Industry consolidation and network evolution in U.S. global banking, 1986-2004

Eric Neuman, Gerald F. Davis, Mark S. Mizruchi

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This chapter analyzes the relations among bank mergers, changes in boards and their networks, and changes in the global footprint of merging banks. We examine all mergers involving U.S. banks with foreign branches between 1986 and 2004. We find that while the largest banks have become even larger through mergers, their boards have stayed roughly the same size with the same pattern of connections, leaving banks relatively less central in the intercorporate network. And while global banks previously had more globally oriented boards, this is no longer the case, as the link between board networks and strategy has become more tenuous. Because global banks were particularly prone to merging, the average commercial bank in the U.S. is now far more domestically oriented than firms in most other industries. American banks have thus become more domestic at the same time that the rest of American industry has grown much more global.

Original languageEnglish (US)
Title of host publicationNetwork Strategy
EditorsJoel Baum, Timothy Rowley
Pages211-245
Number of pages35
DOIs
Publication statusPublished - Aug 25 2008

Publication series

NameAdvances in Strategic Management
Volume25
ISSN (Print)0742-3322

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ASJC Scopus subject areas

  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management

Cite this

Neuman, E., Davis, G. F., & Mizruchi, M. S. (2008). Industry consolidation and network evolution in U.S. global banking, 1986-2004. In J. Baum, & T. Rowley (Eds.), Network Strategy (pp. 211-245). (Advances in Strategic Management; Vol. 25). https://doi.org/10.1016/S0742-3322(08)25006-0