New Entrants Versus Incumbents in the Emerging On-Line Financial Services Complex
London Business School
Frans A. J. Van Den Bosch
Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship; Erasmus Research Institute of Management (ERIM)
H. W. Volberda
Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)
October 2000, 10
ERIM Report Series Reference No. ERS-2000-41-STR
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.
Number of Pages in PDF File: 39
Keywords: e-commerce, competence building and leveraging, co-evolution, legitimacy, on-line financial services complex
JEL Classification: Mworking papers series
Date posted: August 26, 2006
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