Multinational banking in Egypt: A case-study of the Ionian Bank, 1907–1939

Using records left by the Ionian Bank and other British multinational banks, as well as building on the extensive insights provided by leading business historians, the article contributes to the debate about how historical analysis can illuminate the study of international business. We shall achieve this by firstly evaluating the reasons why Ionian moved to Egypt, applying Dunning’s ‘eclectic paradigm’ to the analysis of a highly complex economic and political environment. We shall then address the organisational challenges of managing a geographically dispersed operation, highlighting the principal-agent issues associated with geographically dispersed businesses. This will be followed by an analysis of Ionian’s performance, explaining how the changing environment affected management’s ability to generate a consistent level of profitability.