Open innovation in financial institutions: individual and organisational considerations

Abstract

This qualitative empirical paper contributes to extant literature by unveiling peculiarities of: a) the profile of an open leader; b) the organisational practices and mechanisms conductive to an open corporate environment, by bringing insights from the financial services industry. Thirty in-depth semi-structured interviews have been conducted with C-level executives of major financial institutions in Europe, Americas and Asia-Pacific and 100 job openings and descriptions have been reviewed. This research sharpens the understanding of open in the financial industry, especially in the face of disruptive technological forces and FinTech innovation. Open requires individual, organisational and cultural readiness. Integrated open capabilities, dedicated open teams, along, with, solid talent acquisition/retention, learning and development mechanisms, become crucial components. This paper shares novel academic and managerial implications on this dynamic co-dependence towards understanding the human side of open innovation and embracing open practices within financial services institutions.