Innovating Financial Information Infrastructures: The Transition of Legacy Assets to the Securitization Market

2014 | Journal of the Association for Information Systems | Citations: 3

Authors: Kaniadakis, Antonios; Constantinides, Panos

Abstract: The introduction of mortgage securitization in the UK as a new type of financial ... Expand

Abstract: The introduction of mortgage securitization in the UK as a new type of financial innovation to help banks raise funds took the form of transferring existing legacy mortgage assets into the emerging securitization chain. In this paper, we explore the role of financial information infrastructure (FII) innovation as a process that enabled this transition and we ask what the implications for the calculation of financial risk were. New empirical evidence from a qualitative case study research in a U.K. bank shows that instead of focusing on the re-calculation of risk of the pre-existing legacy assets, the bank's innovative efforts were centered around validating the accuracy of the data available on those assets as an independent process. Our contribution is twofold. First, we show that FII are built with specific financial functions in mind that are formulated in the context of managerial and political decisions. Second, we show that data validation, although not a direct calculation of risk, constitutes an effort to order risk calculation practices. This is important in understanding the role of FII innovation as a mechanism by which FII become an integrating and standardising force in securitization markets. Collapse

Topics: innovation management information technology infrastructure electronic mail anonymity data integrity

Methods: case study qualitative interview field study action research

Assimilation of Social Media: Researching Challenges to Adoption

2013 | Americas Conference on Information Systems | Citations: 0

Authors: Gupta, Hritik; Nicholson, Brian; Newman, Michael

Abstract: Social media has become an important component of corporate information technolo ... Expand

Abstract: Social media has become an important component of corporate information technology for some organizations. The extant literature is replete with frameworks and methodologies for successful social media strategic planning. However, there is a gap in the literature in terms of making sense of the challenges to adoption and to this end the paper provides a framework for social media non-adoption. This is derived from an inductive analysis of qualitative interview data with a sample of organizations in the UK financial services sector. The paper contributes the concept of “mindful non-adoption” of social media and has practical relevance for managers considering social media planning and implementation. Collapse

Topics: social media anonymity Facebook organizational value IS discipline

Methods: qualitative interview theoretical contribution grounded theory literature study

Governance Form and Organizational Adaptation: Lessons from the Savings and Loan Industry in the 1980s

2011 | Organization Science | Citations: 0

Authors: Moore, James H.; Kraatz, Matthew S.

Abstract: This paper explores how governance form affects the organizational capacity for ... Expand

Abstract: This paper explores how governance form affects the organizational capacity for adaptation. We make a general case about the importance of governance in adaptation, and we identify three mechanisms through which governance form may affect organizations' ability to manage the competency and failure traps that often frustrate the process. We look for evidence of these mechanisms through a study of the U.S. Savings and Loan (S&L) industry in the 1980s. This is an apt context because S&Ls were confronted by severe environmental changes that suggested a need for change of a relatively radical sort during this decade and because the industry contains a mix of governance forms (stock form firms and mutual associations). We examine whether mutuals and stocks differed in their propensity to move away from their traditional business and mission of residential mortgage lending in response to the challenges of the 1980s. We also consider whether stocks and mutuals differed in their performance outcomes during this decade. Results indicate that mutuals were slightly less prone toward change but were in no sense inertial. They also show that mutuals performed better overall and appeared to change more successfully than did stock firms. The overall pattern of results suggests that mutual governance was a resource that allowed S&Ls to better balance exploration and exploitation in the face of a changing and ambiguous environment. We consider the broader implications of these findings for research on organizational adaptation, governance form, and governance more generally. Collapse

Topics: organizational change organizational productivity

Methods: theory development robustness check descriptive statistic ordinary least square quasi experiment

Theories: agency theory

Shifting Gears, Shifting Niches: Organizational Inertia and Change in the Evolution of the U.S. Automobile Industry, 1885-1981

2003 | Organization Science | Citations: 0

Authors: Dobrev, Stanislav D.; Tai-Young Kim; Carroll, Glenn R.

