Slack Resources And Financial Innovation Under The Background Of Strategic Transformation:A Case Study Of China Merchants Bank

Under the situation of state-owned banks carrying out shareholding system reform and foreign banks’ full entry,the most influential and challenging part is the commercial banks with internal and external attacks.With the change of the environment,Commercial banks need to constantly adjust their strategies combined with their resources,scale and capabilities to carry out strategic transformation.The strategic transformation will suffer more external and internal constraints.Early western scholars put forward that banks can cope with external and internal constraints of the strategic transformation through financial innovation.And whether the financial innovation can continue,it needs to input a certain amount of resources.Because of the limited rationality and the constraints of the objective conditions,there will be some redundancy in the allocation of organizational resources both in quantity and in quality.This study first,combing the existing literature system transformation strategy of redundant resources and financial innovation,discusses the moderating effect of relationship between slack resources and financial innovation and strategic transformation and the external environment on the relationship between the two,establish the theoretical analysis framework,combined with China’s basic national conditions and the actual situation of the reform and development of commercial banks in recent years to use the strategic management theory,resource based theory and financial innovation theory,put forward the corresponding assumptions.Then we choose China Merchants Bank as a case company,and China Merchants Bank has abundant research materials.In some basic cases,most of the secondhand information has been recognized,which is credible and convenient for analysis.Then we use case study method to explore the strategic transformation process of China Merchants Bank,explore how different types of redundant resources reflect and play their role in financial innovation,and explore the inspection standard of financial innovation effectiveness,and finally analyze and discuss the results.The research shows that: first,as the scale of commercial banks is bigger,the longer the establishment time is,and the better the performance level is,the more redundant resources the risk averse commercial banks will have.Second,the greater the risk of commercial banks is,the more stringent the supervision is.The moderately high embedded human resources redundancy,financial redundancy and structural redundancy play a positive role in financial innovation under the background of strategic transformation.The conclusion can also provide some theoretical support for the healthy development of Chinese enterprises in transition economy.For policymakers,they are concerned about the cultivation and long-term development of enterprises’ independent innovation ability.For enterprise managers,we should accumulate and use financial redundant resources to innovate independently according to their own circumstances and their environment.