Effects of Product and Customer Resource Configuration Strategies on Foreign Banks' Performance: Based on 21 Foreign Corporate Banks' Panel Data

Abstract

Abstract:

Foreign banks have finished the first phase of the layout after entering the Chinese market. An urgent problem for foreign banks to solve in the next stage of development is how to overcome the "outsiders' disadvantage", such as small scale and small market share. Based on the Configuration Theory, this paper researches the effects of product and customer resource configuration strategies on foreign banks' performance. By analyzing 21 foreign banks' data from 2008 to 2012, this paper concludes that the four kinds of product and customer resource configuration strategies have an significantly different influence on foreign banks' performance: the strategy Product Diversification-Customer Decentralization and strategy Product Diversification-Customer Centralization have a positive effect on performance; the strategy Product Concentration-Customer Centralization has a negative effect on performance; the strategy Product Concentration-Customer Decentralization has no significant impact on performance. In addition, the Market Risk has a significant influence on the relationship between the resource configuration strategy and bank performance. Finally, this paper puts forward some management suggestions for foreign banks' development strategy in the next phase and Chinese banks' market strategy.

Key words: foreign banks, product resources, customer resources, resource configuration, performance

Wu Xiaoyun, Chen Pengfei. Effects of Product and Customer Resource Configuration Strategies on Foreign Banks' Performance: Based on 21 Foreign Corporate Banks' Panel Data[J]. , 2016, 28(1): 141-155.

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