The model of banks' alliance with various industry actors in order to improve the exploration and exploitation ability

Abstract

Digital transformation requires banks to move towards exploring new opportunities in addition to exploiting existing facilities. Therefore, banks seek to create organizational ambidexterity by forming alliances with organizations from different industries. The purpose of this article is to answer what type of alliance banks can form with different actors to lead to organizational ambidexterity. For this purpose, the initial conceptual model was formed by synthesizing the ambidexterity, the industrial similarity and the tie strength theories. Then, the code co-occurrence matrix was extracted from the content analysis of 115 empirical articles of alliance in the banking industry. The co-occurrence matrix was used to customize the conceptual model for banking industry in order to propose the type of alliance of the bank with other actors. The conceptual model shows that any type of alliance, based on industrial similarity of the actors with the banking industry, realizes some factors of exploration and exploitation in the form of trade-offs. Therefore, the decision to determine the appropriate type of alliance should be made according to the priority of exploration and exploitation factors based on industrial similarity of actors.

Keywords

• alliance
• ambidexterity
• industrial similarity
• theorizing
• digital transformation
• banking industry