Entrepreneurial orientation and digitalization in the financial service industry: A contingency approach

Thomas Niemand, J.P.C. Rigtering, Andreas Kallmünzer, Sascha Kraus, Stevan Matijas

Research output: Chapter in Book/Report/Conference proceedingConference contributionAcademicpeer-review

Abstract

Financial service firms, and banks in particular, are faced with a shift from traditional, interpersonal forms of service to online services. Digital technologies are more and more becoming today’s standard and challenge traditional business models in the banking sector. 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. 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 strategic vision on digitalization and performance is moderated by EO. These results indicate that the sheer level of digitalization of a bank does not affect profitability. Instead, banks should develop a clear vision on digitalization that is characterized by innovation, being ahead of the competition, and a willingness to take risks.
Original languageEnglish
Title of host publicationProceedings of the 25th European Conference on Information Systems (ECIS), Guimarães, Portugal, 2017
Pages1081-1096
Publication statusPublished - 2017

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