance.Only when the causes of the conflict were modified,online and offline relationships are positively interdependent,partial function substitution can exert a positive effect on performance,thus maximizing the overall utility function of online and offline.