Towards Understanding the Developmental Outcomes of Government Intervention: A Dynamic-Comparative Case Study of the Community Reinvestment Act
Vol. Volume 1, Number 2 September/1996
Susan J. Fox-Wolfgramm
Susan J. Fox-Wolfgramm is Assistant Professor of Management in the College of Business Administration at San Francisco State University. Special thanks go to Kimberly B. Boal, William B. Gartner, E. Frank Harrison, James G. Hunt and the anonymous reviewers for their helpful comments regarding earlier drafts of this manuscript.
The author studied two different banks' identification, interpretation, and response to the Community Reinvestment Act (CRA) during a period when the regulation was "uncharted territory" for the banking industry. The results of a dynamic-comparative case study approach suggest that the banks handled CRA quite differently, due to the interactions that existed among: (a) their relationships with regulators, (b) unique strategic orientations, and (c) types of strategic issue processes. The outcomes of this qualitative study are used to explore the circumstances that support and hinder ethnic entrepreneurship. It is believed that these findings are important given the interest in enhancing the effectiveness of developmental efforts in ethnic entrepreneurship and mobilizing resources to offset business uncertainty.
Community Reinvestment Act, bank regulation, minority business loans.