Evolution of Organisational Structure and Capabilities in Internationalising Banks: The CEE Operations of UniCredit's Vienna Office

Item Type Journal paper
Abstract

Cross-border integration is the central management issue for banks that expand internationally, and this is especially true in Central and Eastern Europe, where the pace of internationalisation through mergers and acquisitions has been rapid. A critical challenge in cross-border integration is aligning a multinational company's formal organizational structure with the distribution of capabilities across its subsidiary units, and this issue is explored by tracking the co-evolution of organizational structure and capabilities during the internationalisation of a large banking network into this region. Our focus is the Vienna head office of Bank Austria Creditanstalt, which was acquired first by HypoVereinsbank (Germany) and then UniCredit (Italy). Despite its formal role being downgraded during these changes, the unit continued to develop its distinctive capabilities. The key insight our article offers is that managing cross-border integration is not simply about recognizing the value of the distinctive capabilities of individual units and designing formal structures that successfully align with them. It is also about understanding the need for dynamic interaction between formal corporate structure and individual units' desires to retain power and influence, which have significant implications for the development of their organizational capabilities.

Authors Ambos, Tina C.; Schlegelmilch, Bodo; Ambos, Björn & Brenner, Barbara
Journal or Publication Title Long Range Planning
Language English
Subjects business studies
HSG Classification contribution to scientific community
Refereed No
Date October 2009
Publisher Elsevier
Place of Publication Oxford
Volume 42
Number 5-6
Page Range 633-653
Number of Pages 21
ISSN 0024-6301
ISSN-Digital 1873-1872
Publisher DOI 10.1016/j.lrp.2009.09.004
Depositing User Anja Schuster
Date Deposited 21 Nov 2012 22:19
Last Modified 26 Sep 2016 15:05
URI: https://www.alexandria.unisg.ch/publications/218072

Download

Full text not available from this repository.

Citation

Ambos, Tina C.; Schlegelmilch, Bodo; Ambos, Björn & Brenner, Barbara (2009) Evolution of Organisational Structure and Capabilities in Internationalising Banks: The CEE Operations of UniCredit's Vienna Office. Long Range Planning, 42 (5-6). 633-653. ISSN 0024-6301

Statistics

https://www.alexandria.unisg.ch/id/eprint/218072
Edit item Edit item
Feedback?