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REVIEW OF LITERATURE ON TURNAROUND STRATEGY IN BANKING
Corresponding Author(s) : Maryam binti Badrul Munir
Humanities & Social Sciences Reviews,
Vol. 6 No. 2 (2018)
Abstract
Purpose of the study: The business cycle always occur in banking activities. For that reason, banks often prepare a turnaround strategy to keep banking growing during changes of business cycles during which often happen during changes in the economic situation or changes in the regulation of a country. This article reviews study on banking turnaround strategy (in conventional and Islamic banks) regarding to the model turnaround strategy by Schoenberg, Collier, and Bowman (2013) from January 1990 to December 2017, in order to identify the current state of study and research gap. The publications were classified into process-orientated strategies and content-orientated strategies. The process-orientated strategies were divided into cost efficiencies, asset retrenchment, focus on core activities and build the activities. Meanwhile, the content-orientated strategies were classified into the changes of organisational structure and culture change.
Methodology: This paper focuses on peer-reviewed Economy journal, excluding book and book chapters. The keywords included ‘turnaround strategy in banking’ and ‘business cycle’. Articles were only selected if they directly addressed into turnaround banking and the business cycle. The sample was generated by applying a keyword search on Mendeley database.
Main Findings: There were 122 out of 250 in the sample analysed on the banking turnaround strategy. The majority of studies were concerned with the process-oriented strategies (such as the focus on core activities and build of the activities).
Applications of this study: This study can be useful for strategic management of banking
Novelty/Originality of this study: The implementation of turnaround model strategy by Schoenberg, Collier, and Bowman (2013) as the management strategies during the recovery process in banking.
Keywords
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- Ayadi, R., De Groen, W. P., Sassi, I., Mathlouthi, W., Rey, H., & Aubry, O. (2015). Banking Business Models Monitor 2015 Europe. International Research Centre on Cooperative Finance. Montreal. https://doi.org/10.2139/ssrn.2784334 DOI: https://doi.org/10.2139/ssrn.2784334
- Belás, J. (2013). Social Responsibility and Ethics in the Banking Business: Myth or Reality? A Case Study from the Slovak Republic. Economic Annals, LVII/No 19(October-December), 116–137. https://doi.org/10.2298/EKA1295115B DOI: https://doi.org/10.2298/EKA1295115B
- Buil, I., Catalán, S., & MartÃnez, E. (2015). The Importance of Corporate Brand Identity in Business Management : An Application to the UK Banking Sector. BRQ Business Research Quarterly, 19(1), 1–10. https://doi.org/10.1016/j.brq.2014.11.001 DOI: https://doi.org/10.1016/j.brq.2014.11.001
- de la Mora, F., & Sharma, P. (2016). Rethinking Banking: How to Fit Bank Business Models to Regulatory Constraintsk. Journal of Risk Management in Financial Institutions, 9(4), 351–362. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=120008389&site=ehost-live
- Francis, John D, and Eleni Mariola. (1995). Decline, Turnaround, and Managerial Ownership.†: 1–20
- Gorton, G. (1988). Banking Panics and Business Cycles. Oxford Economic Papers, 40(4), 751–781. https://doi.org/10.1093/oxfordjournals.oep.a041885 DOI: https://doi.org/10.1093/oxfordjournals.oep.a041885
- Guidara, A., Lai, V. S., Soumaré, I., & Tchana, F. T. (2013). Banks’ Capital Buffer, Risk and Performance in the Canadian Banking System: Impact of Business Cycles and Regulatory Changes. Journal of Banking and Finance, 37(9), 3373–3387. https://doi.org/10.1016/j.jbankfin.2013.05.012 DOI: https://doi.org/10.1016/j.jbankfin.2013.05.012
- Ibrahim, M. H. (2016). Business Cycle and Bank Lending Procyclicality in a Dual Banking System. Economic Modelling-Elsevier, 55(C), 127–134. https://doi.org/10.1016/j.econmod.2016.01.013 DOI: https://doi.org/10.1016/j.econmod.2016.01.013
- Kamarulzaman, Y., & Madun, A. (2013). Marketing Islamic Banking Products: Malaysian Perspective. Business Strategy Series, 14(2/3), 60–66. https://doi.org/10.1108/17515631311325114 DOI: https://doi.org/10.1108/17515631311325114
- Kollmann, R., Enders, Z., & Müller, G. J. (2011). Global Banking and International Business Cycles. European Economic Review, 55(3), 407–426. https://doi.org/10.1016/j.euroecorev.2010.12.005 DOI: https://doi.org/10.1016/j.euroecorev.2010.12.005
- Mandelman, F. S. (2009). Business Cycles and Monetary Regimes in Emerging Economies: A Role for a Monopolistic Banking Sector. Federal Reserve Bank of Atlanta (Vol. 81). https://doi.org/10.1016/j.jinteco.2009.11.002 DOI: https://doi.org/10.2139/ssrn.941476
- Milojević, N. (2014). Optimal Banking and Other Financial Business for the Economic Growth of Serbia. Journal of Central Banking Theory and Practice, 3(2), 61–83. https://doi.org/10.2478/jcbtp-2014-0011 DOI: https://doi.org/10.2478/jcbtp-2014-0011
- Moro, S., Cortez, P., & Rita, P. (2015). Expert Systems with Applications Business Intelligence in Banking : A Literature Analysis from 2002 to 2013 using Text Mining and Latent Dirichlet Allocation. Experts System with Application, 42, 1314–1324. https://doi.org/10.1016/j.eswa.2014.09.024 DOI: https://doi.org/10.1016/j.eswa.2014.09.024
- Nitescu, D. C. (2015). Banking Business and Social Media – A Strategic Partnership. Theoretical & Applied Economics, XXII(4), 121–132.
