Bank regulation and the process of internationalisation: A study of Japanese bank entry into London |
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Authors: | John Barry Howcroft Rehan Ul-Haq Richard Hammerton |
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Affiliation: | 1. Business School, Loughborough University , Loughborough , LE11 2TU , UK j.b.howcroft@lboro.ac.uk;3. Birmingham Business School, University of Birmingham, University House , Edgbaston , Birmingham , B15 2TT , UK;4. Michael Page Financial Services , 28th Floor, 1 Canada Square, London , E14 5AG , UK |
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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. |
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Keywords: | internationalisation regulatory push market pull Japanese banks city of London |
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