scholarly journals Japanese Banks' Mergers and Acquisitions: Competitive Advantage & Organizational Recovery through Strategic Relatedness and Resource Orientation

2021 ◽  
Author(s):  
◽  
Khadijja Aslam
Keyword(s):  
Competitive Advantage ◽  
Leadership Style ◽  
Corporate Culture ◽  
Banking Sector ◽  
Critical Role ◽  
International Banking ◽  
Support Mechanism ◽  
Strategic Fit ◽  
It Systems ◽  
Strategic Assets

<p>In late 1990s, diversification was the name of the game for the Japanese banking sector. The problem in the Japanese financial system started on December, 29, 1998 with the burst of the bubble economy which resulted in Yen 75 trillion of non-performing loans among the financial sector. Simultaneously, Japanese policy makers as well as the banking institutions launched a massive restructuring, risutora drive. This study, exploratory and descriptive in nature is based on eight interviews conducted in Japan on the five Japanese mega-bank M&As. The motivations, strategic fit and resources that play a critical role towards providing a competitive advantage and organizational recovery for the Japanese mega-bank engaging in the M&A activity are presented in case study style, with a multi-cross case analysis. A conceptual model was derived from the literature, tested through this research and adapted in light of the Japanese bank M&A strategies. The results suggest that the Japanese mega-bank M&As act as a source of influencing a competitive advantage but also in tandem act as a support mechanism in 'pulling' the Japanese banking sector out of the crisis mode and thereby providing financial recovery to the system as a whole. The ranking in terms of deriving a competitive advantage among the banks is placed in the following order Bank 1, Bank 2, Bank 3, Bank 4 and Bank 5. More specifically, the competitive advantage can be derived in terms of complementarily relatedness among the combining bank strategic assets; i) markets, ii) products and services; and iii) resource traits, organizational resources including leadership style and corporate culture; and physical traits such as IT systems integration, which rose in terms of cutting costs by reducing unwanted resources. Simply put the integration level, strategic relatedness and the types of resources are classified as strategic inputs and the benefits acquired for a competitive advantage and organizational recovery are defined as strategic outputs. Secondly, the study maintains that with the change in traditional Japanese banking practises, the era of 2000 is defined by diversification i.e. M&A strategy adopted by Japanese banks in terms of strategic fit, and types of resource but also where the resources are derived from. In other words, the source of the resources where the resources are derived from i.e. combining, new and their uniqueness also acts as an imperative indicator for Japanese mega-bank M&As. Resources prominent among the Japanese mega-banks are i) keiretsu (client resources); ii) organizational (management and leadership; knowledge; culture; and human resources); iii) physical (IT systems; branch networks and other real estate assets); iv) strategic (markets and products and services) and v) financial (capital markets and cross-shareholding patterns among keiretsu and main bank affiliates). Thirdly, these banks display a unique quality - the 'dual role' that strategic relatedness traits not only act as a combination potential but also act as resources and vice versa. The motivations include government de-regulation; non-performing loans of banks; over-crowding in the banking industry; and size competitiveness and diversification; via capturing markets, increase in profitability; and aligning with the changing needs of the Japanese clients. The research also aims to bridge the gaps in Japanese banking literature by building our understanding on how the Japanese banking sector has distanced itself from the traditional banking culture since the de-regulation wave instigated in Japan in mid to late 1990s. While there has been change in terms of financial cross-shareholdings, the traditional ties in terms of sharing strategic resources continues, introducing out-side directors, breaking away gradually from the amakudari systems and the long term employment and seniority based-wage system. The Japanese banking sector learnt from its mistakes and therefore, has not only been able to escape from the sluggish international banking environment of late but has also been able to diversify into cross-border investments and act as a learning source for the global financial institutions which has been in a state of perils since 2008, on the helms of sub-prime losses and failure of major investment banks.</p>

scholarly journals Japanese Banks' Mergers and Acquisitions: Competitive Advantage & Organizational Recovery through Strategic Relatedness and Resource Orientation

2021 ◽  
Author(s):  
◽  
Khadijja Aslam
Keyword(s):  
Competitive Advantage ◽  
Leadership Style ◽  
Corporate Culture ◽  
Banking Sector ◽  
Critical Role ◽  
International Banking ◽  
Support Mechanism ◽  
Strategic Fit ◽  
It Systems ◽  
Strategic Assets

