Adaptation Strategies for Inclusive Finance: A Study of Chinese Commercial Banks

Abstract

This study explores the dynamic interaction between commercial and social logics in the inclusive finance sector, with a specific focus on commercial banks. It is grounded in the concept of institutional logics, which includes a variety of symbols, beliefs, norms, and practices that shape societal realities and influence organizational behaviors. Commercial banks face the challenging task of balancing their pursuit of economic benefits against the diverse, and at times conflicting, demands from governments, society, and the market. A comprehensive analysis of several Chinese commercial banks reveals four distinct strategic responses: Observers, Cynics, Adapters, and Innovators. The findings offer insightful perspectives and practical recommendations for commercial banks seeking sustainable growth and profitability within the challenging terrain of inclusive finance.