Industry Consolidation and Network Evolution in U.S. Global Banking, 1986-2004

Network Strategy: Advances in Strategic Management, Vol. 25, pp. 213-248, 2008

47 Pages Posted: 14 Oct 2008

See all articles by Eric J. Neuman

Eric J. Neuman

University of Illinois at Urbana-Champaign - Department of Business Administration

Gerald F. Davis

University of Michigan, Stephen M. Ross School of Business

Mark S. Mizruchi

University of Michigan at Ann Arbor - Horace H. Rackham School of Graduate Studies; University of Michigan, Stephen M. Ross School of Business

Date Written: October 8, 2008

Abstract

This paper 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.

Keywords: networks, banking, interlocks, industry consolidation, globalization

JEL Classification: G21, G34

Suggested Citation

Neuman, Eric J. and Davis, Gerald F. and Mizruchi, Mark S., Industry Consolidation and Network Evolution in U.S. Global Banking, 1986-2004 (October 8, 2008). Network Strategy: Advances in Strategic Management, Vol. 25, pp. 213-248, 2008. Available at SSRN: https://ssrn.com/abstract=1281186

Eric J. Neuman (Contact Author)

University of Illinois at Urbana-Champaign - Department of Business Administration ( email )

1206 South Sixth Street
Champaign, IL 61820
United States

Gerald F. Davis

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI 48109-1234
United States
734-647-4737 (Phone)
734-936-0282 (Fax)

Mark S. Mizruchi

University of Michigan at Ann Arbor - Horace H. Rackham School of Graduate Studies ( email )

701 Tappan Street
Ann Arbor, MI 48709-1220
United States
734-764-7444 (Phone)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

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