Title: Strategic change for the banking industry under financial deregulation: implications from Taiwan evidence

Authors: Hsien-Chang Kuo

Addresses: Department of Banking and Finance, National Chi-Nan University, 1, University Road, Puli, Nantou 545, Taiwan

Abstract: Through progressive financial liberalisation, banks are now facing more competition than ever before. In response to the impact of deregulation, strategic changes have been initiated within the banking industry. This study concentrates on the impact caused by Taiwan|s financial deregulation on banks| new operational environment and their top-management-team (TMT) members. This deregulation is responsible for banks| strategic change when under the control of technology innovation and market competition. The findings indicate that government regulation and law, product market and demand, industrial technology, and TMT characteristics are all significantly associated with banks| strategic change. Specifically, the results indicate that banking deregulation, the change in market competition and customer demand, the dispersion of TMT tenure, and the TMT industrial seniority are positively associated with banks| strategic change. On the contrary, banks| MIS improvement is negatively associated with banks| strategic change. This paper further finds that a TMT member who is in the ||deposits|| or ||loans|| profession will be in a hurry to respond to market competition, and thus mobilise in order to permit the bank|s strategic changes.

Keywords: financial deregulation; strategic change; operational environment; top management team (TMT).

DOI: 10.1504/IJTM.2004.004270

International Journal of Technology Management, 2004 Vol.27 No.4, pp.331 - 342

Available online: 08 Apr 2004 *

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