The Introduction of a Non-Traditional and Aggressive Approach to Banking: The Risks of Hubris [Book Review]
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 102 (3):401-420 (2011)
This study integrates institutional theory and social cognitive theory to describe how peripheral organizations can accidentally bring about radical change even in highly institutionalized and change-resistant fields. The empirical context is the field of banking in Ireland (1995–2001), where a peripheral bank triggered a shift away from traditionally conservative and risk-averse banking values toward aggressive values of entrepreneurial risk taking. The introduction of a new approach to banking was attributed to three factors: (1) a benevolent environment, which made this innovation feasible and timely, (2) the state of the field, which had gaps that could be addressed through specialization, and (3) prior successes, which created hubris in the senior managers, thereby increasing the pace and scope of adoption of this approach. Eventually, what started as a specialized and entrepreneurial approach led to the spread of a risky approach to banking across the entire field. The study highlights the risks of hubris, in that media praise and early successes can increase the pace of adoption of innovations which offer short-term gains but are detrimental in the long term
|Keywords||institutional entrepreneurship change social cognition ethics banking hubris|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
Boudewijn de Bruin (2013). Epistemic Virtues in Business. Journal of Business Ethics 113 (4):583-595.
Similar books and articles
Charles A. E. Goodhart (1994). The Free Banking Challenge to Central Banks. Critical Review 8 (3):411-425.
George Selgin (1994). Are Banking Crises Free‐Market Phenomena? Critical Review 8 (4):591-608.
Brian Harvey (1995). Ethical Banking: The Case of the Co-Operative Bank. [REVIEW] Journal of Business Ethics 14 (12):1005 - 1013.
James Franklin (2005). Risk-Driven Global Compliance Regimes in Banking and Accounting: The New Law Merchant. Law, Probability and Risk 4 (4):237-250.
George Selgin (1993). The Rationalization of Central Banks. Critical Review 7 (2-3):335-354.
Marta de La Cuesta-González, María Jesús Muñoz-Torres & María Ángeles Fernández-Izquierdo (2006). Analysis of Social Performance in the Spanish Financial Industry Through Public Data. A Proposal. Journal of Business Ethics 69 (3):289 - 304.
James Franklin, Mark Burgman, Scott Sisson & J. K. Martin (2008). Evaluating Extreme Risks in Invasion Ecology: Learning From Banking Compliance. Diversity and Distributions 14:581-591.
Lisa Warenski (2012). "Relative Uncertainty in Term Loan Projection Models: What Lenders Could Tell Risk Managers&Quot;. Journal of Experimental and Artificial Intelligence 24 (4):501-511.
Leonidas Zelmanovitz, “Money and War in Murray Rothbard's A History of Money and Banking in the United States”.
Valérie Petit & Helen Bollaert (2012). Flying Too Close to the Sun? Hubris Among CEOs and How to Prevent It. Journal of Business Ethics 108 (3):265-283.
Lotte Asveld (2006). Informed Consent in the Fields of Medical Technological Practice. Techné 10 (1):16-29.
Geoffrey M. Hodgson (1994). The State, Money, and “Spontaneous Order”. Critical Review 8 (4):579-589.
William Barnett II & Walter E. Block (2009). Time Deposits, Dimensions, and Fraud. Journal of Business Ethics 88 (4):711 - 716.
Added to index2011-08-18
Total downloads14 ( #109,355 of 1,096,601 )
Recent downloads (6 months)5 ( #50,170 of 1,096,601 )
How can I increase my downloads?