Coopetition strategy and industry convergence. Evidence in the Chinese banking market.

ABSTRACT

The paper examines the strategy adopted by banks in interacting with Fintech. In particular, among different options that range from partnership and acquisition, we investigate how big Banks relate to Bigtech firms. To investigate this question, we explore the strategy adopted by major Chinese banks in interacting with BigTech, using a case study approach. We focus on industry dynamics rather than inter-firm dynamics exploiting the drivers of the convergence process. Evidence reveals that coopetition strategy is adopted as a possible result of the evolutionary process of convergence in the industry. Convergence destabilizes sectoral equilibria, leading firms to generate a confluence of new value proposals, new technologies, and new markets reachable through a coopetition strategy.

KEYWORDS:

• Coopetition strategy
• industry convergence
• fintech
• bigtech

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No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Additional information

Notes on contributors

Maria Cristina Pietronudo

Maria Cristina Pietronudo is a post-doc research fellow at the Department of Management and Quantitative Studies of University of Naples ‘Parthenope’. Her research interests are related to: innovation, business ecosystems, entrepreneurial ecosystems and strategic management.

Belinda Laura Del Gaudio

Belinda Laura Del Gaudio is a Finance Researcher at the Department of Business and Quantitative Studies of University of Naples ‘Parthenope’. Her main areas of research are financial intermediation and, in particular, banking.

Daniele Leone

Daniele Leone is Assistant Professor in Management at the Department of Management and Quantitative Studies of the University of Naples ‘Parthenope’. His research interests are related to: digital business models, innovation management and healthcare management.