Technological regimes and innovation in services: the case of the Italian banking industry

doi:10.1016/0048-7333(93)00756-J

Research Policy

Volume 24, Issue 1, January 1995, Pages 151-168

https://doi.org/10.1016/0048-7333(93)00756-J Get rights and content

Abstract

In this paper we propose a conceptual model to analyse innovations originating from the diffusion of Information Technologies in the banking sector. We argue that technical change in this industry exhibits a revolutionary character. A distinction is made between the ‘mass automation’ regime, focusing mainly on the mechanization of back-office procedures in the 1960s and 1970s, and the ‘smart automation’ regime, originating from the introduction of distributed data processing and network technologies and centered around the supply of electronic banking services. A theoretical model is developed which emphasizes the crucial role played by demand-pull variables in stimulating innovative behaviour under the smart automation regime. In contrast, limited importance is attributed to cumulative and learning-by-doing effects relating to back-office automation, at least for banks endowed with sufficient absorptive capacity. The theoretical hypotheses are tested through an econometric analysis of the determinants of the innovative behaviour in electronic payment systems of a sample of Italian commercial banks.

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^☆: This paper took advantage of the research work carried out by the authors within the framework of the research project ‘Information Technology and Innovation in Banking’ sponsored by the Adriano Olivetti Foundation. The financial support of a MURST 40% grant (research project ‘Performances and Diffusion of Flexible Automation’) is also gratefully acknowledged. The authors would like to thank Rocco Mosconi, Valeria Severini, and the participants at seminars held at Groupe HEC, MERIT and Politecnico di Milano for comments and suggestions relating to previous drafts of the paper. The usual disclaimer applies. The authors are jointly responsible for the content of the paper. Luigi Buzzacchi wrote and sections 5 and 6, Massimo G. Colombo wrote sections 1 and 2, and Sergio Mariotti wrote sections 3, 4 and 7.

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Technological regimes and innovation in services: the case of the Italian banking industry☆

Abstract

Research Policy

Research Policy

Research Policy

Research Policy

Research Policy

Research Policy

Journal of Economic Behavior and Organization

A Dynamic Model of Process and Product Innovation

Omega

Top Management and Innovations in Banking. Does the Composition of the Top Team Make a Difference

Strategic Management Journal

Information Technologies and the Service Revolution

Policy Studies

Rilevazione dello Stato dell'Automazione del Sistema Creditizio. Esercizio 1989

Rilevazione dello Stato dell'Automazione del Sistema Creditizio. Esercizio 1991

Innovation and Learning: the Two Faces of R&D

Economic Journal

Indicatori Economici Provinciali

The Diffusion of Process Innovations