Transforming the scope of the bank through fintechs: toward a modularized network governance

Łasak, Piotr; Gancarczyk, Marta

doi:10.1108/jocm-05-2021-0147

Cited by 13 publications

(17 citation statements)

References 95 publications

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“…The case: a bank's re-engineering project Facing considerable transformations in technology, political regulations in retail banking and global competition (Łasak and Gancarczyk, 2021), FB decided to reconfigure its organizational structure to offer better service to customers and to increase its productivity.…”

Section: Comparison Of Building and Dwelling Epistemologymentioning

confidence: 99%

Empowering middle managers to free their strategic capabilities

Letierce¹,

Mills

Arnaud

2023

JOCM

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PurposeThis article aims to better understand how empowered middle manager engage in change translation? Relying on the notions of building and dwelling strategizing, the authors analyze the micro-practices of middle managers during organizational change, when middle managers are freed from time-consuming administrative activities.Design/methodology/approachThis empirical study relies on a qualitative embedded case study approach that involves comparing two banking units belonging to a large French bank. The qualitative data were collected from three different sources: exploratory and semi-structured interviews, observations and secondary data. The coding analysis enables to distinguish middle managers' dwelling and building strategizing during organizational change.FindingsThe study’s findings show how managers translate organizational change relying on both building and dwelling strategizing. By doing so, managers enable to adapt the prescribed strategy to local circumstances and foster front-line empowerment.Research limitations/implicationsEven though the findings are based on the analysis of a single organization, the authors provide several theoretical insights. First, the authors contribute to the recent academic debate in strategy-as-practice literature by showing the recursive relation between building and dwelling strategizing. The authors also shed a new light on middle managers' strategizing by emphasizing the idea that middle managers are not only passive change “translators” but that middle managers enact a real agency in the organizational change process.Practical implicationsFrom a managerial perspective, the study’s findings enable to enlight what empowering middle managers means in practice. Indeed, the authors show clear empirical illustrations of how middle managers can be empowered by both organizational structure and top-management support. The results also reveal how empowering middle managers enable to empower their team by three different activities: (1) federate the team spirit to facilitate collaboration; (2) develop employees' capabilities and (3) adjust managers' activity according to employees' needs.Originality/valueWhile multiple current new ways of organizing encourage to transform organizations from inefficient bureaucracies into flatter and more dynamic project-based teams, calling into question the importance of middle managers' strategic role, this study provides an original case study of an organization that chose to run against the tide and created an additional middle management level.

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Section: Comparison Of Building and Dwelling Epistemologymentioning

confidence: 99%

Empowering middle managers to free their strategic capabilities

Letierce¹,

Mills

Arnaud

2023

JOCM

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“…The cooperation between banks and fintechs creates synergies, which is also beneficial for non-financial enterprises. The implementation (utilization) of fintechs into business processes makes all participants more efficient compared to their former way of activity (Łasak & Gancarczyk, 2021b).…”

Section: Fintech Participation In Smes' Financial Inclusionmentioning

confidence: 99%

The role of financial technology and entrepreneurial finance practices in funding small and medium-sized enterprises

