Corporate Entrepreneurship and Strategic Human Resource Management (Essay Sample)

CORPORATE ENTREPRENEURSHIP AND STRATEGIC HUMAN RESOURCE MANAGEMENT By (Name) Course Tutor Institution City and State Date Corporate Entrepreneurship and Strategic Human Resource Management Theoretical frameworks in the banking industry are crucial for enlightening researchers and competent practitioners about the significance of banking systems in the global economy. Theoretical frameworks in banking and finance also help professionals keep up with performance expectations and compliance with regulations. Examples of theoretical frameworks in the banking industry include technology adoption theory, financial intermediation theory, information asymmetry theory, agency theory, regulatory theory, capital structure theory and market efficiency theory. A thorough analysis of the case study reveals that most of these theories were demonstrated by the leaders of the Stanford Band Group. This assignment aims to critically assess the above theoretical frameworks and contextualize their applications in the provided case study.  Regulatory Theory The banking industry requires policies, regulations, and compliance standards for effective operation. Studies clarify that the core purpose of regulatory theory is to complement specific banking designs and implementation systems targeted at banking compliance and regulations to achieve particular policy goals (Dagan & Kreitner, 2020). This theory concerns the bank’s adherence to financial policies and compliance protocols identified by significant financial policymakers. Additional research affirms that regulatory theory in banking and finance entails consumer protection, banking regulations, financial stability and risk mitigation (Begenau & Landvoigt, 2022). The studies assert that regulatory theory provides crucial frameworks for understanding liquidity standards and capital requirements to ascertain the safety and integrity of the banking system.  The application of regulatory theory is depicted in various incidences in the case study. For instance, the CEO reveals that a strategic theoretical framework must be adopted to support entrepreneurial culture and permanently seal the right internal and external organizational culture in the company. The case study quotes 12:13:32, “We try to put a framework for them to get it in entrepreneurs. We apply the same internally in the bank. Where we encourage any initiative to be taken. But you have to be governed by bank policies.” The best part of the assignment was reflecting on our opinions and perspectives of the new courses. Rewardists in the military profession had not been an actual profession until the arrival for detective Hellen. She was feisty just as she was professional. One of the sergeants in the facility thought that they would have easily thrown Hellen off her feet with strange intimidation tactics out in the field. For instance, during one mission, the detective revealed that in one of her previous lives, she had worked as a street plug. In this department., the worst of all enemies were street plugs who had not invested in corrupt ties with the government, As Detective Hellen continued gaining ground in the station, several other female detectives began contemplating on taking on the rewardists roles. Agency Theory Agency theory is responsible for the interaction between crucial stakeholders in the banking industry. An evidence-based information study indicates that agency theory accounts for the relationship between principal shareholders and agents (Mio et al., 2020). The principals are the banking stakeholders, while agents are professional practitioners such as bank managers. Further studies state that agency theory is designed to develop mutually beneficial solutions in case of a conflict of interest between crucial critical decision-makers in the banking industry (Galletta et al., 2022). Another vital role of the agency theory in the banking and finance world is to facilitate more profound comprehension and contextualization of issues such as corporate governance and risk-apprehensive behavioral patterns accounted by managerial incentives.  Evidence of the application of agency theory is depicted in various incidences throughout the case study. For instance, the case study quotes at 12:24:37, “We decided to go seek 40 licenses for a banking license. Operate the banking license, recruit people.” The quote means that the bank’s stakeholders required the CEO and other Stanford Band Group officials to adhere to all the terms and conditions of a healthy interaction between the bank’s principals and its agents.  Technology Adoption Theory The advancement of technology and robust information systems across all critical sectors of the global ecosystem has necessitated technological adaptations to enhance efficiency. According to Rahi et al. (2021), the technology adoption theoretical framework is designed to idealize and simplify advanced techno systems roleplay in facilitating or discouraging efficient, reliable and sustainable banking standards. Further research complements this argument by stating that technologically-based banking methods such as blockchain technology and online banking dictate the ability of banking systems to keep up with emerging trends in information technology (Garg et al., 2021). Another purpose of technology adoption theory is to simplify the ability of banking systems to adapt to new technological environments and regulations based on consumers' needs and preferences.  The case study demonstrates the application of the technology adoption theory in specific parts of the interview. For example, the case study quotes at 12:25:24, “Head of compliance, how to hire all of them and technology operations. So this is the starting ground.” The quote means that as technology advances, all banking systems must keep up with new changes and regulations' requirements, just as the most critical aspects of the global ecosystem. Financial Intermediation Theory Banks can serve as the proficient intermediary between capital-saving stakeholders and borrowers. Research from Ratnawati (2020) confirms that financial intermediation theory is designed to explore the relationship between the bank’s ability to effectively gather funds from its sources to meet borrowers’ needs and its capability to ensure that the invested capital attracts excellent profits. Farhi and Tirole (2021) also add that financial intermediation theory is pivotal in the in-depth comprehension of diverse banking operations and the efficiency of its strategic initiatives. This is further complemented by another peer-reviewed information source, which reveals that financial intermediation theory helps borrowers and lenders understand the financial, legal and ethical risks associated with funds’ acquisition (Grassi et al., 2022). The relationship between the bank, its borrowers and its lenders is built on integrity, trust and reliability. However, a simple compromise in one or more ethical foundations could compromise the productivity and efficiency of the identified relationship.  Evidence of financial intermediation theory application is evident in the case study. For instance, the case study quotes 12:27:18, “Try to assess them. Ensure you have the right people in the organization or make the right move.” The quote means that the baking systems must have proficient people in their respective areas of expertise to harness the best of their abilities while still creating a rapport with other significant shareholders in the banking system.  Market Efficiency Theory Financial markets dictate the banking and finance industries. Research indicates that market efficiency theory is responsible for assessing the ability of financial markets to identify emerging data, concepts and information and incorporate it into banking systems (Buallay, 2020). Market efficiency theory also determines a bank’s capability to turn the acquired data into vital asset prices and other strategic benefits (Shahir et al., 2021). The central purpose of the market efficiency theoretical framework is to account for bond prices, stocks from the bank and other distinct financial instruments in the ability to dictate financial markets (Buallay et al., 2021). The studies confirm that market efficient theory is crucial for vital decision-making processes in the banking industry.  The case study demonstrates the market efficiency theory in various subtle ways. For instance, the CEO says at 12:35:52, “You have just to point out the right problem. Someone may be the right person, but the market is not responding. The industry has a problem like during Covid. No matter how smart you are, there is no person to talk to.” The CEO means that the market efficiency during the peak of the COVID-19 pandemic 2020 was unstable and unreliable due to unresponsive market structures.  Information Asymmetry Theory The banking industry often creates partial financial situations where specific parties of a transaction have more access to critical financial market data and industrial insight than other parties. Research affirms that information asymmetry theory is demonstrated when one participant in a transaction holds more competitive advantage due to being privy to crucial banking and investment information, which leads to better critical decision-making processes (Sumantri et al., 2021). Additional research from Song et al. (2021) further reveals that the information asymmetry theoretical framework resolves all conflicting interests. Another significant purpose of information asymmetry theory in the banking world is to help practitioners understand the value of information disclosure when seeking market transparency and stakeholders’ rapport (Chod & Lyandres, 2021). The case study proves specific applications of information asymmetry theory. For example, the CEO quotes at 12:38:48, “We are digital and digital ...