Publication Type
Journal Article
Version
publishedVersion
Publication Date
6-2020
Abstract
We investigate how the emergence of fintech start-ups and their financing is shaped by regional knowledge creation and lack of trust in financial services incumbents across 21 OECD countries, 226 regions and over the 2007–2014 period. We find that knowledge generated in the IT sector is much more salient for fostering new fintech start-ups than knowledge generated in the financial services sector. Additionally, the importance of new knowledge created in the financial services sector (IT sector) increases (decreases) as fintech start-ups grow and seek financing. When the level of trust in financial services incumbents falls within a region, this is followed by an increase in the financing provided to fintech start-ups. Nevertheless, regions with historically low average levels of trust in financial services incumbents attract less fintech investment overall.
Keywords
Fintech, Entrepreneurship, Knowledge spillovers, Trust, Venture capital, Innovation
Discipline
Entrepreneurial and Small Business Operations | Finance and Financial Management
Research Areas
Integrative Research Areas
Publication
Small Business Economics
Volume
57
Issue
4
First Page
1715
Last Page
1731
ISSN
0921-898X
Identifier
10.1007/s11187-020-00367-3
Publisher
Springer
Citation
COJOIANU, Theodor Florian; CLARK, Gordon L.; HOEPNER, Andreas G. F.; PAŽITKA, Vladimir.; and WÓJCIK, Dariusz..
Fin vs. tech: Are trust and knowledge creation key ingredients in fintech start-up emergence and financing?. (2020). Small Business Economics. 57, (4), 1715-1731.
Available at: https://ink.library.smu.edu.sg/cis_research/410
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1007/s11187-020-00367-3
Included in
Entrepreneurial and Small Business Operations Commons, Finance and Financial Management Commons