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Executive expectation in the internationalization process of banks: The study of two Swedish banks foreign activities
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.ORCID iD: 55648965800
2016 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Since the late 1980s, deregulation of the banking sector has opened new avenues for the internationalization of banks. There are, however, few studies on the internationalization of banks – particularly Swedish banks. The purpose of this thesis is to deepen our knowledge of bank’s internationalization process by studying how the executive function’s expectation of market conditions influences internationalization patterns. This thesis makes an empirical contribution by describing how the Swedish banks Svenska Handelsbanken AB and Swedbank AB have internationalized during the period 1995-2014. The empirical evidence comprises all of the two banks’ activities in foreign markets and the qualitative cases describing this process have been constructed using archival data (newspaper articles, press releases, and reports) complemented with interviews.

Beside the empirical contribution the thesis makes a theoretical contribution to internationalization theory and more specifically to Johanson and Vahlne’s (1977) internationalization process model. While Johanson and Vahlne’s model does have a strong explanatory value, it does not fully explain its mechanisms (Andersen, 1993; Leonidou & Katsikeas, 1996) and only firm’s internationalizing incrementally (Liesch et al., 2002). For explanation of both incremental and non-incremental behaviors this thesis provides a proposed view of bank’s internationalization where the concept of executive expectation is developed as a mediating variable in Johanson and Vahlne’s internationalization process model. To this end, executive expectation is described as the driving and hindering force in bank’s internationalization process influenced by exogenous and endogenous changes. 

Place, publisher, year, edition, pages
Uppsala: Företagsekonomiska institutionen , 2016. , 107 p.
Series
Doctoral thesis / Företagsekonomiska institutionen, Uppsala universitet, ISSN 1103-8454 ; 177
Keyword [en]
expectation, executive, internationalization, banks, knowledge, commitment
National Category
Business Administration
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:uu:diva-280666ISBN: 978-91-506-2536-3 (print)OAI: oai:DiVA.org:uu-280666DiVA: diva2:911607
Public defence
2016-05-04, Hörsal 2, Ekonomikum, Kyrkogårdsgatan 10, Uppsala, 13:00 (English)
Opponent
Supervisors
Funder
The Jan Wallander and Tom Hedelius Foundation
Available from: 2016-04-11 Created: 2016-03-14 Last updated: 2016-04-11
List of papers
1. ‘Steady-as-she-goes’ or by ‘fits and starts’: On the pivotal effect of executive expectation in the firm’s internationalization process
Open this publication in new window or tab >>‘Steady-as-she-goes’ or by ‘fits and starts’: On the pivotal effect of executive expectation in the firm’s internationalization process
2016 (English)Other (Refereed)
Abstract [en]

The aim of this paper is to enhance our knowledge on how executive expectation affect the firm’s internationalisation process, namely, by offering explanations to sudden major investments/ divestments that deviate the process from commonly presumed incrementality. The theoretical view developed in this study is founded upon Johanson and Vahlne’s (1977) internationalisation process model and complemented with the concept of executive expectation. Through a longitudinal comparative case study, enriched with archival data and interviews, this paper emphasises the dynamics of the firm’s internationalisation process. This aids to provide some answers on how changes in the composition of executives, such as the replacement of key personnel, can drive the firm’s internationalisation process into a different path when succeeding executives do not share similar expectations to their predecessors.

National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-280610 (URN)
External cooperation:
Available from: 2016-03-11 Created: 2016-03-11 Last updated: 2016-09-12Bibliographically approved
2. The Impact of Changing Regulatory Environments on Bank Executives’ Strategy Formation
Open this publication in new window or tab >>The Impact of Changing Regulatory Environments on Bank Executives’ Strategy Formation
2016 (English)In: Bank Regulation: Effects on Strategy, Financial Accounting and Management Control / [ed] Nilsson, Fredrik & Stockenstrand, Anna-Karin, Routledge, 2016Chapter in book (Refereed)
Abstract [en]

The last decades’ of international banking deregulations has spurred Swedish banks to extensive foreign expansion, spreading the scope of their organizations to cover several markets. The different markets where Swedish banks’ currently compete are all characterized by varying conditions for banking operations. The center of attention in this paper is on how regulatory environment have affected bank executives’ strategy formation in the internationalization process. A conceptual model based on the Uppsala internationalization process model is developed to analyze the banks’ internationalization in a long time perspective. One crucial finding is that the strategy formation process must be market specific and the hazards of applying general market knowledge.

Place, publisher, year, edition, pages
Routledge, 2016
Keyword
Bank, strategy, internationalization, regulation, environment
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-280617 (URN)
Note

Accepted book chapter.