Abstract: We examine how experiential learning affects organizational change and its conse ... Expand

Abstract: We examine how experiential learning affects organizational change and its consequences on firm mortality. We develop hypotheses about the interactions of experiences with a specific type of organizational change on the one hand, and environmental stability, organization size, and organizational niche width on the other hand. Our findings draw from analysis of the U.S. automobile industry between 1885 and 1981 and support the general prediction that "process" effects of change in the organizational core elevate the hazard of failure. We also find that a dynamic interpretation of organizational environments as comprised of other organizations helps to explicate the interplay between organization and environmental forces that shape the occurrence and outcome of transformation. Collapse

Topics: organizational change armed conflict innovation management organization structure organizational productivity

Methods: statistical hypothesis test theory development business process modeling experiment survival analysis

Theories: evolutionary theory learning theory social contagion theory theory of economic depressions

The Dynamics of Innovative Activity and Competitive Advantage: The Case of Australian Retail Banking,1981 to 1995

2003 | Organization Science | Citations: 0

Authors: Roberts, Peter W.; Amit, Raphael

Abstract: This study examines the adoption of new products and processes in the Australian ... Expand

Abstract: This study examines the adoption of new products and processes in the Australian retail banking industry over the 1981 to 1995 period. Our analysis demonstrates that the vast majority of observed innovative activity was based on ideas sourced from outside the focal firm, and that innovations diffused very quickly across competing banks. As such, there were no periods during which any bank had proprietary possession of a major product or process innovation. We therefore ask how the banks' innovative activity could affect their relative financial performance positions. We answer this question by developing a set of hypotheses that relate specific features of their histories of innovative activity to their current financial performance. These hypotheses are tested using a detailed data set describing 1,297 modifications made to products and services, distribution technologies, and back-office processes within a sample of Australian retail banks over the sample period. Our results provide support for the general position that establishing an attractive competitive position depends on the specific history of a firm's innovative activity. Banks that undertook more innovative activity, that were more consistent in that activity, and whose composition of activity was somewhat differentiated from the industry norm tended to display superior financial performance. Rather than looking solely for internally generated, inimitable innovations to deliver competitive advantage, these results suggest that active and consistent innovative activity that is somewhat differentiated from competitors can also deliver superior financial performance. Collapse

Topics: innovation management financial performance accounting competitive advantage organizational productivity

Methods: longitudinal research F-test descriptive statistic statistical hypothesis test archival research

The role of boundaries in knowledge processes

2002 | European Journal of Information Systems | Citations: 10

Authors: Merali, Y.

Abstract: Advances in communications and information technology deliver an increasingly dy ... Expand

Abstract: Advances in communications and information technology deliver an increasingly dynamic and interconnected competitive context. To survive and prosper in this environment, organisations must be innovative and adaptive. Intellectual and relational capital comprise key resources for competitive success. This paper concerns the knowledge processes that enable organisations to undergo transformational change in an interconnected world whilst retaining the integrity of their organisational identity. It views organisations as complex adaptive systems, and uses a case study example to demonstrate the importance of boundary phenomenology in defining organisational knowledge processes. The underlying conceptual framework draws on Maturana and Varela's concept of autopoietic unity as a metaphor to explore issues of organisational identity and integrity, and uses Merali's Cognitive Congruence Framework to examine the cognitive infrastructures underpinning adaptive behaviour. The discussion reflects on the implications of this work for knowledge management practice in emergent competitive contexts, and in concluding, advocates active boundary management. Collapse

Topics: knowledge management internet technology IT personell turnover organizational memory interorganizational relationship

Methods: case study cross sectional research qualitative interview

Sales information systems in the UK financial services industry: an analysis of sophistication of use and perceived barriers to adoption

2002 | International Journal of Information Management | Citations: 6

Authors: Wright, George; Donaldson, Bill

Abstract: This paper evaluates the use of sales information systems (SIS) in the UK financi ... Expand

