"Entrepreneurial Orientation" as a success factor for banks
In a study, Prof. Dr. Dr. Sascha Kraus and Dr. Thomas Niemand from the Institute for Entrepreneurship at the University of Liechtenstein, together with research colleagues from Innsbruck and Utrecht, explored the relationship between entrepreneurial orientation, digitalisation and the business success of banks.
Entrepreneurial Orientation (EO) is the buzzword of the hour. Companies in the financial sector, and banks in particular, are confronted with the change from traditional, personal customer service to online services. Whether and how banks in Liechtenstein and in German-speaking countries can achieve exceptional success in the digital age with the help of Entrepreneurial Orientation was investigated by Prof. Sascha Kraus and other researchers.
EO also means a willingness to take risks
EO is understood to be an entrepreneurial concept characterized by a propensity to act proactively, a willingness to innovate and a readiness to take risks. The key finding of the study, in which more than 100 banks participated, is that a high degree of EO leads to greater business success.
Digitisation and other results
However, "digitalization" alone is not yet a success factor. Only in combination with EO can digitalization unfold, and then even strengthen the positive correlation between EO and corporate success. "Only when there is a harmonization of the strategic vision with the very own entrepreneurial capabilities of a bank, which actively integrates new digital services, will banks thus become sustainably successful. It thus becomes clear that the key success factor for banks that want to gain a competitive advantage through the new digital opportunities is their entrepreneurial orientation," the study states.
More information from the Institute for Entrepreneurship and Comparative Performance Studies can be found on the website of the University of Liechtenstein at www.uni.li
