Another Gassmann 2010). As world is becoming more and

Another
interesting aspect of alliances is the integrated perspective of alliance
portfolio has been raised by Bos, Faems, and Noseleit (2017), who focus on multinational
companies alliance portfolio. Alliance portfolio is here understood as the
collection of firm’s alliances with partners (Lavie, 2007). As Bos, Brenda et al. (2017) state, multinational
companies with different regional subsidiaries usually set alliances on a
subsidiary basis, and the way they distribute and manage their alliance
portfolio may positively or negatively impact their overall performance and
knowledge recombination among subsidiaries. This is interesting for this
research since we are analysing some banks that have expanded their beyond
Spanish boundaries.

 

Cross-industry collaborations

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As
cited by Han et al. (1998), Gronhaug, Kaufmann (1988)
stated that innovation
becomes more and more important for firms not just for growth, but also for
survival in the face of increasing competition and an uncertain scenario. In
this sense, while innovation has traditionally been associated with a
recombination of previous knowledge of a firm or at least its value chain,
partners outside this value chain have not been very valued until recently,
when importance of knowledge, technology and partners with a high cognitive
distance, known as cross-industry innovation, has been recognized (Enkel, Gassmann 2010).

As
world is becoming more and more global, interconnected and dynamic, firms have
been forced to adapt their business models and strategies to not harm their
position in the market. They are relying more and more on information
technologies to improve their agility, which is key for their performance
within the contemporary business environment (Sambamurthy, Bharadwaj and
Grover, 2003). Today, we can stress the
dependence on technology of practically every industry to meet the needs of
their customers. In this sense, the number of technological start-ups being
developed has rocketed (Gust, n.d. 2017). They are becoming whether
strategic partners for incumbents or aggressive competitors that are
challenging their performance in the market. 
As an example, according to the PwC Global Research Team, funding of FinTech start-ups
has experienced a 41% CAGR over the last 4 years. So, we could fathom that the
number of cross-industry collaborations with technological companies has
increased especially over this century.

Strategic alliances
have therefore become a decisive medium for firms no matter their size and
nature, and especially those between large incumbents and small entrants to join
their complementary resources and exploit synergistic benefits (Panico 2017). And this is considerably observable in the
current development of the financial industry, as already anticipated.

 

The shift of Finance industry into
Digitization

Since computing has become faster, cheaper
and broader in terms of applications, it has enabled financial institutions to
increase dramatically the scale and sophistication of their services, which is
added to the increase in demand of financial services, due to the population
growth, as well as the economic complexity of today’s society (Kirilenko, Lo 2013).

There has not been
found much literature of top ranked journals talking about this recent and
specific topic directly. One suggestion is that it is still a recent business
transformation, so research on the topic may not bring very broad and generalizable
results.

However, another goal
of this paper is to analyse the outcomes that are originated from
cross-industry alliance between banking firms and tech companies today. One
proposal, as observed in real life, is that the outcome is usually shaped in technological
products and software, mainly aimed at enhancing customer experience and
loyalty.