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An Eco-Systematic View of Cross-Sector Fintech: The Case of Alibaba and Tencent

Author

Listed:
  • Yingying Zhang-Zhang

    (Graduate School of International Management, International University of Japan, Niigata 949-7277, Japan)

  • Sylvia Rohlfer

    (CUNEF, Calle de Leonardo Prieto Castro 2, 28040 Madrid, Spain)

  • Jay Rajasekera

    (Institute for International Strategy, Tokyo International University, Saitama 350-1197, Japan)

Abstract

This paper explores the most recent Fintech (financial technology) phenomenon from an ecosystem perspective. Differentiated from the earlier Fintech evolution led by traditional financial institutions, “cross-sector” Fintech that operates at the intersection of financial services and information technology disrupts existing business models of banks while creating novel ecosystem dynamics. This study explores the Fintech ecosystem composition to understand better business model innovation based on underlying ecosystem dynamics while focusing on the specific role of cross-sector actors. These actors have escaped scrutiny despite being mature and experienced and having strong resource bases. Adopting a comparative case study method by considering the China-based Alibaba Group and Tencent, the study’s findings indicate that novel business model developments based on strong technological expertise and scale-based resources by cross-sector Fintech render a functional perspective on fast-developing Fintech industry less practical. Apart from cross-sector Fintech, investors constitute a new dimension in the conceptualization of the Fintech ecosystem. Overall, the interconnectedness of the cross-sector Fintech beyond the Fintech sectors drives the fuzzy boundaries between ecosystems, established business models, terminology definitions, ecosystem actors’ roles and relationships, which appear to become more heterogeneous and changeable over time. The study contributes to the scant literature on Fintech ecosystems and their sustainable development.

Suggested Citation

  • Yingying Zhang-Zhang & Sylvia Rohlfer & Jay Rajasekera, 2020. "An Eco-Systematic View of Cross-Sector Fintech: The Case of Alibaba and Tencent," Sustainability, MDPI, vol. 12(21), pages 1-25, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:8907-:d:435372
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    Cited by:

    1. Yingying Zhang Zhang & Sylvia Rohlfer, 2023. "Cultural Configurations for International Innovativeness: A review and theoretical proposal," Working Papers EMS_2023_05, Research Institute, International University of Japan.
    2. Cristina Chueca Vergara & Luis Ferruz Agudo, 2021. "Fintech and Sustainability: Do They Affect Each Other?," Sustainability, MDPI, vol. 13(13), pages 1-19, June.
    3. Zhang-Zhang, YingYing & Rohlfer, Sylvia & Varma, Arup, 2022. "Strategic people management in contemporary highly dynamic VUCA contexts: A knowledge worker perspective," Journal of Business Research, Elsevier, vol. 144(C), pages 587-598.
    4. Sánchez, Marisa A., 2022. "A multi-level perspective on financial technology transitions," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    5. You-Kyung Lee, 2021. "Impacts of Digital Technostress and Digital Technology Self-Efficacy on Fintech Usage Intention of Chinese Gen Z Consumers," Sustainability, MDPI, vol. 13(9), pages 1-15, April.
    6. Sharina Tajul Urus & Intan Salwani Mohamed, 2021. "A Flourishing Fintech Ecosystem: Conceptualization and Governing Issues in Malaysia," Business and Economic Research, Macrothink Institute, vol. 11(3), pages 106-131, December.

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