The impact of reconciliation quality in strategic alliances on financial innovation: The case of Moroccan institutions

Abstract

Operators of financial institutions in developing economies have a significant impact on economic activity by funding innovative initiatives. However, the lack of existing documentation to demonstrate the empirical relationships between financial innovation and the quality of the partnership relationship between these institutions represents a major gap in strategic and international management.This paper presents an empirical study aimed at uncovering the results of the quality of financial institutions’ relationships regarding innovation within strategic alliances.Using a qualitative research model, the study explores the positive influence of the quality of the relationship on financial innovation within Moroccan financial institutions engaged in strategic alliances. Four research hypotheses were tested using regression analysis on a sample of 34 strategic alliances formed by Moroccan financial institutions during the reference periods of 2018–2022.The empirical results show that the quality of reconciliation relationships among Moroccan financial institutions has significantly contributed to their financial innovation. It is particularly crucial to combine two essential characteristics: mutual trust and partner commitment. On the other hand, mechanisms of mutual exchange and communication do not significantly affect financial innovation. The study underscores the importance of promoting high-quality ties within strategic alliances to foster financial innovation in Moroccan financial institutions. This emphasizes the significance of trust and mutual commitment between partners in promoting innovation in the financial sector.