The systemness characteristics of financial innovations: network of electronic payment

摘要

This paper is concerned with the characteristics of the innovation process. It is aimed at understanding the systemness characteristics or multi-party interdependence in the development process. The study explores the innovations of ATM/cash cards, credit cards and EFTPOS/debit cards to understand the need for interfirm collaboration in their diffusion. There are two types of innovation process: high systemness (innovations not exploitable by a single entity) and low systemness (innovations that can be accomplished by a single entity). To consider the argument, the paper proposes a system innovation model to capture the specific features of innovation. Analysis has shown that the systemness characteristics of the innovation process are the outcome of interactions between the complexity of the innovation and the capabilities of innovators to manage the innovation.