A phenomenon-driven exploration of regulatory sandboxes in FinTech entrepreneurial ecosystems
Paper I is not published yet. Research on incubation models has indicated that business incubators and accelerators, among others, are crucial catalysts for the development of new ventures in numerous industries. To facilitate testing and validation of new financial technology (FinTech) providers, and protect financial markets against systemic risks, a new incubation model called the ‘regulatory sandbox’ has been established or announced by regulatory authorities in more than 50 countries. Sandboxes are virtual trial-and-error instruments that grant financial market participants temporary licensing relief and thus provide the opportunity to test novel solutions in a controlled, real-world e…
Ecosystem dynamics: exploring the interplay within fintech entrepreneurial ecosystems
AbstractScholars and practitioners continue to recognize the crucial role of entrepreneurial ecosystems (EEs) in creating a conducive environment for productive entrepreneurship. Although EEs are fundamentally interaction systems of hierarchically independent yet mutually dependent actors, few studies have investigated how interactions among ecosystem actors drive the entrepreneurial process. Seeking to address this gap, this paper explores how ecosystem actor interactions influence new ventures in the financial technology (fintech) EE of Singapore. Guided by an EE framework and the use of an exploratory-abductive approach, empirical data from semi-structured interviews is collected and ana…
THE IMPACT OF VISUAL PERFORMANCE MANAGEMENT ON DECISION-MAKING IN THE ENTREPRENEURIAL PROCESS
Effective decision-making is critical for entrepreneurial success due to constantly changing customer needs. Research has indicated that visual performance management approaches have the potential to improve decision-making during operations in established firms. However, how visual performance management may affect decision-making during the entrepreneurial process has not yet been adequately addressed in the extant research literature. To contribute in filling this knowledge gap, a visual performance management tool called Obeya was adapted and utilised during an entrepreneurial process, and its impact on decision-making during the process was qualitatively explored. The findings indicat…
Facilitating innovation in FinTech: a review and research agenda
AbstractThe purpose of this paper is to carry out content analyses on the existing literature to investigate the knowledge state of innovation facilitators adopted to promote financial innovation. In total, 56 papers were analysed using the NVivo software package. Three categories of innovation facilitators emerged from the literature capturing the perspective of regulators, incumbents and new entrants. Each identified instrument is defined and its processes and implications described. Many initiatives were led by regulators, revealing a regulatory strategy change from risk-based to opportunity-based regulation, with regulatory sandboxes being the most commonly adopted instrument. Incumbent…
Exploring a new incubation model for FinTechs: Regulatory sandboxes
Research on incubation models indicates that incubators and accelerators are crucial catalysts for the development of start-ups. To facilitate start-ups in financial markets, several regulatory authorities have adopted a new incubation model called a ‘regulatory sandbox’. Regulatory sandboxes enable eligible applicants to test their technology-enabled financial solutions for a certain period of time (subject to conditions the regulator imposes). As such, these instruments allow innovation while preventing severe instability in financial markets caused by systemic risk. Despite their importance, management research has devoted little attention to studying how sandboxes operate as a new incub…
Exploring how social interactions influence regulators and innovators: The case of regulatory sandboxes
Like incubators, regulatory sandboxes constitute a prominent mechanism to enable entrepreneurial activities that guide financial technology (FinTech) firms through regulatory frameworks in the financial industry. Because they are new, there is a lack of research on regulatory sandboxes; most studies have investigated legal aspects while overlooking the management perspective. To address this gap, this paper builds on incubation research studies to explore how social interactions within regulatory sandboxes influence the practices of regulators and regulatees, using social capital theory. An exploratory-abductive approach is adopted, using data collected from 16 semi-structured interviews. T…