Management International Review

, Volume 48, Issue 4, pp 463–485 | Cite as

Internationalization of retail banks: A micro-level study of the multinationality-performance relationship

  • Markus Venzin
  • Vikas Kumar
  • Jens Kleine


Abstract and Key Results
  • This study discusses the underlying reasons for the variant nature of the relationship between multinationality and firm performance in the context of service firms.

  • To date, this line of research has mostly used evidence from manufacturing firms, despite the ever-increasing contribution of service firms to national and global economies.

  • We conduct an exploratory study using case analyses of large European retail banks. We argue that the nature of the multinationality-performance relationship for services is moderated by industry characteristics, market-based factors and firm-specific factors.

  • We conclude that the shape of the curve depicting the multinationality-performance relationship of retail banks experiences substantial variations on a single case level.

  • Our exploratory study of retail banks shows that the multinationality-performance relationship varies significantly depending on banks’ strategic decisions regarding branch network configurations, product portfolios, branding strategies, organizational architecture (HQ-subsidiary relationship), and social networks. Any generalization of the relationship is difficult and prone to error.

Key Words

Multinationality Performance Banking Sector 


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Copyright information

© Gabler Verlag 2008

Authors and Affiliations

  • Markus Venzin
    • 1
  • Vikas Kumar
    • 2
  • Jens Kleine
    • 3
  1. 1.Strategic Management InstituteBocconi UniversityMilanItaly
  2. 2.Strategic Management InstituteBocconi UniversityMilanItaly
  3. 3.Strategy DepartmentSteinbeis-Hochschule BerlinBerlinGermany

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