Purpose: This paper aims to explore the power and interest of independent intermediaries in co-creation activities. More specifically, the study investigates the role of independent financial ...advisers (IFAs) in co-creation activities and identifies how their power and interest can be used to determine their level of involvement in co-creating innovation of new products and services in the financial services sector.
Methodology/Approach: A case study research method was employed for this study. The case study focuses on Provider XYZ, one of the largest UK-based financial services institutions. The sources of data used for the research were Provider XYZ's market research reports aimed at customers and IFAs, interviews with nine of Provider XYZ's Senior Marketing Managers and employees, interviews with nine IFAs who conducted business with Provider XYZ, and a discussion with nine of Provider XYZ's customers who have a relationship with an IFA.
Findings: The findings of this study identify that independent intermediaries, such as IFAs, have a significant influence on the end customers' view on financial services brands and they partially construct the provider's brand value which is perceived and received by the end customers. Based on the power and interest of IFAs in the potential innovation propositions, IFAs can be classified into four categories: Recipient (Segment A), Consultant (Segment B), Guardian (Segment C) and Co-creator (Segment D).
Implications: The findings of the study provide evidence for both academics and practitioners that not all stakeholders can be involved in co-creation activities. To ensure the effectiveness of co-creation activities, it is important to assess the level of stakeholders' power, which indicates the strength of relationship and influence on providers, and their interest in co-creation activities. The co-creator power/interest matrix proposed in this paper can be used to identify viable co-creating partners in an organization's relationship network.
Originality: This study contributes to the existing literature by proposing a co-creator power/interest matrix, which can be used to determine the level involvement of intermediaries and other stakeholders' in co-creating innovation.
Purpose
This study aims to investigate the applicability of Ritter’s (2000) framework of interconnectedness in a triadic relationship between a provider, intermediaries and customers and to extend ...the framework by considering how the state of the relationships in a triad influences the relationship dynamic.
Design/methodology/approach
A qualitative case study research method with multiple sources of evidence was adopted in this study. The case study focusses on a triadic relationship of one of the largest UK-based financial services institutions, Provider XYZ, with independent financial advisers and customers.
Findings
The findings confirm that the synergy effect, lack effect, competition effect and by-pass effect exist in the triadic relationship. The findings also acknowledge that the state of the relationships in a triad, whether they are positive (+), negative (−) or neutral (0), combined with the identified interconnectedness effect determine the dynamic of the triadic relationship network.
Originality/value
This paper extends the existing framework of interconnectedness by considering how the change of the relationship state changes the relationship dynamic in a triad. By evaluating both the effect of interconnectedness and the state of the relationships in a triad, managers can identify and manage possible conflicts in a triad and enhance the effectiveness of the triadic relationship.
Research is required to determine the key variables that have a positive relationship with customer loyalty in the independent financial adviser environment. Knowledge of the factors that could ...assist in fostering customer loyalty might help independent financial advisers firstly in maintaining their client base, and then secondly, to strategise with them over the long term to behave more financially responsible, achieve their saving goals, and become financially independent. Therefore, the primary aim of this article is to explore the relationship between key variables and customer loyalty within the independent financial adviser environment in Gauteng. The population was defined as all the clients of independent financial advisers in the Gauteng region. A convenience non-probability sampling technique was applied and self-administered questionnaires were distributed to the clients in Gauteng who matched the sampling frame. A total of 123 questionnaires were completed and could be used in the analysis. Descriptive and standard multiple regression analysis as well as the one-way analysis of variance (ANOVA) technique was used to analyse the results. Trust and commitment can be viewed as predictors of customer loyalty within the independent financial adviser environment in Gauteng and must form part of the core of the financial adviser’s relationship building strategies. It is therefore important for independent financial advisers to ensure that their clients have confidence in their ability to provide sound financial advice. Clients must be convinced that financial advisers have their best interest at heart and as such, should remain committed to their practices.
The Indian mutual fund Industry has witnessed a slew of changes initiated by Sebi with a view to protect the individual mutual fund investor since 2009, beginning with the removal of the entry ...load.The distribution segment has witnessed changes leading to development of new models. The Independent Financial Advisor (IFA) segment in particular has been deeply affected and has seen a substantial decline in the number of active IFAs. This paper traces the development of the IFA model in Indian context, discusses the model adopted by other distribution channels namely Banks currently. The paper further outlines a model for making the IFA segment sustainable. The paper analyses primary data of IFA studies undertaken at two different points of time during the course of the last 3 years and thereby constitutes an exhaustive research work for this segment.
This study investigates various threats to the survival of independent financial advisers in their organisational life cycle. Telephone interviews were conducted to gain more insight into the ...demographic data of the respondents and to attempt to group them into life-cycle stages. Personal interviews were conducted to investigate the respondents' problems. The contribution of this study is twofold. First, general life-cycle stages applicable to the businesses of independent financial advisers were determined. Secondly, the study identified the important problems as well as those that ought to be considered in the advisers' businesses. The findings could be of assistance to independent financial advisers in analysing both their current business position and their planning for future requirements as the business develops from one stage to the next.
This paper exploits the emotional connections and viewer attentiveness of mainstream media to evaluate the economic impact of financial education messages on debt management delivered through a ...popular television soap opera in South Africa. The study uses a symmetric encouragement design to compare outcomes of individuals who were randomly assigned to watch a soap opera with financial messages, "Scandal!" to those of individuals who were invited to watch a similar soap opera without financial messages, "Muvhango." Both shows overlapped in evening primetime and had similar past viewership profiles. The financial storyline spanned two months and featured one of the leading characters of the show borrowing excessively and irresponsibly through hire-purchase, gambling, and ending up in financial distress; and eventually seeking help to find her way out. Two intermediate and one final follow-up surveys were conducted as part of the study. The analysis finds individuals assigned to watch Scandal had significantly higher financial knowledge of the issues highlighted in the soap opera storyline, in particular messages delivered by the leading character. On behavior, Scandal viewers were almost twice more likely to borrow from formal sources, less likely to engage in gambling, and less prone to enter hire purchase agreements. Messages promoting a national debt mediation helpline delivered by an external character did not sustain traction beyond immediate interest. Three qualitative focus groups highlight the importance of emotional connections with the leading character in motivating behavior change.
This study performs a fuzzy-set Qualitative Comparative Analysis (fsQCA) to determine the conditions that lead to high performance of independent financial advisors. The study examines the ...performance of these companies in terms of their involvement in innovation activities, participation in business networks, and open innovation as a strategy to cope with difficult market conditions resulting from the recent economic downturn. This approach clarifies the relationship between combinations of conditions and high performance. The results suggest that involvement in innovation activities is the most relevant factor in financial advisors performance. Independent financial advisors may achieve higher sales thanks to engaging in innovation activities.
As independent financial advisors, securities firms are the core intermediaries in major asset reorganization (MAR) of listed companies. Furthermore, they play the dual roles of transaction and ...authentication. Based on this institutional background, this paper studies how listed companies choose between industry experience ("meritocracy") and relationships ("nepotism"). Using the MAR of A-share listed companies from 2008 to 2013 as the sample, this paper shows that higher transaction costs (i.e., greater demand for the transaction function of advisors) are related to the higher possibility of advisors with weaker relationships and more industry experience being hired. It also shows that higher suspicion of tunneling (i.e., greater demand for the signal of fairness associated with advisors' authentication function) is related to the higher possibility of advisors with weaker relationships being hired, but it is not significantly related to whether advisors have more or less industry experience. This paper also shows that reputation has a certain governance effect on the negative consequences of relationship. For the most part, listed companies reward meritocracy but not nepotism when appointing independent financial advisors.
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