Banks and Business Networks: Management, Governance and Financial Implications

Description

While there is a vast amount of literature examining firm’s networks from an industrial organization perspective, the financial implications of networking remain underexplored. This book fills this gap, by investigating the phenomenon of business networks in the context of management and governance processes, and the related effects on interactions with the financial system in general, and credit institutions in particular. Networking is examined both from the demand (firms) and supply (banking institutions) perspective, thus, the book offers several contributions. It outlines the critical issues connected to business aggregations from the point of view of the management of information flows, and addresses the problem of identifying the role of banking ecosystems, in light of the transformations taking place in the financial industry, considering the growing complementarity between bank and market instruments in corporate financing. It explores the problem of identifying rating models for business networks, as well as, for individual participants on a stand-alone basis. Further, the book analyses a sample of networks in Friuli-Venezia Giulia and profiles a number of specific business cases. The book will be of particular interest to researchers and scholars in the field of banking and finance but also entrepreneurship and small business management. It will also find an audience among scholars from a wide array of additional fields, working on the relationship between financing concerns and growth opportunities. Cover Half Title Title Copyright Contents List of Figures and Tables Introduction 1. Aggregation Phenomena and Business Networks 1.1. Business Aggregations 1.2. Aggregation Tools in Network Form 1.2.1. Motives and Operational Advantages 1.2.2. Potential and Size Limitations 1.2.3. Types of Aggregations 1.3. The Network Contract 1.3.1. A Legal Framework 1.3.2. The Organizational Complexity of the Networks 1.3.3. Aggregation Models 2. Business Networks, Information Management and Value: Evolutionary Profiles 2.1. Introduction 2.2. Relevant Profiles in Terms of the Bank-Firm Relationship 2.3. Business Networks, Information and Value Creation 2.4. Relationships within the Network, Governance, and Economic Implications 2.4.1. The Internal Dimension 2.4.2. The External Dimension 2.5. Relationship Lending and Trust-based Relationships 3. Assessment of Creditworthiness and Rating in Business Networks 3.1. Foreword 3.2. Rating System Methods 3.3. Rating Groups of Enterprises 3.4. Ratings for Business Networks and for the Individual Networked Enterprises 3.4.1. The Process for Assessing the Network 3.4.2. The Process for Assessing the Networked Enterprise 3.5. The Relationship between Banks and Business Networks 4. The Relationship Between Networks and Banks. Analysis of a Sample of Networks in Friuli-Venezia Giulia and of a Few Business Cases 4.1. Objectives and Research Methods 4.2. The Analysis of a Sample of Networks through a Questionnaire 4.3. Main Results 4.3.1. Network, Measurement and Control of the Performance 4.3.2. Strategic and Entrepreneurial Orientation 4.3.3. Profiles of Network Governance 4.3.4. Relationships with the Banking System 4.4. A Typification of the Networks 4.5. Banks and Networks: Analysis of a Few Business Case Studies 4.5.1. The case study methodology 4.5.2. The “TeknoApp” Network 4.5.3. The Reteconfidi Nordest Case 4.6. Financing the Networks: the Banks’ Point of View 4.6.1. Introduction 4.6.2. The Case of a Local Bank 4.6.3. Operational Profiles of the bank and its Link with GBCI 4.6.4. The Case of Two National-Level Banking Groups 5. Elements for a Conclusion in an Evolutionary Perspective 5.1. Foreword 5.2. Network Architecture, Externalities and Risks 5.3. Networks and Assessments of Creditworthiness 5.4. Lending Technologies and Assessment of Creditworthiness in Networks References Index