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Blockchain and cloud platforms in banking services: A paradox perspective

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  • Piotr Å asak

    (Ph.D. Hab., Associate Professor, Institute of Economics, Finance and Management, Jagiellonian University, ul. Prof. S. Šojasiewicza 4, 30-348 Kraków, Poland, corresponding author)

  • SÅ‚awomir WyciÅ›lak

    (Ph.D., Associate Professor, Institute of Economics, Finance and Management, Jagiellonian University, ul. Prof. S. Šojasiewicza 4, 30-348 Kraków, Poland)

Abstract

PURPOSE: The banking sector is under intense pressure from digitalization. One of the accompanying processes is the development of digital platforms and platform ecosystems in banking services. The paper aims to present the dynamic pattern of behavior among partners stemming from the tensions between governance costs and co-created value within platforms in banking services. METHODOLOGY: The study employs an approach based on a systematic literature review of 54 publications selected from Scopus and WoS databases. We applied an approach that consists of two steps. The first step of the research was a literature review and critical analysis of the sources related to our research questions. In the second step, we propose a causal loop diagram research procedure, which is a research system dynamic tool used in modeling system dynamics. FINDINGS: There are different types of platforms, and among the most important are blockchain-based and cloud-based platforms. In both types, the relations between owners, complementors, and customers are important. The tension between governance costs and co-created value informs behavior patterns among platform partners. The degree of interconnectedness between platform participants and the level of centralization of banking services depends on the platform type. The study highlights that blockchain-based and cloud-based platforms play a significant role in the transformation of the current banking services. The choice of platform type has important implications for the platformization of banking services. IMPLICATIONS: The pattern of behavior among platform partners identifies the self-reinforcing dynamics that suggest how managers can navigate the tension over time amidst the asymmetry of benefits and risks. The research findings can be informative for financial regulators and they help work out a policy that reduces the asymmetry of benefits and contributes to the more sustainable development of digital platforms. ORIGINALITY AND VALUE: This paper addresses the paradox perspective on the banking sector changes during the intensive processes of digitalization and the creation of new ‘platform ecosystems.’ This topic has not been studied in this context so far.

Suggested Citation

  • Piotr Å asak & SÅ‚awomir WyciÅ›lak, 2023. "Blockchain and cloud platforms in banking services: A paradox perspective," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 19(4), pages 12-47.
    • Handle: RePEc:aae:journl:v:19:y:2023:i:4:p:12-47
    DOI: 10.7341/20231941
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    References listed on IDEAS

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    3. Finken, Silke & Finkemeyer, Dirk, 2019. "The impact of Blockchain on the transaction banking business model," Journal of Digital Banking, Henry Stewart Publications, vol. 4(1), pages 19-34, June.
    4. Viktoria Rajnak & Thomas Puschmann, 2021. "The impact of blockchain on business models in banking," Information Systems and e-Business Management, Springer, vol. 19(3), pages 809-861, September.
    5. Jan Abendroth & Lara Riefle & Carina Benz, 2021. "Opening the Black Box of Digital B2B Co-creation Platforms: A Taxonomy," Lecture Notes in Information Systems and Organization, in: Frederik Ahlemann & Reinhard Schütte & Stefan Stieglitz (ed.), Innovation Through Information Systems, pages 596-611, Springer.
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    1. Piotr Å asak, 2023. "Contemporary determinants of business performance: From the Editor," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 19(4), pages 6-11.

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