ifkad articles

Investigating Resilience and Performance of Emergent Financial Technology Startups Endorsed by Entrepreneurial Orientation and Knowledge Management

Aleena Shuja, Naveed Yazdani, Aleema Shuja

The study seeks to investigate the influence of entrepreneurial orientation and knowledge management on resilience and performance of emergent financial technology startups (Fintechs) in Lahore, Pakistan through the development of dynamic capabilities when confronted with environmental dynamism. Based on the tentative deductions derived from Dynamic Capability View (DCV) of emergent financial sector ventures, this paper employs Partial Least Square for Structured Equation Modeling in order to investigate these hypotheses. Sample in the intended cross-sectional study contains empirical analysis performed on primary data collected from knowledge workers employed in emergent financial technology startups. In reference to the current study’s context, the findings suggest that entrepreneurial positioning inclusive of pro-activeness, zeal, innovativeness, novelty and risk taking and knowledge management practices inclusive of storage and dissemination are considered to be a fundamental supporting entity for increasing resilience and performance of evolving startups in financial technology sector. Entrepreneurial orientation incurs a positive influence when these organizations develop their dynamic capabilities by reconfiguring, building and integrating competencies during the course of dynamism and uncertainty in the external business environment. Similarly knowledge management practices also have a positive impact on the developing dynamic capabilities of the organization. Implementation of effective knowledge management practices results in reconfiguring and advancing the companies’ dynamic competences under the conditions of dynamism and unexpected changes occurring in the external business environment. Consequently, fin-techs succeed to accomplish their goals of spirit, adaptive capacity i.e. increased resilience and escalated performance. This envisioned investigation accentuates the vital role of ground-breaking and innovative sense of direction as well as diffusion and loading critical knowledge for building irrepressible and tremendous performing firms that use digital platforms and financial technology models and partner with banks for providing digital financial services to the customers. These startups with time help ripen their dynamic capabilities by means of sensing the high velocity and brisk changes occurring in the environment such as globalization technological advancement and continuously changing customer demands, seizing unsurpassed opportunities and reconfiguring their internal processes in compliance to external transformations. Pioneering and inventive startups must understand the strength and significance of retaining dynamic capabilities by possessing unique and valuable resources in defiance of external threats and unforeseen event manifestations in order to establish adaptive response capacity and ensure high financial and market performance with regard to rising sales revenue, value-added profits, increased market share and higher customer satisfaction. Gaps and foremost challenges that derive this research undertaking are worth noticing and have important implications for increasing the performance and resilience these technology based financial service providers of Pakistan. This research undertaking with provide insight on the significant role of entrepreneurial spirit, knowledge management to make these organizations dynamically capable for achieving long terms reliance and sustained performance goals. Keywords – Entrepreneurial orientation, dynamic capabilities, environmental dynamism, long term performance, organizational resilience, knowledge workers

IN: Proceedings IFKAD 2018 – Societal Impact of Knowledge and Design
PP: 66-92