The aim of the thesis is to look at the emergence and evolution of e-banking in Saudi Arabia, with
particular emphasis on the processes of how banks implement e-banking to build their capabilities and
create new value strategies. The research process focuses on understanding (1) how banks implement
e-banking to build their capabilities as well as to create new value strategies, (2) how e-banking
capabilities have been built, and (3) the role played by e-banking in shaping the strategic direction of
banks. This requires understanding of a variety of aspects (i) the value created by e-banking products
and services within different banks, (ii) the process of e-banking development within the different
banks, (iii) how banks approach e-banking products and services, and (iv) how the banks align the
demand and supply factors surrounding e-banking products and services
The theoretical approach blends inputs from different disciplines relevant to understand and deal with
the subject matter of this thesis, including value creation and capability-building literature, technology
implementation literature, with particular emphasis on the processes of implementing network
technologies and e-businesses, as well as literature on process approaches. The methodological
approach makes use of the case study strategy (Yin 2003) as research strategy, a multiple-case
embedded design, as research design strategy, and three sources of evidence: (1) a survey distributed
to all Saudi Arabian banks, (2) semi-structured interviews, and (3) archival records of e-banking
transactions. The main fieldwork is longitudinal and takes place during three rounds: SeptemberOctober 2003, December 2003-March 2004, and December 2005-January 2006.
The thesis investigates the emergence and evolution of e-banking at six Saudi Arabian banks: Samba
Financial Group (Samba), AlRajhi Bank (AlRajhi), Saudi Investment Bank (Saib), Saudi Hollandi
Bank (Hollandi), National Commercial Bank (AlAhli), and Riyad Bank (Riyad). This is followed by
an investigation of the emergence and evolution of electronic securities trading systems at the Saudi
Capital Market (i. e., Tadawul), providing an external view of the emergence and evolution of ebanking in Saudi Arabia.
The analysis of the empirical material implements the theoretical propositions strategy via utilisation
of the "sociotechnical constituencies" approach (Molina 1990; 1993) and its associated analytical
tools of the "diamond of alignment" (Molina 1995), "alignment web" (Molina 2003) and "dynamic
strategy mapping" (DSM) (Molina 2005). The aim is not only to use the approach to reveal how banks
build their e-banking capabilities and create new value strategies, but also to test critically the
applicability of the "sociotechnical constituencies" approach and its associated analytical tools for
understanding e-banking value creation and capability-building strategies.
The overall result of the investigation conducted by this thesis suggests that the Saudi Arabian ebanking' constituency-building process shows distinctive processes of sociotechnical alignment by
each one of the specific Saudi banks' e-banking constituencies in the study. In addition, the use of
Molina's "alignment web" to assess the state of each of the specific e-banking constituency-building
processes helps identify the areas of strengths and weaknesses in these processes of sociotechnical
alignment. The distinctiveness of development by each sociotechnical constituency is also highlighted
by the application of the Molina's "dynamic strategy mapping" (DSM), showing that each
constituency has its own combination of strategic ingredients.
Although this thesis demonstrates strengths in the areas of logic replication, narrative writing, and
validating procedure, in future studies it would be interesting to enhance its theoretical background,
chronological structure, and quantitative assessment. This thesis contributes to providing a rich insight
into the emergence and evolution of e-banking in Saudi Arabia, particularly at six of eleven Saudi
banks as well as the technological systems of the Saudi Capital Market. Such contribution may be
used to inform the future alignment strategy pursued by each the Saudi Arabian e-banking
constituencies.
