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New Entrants versus Incumbents in the Emerging On-Line Financial Services Complex

Author

Listed:
  • Hensmans, M.
  • van den Bosch, F.A.J.
  • Volberda, H.W.

Abstract

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.

Suggested Citation

  • Hensmans, M. & van den Bosch, F.A.J. & Volberda, H.W., 2000. "New Entrants versus Incumbents in the Emerging On-Line Financial Services Complex," ERIM Report Series Research in Management ERS-2000-41-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:48
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    File URL: https://repub.eur.nl/pub/48/ERS-2000-41-STR.pdf
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    References listed on IDEAS

    as
    1. Steven Pilloff, 1999. "Does the Presence of Big Banks Influence Competition in Local Markets?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 15(3), pages 159-177, May.
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    Cited by:

    1. Carney, M. & Gedajlovic, E.R., 2001. "Organisational Path-Dependence and Institutional Environment," ERIM Report Series Research in Management ERS-2001-07-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    2. Marco van Gelderen & Marco van Gelderen & Niels Bosma & Niels Bosma & Roy Thurik & Roy Thurik, 2001. "Setting up a business in the Netherlands," Scales Research Reports H200013, EIM Business and Policy Research.

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    More about this item

    Keywords

    co-evolution; competence building and leveraging; e-commerce; legitimacy; on-line financial services complex;
    All these keywords.

    JEL classification:

    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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