<p>In late 1990s, diversification was the name of the game for the Japanese banking sector. The problem in the Japanese financial system started on December, 29, 1998 with the burst of the bubble economy which resulted in Yen 75 trillion of non-performing loans among the financial sector. Simultaneously, Japanese policy makers as well as the banking institutions launched a massive restructuring, risutora drive. This study, exploratory and descriptive in nature is based on eight interviews conducted in Japan on the five Japanese mega-bank M&As. The motivations, strategic fit and resources that play a critical role towards providing a competitive advantage and organizational recovery for the Japanese mega-bank engaging in the M&A activity are presented in case study style, with a multi-cross case analysis. A conceptual model was derived from the literature, tested through this research and adapted in light of the Japanese bank M&A strategies. The results suggest that the Japanese mega-bank M&As act as a source of influencing a competitive advantage but also in tandem act as a support mechanism in 'pulling' the Japanese banking sector out of the crisis mode and thereby providing financial recovery to the system as a whole. The ranking in terms of deriving a competitive advantage among the banks is placed in the following order Bank 1, Bank 2, Bank 3, Bank 4 and Bank 5. More specifically, the competitive advantage can be derived in terms of complementarily relatedness among the combining bank strategic assets; i) markets, ii) products and services; and iii) resource traits, organizational resources including leadership style and corporate culture; and physical traits such as IT systems integration, which rose in terms of cutting costs by reducing unwanted resources. Simply put the integration level, strategic relatedness and the types of resources are classified as strategic inputs and the benefits acquired for a competitive advantage and organizational recovery are defined as strategic outputs. Secondly, the study maintains that with the change in traditional Japanese banking practises, the era of 2000 is defined by diversification i.e. M&A strategy adopted by Japanese banks in terms of strategic fit, and types of resource but also where the resources are derived from. In other words, the source of the resources where the resources are derived from i.e. combining, new and their uniqueness also acts as an imperative indicator for Japanese mega-bank M&As. Resources prominent among the Japanese mega-banks are i) keiretsu (client resources); ii) organizational (management and leadership; knowledge; culture; and human resources); iii) physical (IT systems; branch networks and other real estate assets); iv) strategic (markets and products and services) and v) financial (capital markets and cross-shareholding patterns among keiretsu and main bank affiliates). Thirdly, these banks display a unique quality - the 'dual role' that strategic relatedness traits not only act as a combination potential but also act as resources and vice versa. The motivations include government de-regulation; non-performing loans of banks; over-crowding in the banking industry; and size competitiveness and diversification; via capturing markets, increase in profitability; and aligning with the changing needs of the Japanese clients. The research also aims to bridge the gaps in Japanese banking literature by building our understanding on how the Japanese banking sector has distanced itself from the traditional banking culture since the de-regulation wave instigated in Japan in mid to late 1990s. While there has been change in terms of financial cross-shareholdings, the traditional ties in terms of sharing strategic resources continues, introducing out-side directors, breaking away gradually from the amakudari systems and the long term employment and seniority based-wage system. The Japanese banking sector learnt from its mistakes and therefore, has not only been able to escape from the sluggish international banking environment of late but has also been able to diversify into cross-border investments and act as a learning source for the global financial institutions which has been in a state of perils since 2008, on the helms of sub-prime losses and failure of major investment banks.</p>

scholarly journals Strategic Planning and Competitive Advantage of ICT Small and Medium Enterprises in Kenya

2013 ◽  
Vol 1 (1) ◽  
pp. 191 ◽  
Author(s):  
Zachary B. Awino
Keyword(s):  
Strategic Planning ◽  
Competitive Advantage ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Dynamic Environment ◽  
Business Environment ◽  
Positive Influence ◽  
Balanced Score Card ◽  
Medium Enterprises

The Paper is the research findings on the role of strategic planning and competitive advantage of ICT Small and Medium Enterprises in Kenya. Literature suggests that the contemporary business environment in which organisations operate is increasingly becoming uncertain and unpredictable. Significant changes are mostly driven by technological changes, globalisation and trade liberalisation. As a result, like large enterprises, SMEs are facing new and unexpected challenges that threaten their competitiveness. While most countries acknowledge the critical role that SMEs contribute to their economies, both as an engine of growth and sustainable development, many questions still remain unanswered as to the determination of the critical challenges facing SMEs and how these challenges could be addressed to improve their competitiveness. These challenges have increased the need for empirical information which is essential for decision making in addressing issues that are likely to enhance SMEs survival and growth. It is noted that there has been no adequate research studies on the role of strategic planning and competitive advantage of SMEs. This study contributes to the need to address the research gaps and thus explored the role of strategic planning and competitive advange of SMEs in Kenya. The study population consisted of 238 ICT SMEs from Nairobi and its environs. A sample size of 146 firms constituting 61 per cent of the total population was selected through stratified sampling. The study aimed to collect data from 438 respondents from top, middle and lower management teams. Structured questionnaires with closed and open ended questions was used for data collection, 239 responses were received from 123 ICT firms a response rate of 55 per cent and 84.2 per cent respectively. Key characteristics of strategic planning including formality, environmental analysis processes both internal and external orientations, strategies adopted, and implementation and control were recorded. Data analysis was done using descriptive statistics, factor analysis, t-test, ANOVA, correlation, correlation matrixes and regression analysis. The key findings revealed that strategic planning has significant and positive influence in performance of SME’s. The test of hypothesis revealed that strategic planning has positive and significant influence on competitive advantage. The study demonstrated strategic planning as a learning tool and a strategic resource which is consistent with the underlying assumptions of resource based theory, systems theory, chaos theory and balanced score card model assumptions. It is envisaged that, this kind of research is likely to generate useful discussions on the role of strategic planning and performance, of SMEs. It is apparent that entrepreneurs of SMEs cannot ignore strategic planning as significant changes in competitive advantage is the result of change or effective application of strategic planning. Policy makers and academicians may need to address the capacity needs of SMEs and develop strategic planning model that address the challenges that SMEs encounter in a dynamic environment.