- Omarini, A. (2013). Multichannel Distribution in Banking : Customers Perspectives and Theoretical Frameworks to Increase User Acceptance of a Multiplatform Banking Business. Banks and Bank Systems, 8(1), 78–96.
- Oviedo, P. M. (2004). Macroeconomic Risk and Banking Crises in Emerging Market Countries : Business Fluctuations with Financial Crashes. Banking, (June), 1–41.
- Pesic, V. (2012). Financial Crisis and Innovation in Banking Business Model: Are We Minding the Gap with the Reform Agenda? American International Journal of Contemporary Research, 9(September), 55–65. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=67791885&site=ehost-live
- Proenca, J. F., & De Castro, L. M. (2004). Business Relationships Dynamics and (In) Stability: A Comparative Case Study in Corporate Banking. Journal of Customer Behaviour, 3(December), 235–256. https://doi.org/10.1362/147539204323366381 DOI: https://doi.org/10.1362/147539204323366381
- Schoenberg, R., Collier, N., & Bowman, C. (2013). Strategies for Business Turnaround and Recovery: A Review and Synthesis. European Business Review, 25(3), 243–262. DOI: https://doi.org/10.1108/09555341311314799
- Sieron, A. (2016). The Role of Shadow Banking in the Business Cycle. The Quarterly Journal of Austrian Economics, 19(4), 309–329.
- Ueda, K. (2010). Banking Globalization and International Business Cycles. Federal Reserve Bank of Dallas Working Paper, (58), 1–76. DOI: https://doi.org/10.24149/gwp58
- Vogiazas, S., & Alexiou, C. (2013). Liquidity and the Business Cycle: Empirical Evidence from the Greek Banking Sector. Economic Annals, 58(199), 109–126. https://doi.org/10.2298/EKA1399109V DOI: https://doi.org/10.2298/EKA1399109V
- Yip, A., & Bocken, N. (2017). Sustainable Business Model Archetypes for the Banking Industry. Journal of Cleaner Production, (October), 1–54. https://doi.org/https://doi.org/10.1016/j.jclepro.2017.10.190 DOI: https://doi.org/10.1016/j.jclepro.2017.10.190
References
Ayadi, R., De Groen, W. P., Sassi, I., Mathlouthi, W., Rey, H., & Aubry, O. (2015). Banking Business Models Monitor 2015 Europe. International Research Centre on Cooperative Finance. Montreal. https://doi.org/10.2139/ssrn.2784334 DOI: https://doi.org/10.2139/ssrn.2784334
Belás, J. (2013). Social Responsibility and Ethics in the Banking Business: Myth or Reality? A Case Study from the Slovak Republic. Economic Annals, LVII/No 19(October-December), 116–137. https://doi.org/10.2298/EKA1295115B DOI: https://doi.org/10.2298/EKA1295115B
Buil, I., Catalán, S., & MartÃnez, E. (2015). The Importance of Corporate Brand Identity in Business Management : An Application to the UK Banking Sector. BRQ Business Research Quarterly, 19(1), 1–10. https://doi.org/10.1016/j.brq.2014.11.001 DOI: https://doi.org/10.1016/j.brq.2014.11.001
de la Mora, F., & Sharma, P. (2016). Rethinking Banking: How to Fit Bank Business Models to Regulatory Constraintsk. Journal of Risk Management in Financial Institutions, 9(4), 351–362. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=120008389&site=ehost-live
Francis, John D, and Eleni Mariola. (1995). Decline, Turnaround, and Managerial Ownership.†: 1–20
Gorton, G. (1988). Banking Panics and Business Cycles. Oxford Economic Papers, 40(4), 751–781. https://doi.org/10.1093/oxfordjournals.oep.a041885 DOI: https://doi.org/10.1093/oxfordjournals.oep.a041885
Guidara, A., Lai, V. S., Soumaré, I., & Tchana, F. T. (2013). Banks’ Capital Buffer, Risk and Performance in the Canadian Banking System: Impact of Business Cycles and Regulatory Changes. Journal of Banking and Finance, 37(9), 3373–3387. https://doi.org/10.1016/j.jbankfin.2013.05.012 DOI: https://doi.org/10.1016/j.jbankfin.2013.05.012
