Motives, Choice of Entry Mode, and Challenges of Bank Internationalisation: Evidence from China

Date

2019-03-31

Advisors

Journal Title

Journal ISSN

ISSN

1520-6874

Volume Title

Publisher

Wiley

Type

Article

Peer reviewed

Yes

Abstract

This study examines the motives, entry mode choice and challenges of the international expansion in an emerging country context. Data was collected via interviews from 30 senior managers based on a sample of 10 Chinese commercial banks (CCBs) involved in international expansion over the period of 2001-2013. This study finds that greenfield and mergers and acquisitions are the most popular foreign entry mode used by CCBs. The motives of emerging market banks’ internationalisation appear to be intrinsically linked to market development to serve customers operating in overseas market, government policies and strategic knowledge sourcing. In terms of challenges, the study finds lack of management resources/technical capacity, culture, adapting to the host country regulatory environment, and lack of experience to be the main challenges to bank internationalisation.

Description

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.

Keywords

Banks, Internationalisation, Motives, China

Citation

Weijing, H., Boateng, A., Ring, P. (2018) Motives, Choice of Entry Mode, and Challenges of Bank Internationalisation: Evidence from China. Thunderbird International Business Review, 61 (6), pp. 897-909

Rights

Research Institute

Finance and Banking Research Group (FiBRe)