Available from: 2016-03-11 Created: 2016-03-11 Last updated: 2016-04-11Bibliographically approved
3. Expectations in the internationalization process: The case of two Swedish banks’ foreign activities 1995-2010
Open this publication in new window or tab >>Expectations in the internationalization process: The case of two Swedish banks’ foreign activities 1995-2010
2013 (English)Licentiate thesis, monograph (Other academic)
Abstract [en]

Studies of banks’ internationalization are few, particularly of Swedish banks’ and studies holding a process view of internationalization. This is surprising considering the fact that banks’ have an incredibly important role in our societies. Furthermore, the Swedish banks have until recently been restricted from internationalizing. However today the four largest Swedish banks have all become multinational. The purpose of this thesis is to describe and analyze the two Swedish banks Handelsbanken and Swedbank’s internationalization process between the years 1995-2010. This achieved by covering all relevant foreign markets that the banks are active in during their internationalization process in a longitudinal cross-case study based on archival sources (i.e. newspaper articles, press releases and annual reports). The analytical framework is constructed from behavioral theories and follows a process view of firms’ internationalization by applying the concepts of market commitment, market knowledge and expectation. Latterly firms’ expectation is included to take the future dimension into account in understanding firms’ internationalization behavior.

Conclusions made in this thesis show that the banks internationalization process has some semblances but otherwise they show completely different internationalization behaviors. The study shows that firms’ internationalization process is bound to what the firm will expect of the future and that this expectation is very different based on what knowledge the firm has and its experience. Furthermore the study evidences through empirical findings that the internationalization process of firms’ is also strongly related to the state of the market, i.e. stable or unstable.

Abstract [sv]

Studier av bankers internationalisering är relativt få i sitt omfång, särskilt om svenska banker och studier med en teoretisk process vy över internationalisering. Det här är ganska överraskande med tanke på hur viktiga bankerna är i vårt samhälle. Samtidigt var det inte särskilt länge sedan som bankerna var reglerade från att internationalisera medan de idag fyra stora svenska bankerna samtliga har blivit multinationella. Därför är syftet med denna avhandling är att beskriva och analysera de två svenska bankerna Handelsbanken och Swedbanks internationaliserings process mellan åren 1995 och 2010. Studien följer samtliga relevanta marknader som bankerna är aktiva i under deras internationalisering process genom två longitudinella fallstudier baserad på arkiv data (framför allt tidningsartiklar, pressmeddelanden och årsredovisningar). Det analytiska ramverket är grundat på beteendeteorier och följer bankernas internationalisering ur en process vy med koncepten marknadsåtagande, marknadskunskap och förväntningar. Den senare är inkluderat i syfte att fånga in den framtida dimensionen påverkan på företags internationaliserings beteende.

Slutsatser som görs i avhandlingen är t.ex. att bankernas internationaliseringsprocess har sina likheter i vissa aspekter men är ändå helt olika i deras internationaliseringsbeteende. Studien visar att företags internationaliseringsprocess är bunden till vad företagen förväntar sig av framtiden och att denna förväntning kan se väldigt olika ut beroende på vilka kunskaper och erfarenheter företaget besitter. Därutöver gör studien det empiriska upptäckten att företags internationaliserings process är starkt beroende på marknadstillståndet, d.v.s. om det är stabilt eller instabilt.

Place, publisher, year, edition, pages
Västerås: Mälardalen University, 2013
Series
Mälardalen University Press Licentiate Theses, ISSN 1651-9256 ; 169
Keyword
Expectation, bank, commitment, knowledge, internationalization, process, case
National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-218122 (URN)978-91-7485-114-4 (ISBN)
Presentation
2013-06-11, Pi, Högskoleplan 1, Västerås, 13:15 (English)
Opponent
Supervisors
Available from: 2014-02-18 Created: 2014-02-08 Last updated: 2016-04-11Bibliographically approved
4. Tit for tat and big steps: The case of Swedish banks' internationalization 1961-2010
Open this publication in new window or tab >>Tit for tat and big steps: The case of Swedish banks' internationalization 1961-2010
2014 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 23, no 6, 1049-1063 p.Article in journal (Refereed) Published
Abstract [en]

This study examines four major Swedish banks' internationalization process patterns during the period 1961-2010. The study complements earlier studies by also considering the banks' levels of market commitment. One objective is to determine if 'Tit for tat'-behaviour seen in earlier studies of Swedish banks still prevails after the deregulation. Adding to earlier studies, this study also considers the level of market activities and commitments. A secondary purpose is to examine how the financial crisis has affected the banks with reference to the banks' internationalization patterns. The empirical study is based on archival data on the studied banks' foreign operations. The results show that the banks' behaviour follows 'Tit for tat'-behaviour but that the internationalization has accelerated after the deregulation, hence being carried out with 'big steps' rather than small steps. The analysis also shows that the mimetic behaviour is complemented by other types of internationalization behaviours. The differences in bank internationalization also mean that the effect of a financial crisis varies depending on how the banks have internationalized.

National Category
Business Administration
Research subject
Business Studies
Identifiers
urn:nbn:se:uu:diva-227513 (URN)10.1016/j.ibusrev.2014.06.014 (DOI)000343391300003 ()
Available from: 2014-06-26 Created: 2014-06-26 Last updated: 2017-12-05Bibliographically approved

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Hadjikhani, Annoch Isa

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