Followers' entry timing: evidence from the Spanish banking sector after deregulation

Abstract

Much of the literature dedicated to the analysis of entry timing decisions has been devoted to the study of their consequences in terms of performance. However, only a limited amount of effort has been dedicated to analyzing the factors that determine these decisions. In addition, previous papers have centered their efforts on the product dimension, paying no attention to entry into new geographical markets. This paper departs from previous works in this respect and extends the entry timing literature through a consideration of the geographical side of entry. Our analysis shows that organizational size, organizational competence, and organizational experience appear as key factors when explaining the pattern of geographic diversification. Our results also indicate that diversification takes place sequentially, first proceeding to closer locations, then occupying markets further from the origin. Copyright © 2002 John Wiley & Sons, Ltd.

The effects of geographic expansion on the productivity of Spanish savings banks

“…9 Fuentelsaz and Gómez (2001) analyze the factors that influence entry and geographic diversification decisions, finding that entry into provincial markets is significantly and positively related to resource availability, firm profitability, and the size of the initial scope of operation. Fuentelsaz et al (2002) analyze the determinants of entry timing decisions. Our focus differs greatly from theirs, since we evaluate how differing geographic expansion policies may affect banking firms' productivity.…”

“…Some scholars such as Carbó Valverde et al (2003) have examined the likely effects of geographic expansion on competition using the Lerner index, finding a greater intensity of competition in the savings bank sector after nationwide branching was permitted. Fuentelsaz et al (2002) and Fuentelsaz and Gómez (2001) attempt to determine the key variables that explain decisions on geographic expansion. More recently, Fuentelsaz and Gómez (2006) have dealt with multimarket contact and strategic similarity in the analysis of savings banks entry in other markets.…”

Deregulation and Resource Reconfiguration in the Electric Utility Industry

“…In particular, those working more closely within the sociology and economic domains have produced a rich and diverse literature that explores how economic regulation and deregulation has impacted the behavior of firms. A common theme has been that government and other public agencies elicit profound organizational change by redrawing industry boundaries, shifting the scope of permissible activities for incumbents and entrants, and otherwise changing incentives for behavior (e.g., Bonardi, 2004;Fuentelsaz, Gomez, and Polo, 2002;Haveman, 1993;Haveman, Russo, and Meyer, 2001;Miller and Chen, 1994;Smith and Grimm, 1987). But as we show, this work generally does not explore resource reconfiguration.…”

Análise Prospectiva da Indústria Bancária no Brasil: Regulação, Concentração e Tecnologia

“…Em relação à tecnologia, mudanças tecnológicas e regulatórias no setor bancário e em outras indústrias de serviços têm criado oportunidades para novos entrantes tomarem para si os clientes mais lucrativos de algumas grandes firmas. Dessa forma, as vantagens outrora sustentáveis de grandes firmas se tornam desvantagens sustentáveis na medida em que essas firmas se tornam reféns de antigas tecnologias, obrigações, regulações e outras forças (Bharadwaj, Varadarajan, & Fahy, 1993;Fuentelsaz, Gomez, & Polo, 2002;Fuentelsaz, MaicasLópez, & Polo, 2002). Por meio de investimentos em novas tecnologias, os bancos podem obter ganhos em participação de mercado e diminuir os custos marginais; investimentos em qualidade podem elevar a participação de mercado, porém aumentar o custo marginal de suas operações (Gonzalez, Micco, & Montoya, 2015).…”