Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization

Niemand, T.; Rigtering, J.P. Coen; Kallmünzer, A.; Kraus, S.; Maalaoui, Adnane

Abstract

Technology is rapidly changing the financial industry. Banks, in particular, are faced with a shift from traditional, interpersonal forms of service to digital financial services. These digital technologies are more and more becoming today's standard in the banking sector, they challenge traditional business models, and they provide opportunities for banks to capitalize on. Building on the concept of entrepreneurial orientation (EO), this study of banks in Germany, Switzerland, and Liechtenstein aims at developing insights that explain how banks can use the tactics and strategies associated with EO to achieve superior performance in the digitalization age. The results from a survey in 102 banks show that: 1) banks that display high levels of EO report a higher level of performance, and 2) the relationship between a banks' strategic vision on digitalization, and performance is moderated by EO. These results indicate that the sheer level of the digitalization of a bank does not affect profitability. Instead, in this time of technological change banks should develop a clear vision on digitalization that is characterized by innovation, being ahead of the competition, and a willingness to take risks.

Citation

Niemand, T., Rigtering, J. C., Kallmünzer, A., Kraus, S., & Maalaoui, A. (2021). Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization. European Management Journal, 39(3), 317-326. https://doi.org/10.1016/j.emj.2020.04.008

• Journal Article Type: Article
• Acceptance Date: Apr 21, 2020
• Online Publication Date: Apr 25, 2020
• Publication Date: 2021-06
• Deposit Date: Apr 21, 2020
• Publicly Available Date: Apr 25, 2022
• Journal: European Management Journal
• Print ISSN: 0263-2373
• Electronic ISSN: 1873-5681
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 39
• Issue: 3
• Pages: 317-326
• DOI: https://doi.org/10.1016/j.emj.2020.04.008
• Public URL: https://durham-repository.worktribe.com/output/1272487