This study aims to explore the ways and contexts in which fintech firms are being developed, operated in the market and responds to competitive pressures and technological changes through isomorphism and decoupling mechanism.
How can new technology platform business successfully distinguish themselves from competitors while also ensuring that they are seen as legitimate and appropriate? This paper draws on a case study of fintech start-ups in Indonesia.
This study shows that managing market pressures for distinctiveness (customer-appealing) versus business pressures for profits (investor returns) drives firms’ quest for optimal distinctiveness. It is evident that fintech firms increase their control by consolidating themselves through their industrial association and by forming a close relationship with regulators. However, to escape the iron cage of the field, they increasingly control the coupling of profitability and compliance.
Through a qualitative-inductive approach, this study provides insights into technological development of platform business in the context of financial services and responsive movement towards cashless society.
