Differences in scale of innovation implementation in financial services organizations in Austria

Abstract

This Master Thesis analyses the influence of the companys current innovation strategy on itsinnovative project portfolio, as well as examines which further factors play an important role when it comes to the choice of innovative projects. In the variety of available innovative solutionson the market, it is not an easy task for the market players to balance their innovative ambitions and capabilities and, at the same time, offer unique products and services to the customers. The dilemma about the healthy mix of the projects in the innovative portfolio has high relevance for the market players in the circumstances of the COVID-19 pandemic when many organizations have been forced to change their business and operating models, to turn towards digitalization and online business, to promote new ways of collaboration for their employees and customers. Choosing a suitable way to embed innovative solutions into the company s existing landscape and corporate culture is not an easy and obvious task. This challenge cannot be mastered without putting in enough effort and following a clear strategy.For understanding the motivations for the choice and scale of the innovative projects, a framework has been developed to cover the main cornerstones of the research: innovation strategy,innovative projects portfolio, and the factors influencing the composition of the innovative projects’portfolio and their scale. In the next step, a questionnaire has been developed to cover the framework-relevant questions. In the course of the interviews with representatives of the banks operating in Austria and a FinTech start-up, a list of twenty-one factors relevant for the innovative portfolio decision-making has been developed and grouped into five categories. The results of the research disclosed the fact that not only the innovation strategy and goals play an important role but numerous further factors as well. These factors can be considered directly or indirectly as elements of the innovation strategy construct: resources and capabilities, as wellas factors relevant for the customers, market, and stakeholders’ interaction. The conducted interviews delivered answers to the research questions and helped to discover the motivations behind the decision-making related to innovative portfolio management and the role of the innovation strategy.