Ibrahim, M. H. (2016). Business Cycle and Bank Lending Procyclicality in a Dual Banking System. Economic Modelling-Elsevier, 55(C), 127–134. https://doi.org/10.1016/j.econmod.2016.01.013 DOI: https://doi.org/10.1016/j.econmod.2016.01.013
Kamarulzaman, Y., & Madun, A. (2013). Marketing Islamic Banking Products: Malaysian Perspective. Business Strategy Series, 14(2/3), 60–66. https://doi.org/10.1108/17515631311325114 DOI: https://doi.org/10.1108/17515631311325114
Kollmann, R., Enders, Z., & Müller, G. J. (2011). Global Banking and International Business Cycles. European Economic Review, 55(3), 407–426. https://doi.org/10.1016/j.euroecorev.2010.12.005 DOI: https://doi.org/10.1016/j.euroecorev.2010.12.005
Mandelman, F. S. (2009). Business Cycles and Monetary Regimes in Emerging Economies: A Role for a Monopolistic Banking Sector. Federal Reserve Bank of Atlanta (Vol. 81). https://doi.org/10.1016/j.jinteco.2009.11.002 DOI: https://doi.org/10.2139/ssrn.941476
Milojević, N. (2014). Optimal Banking and Other Financial Business for the Economic Growth of Serbia. Journal of Central Banking Theory and Practice, 3(2), 61–83. https://doi.org/10.2478/jcbtp-2014-0011 DOI: https://doi.org/10.2478/jcbtp-2014-0011
Moro, S., Cortez, P., & Rita, P. (2015). Expert Systems with Applications Business Intelligence in Banking : A Literature Analysis from 2002 to 2013 using Text Mining and Latent Dirichlet Allocation. Experts System with Application, 42, 1314–1324. https://doi.org/10.1016/j.eswa.2014.09.024 DOI: https://doi.org/10.1016/j.eswa.2014.09.024
Nitescu, D. C. (2015). Banking Business and Social Media – A Strategic Partnership. Theoretical & Applied Economics, XXII(4), 121–132.
Omarini, A. (2013). Multichannel Distribution in Banking : Customers Perspectives and Theoretical Frameworks to Increase User Acceptance of a Multiplatform Banking Business. Banks and Bank Systems, 8(1), 78–96.
Oviedo, P. M. (2004). Macroeconomic Risk and Banking Crises in Emerging Market Countries : Business Fluctuations with Financial Crashes. Banking, (June), 1–41.
Pesic, V. (2012). Financial Crisis and Innovation in Banking Business Model: Are We Minding the Gap with the Reform Agenda? American International Journal of Contemporary Research, 9(September), 55–65. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=67791885&site=ehost-live
Proenca, J. F., & De Castro, L. M. (2004). Business Relationships Dynamics and (In) Stability: A Comparative Case Study in Corporate Banking. Journal of Customer Behaviour, 3(December), 235–256. https://doi.org/10.1362/147539204323366381 DOI: https://doi.org/10.1362/147539204323366381
Schoenberg, R., Collier, N., & Bowman, C. (2013). Strategies for Business Turnaround and Recovery: A Review and Synthesis. European Business Review, 25(3), 243–262. DOI: https://doi.org/10.1108/09555341311314799
Sieron, A. (2016). The Role of Shadow Banking in the Business Cycle. The Quarterly Journal of Austrian Economics, 19(4), 309–329.
Ueda, K. (2010). Banking Globalization and International Business Cycles. Federal Reserve Bank of Dallas Working Paper, (58), 1–76. DOI: https://doi.org/10.24149/gwp58
Vogiazas, S., & Alexiou, C. (2013). Liquidity and the Business Cycle: Empirical Evidence from the Greek Banking Sector. Economic Annals, 58(199), 109–126. https://doi.org/10.2298/EKA1399109V DOI: https://doi.org/10.2298/EKA1399109V
Yip, A., & Bocken, N. (2017). Sustainable Business Model Archetypes for the Banking Industry. Journal of Cleaner Production, (October), 1–54. https://doi.org/https://doi.org/10.1016/j.jclepro.2017.10.190 DOI: https://doi.org/10.1016/j.jclepro.2017.10.190