China’s dirty laundry – international organizations posing a risk to China’s AML systems

2018 ◽  
Vol 21 (2) ◽  
pp. 189-202 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Risk Assessment ◽  
Money Laundering ◽  
International Organizations ◽  
Banking Sector ◽  
Due Diligence ◽  
International Banking ◽  
Content Type ◽  
International Money ◽  
Customer Due Diligence ◽  
Chinese Banking

PurposeThis paper aims to review some of the current challenges that international money laundering schemes are posing in the Chinese banking sector. Anti-money laundering (AML) systems in China are relatively new, and customer due diligence checks and other AML systems are underdeveloped in some areas.Design/methodology/approachThe paper considers a particular case example of a multi-company organization that has known links to China. This company has been the target of both European and US investigations for suspected embezzlement and money laundering, and yet is still in operation.FindingsThe paper considers the complexities of this organization and how a seemly innocent link to a used clothing charity can fund an international organization spanning several countries. The paper offers a list of basic indicators of risk that could be applied to a risk-based system used within the Chinese banking context by using this group as an example.Originality/valueThe paper uses empirical and academic studies from other authors working in this region and supports many of the findings of the need to develop stronger risk-based, as opposed to rules-based, systems for managing AML risk assessment. Previous work by the author and suggestions from other authors are both used to suggest a basic framework for AML risk assessment. The paper concludes by reiterating the fact that China, like all other countries, is now operating in an international banking context, in much the same way that international organized crime is also operating at a global level.

scholarly journals THE RELATIONSHIP BETWEEN CUSTOMER SATISFACTION AND INTERNAL SERVICE QUALITY FROM AN INTERNAL MARKETING PERSPECTIVE AND AN APPLICATION IN THE BANKING SECTOR

2016 ◽  
Vol 4 (2) ◽  
pp. 159-178
Author(s):  
Özlen Onurlu ◽  
Suna Karataş
Keyword(s):  
Customer Satisfaction ◽  
Competitive Advantage ◽  
Employee Satisfaction ◽  
Banking Sector ◽  
Internal Marketing ◽  
Competitive Environment ◽  
Long Run ◽  
Marketing Activities ◽  
The Relationship

In a highly competitive environment, the meeting of customer demands and expectations in an effective way is highly crucial for companies that want to have a competitive advantage and to keep on existing in the long run. The main objective of companies is making profit in a sustainable way and this is possible by assuring customer satisfaction. The quality of the services that companies offer their customers is closely related with the performance of the employees. This has made it necessary that marketing activities for employee satisfaction be developed prior to customer satisfaction. Feeling more motivated, workers start working more eagerly as a result of these marketing activities which are called internal marketing. So, companies make their profitability sustainable by means of keeping their customers satisfied and loyal. The aim of this paper is to investigate the relationship between internal marketing activities applied to employees and employee motivations.

scholarly journals Satisfaction and loyalty of clients towards banking products and services

2018 ◽  
Vol 51 (3-4) ◽  
pp. 115-124
Author(s):  
Milica Raičević ◽  
Dijana Medenica Mitrović
Keyword(s):  
Quality Of Service ◽  
Competitive Advantage ◽  
Financial Market ◽  
Banking Sector ◽  
Financial Service ◽  
International Level ◽  
Direct Link ◽  
Banking Services ◽  
Customer Satisfaction And Loyalty