Łasak¹

2022

JEMI

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PURPOSE: The traditional sources of financing (bank loans) cannot be treated as an essential source of financing for SMEs in developing countries. For this reason, this group of entities uses many alternative sources, from bootstrapping to microfinance and crowdfunding. During the last decade, a significant contribution in this area has been financial technology. The purpose of this study is threefold: 1) to present the role of financial technologies in financing SMEs, 2) to examine the role of entities based on financial technology in financing SMEs in developing countries, and 3) to consider other non-bank aspects of financing SMEs, leading to the improvement of the financial situation of these entities. The in-depth analysis of these entrepreneurial finance practices will be developed in the following papers presented in this Issue. METHODOLOGY: This study employs a theoretical approach based on a narrative literature review. The primary attention is focused on applying financial technology as a stimulant for the finance of SMEs in developing countries. FINDINGS: As a consequence of the financing gap for SMEs within the traditional financial system, these entities use non-bank financing based on financial technology. The research confirms that financial technology plays a crucial role in fostering the financial situation of SMEs in developing countries and providing greater financial inclusion for these entities. Both, financial technology and enterprises based on this technology contribute significantly to the improvement of efficiency of financing SMEs in emerging markets. They also provide a broader range of services, than were offered by the traditional financial sector. Regarding the other aspects of SME finance, it is essential to implement such ways of financing like microfinance services and crowdfunding. Such funding mechanisms, together with the budget process and the compliance under the conditions of e-tax systems, are important determinants of current entrepreneurial finance. IMPLICATIONS: The paper describes the financing of SMEs in developing countries. The in-depth picture of the SME’s financial situation, focusing on the technological development in this area, provides essential insight into this still poorly explored area. It also offers important premises for shaping the post-pandemic policy to support their further growth. ORIGINALITY/VALUE: Despite growing theoretical and empirical literature about entrepreneurship finance, this study aims to contribute to the role of financial technology in this area. The impact of financial technologies and the role of fintech-based entities on SME activity in developing countries are still poorly researched. Moreover, the research provides a brief overview of other SME funding sources and their determinants in this group of countries.

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“…Fintech innovations and businesses affect the execution and performance of major banking activities, including accounts holding, payments, loans, and credits (Appleyard, 2020;Popelo et al, 2021;Scardovi, 2017). They do so through six mechanisms that can be systemized according to the ascending effect (Gross, 2009;von Briel et al, 2018;Łasak & Gancarczyk, 2022). The first of them is compression which is a mechanism that provides for the reduction of time to exercise activity, such as the use of Big Data (BD) in credit scoring by human agents.…”

Section: Literature Review and Theory Development Fintech Transformat...mentioning

confidence: 99%

The fintech transformation of banking: Governance dynamics and socio-economic outcomes in spatial contexts

Gancarczyk¹,

Łasak²,

Gancarczyk³

2022

EBER

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The objective of the article is to identify and systemize the governance dynamics and related socioeconomic consequences of the fintech transformation in banking, while acknowledging spatial contexts. Research Design & Methods:The research framework comprised Global Production Networks (GPN), Global Value Chain (GVC), and co-evolutionary approaches to guide a systematic literature review in the Scopus, Web of Science, and Taylor & Francis databases for 2016-2021. The final sample comprised 76 sources that became the basis for selective coding and the synthesis of the results. Findings: Fintech impacted banking governance by creating a dual and interrelated system of global financial networks and a 'mosaic' of territorial financial ecologies and ecosystems, where incumbent banks held an important but not exclusive position. The fintech-enhanced governance transformations had both positive socioeconomic effects (improved efficiency, expanded range of services, and inclusion of unbanked or under-served customers) and negative effects (over-indebtedness, surveillance, and exclusion of some customers). Wider socio-economic consequences refered to sustainable development and changes in economic and social behaviour. Implications & Recommendations:A research framework and agenda for future studies related to the dynamics of fintech-driven governance in banking have been elaborated. The article derives the immediate and wider economic and social consequences of fintech-driven transformations. The results can also be applied in public policies oriented towards sustainable socio-economic development. Contribution & Value Added:The study provides theoretical and policy-relevant contributions. Firstly, it broadens the research on the transformation of banking governance in the spatial context. Secondly, it contributes theoretically by proposing a research framework of GVC and GPN governance augmented by a co-evolutionary perspective. Thirdly, the article informs policy that seeks financial inclusion for cohesive and sustainable development.

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Transforming the scope of the bank through fintechs: toward a modularized network governance

Cited by 13 publications

References 95 publications

Empowering middle managers to free their strategic capabilities

Empowering middle managers to free their strategic capabilities

The role of financial technology and entrepreneurial finance practices in funding small and medium-sized enterprises

The fintech transformation of banking: Governance dynamics and socio-economic outcomes in spatial contexts

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