Bank Merger in Mexico Post Crisis 1994, Under the Vision of the Resource-Based Theory

This study examines the impact of a regional bank merger in Japan on borrowing by small businesses, focusing on firms that borrow from the acquiring bank, the acquired bank, or both. First, we find that post-merger borrowing costs declined. This result suggests that small borrowers enjoy more favorable post-merger financing conditions because efficiencies from economies of scale lead to lower costs. Second, we<strong> </strong>find that post-merger borrowing costs decline for firms that borrow only from the acquiring or acquired bank, whereas they did not decline for firms that borrow from both. Third, we find that only small business loans to firms that borrow from both the acquiring and acquired banks decrease post-merger. This result suggests that small business lending might decline because of a merged bank’s loan portfolio and lending strategy.

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Strategic resources and smallholder performance at the bottom of the pyramid

International Food and Agribusiness Management Review ◽

10.22434/ifamr2018.0111 ◽

2019 ◽

Vol 22 (3) ◽

pp. 365-380 ◽

Cited By ~ 1

Author(s):

Matthias Olthaar ◽

Wilfred Dolfsma ◽

Clemens Lutz ◽

Florian Noseleit

Keyword(s):

Large Scale ◽

Business Environment ◽

Agricultural Economics ◽

Local Market ◽

Bottom Of The Pyramid ◽

Fine Grained ◽

Strategic Resources ◽

Relative Contribution ◽

The Relationship ◽

Resource Based Theory

In a competitive business environment at the Bottom of the Pyramid smallholders supplying global value chains may be thought to be at the whims of downstream large-scale players and local market forces, leaving no room for strategic entrepreneurial behavior. In such a context we test the relationship between the use of strategic resources and firm performance. We adopt the Resource Based Theory and show that seemingly homogenous smallholders deploy resources differently and, consequently, some do outperform others. We argue that the ‘resource-based theory’ results in a more fine-grained understanding of smallholder performance than approaches generally applied in agricultural economics. We develop a mixed-method approach that allows one to pinpoint relevant, industry-specific resources, and allows for empirical identification of the relative contribution of each resource to competitive advantage. The results show that proper use of quality labor, storage facilities, time of selling, and availability of animals are key capabilities.

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