New Entrants versus Incumbents in the Emerging On-Line Financial Services Complex
2000-10-10
Research Paper
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The emergence of electronic commerce complexes raises important questions regarding competence building and leveraging, both for practitioners and strategy scholars. Competences of brick-and-mortar incumbents (large and mature players) are being challenged by new entrants' click-and-mortar or click-and-click business models. The implications of this challenge for the financial services industry - as for many other industries - are only starting to become clear. In this paper we contribute to these initial understandings by developing a conceptual framework that considers which strategies incumbents and new entrants might adopt to improve their competitiveness. We identify four relevant organizational types in the emerging on-line financial services complex. For each of these types we outline how ties to sponsoring organizations can be used as a buffer against environmental turbulence and as a bridge towards changing stakeholder perspectives.
- legitimacy
- e-commerce
- co-evolution
- competence building and leveraging
- on-line financial services complex
- entrant
- incumbent
- service
- organization
- strategy
- industry
- competence
- management
- banking
- business
- marketspace
- internet
- services industry
- legitimacy
- customer
- system
- perspective
- sponsor
- internet marketspace
- environment