Abstract: This paper evaluates the use of sales information systems (SIS) in the UK financial services sector. The study is based on a quantitative survey of a sample of sales and marketing managers in banks, building societies and insurance companies. Seventy-two usable responses were received and our analysis reveals that the systems that have been adopted are being used to provide information for little more than mailing lists. Further, the aspirations for our respondents for further data capture and analysis are low—such that their overarching goals of improving customer retention, customer relationships, and customer acquisition are unlikely to be achieved. This mismatch between our respondent’s data capture and their strategic goals is associated with the further finding that our respondents place more importance on technical barriers to implementing SIS—such as fragmented market and sales information, high cost of development and poor data quality—as compared to the lowered importance placed on organizational barriers. Importantly, the latter barriers have been recognized in the literature as the true barriers to achieving the strategic potential of marketing information. We argue that the future promise of sophisticated use of the capabilities of current SIS is thus likely to be compromised, due to the lack of awareness, amongst our respondents, of the criticality of organizational and strategic barriers. Collapse

Topics: marketing management data quality database system customer relationship management system data protection

Methods: survey data transformation descriptive statistic factor analysis principal component analysis

Organizational Environments in Flux: The Impact of Regulatory Punctuations on Organizational Domains, CEO Succession, and Performance

2001 | Organization Science | Citations: 13

Authors: Haveman, Heather A.; Russo, Michael V.; Meyer, Alan D.

Abstract: A central debate in organizational theory concerns how organizations evolve. The ... Expand

Abstract: A central debate in organizational theory concerns how organizations evolve. There are two diametrically opposing viewpoints. Adaptation theories predict that change occurs as fluid organizations adjust to meet shifting environmental demands. while selection theories predict that change occurs through the differential selection and replacement of inert organizations as environmental demands vary over time. Our paper bridges these polar opposites by using a punctuated equilibrium framework to examine organizations' responses to discontinuous industry-level change. This framework recognizes that the histories of many industries arc occasionally punctuated by dramatic exogenous shocks, such as radical technological innovation, social and political turmoil, major changes in government regulation, and economic crashes. Our central thesis is that such environmental punctuations dramatically reduce pressures and rewards for organizational inertia and thereby alter both organizations' propensities for change and their survival chances following change. We focus on one form of punctuation, major regulatory change, and study firms in two industries: general hospitals and savings and loan associations. For organizations in both industries, we examine three important outcomes: shifts in organizational domain, CEO succession, and changes in financial performance. Our analyses show that punctuational regulatory change prompts shifts in organizational domains and executive leadership. Additionally, post-punctuation domain change and post-punctuation CEO succession both affect subsequent performance. We discuss our results in light of current thinking about the content and process effects of core organizational change. which has been developed in the context of stable environments. Finally, we argue for the development of more temporally sensitive theories of organizational action. Collapse

Topics: organizational change organizational productivity financial performance missing data digital innovation

Methods: longitudinal research statistical hypothesis test Student's t-test autocorrelation analysis time series analysis

Theories: punctuated equilibrium theory

Re-engineering in the face of a merger: soft systems and concurrent dynamics

2000 | Journal of Information Technology | Citations: 0

Authors: King, Stephen F.; Aisthorpe, Phil

Abstract: Business process re-engineering (BPR) was presented as the key to successful org ... Expand

Abstract: Business process re-engineering (BPR) was presented as the key to successful organizational transformation in the early 1990s. In this paper we examine a BPR initiative at a medium-sized UK building society in order to explore whether BPR succeeded or failed and to place BPR within the wider context of an organization facing a merger. The study describes the development of a novel BPR methodology which combines both hard and soft modelling approaches and reveals a degree of success in terms of process modelling and gaining consensus on process content and faults. However, two more far-reaching initiatives served to drain away support from the BPR effort: a parallel organizational analysis undertaken by an external consultancy and the hidden (although rumoured) merger talks with a larger partner. Therefore it is inappropriate to view BPR as an isolated, strategic initiative when, in practice, it may be one of several competing change activities vying for support within a changing organizational context. The paper concludes by presenting a model of concurrent dynamics which helps to explain why BPR lost momentum. Collapse

Topics: marketing management business process ownership IT work

Methods: action research qualitative interview case study business process modeling

Editorial

2000 | Journal of Information Technology | Citations: 0

Authors: Willcocks, Leslie; Sauer, Chris

Abstract: ... Expand

Abstract: Collapse

Topics: electronic commerce electronic mail business process re-engineering accounting information system information system use

Methods: case study