Explaining the Entrepreneurial Strategy in the Internationalization of Banks

Document Type : Research Paper

Authors

Department of Entrepreneurship, Islamic Azad University, Central Tehran Branch, Tehran, Iran.

Abstract

Throughout the history of banking, internationalization has always been tied to banking. In recent years, Iran's banking system has faced a variety of limitations and challenges, including economic sanctions, the FATF, and Iran's failure to accession the WTO. On the other hand, there is intense competition in the banking sector. In order to maintain their superiority in line with international developments, banks must create value and satisfying the needs of their customers. For this purpose, banks can enter international markets through innovation and entrepreneurship, and thus take a step towards internationalization. This can be achieved through entrepreneurial strategies. The purpose of this article is to explain the impact of entrepreneurial strategy on the internationalization of banks. The method of this research is confirmatory factor analysis. In this regard, the study of theoretical literature and questions from experts has been used as a source of research. Finally, the relationship between the main components was confirmed and it was found that entrepreneurial strategies and removal of international barriers and restrictions, have a positive and significant effect on the internationalization strategies of banks. However, only three strategies: “accelerating Internationalization”, “moderate internationalization” and “Established Internationalization” were identified as effective strategies, and the effect of the two internationalization strategies: “Imploding Internationalization” and “Retreating Internationalization” on internationalization was not confirmed.

Keywords

Main Subjects

References

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