Clicks versus Bricks in the Emerging Online Financial Services Industry

The emergence of electronic commerce raises important questions about the building and leveraging of legitimacy for both practitioners and scholars of strategy. New entrants' click-and-mortar or click-and-click business models are challenging the legitimacy of large and mature brick-and-mortar incumbents. The implications of this challenge for the financial services industry—as for many other industries—are only starting to become clear. This article contributes to these initial understandings by developing a conceptual framework that considers which e-strategies ‘bricks’ (incumbent organisations such as ABN AMRO bank and Prudential Banking) and ‘clicks’ (new entrants such as KPN and First-e) adopt to improve their competitiveness. Four relevant organisational types in the emerging online financial services industry are identified, and ties to legitimacy-providing organisations are assessed for their potential both as buffers against environmental turbulence and bridges towards changing stakeholder perspectives.

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