Liability of emergingness of emerging market banks internationalizing to advanced economies

Lupina-Wegener, Anna; McDonald, Frank; Shan, Juan; Zhang, Gangfeng; Karamustafa-Köse, Güldem

doi:10.1007/978-981-19-6700-9_13

Publication type:	Book part
Type of review:	Editorial review
Title:	Liability of emergingness of emerging market banks internationalizing to advanced economies
Authors:	Lupina-Wegener, Anna McDonald, Frank Shan, Juan Zhang, Gangfeng Karamustafa-Köse, Güldem
et. al:	No
DOI:	10.1007/978-981-19-6700-9_13
Published in:	The Palgrave Handbook of Globalization with Chinese Characteristics
Editors of the parent work:	Duarte, Paulo Afonso B. Leandro, Francisco José B. S. Martínez Galán, Enrique
Page(s):	201
Pages to:	221
Issue Date:	2023
Publisher / Ed. Institution:	Palgrave Macmillan
Publisher / Ed. Institution:	Singapore
ISBN:	978-981-19-6699-6 978-981-19-6700-9
Language:	English
Subjects:	Advanced economy; Emerging market bank; Headquarters; Internationalization strategy; Liability of emergingness
Subject (DDC):	332.1: Banks
Abstract:	International management scholars are paying increasing attention to the internationalization of service firms from emerging markets, but empirical research on the challenges facing such firms remains scarce. This study examines how emerging market banks (EMBs) cope with the liability of emergingness. To this end, we conducted exploratory, qualitative interviews with Brazilian and Chinese bankers. We found that the liability may hamper the ability of EMBs to engage in institutional isomorphism in order to effectively embed themselves into host locations. The results reveal that liability of emergingness is a problem, particularly for Chinese banks whose internationalization links with the Belt Road Initiative—national strategy to support the Chinese firms go global. The findings indicate that a major problem is that senior managers in the home countries fail to understand the importance of differences between home and host country institutional systems. The low level of autonomy granted to subsidiary managers, which arises from this lack of understanding on the part of their headquarters, hinders the ability of subsidiaries to effectively engage in normative and mimetic isomorphism to embed into host location institutional systems. The study also highlights differences in how Brazilian and Chinese banks might address this challenge.
URI:	https://digitalcollection.zhaw.ch/handle/11475/28070
Fulltext version:	Published version
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	International Management Institute (IMI)
Appears in collections:	Publikationen School of Management and Law

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Lupina-Wegener, A., McDonald, F., Shan, J., Zhang, G., & Karamustafa-Köse, G. (2023). Liability of emergingness of emerging market banks internationalizing to advanced economies. In P. A. B. Duarte, F. J. B. S. Leandro, & E. Martínez Galán (Eds.), The Palgrave Handbook of Globalization with Chinese Characteristics (pp. 201–221). Palgrave Macmillan. https://doi.org/10.1007/978-981-19-6700-9_13

Lupina-Wegener, A. et al. (2023) ‘Liability of emergingness of emerging market banks internationalizing to advanced economies’, in P.A.B. Duarte, F.J.B.S. Leandro, and E. Martínez Galán (eds) The Palgrave Handbook of Globalization with Chinese Characteristics. Singapore: Palgrave Macmillan, pp. 201–221. Available at: https://doi.org/10.1007/978-981-19-6700-9_13.

A. Lupina-Wegener, F. McDonald, J. Shan, G. Zhang, and G. Karamustafa-Köse, “Liability of emergingness of emerging market banks internationalizing to advanced economies,” in The Palgrave Handbook of Globalization with Chinese Characteristics, P. A. B. Duarte, F. J. B. S. Leandro, and E. Martínez Galán, Eds. Singapore: Palgrave Macmillan, 2023, pp. 201–221. doi: 10.1007/978-981-19-6700-9_13.

LUPINA-WEGENER, Anna, Frank MCDONALD, Juan SHAN, Gangfeng ZHANG und Güldem KARAMUSTAFA-KÖSE, 2023. Liability of emergingness of emerging market banks internationalizing to advanced economies. In: Paulo Afonso B. DUARTE, Francisco José B. S. LEANDRO und Enrique MARTÍNEZ GALÁN (Hrsg.), The Palgrave Handbook of Globalization with Chinese Characteristics. Singapore: Palgrave Macmillan. S. 201–221. ISBN 978-981-19-6699-6

Lupina-Wegener, Anna, Frank McDonald, Juan Shan, Gangfeng Zhang, and Güldem Karamustafa-Köse. 2023. “Liability of Emergingness of Emerging Market Banks Internationalizing to Advanced Economies.” In The Palgrave Handbook of Globalization with Chinese Characteristics, edited by Paulo Afonso B. Duarte, Francisco José B. S. Leandro, and Enrique Martínez Galán, 201–21. Singapore: Palgrave Macmillan. https://doi.org/10.1007/978-981-19-6700-9_13.

Lupina-Wegener, Anna, et al. “Liability of Emergingness of Emerging Market Banks Internationalizing to Advanced Economies.” The Palgrave Handbook of Globalization with Chinese Characteristics, edited by Paulo Afonso B. Duarte et al., Palgrave Macmillan, 2023, pp. 201–21, https://doi.org/10.1007/978-981-19-6700-9_13.