Innovation Ecosystem Perspectives on Financial Services Innovation

The context of financial services has been characterised by changes in the regulatory, technological and societal landscape. Consumers are increasingly interested in mobile payments, crowdfunding and microfinance services, either for themselves or because collaborative consumption is viewed as a more sustainable. Retail branches are re-organised to further meet the expectations of customers, start-ups focusing on technology for financial services (i.e. Fintech) are ever growing and financial services companies reinforce their own innovation practices (e.g. creation of innovation labs or venture capital investment funds). The innovation ecosystem around financial services companies represents the many actors with whom they can co-create and co-produce innovative new services for their customers (or for themselves). The innovation process is no longer a closed internal effort but needs to include external actors from the innovation ecosystem. This topic is especially interesting in a small and open economy where the financial centre takes a prominent place in the economy. The research question is therefore “How does the innovation ecosystem influence the innovation process within financial services companies?”. The influence of the innovation ecosystem on the innovation process within financial service companies mainly comes from its social capital and value creation efforts. However learning to work and exchange in an innovation ecosystem is also expected to influence the innovation process in place. Realizing the potential of the innovation ecosystem requires sufficient capabilities to manage new information coming from the innovation ecosystem. The professional associations provide the necessary coordination among actors in the innovation ecosystem to co-create and appropriate value, while fostering co-evolution within the innovation ecosystem.

Digital Content Marketing in the Business-to-Business Context. A Case Study on Marketing Communications Agencies.

Marketing has changed because of digitalization. Marketing is moving towards digital channels and more companies are transitioning from “pushing” advertising messages to “pull” marketing, that attracts audience with the content that interests and benefits the audience. This kind of marketing is called content marketing or “inbound” marketing. This study focuses on how marketing communications agencies utilize digital content marketing and what are the best practices with the selected digital content marketing channels. In this study, those channels include blogs, Facebook, Twitter, and LinkedIn. The qualitative research method was utilized in order to examine the phenomenon of digital content marketing in-depth. The chosen data collecting method was semi-structured interviewing. A total of seven marketing communications agencies, who currently utilize digital content marketing, were selected as case companies and interviewed. All the case companies are from the marketing communications industry because that industry can be assumed to be well adapted to digital content marketing techniques. There is a research gap about digital content marketing in the B2B context, which increases the novelty value of this research. The study examines what is digital content marketing, why B2B companies use digital content marketing, and how should digital content marketing be conducted through blogs and social media. The informants perceived digital marketing to be a fundamental part of their all marketing. They conduct digital content marketing for the following reasons: to increase sales, to improve their brand image and to demonstrate their own skills. Concrete results of digital content marketing for the case companies include sales leads, new clients, better brand image, and that recruiting is easier. The most important success factors with blogs and social media are the following: 1) Audience-centric thinking. All content planning should start from figuring out which themes interests the target audience. Social media channel choices should be based on where the target audience can be reached. 2) Companies should not talk only about themselves. Instead, content is made about themes that interests the target audience. On social media channels, only a fragment of all shared content is about the company. Rather, most of the shared content is industry-specific content that helps the potential client.

Understanding round-tripping phenomenon in Russian context – case Cyprus

Russian FDI has a few peculiarities. One of them is round-tripping. Round-tripping is defined as transfer of funds abroad, usually to offshore financial centers (OFCs), and then bringing all or some of the investment back as foreign investment. Russian context was chosen for this study because the share of round-tripping investments from country’s total FDI is extensive. However, it needs to be addressed that this is not just a Russian phenomenon. Round-tripping is used by many developed and developing countries, and most of the countries have their own designated destinations for this kind of capital, much like Cyprus is the main destination for Russian capital. It is important to study this phenomenon further, since it falsifies FDI statistics and can lead to poor decisions on state level. Theoretical part of the study tries to determine weather traditional FDI and internationalization theories fit to explain the Russian round-tripping phenomenon. Traditional FDI and internationalization theories are first introduced in general terms, and then further examined in Russian context. In traditional endogenic FDI theories, when the capital is formed in one country it goes abroad to find better profits. At a first glance, this seemed not to be the case in round-tripping. However, during the study it became rather clear that with few adjustments and changes in perspective, traditional theories could be used to explain round-tripping phenomenon. For example, OLI paradigm can be further developed into OLIH paradigm with ‘H’ representing the important home country institutions. Transaction based view and resource seeking theories were also seen well equipped to explain round-tripping with a change in perspective. The latter part of the study focused on holistic understanding of Russian –Cyprian investment relationship. Study aims to shed light into the determinants and consequences of this phenomenon for both countries involved. The two share historical, cultural and political ties, but most importantly common financial interests. Russian companies seek security and financial knowledge to maneuver their assets and Cyprian economy largely is dependent on their disproportionally large financial sector. Consequences for Cyprian economy were seen in current economic crisis, when the need for their financial services diminished. Russian government on the other hand is losing vast amounts of tax money due to this phenomenon. A rather extreme view was also introduced in this study. Round-tripping phenomenon and OFCs are an important reason why corruption exists, since if one does not have a way to make ill-gained money legitimate why try to ill-gain the money at the first place. The most important finding of the study is that round-tripping companies are in a better competitive position than genuine and purely domestic investor due to their institutional knowledge.