Bank regulation and the process of internationalisation: A study of Japanese bank entry into London

Abstract

The paper provides a theoretical insight into bank regulation and the process of internationalisation by examining the concepts of regulatory push and market pull within the context of Japanese bank entry into London during the 1980s. Rugman and Verbeke's [(1998). Corporate strategy and international environmental policy. Journal of International Business Studies, 29(4), 819 -833] Consistency of Home and Host Government Goals model is utilised to structure the discussion, which centres on a situation where there is a conflict of goals between multinational enterprises (MNEs) and the home government but goal alignment between MNEs and the host government. As such the paper examines a relatively under-researched aspect of internationalisation and concludes that in certain circumstances internationalisation can occur despite great 'psychic distance'. The paper also argues that although bank regulation can lead to a conflict situation it can also be conducive to the development of a strong home base and the development of firm specific advantages.

Internationalization of Service Firms and Their Interactions with Socio-Political Actors

“…Though, after the financial crises of 2008/2009 a large number of studies have emerged in economics and business fields concerning the impact of the crisis on SMNEs like banks and business firms (Engwall and Hadjikhani 2014;Howcroft et al 2010;Khaaoubi 2007). Linking economic crises and the role of the governments to the international business bank service crises, some stipulate the interdependency of MNEs to the government regulations in different countries (Mendoza and Smith 2014), and their impact on productivity and welfare (Benigno and Fornaro 2014).…”

“…Others like Bruno and Shin (2014) study the rule of monetary and regulatory policy in international financial systems in an integrated business world. In this connection, studies like Howcroft et al (2010) and Arena (2008) relate the crises to external issues like government intervention or Ross and Crossan (2012) and Laeven and Levine (2009) that explicitly explain the lack of interaction between financial systems and governments.…”

Business and Socio-Political Interaction in International Service Projects: The Case of Brazil

“…The focus of these contributions is mainly on a one-dimensional impact, i.e., the hierarchical power of political organisations and their impact on the firms' market activities. Rather than focusing on service internationalisation, extensive attention has been given to topics related to international financial crises and the role of corporate governments (Ross and Crossan 2012) and governments (Howcroft et al 2010). Linking economic crises to the role of governments involves issues from the interdependence of financial systems, to the behaviour of governments in different countries (Mendoza and Smith 2014), and their impact on social welfare (Benigno and Fornaro 2014).…”

Internationalization: Choosing The Right Entry Mode: Lessons From Ebay’s Strategy In China

“…Countries only open up their economies only as far as it will bring economic benefits. There will remain certain level of restrictions that may be hidden behind over regulation or under regulation (Howcroft, Ul-Haq, & Hammerton, 2010 And lastly globalization puts pressure on companies to diversify their operations from one market to another in response to competition. Companies should know not to limit their competition analysis only to their local market.…”