Abstract
Purpose
Over the past decade internationalisation by banks from emerging market economies has accelerated. The purpose of this study is to examine the role of government and home country institutions in the international expansion process of Chinese commercial banks (CCBs).
Methodology/approach
By employing qualitative research method, data was collected via interviews from 30 senior managers based on a sample of 10 CCBs involved in international expansion over the 2001–2013 period.
Findings
The study finds that the Chinese government and home institutions play an important role in motivating CCBs’ internationalisation. Evidence from this research illustrates the effect institutional factors have in emerging economy firms’ internationalisation.
Practical implications
The managerial implication of these findings is that CCBs could take great advantage of government policy by developing proper internationalisation strategies and capabilities that would enhance CCBs’ competitiveness in global market. On the institutional front, removal of the institutional constraints imposed on Chinese banking industry is required. Using market-oriented management and regulatory rules rather than imposing administrative restrictions could therefore accelerate CCBs’ adaption and integration in the international market and enhance their competitive power.
Over the past decade internationalisation by banks from emerging market economies has accelerated. The purpose of this study is to examine the role of government and home country institutions in the international expansion process of Chinese commercial banks (CCBs).
Methodology/approach
By employing qualitative research method, data was collected via interviews from 30 senior managers based on a sample of 10 CCBs involved in international expansion over the 2001–2013 period.
Findings
The study finds that the Chinese government and home institutions play an important role in motivating CCBs’ internationalisation. Evidence from this research illustrates the effect institutional factors have in emerging economy firms’ internationalisation.
Practical implications
The managerial implication of these findings is that CCBs could take great advantage of government policy by developing proper internationalisation strategies and capabilities that would enhance CCBs’ competitiveness in global market. On the institutional front, removal of the institutional constraints imposed on Chinese banking industry is required. Using market-oriented management and regulatory rules rather than imposing administrative restrictions could therefore accelerate CCBs’ adaption and integration in the international market and enhance their competitive power.
| Original language | English |
|---|---|
| Title of host publication | Book Series: International Financial Review |
| Subtitle of host publication | The Political Economy of Chinese Finance |
| Editors | J. Jay Choi, Michael R. Powers, Xiaotian Tina Zhang |
| Publisher | Emerald Publishing Limited |
| Pages | 271-293 |
| Number of pages | 23 |
| Volume | 17 |
| ISBN (Electronic) | 9781785609572 |
| ISBN (Print) | 9781785609589 |
| DOIs | |
| Publication status | Published - Aug 2016 |
Publication series
| Name | International Finance Review |
|---|---|
| ISSN (Print) | 1569-3767 |
Keywords
- Bank internationalisation
- Chinese commercial banks
- Emerging economy
- Government
- Home institutions