Global Diffusion of the Non-Traditional Banking Model and Alliance Networks: Social Exposure, Learning and Moderating Regulatory Effort

32 Pages Posted: 7 Dec 2010

See all articles by Alexander N. Cuntz

Alexander N. Cuntz

Chair of Innovation Economics; Competence Center Innovation and Regulation

Knut Blind

Technische Universität Berlin (TU Berlin)

Date Written: January 2010, 12

Abstract

We analyze the impact of (alliance) network exposure on the speed and extent of adoption of the business model as being one explanatory factor for diffusion controlling for actor specific characteristics and embeddedness in the network. In order to explain how existing national regulation moderated this relationship and whether it succeeded in its risk-limiting mission by moderating global adoption patterns and risk-bearing behavior among financial institutions we estimate various history event analysis model i.e. standard Cox and extended frailty models. We find strong support for the role of network exposure rather than social learning, the impact of regulatory effort on patterns of adoption and the role of country clusters for diffusion in the financial sector.

Keywords: diffusion, networks, alliances, banking, regulation, social learning, exposure

JEL Classification: M11, O31, O32, M, G11, G15, G21, G28

Suggested Citation

Cuntz, Alexander N. and Blind, Knut, Global Diffusion of the Non-Traditional Banking Model and Alliance Networks: Social Exposure, Learning and Moderating Regulatory Effort (January 2010, 12). ERIM Report Series Reference No. ERS-2010-044-LIS, Available at SSRN: https://ssrn.com/abstract=1721327

Alexander N. Cuntz (Contact Author)

Chair of Innovation Economics ( email )

Straße des 17
Berlin
Germany

Competence Center Innovation and Regulation ( email )

Breslauer Str. 48
Karlsruhe, 76139
United States

Knut Blind

Technische Universität Berlin (TU Berlin) ( email )

Straße des 17
Berlin
Germany

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