Client Discretion, Switching Costs, and Financial Innovation

Competition and innovation: Evidence from financial services

“…However, they argue that in mixed financial systems with both universal and functionally-separate institutions, large universal banks will have a competitive advantage to influence changes in regulations that favor financial innovations in which scope economies are required. 12 Related work by Bhattacharyya and Nanda (2000) theorizes that larger investment banks will be more likely to innovate new financial services due to larger market shares with greater revenue incentives. Smaller banks have less incentive to innovate but are expected to be more aggressive than large banks in their introduction strategy (e.g., attracting large bank customers).…”

Can we have a general theory of financial innovation processes? A conceptual review

“…On the other hand, Arrow (1962) claimed instead that competition is more beneficial for innovation and that monopolies may have incentives not to innovate. Bhattacharyya and Nanda (2000) examined a model based on incentives for understanding innovation in the investment banking sector. They find that larger banks, which have greater market share, will tend to innovate as will investment banks whose clients are sticky.…”

Ideal Types of Strategic Innovation An Exploratory Study of Chinese Cosmetic Industry

“…Chua and Morris (2009) thought communication innovation was the firm found ways to better active listening and feedback to conquer barriers to transmit ideas and information to consumers, employees and share holders. Bhattacharyya and Nanda (2000) said financial innovation was the firm already developed a corporate financial system in order to improve operational efficiency and reduce costs and risks. Holbrook and Hughes (2000) said human resource innovation was the firm already developed some new programs to better retain and recruit employees.…”