Innovation capabilities in banking: The case of Norwegian mobile payment
Conference object, Journal article, Peer reviewed
MetadataShow full item record
Original versionStrønen FS, Rønning VH, Breunig KJ. Innovation capabilities in banking: The case of Norwegian mobile payment. Proceedings of the ... European conference on knowledge management. 2019;2:998-1005
The purpose of this empirical study is to identify why some firms have more innovation success than others when faced with disruptive changes caused by digitalization. The financial industry has already experienced the consequences of digitalization. One of the drivers for digitalization within the financial industry have been new regulations, e.g. through EU directives changing the competitive environment by enabling new players will be able to run payment. We apply a dynamic capability perspective as analytical lens to identify how the players in the financial industry seek to become competitive by promoting their innovation capabilities. Data was collected through a qualitative research process involving nine different players related to the mobile payment market. Our sample consists of market participants, collaborators and analysts, as well as other industry observers. Secondary information was obtained through the press, reports and publicly sources. Combined the data sources enabled access to rich data informing the complex dynamics involved in digital transformation in the Norwegian financial sector in general and specifically related to the development of mobile payment platforms within this context. Our findings reveal how innovation capabilities consist of a number of practices and processes in the organization. This interpretation implies that companies can choose different strategic approaches to innovation, depending on the capabilities they hold, what resources they have and the industry challenges they face. Furthermore, it can be concluded that innovation capabilities require the organization to be agile, have learning culture and a certain willingness to take risk in order to be prepared for their digital transformation. The implication of our study is conceptualizing innovation capability as firm’s capacity to acquire sufficient information, transformed into relevant knowledge and assimilated into the organization in a dynamic process. Management orientations and attitudes related to innovation are thus central to the development of innovation capabilities.