Summary:
The new landscape in the financial sector, characterized by fierce competition and the entrance of new technological players, has forced banks to speed up their digital transformation. However, for banks, digitalization entails challenges that can hinder the potential benefits and compromise their survival. In this context, we argue that the reputation generated by corporate sustainability (RCS) may offset these digitalization drawbacks. In particular, we find that the combination of RCS and digitalization facilitates in transforming the organizational nature of banks by simultaneously narrowing their boundaries and expanding their scope. We empirically confirm our hypotheses by analyzing a panel of 110 multinational banks from developed countries.
Keywords: banks, boundaries, corporate sustainability, digitalization, innovation, reputation, scope, stakeholder engagement
JCR Impact Factor and WoS quartile: 10,302 - Q1 (2020); 12,500 - Q1 (2023)
DOI reference:
https://doi.org/10.1002/bse.2494
Published on paper: September 2020.
Published on-line: March 2020.
Citation:
F.J. Forcadell, E. Aracil, F. Úbeda, Using reputation for corporate sustainability to tackle banks digitalization challenges. Business Strategy and the Environment. Vol. 29, nº. 6, pp. 2181 - 2193, September 2020. [Online: March 2020]
