IDEAS home Printed from https://ideas.repec.org/a/eee/bushor/v60y2017i5p715-723.html
   My bibliography  Save this article

Internationalization strategies of emerging market banks: Challenges and opportunities

Author

Listed:
  • Marques, Joseph C.
  • Lupina-Wegener, Anna
  • Schneider, Susan

Abstract

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.

Suggested Citation

  • Marques, Joseph C. & Lupina-Wegener, Anna & Schneider, Susan, 2017. "Internationalization strategies of emerging market banks: Challenges and opportunities," Business Horizons, Elsevier, vol. 60(5), pages 715-723.
  • Handle: RePEc:eee:bushor:v:60:y:2017:i:5:p:715-723
    DOI: 10.1016/j.bushor.2017.05.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0007681317300939
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.bushor.2017.05.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alan M. Rugman & Alain Verbeke & Quyen T. K. Nguyen, 2011. "Fifty Years of International Business Theory and Beyond," Management International Review, Springer, vol. 51(6), pages 755-786, December.
    2. Pratham, 2015. "Annual Status of Education Report (Rural) 2014," Working Papers id:6398, eSocialSciences.
    3. Parente, Ronaldo C. & Cyrino, Álvaro Bruno & Spohr, Nicole & Vasconcelos, Flavio Carvalho de, 2013. "Lessons learned from Brazilian multinationals’ internationalization strategies," Business Horizons, Elsevier, vol. 56(4), pages 453-463.
    4. Irina Jormanainen & Alexei Koveshnikov, 2012. "International Activities of Emerging Market Firms," Management International Review, Springer, vol. 52(5), pages 691-725, October.
    5. Yadong Luo & Rosalie L Tung, 2007. "International expansion of emerging market enterprises: A springboard perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 481-498, July.
    6. Huang, Kuo-Feng, 2009. "How do strategic groups handle cognitive complexity to sustain competitive advantage? A commentary essay," Journal of Business Research, Elsevier, vol. 62(12), pages 1296-1298, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Panicker, Vidya Sukumara & Upadhyayula, Rajesh Srinivas & Sivakumar, Sandeep, 2022. "Internationalization of hybrid state-owned enterprises from emerging markets: Institutional investors as enablers," Journal of Business Research, Elsevier, vol. 151(C), pages 409-422.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elena Beleska-Spasova & Sirinuch Loykulnanta & Quyen T. K. Nguyen, 2016. "Firm-specific, national and regional competitive advantages: The case of emerging market MNEs—Thailand," Asian Business & Management, Palgrave Macmillan, vol. 15(4), pages 264-291, September.
    2. Shufeng Simon Xiao & Yong Kyu Lew & Byung Il Park, 2020. "International Network Searching, Learning, and Explorative Capability: Small and Medium-sized Enterprises from China," Management International Review, Springer, vol. 60(4), pages 597-621, August.
    3. Li, Linjie & Liu, Xiaming & Yuan, Dong & Yu, Miaojie, 2017. "Does outward FDI generate higher productivity for emerging economy MNEs? – Micro-level evidence from Chinese manufacturing firms," International Business Review, Elsevier, vol. 26(5), pages 839-854.
    4. Arindam Mondal & Somnath Lahiri & Sougata Ray, 2021. "Strategic Response to Inward Foreign Direct Investment: A Study of Indian Family Firms," Management International Review, Springer, vol. 61(2), pages 207-233, April.
    5. Gammeltoft, Peter & Cuervo-Cazurra, Alvaro, 2021. "Enriching internationalization process theory: insights from the study of emerging market multinationals," Journal of International Management, Elsevier, vol. 27(3).
    6. Gilbert Kofi Adarkwah & Tine Petersen Malonæs, 2022. "Firm-specific advantages: a comprehensive review with a focus on emerging markets," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 539-585, June.
    7. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    8. Oludotun Fasanya, David & Ingham, Hilary & Read, Robert, 2022. "Determinants of internationalisation by firms from Sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 144(C), pages 951-965.
    9. Pavida Pananond & Axèle Giroud, 2016. "Asian emerging multinationals and the dynamics of institutions and networks," Asian Business & Management, Palgrave Macmillan, vol. 15(4), pages 255-263, September.
    10. Fan, Di & Cui, Lin & Li, Yi & Zhu, Cherrie J., 2016. "Localized learning by emerging multinational enterprises in developed host countries: A fuzzy-set analysis of Chinese foreign direct investment in Australia," International Business Review, Elsevier, vol. 25(1), pages 187-203.
    11. Smitha R. Nair & Mehmet Demirbag & Kamel Mellahi, 2015. "Reverse Knowledge Transfer from Overseas Acquisitions: A Survey of Indian MNEs," Management International Review, Springer, vol. 55(2), pages 277-301, April.
    12. Lee, In Hyeock (Ian) & Hong, Eunsuk & Shin, Jong Kook, 2023. "Multinational enterprises, intra-regional cross-border M&As, and performance: Location advantages of market versus knowledge," International Business Review, Elsevier, vol. 32(6).
    13. Ayden, Yuksel & Tatoglu, Ekrem & Glaister, Keith W. & Demirbag, Mehmet, 2021. "Exploring the internationalization strategies of Turkish multinationals: A multi-perspective analysis," Journal of International Management, Elsevier, vol. 27(3).
    14. Estrin, Saul & Nielsen, Bo B. & Nielsen, Sabina, 2017. "Emerging Market Multinational Companies and Internationalization: The Role of Home Country Urbanization," Journal of International Management, Elsevier, vol. 23(3), pages 326-339.
    15. Hongping Du & Liliana Mitkova & Na Wang, 2020. "The Paths of Internationalization of Chinese Innovative Firms," Sustainability, MDPI, vol. 12(6), pages 1-27, March.
    16. Piotr Trapczynski, 2016. "MNEs from Poland: A Review of Extant Research," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 14(3 (Fall)), pages 283-306.
    17. Ricard, Antonin & Shimizu, Katsuhiko & Vieu, Marion, 2021. "Deepening the timing dimension of emerging market multinational companies’ internationalization – An exploratory perspective," Journal of International Management, Elsevier, vol. 27(3).
    18. Florian Becker-Ritterspach & Maria L. Allen & Knut Lange & Matthew M. C. Allen, . "Home-country measures to support outward foreign direct investment: variation and consequences," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    19. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Lioliou, Eleni, 2016. "Does learning at home and from abroad boost the foreign subsidiary performance of emerging economy multinational enterprises?," International Business Review, Elsevier, vol. 25(1), pages 141-151.
    20. Stojčić, Nebojša & Dabić, Marina & Musteen, Martina, 2024. "With a little help from my friends: Institutional obstacles, networking, and SME exporting in emerging European and Asian economies," International Business Review, Elsevier, vol. 33(3).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:bushor:v:60:y:2017:i:5:p:715-723. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/bushor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.