Internationalization strategies of emerging market banks : challenges and opportunities

Marques, Joseph C. (Haute école d’ingénierie et de gestion du canton de Vaud, HES-SO // Haute Ecole Spécialisée de Suisse Occidentale) ; Lupina-Wegener, Anna (Haute école d’ingénierie et de gestion du canton de Vaud, HES-SO // Haute Ecole Spécialisée de Suisse Occidentale) ; Schneider, Susan (University of Geneva, Geneva, Switzerland)

The greatly improved economic fundamentals of the major emerging economies over the last decade have propelled several emerging banks into the ranks of the world’s largest. Despite their importance in the global economy, the internationalization of emerging market banks remains an understudied phenomenon. This article examines factors that may influence the internationalization strategies of emerging market banks in the private banking sector, both when going abroad (take-off) and upon arrival in a host country (landing). The private banking sector is of significant interest given its importance in many leading financial centers around the world while undergoing major transformation due to the worldwide financial crisis, several recent scandals, and a fast-changing regulatory environment. We highlight the internationalization strategies of two banks from emerging countries, China and Brazil, and their experience in Switzerland’s traditional private banking sector. These two cases highlight factors that may influence successful internationalization such as prior industry experience, existing client base, entry strategy, ownership type, and the liability of foreignness. Our findings offer valuable implications for managers from other emerging economies by providing a better understanding of how emerging market banks expand internationally.


Keywords:
Article Type:
scientifique
Faculty:
Economie et Services
School:
HEIG-VD
Institute:
Institut Interdisciplinaire du Développement de l’Entreprise
Subject(s):
Economie/gestion
Date:
2017
Published in
Business horizons
Numeration (vol. no.):
2017, vol. 60, no. 5, pp. 715-723
DOI:
ISSN:
0007-6813
Appears in Collection:

Note: The file is under embargo until: 2021-06-01


 Record created 2017-09-04, last modified 2019-03-14

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)