Transformation of the banking sector has led to today's banks providing a complete service - financial service both on the domestic and international level. The focus of their business is the client whose loyalty depends on the operations of the bank. The aim is to indicate that there is a direct link between the quality of the banking product and the service that affects the client's satisfaction and loyalty, which directly affects the bank's business and its competitive advantage in the financial market. The paper gives a theoretical and practical overview of the quality of service, satisfaction and loyalty of clients, and the performance of the bank, which depends on clients. In the theoretical part, the concept of a client, its significance and specifics related to its influence on the bank's business, through its satisfaction and loyalty to the bank, is defined. The empirical part deals with the analysis of customer satisfaction and loyalty towards banking products and services in Montenegro and how much the quality of banking services has an impact on the satisfaction and loyalty of the customer. The analysis of the factual situation will be carried out, the conclusions will be presented and recommendations made for improvement of the quality of the service, which will contribute to the greater satisfaction of the clients, and therefore the loyalty to the particular bank. All of this is directly related to the possibility of achieving the competitive advantage of banks within the banking sector where a particular bank operates.

scholarly journals LEADERSHIP STYLE AND EMPLOYEES’ PERFORMANCE IN PAKISTAN: THE MEDIATING ROLE OF ORGANISATIONAL COMMITMENT

2020 ◽  
Author(s):  
Muhammad Abbas ◽  
Asif Ali ◽  
Muhammad Ahsan Khalid
Keyword(s):  
Conceptual Model ◽  
Leadership Style ◽  
Employee Performance ◽  
Critical Role ◽  
Organisational Commitment ◽  
Organisational Performance ◽  
Missing Link ◽  
Mediating Role ◽  
The Relationship

The paper investigates the critical role of organisational commitment between leadership style and employees’ performance. Generally, the relationship between leadership style and the organisational performance has been discussed widely but ignoring the employees’ performance. It has been accepted that the organisational commitment leads to higher employee performance but the existing literature has not focused much on this view. A conceptual model has been developed which links the constructs together.The model reveals the missing link of organisational commitment between leadership style and employees’ performance. The sample of 242 was collected from the managers and employees of manufacturing and service organisations. The finding confirmed that organisational commitment acted as a mediator between the leadership style and employees’ performance.  

scholarly journals COMPETITION OF TRANSNATIONAL BANKS: MAIN TRENDS AND WAYS OF DEVELOPMENT

2021 ◽  
pp. 151-157
Author(s):  
Надежда Константиновна Савельева ◽  
Татьяна Алексеевна Тимкина
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Banking System ◽  
Competitive Advantages ◽  
International Banking ◽  
Statistical Research ◽  
Cross Border ◽  
The World ◽  
Financial Transactions ◽  
Level Analysis

Статья посвящена проблемам сохранения конкурентных преимуществ коммерческих банков для осуществления финансовых операций на трансграничных рынках. Целью исследования является анализ основных тенденций развития деятельности транснациональных банков в условиях глобализации. Объектом исследования являются мировые лидеры международной банковской сферы. Научная новизна заключается в разработке основных направлений развития банковской системы на международном уровне, результатах анализа опыта лидирующих транснациональных банковских компаний в условиях пандемии The article is devoted to the problems of maintaining the competitive advantages of commercial banks for the implementation of financial transactions in cross-border markets. The aim of the study is to analyze the main trends in the development of the work of transnational banks in the context of globalization. The object of research is the world leaders of the international banking sector. In the process of research, the authors have analyzed theoretical and practical material used in general methods of scientific knowledge and statistical research. Scientific novelty lies in the development of the main directions for the development of the banking system at the international level, analysis of the experience of leading transnational banking companies in the context of a pandemic.

scholarly journals Role of Business Intelligence in Banking Sector for Achieving Competitive Advantage- An Empirical Analysis

2021 ◽  
Vol 19 (1) ◽  
Keyword(s):  
Competitive Advantage ◽  
Business Intelligence ◽  
Quantitative Research ◽  
Banking Sector ◽  
Statistical Tests ◽  
Firm Strategy ◽  
Middle Level ◽  
Mediating Role ◽  
The Impact

With recent advancements in information technology, organizations’ capability to acquire and analyze data for efficient decision making has increased. Good strategies promote alignment among processes and technology in use, which may result in better firm performance. However, there has been little focus on how firm strategies and business intelligence (BI) systems might play their part in forming organizational information and getting a competitive edge. Therefore, the purpose of conducting this study is to investigate the impact of firm strategy on firm competitive advantage with mediating role of BI adoption and moderating role of BI capabilities. For this, a quantitative research methodology was used, and data was collected from 300 middle-level managers in Pakistan's telecom sector. Statistical tests such as descriptive statistics, correlation, reliability analysis, one-way ANOVA, confirmatory factor analysis, and mediation analysis through Hayes process were performed using SPSS and AMOS. The findings revealed a positive link between firm strategy and competitive advantage, with business intelligence adoption serving as a mediating factor. Business intelligence capabilities positively moderate the relationship between BI adoption and competitive advantage. Hence, all proposed hypotheses (H1, H2, and H3) were approved. The contribution and Limitation of the study are also discussed.

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