PENETRATION AND EXPANSION OF FOREIGN BANKS IN SOUTH EASTERN EUROPE: THE CASE OF GREEK BANKS

This research aims to examine how Greek banks penetrate and expand into South Eastern European (SEE) countries. Empirical data were collected by using secondary and primary data sources. Primary data sources included semi-structured interviews with managers from the banks' headquarters as well as managers of their activities in the region. The theoretical view relies on the firms' internationalisation and business network theories and the varieties in the behaviour are explained by the degree of business commitment and knowledge. The analysis of the Greek banks' behaviour, concerning their penetration and expansion in the region, reveals that commitment and knowledge also have political dimensions, which complement business commitment and knowledge. The study contains several shortcomings. The empirical study, for example, contains only two cases, which naturally raises the problem of generalisation. Further, the theoretical view may contain conceptual elements, which hinder more specific observations. Based on the findings, the outcomes of this paper add new knowledge to the Greek banks' internationalisation, for the better understanding of market entry and expansion, offering managerial implications for management of political relationships. The paper reports on the findings of the one of the first in its kind research study carried out in the Greek banking sector's presence into SEE countries. The findings that emerged set the foundation for helping the various stakeholders in the sector to contribute towards building strong presence in the region to help them sustain the fierce competition from foreign banks.