Abstract
The Italian banking system has changed profoundly and nowadays banks have to adapt their strategies to attain an adequate level of profitability (Mattei, 2019). Digitalization and mergers and acquisitions (M&A) are useful to obtain this result. However, at the same time, they can have a negative impact on the relationship between the bank and the territory, compromising the local economic growth (Caporale, Di Colli, Di Salvo, & Lopez, 2016). The objective of this work is to understand if any strategies could be undertaken to maintain the territorial relationship even when M&A and digitalization have become necessary. The methodology used is an ethnographic exploratory single case study (Yin, 1984). The information collected using semi-structured interviews is interpreted through qualitative inductive content analysis (Elo & Kyngäs, 2008). The interviews suggest that even when M&A and digitalization have a negative impact on the relationship between bank and territory, these two processes, if well-managed, could both improve the bank’s profitability and the contact with the local reality. Therefore, if a strategic management process is defined in advance, it is possible to maintain, or, even gain profitability
Highlights
The contemporary period derived from globalization and technological developments, in general, benefits all companies
This study concerns an ethnographic exploratory single case study as it analyzes a specific Italian bank and explores the way this bank has coped with digitalization and mergers and acquisitions (M&A) processes and the actions and strategies undertaken by it to overcome the difficulties in maintaining the “local” dimension, taking into account its specific context
In the bank industry, where, after the global financial crisis, the level of profitability has reduced significantly (Goddard et al, 2004), it is important to recover the previous level so that such entities can play a crucial role in the financial markets
Summary
The contemporary period derived from globalization and technological developments, in general, benefits all companies. Considering the results of the banks that have been able to slightly increase their profits, it is possible to observe that they have achieved this aim by implementing a complex strategy, in which the reduction of the costs is only a part of a more comprehensive strategic plan (Mattei, 2019). In this light, to regain a high level of efficiency and effectiveness, it is imperative to set up a strategy that could eventually lead to a radical change in the banks‟ business models (Mattei, 2019). The data are collected using semi-structured interviews (Runeson & Höst, 2009) to allow the interviewees to specify the concepts they consider more relevant (Horton, Macve, & Struyven, 2004) and ensuring flexibility and freedom for both the interviewer and the interviewees (Corbetta, 1999; Dunn, 2005; Runeson & Höst, 2009) since the interviews are almost predetermined
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