Conclusions
This study had several significance findings. Theoretically, the study apply knowledge management theory to build an integrated KIPs research model, to fill the gaps of the existing research which did not have much integrated research model for intellectual capital and analysis for how financial institutions cope with FinTech challenges. Practically, the established intellectual capital KIPs research model, the model successfully analyze how the financial institution in Taiwan cope with FinTech challenges, by intellectual capital to raise the most competitive intangible assets to cope with the challenges, leverage by the knowledge enabler to further enhance and empower the intellectual capital, further examine the knowledge management strategies, to adopt the best strategic approach to tackle the FinTech Challenges.
This study has five important findings in this study. First, the system strategy is the most dominant factor to knowledge enabler. Second, the t-shaped is the most dominant factor to intellectual capital. Third, the relational capital is the most dominant factor to business performance. Fourth, the market leadership is the most dominant factor within business performance. Fifth, knowledge enabler has the most significant indirect effect to business performance as well as to intellectual capital. All of the hypotheses set for this study were rejected, which shows the strong effect from each of the constructs did exist.
Some of the finding in this study were a little bit counter-intuitive, however, it is still understandable, which reinforce the importance to implement an assessment for organization in a given point in time, to prevent the organization potentially fall into the losing team as well as the dilemma of stay in comfort zone for too long, while not
knowing the entire eco-system has been dramatically modified, to the extent that an organization lose its dominance as well as capability to compete with the rival.
Although the situation for market leader to lose its dominance seems to be a little bit unlikely. However, given the facts that during the past two decades, many of the winning or leading well-known company has either losing its dominance in the market or simply out of the market, do not exist anymore, some of the famous example can be Kodak picture which did not aware of the rise of digital camera, then lose its market power, the IBM personal computers which did not realized the rise of tablet, and sold the entire division to Lenovo.
All of which the examples are already become the history of past, however, during the time, the market leader did not ever thought about they would become what it is today, therefore, for organization to routinely assess their winning pattern by intellectual capital can somehow be helpful for them to identify their strength as well as weaknesses, to set for the improvement plan accordingly, to assure the organization stay competitive at all time, especially for financial institution in the FinTech Era is exceptionally true, as the famous quote by Bill Gates once again, “Banking is necessary, banks are not”.
Which impose the people will still has a lot of banking, however, the existence of bank can the replaced, due to such tasks can be performed relatively well by a technology company, instead of traditional bank, which impose the hazard for banks to be aware of, also to quickly adopt what is missing, especially, the banks are missing the digital marketing to engage customers of the 21st century, who uses smart devices relatively more than the pc or laptops, with a large demand for the user interface designer, to make the entire user interface more user friendly suitable for the people’s preference, as the nature of service has never been changed, until today, the customer is the center of attention, how to make them satisfy, will make your organization more
competitive than any of the other rival on the market indeed.
Implications For Academic
This study can helps researchers who wish to understand the winning pattern by intellectual capital, as well as for researchers who seeks to find an integrated intellectual capital model to perform the analysis. The major implication for this study, is the finding draw from the study shows on facing the FinTech Era challenges, all the financial institutions as well as other service based industry or knowledge-intensified industry are deserve for a further study, to draw an even more specific conclusion for understanding the current gaps in engaging the organization into the next generation, as 21st century, many of technologies as well as standards are seek for advanced generation, for instance, the revolution of mobile banking to artificial intelligence algorithm for investment services.
Such trend is very important in terms of human resource development, due to the fact that artificial intelligence and other automation will replace a lot of existing jobs, which may create a structure unemployment if the transition did not strategically planned. Therefore, the demand of these topic’s research are emerging, to best help the young generation, whom are still in the school to have a more strategic career services, as well as teaching also research tracks, to update the existing curriculum with the education as well as relevant training to prepare students, faculty as well as researchers in best aware of the issue, through the quality research to provides a realistic solutions, in order to keep the students, faculty member and researchers to stay competitive at all time, also such research can also apply for the government grant, to perform the research in helping the policymakers aware the modern business society is volatile.
For HR Practitioner
The research finding from this study is very useful for HR practitioner, as the modern human resource in modern business society is no longer like how it used to be in the past, which categorized into training, recruiting, performance assessment, or payroll. Due to the highly concentrate as well as intensify competition, the human capital is no longer act as an independent department or role in an organization, it becomes a business partner now, as the matter of fact, when there’s any kinds of gaps exist in an organization, it needs the human resource to invest their quality time in assessing the talents. Now, regarding the arise of financial technologies companies, the human resource practitioner can no longer passively waiting for the request from employees as well as other departments in an organization or commercial company.
The study finds that t-shaped is the dominant factor for knowledge enabler, which can reminds the human resource practitioner when they are looking for a job candidate the assessment of their t-shaped skills becomes important, also structural capital, as well as the system knowledge management strategies is also very important, which the assessment for the capability for the job candidate to form also to visualize an idea becomes very critical, as well as the ability to communicate effectively also important.
For Enterprises
This study helps the enterprises which has large number of human talents doing knowledge related work or with strong information system capability to be aware of the gradually change in business ecosystem, the enterprises must further promote its capability to systematically manage its knowledge, ensure there’s a smooth channel for knowledge flow at all time, as well as to assure the infrastructure of supporting its employee as well as management to innovate are already exist, if not, this research can helps the enterprises to identified what are some of the key strength as well as weaknesses, for them to best to adjust themselves, to stay competitive in a rapid
changing time.
None of things which is famous today are exist in the past two decades and beyond, take example of the Uber as well as Airbnb, or amazon, these technology companies has one interesting common feature, which is they did not have their own the key inventory for their industry in the past, for Uber, the company did not own any single of the car, the Airbnb did not own any of the properties, and amazon almost did not own any bookstore at all, just a very large warehouse. Which reinforce the importance for enterprises to always assess its intellectual capital winning patterns, to help them understand what are some of the key features in their daily operation has potentially missed out, by conducting the user friendly survey semi-annually, will minimize its burden to the employees, in the ways that such survey can be included in part of the performance management assessment, to not only assess its current status quo, but also to use the model to come up with the most realistic solutions.
For Financial Institutions
The arise of FinTech has been observed internationally, however, for Taiwan, the FinTech are emerging at a relatively slow pace, according to some insight information, the development or the use of FinTech in Taiwan is around 1.5 years slower than Hong Kong, and Hong Kong is around 3 years slower than United Kingdom, China, US, also Japan in recent years are among one of the rapid growing FinTech application country, especially, in the field of biological scan to improve the safety of personal account safety, as well as to minimize the risk of fraud for financial transactions.
Japan with the development and use of application for scan of the blood vessel, the speed of its flow to identify and predict the current status of the account holder, whether if it’s in a dangerous or nervous situation, combine with the artificial intelligence to judge whether it needs some law enforcement assistance immediately or to run several other security check, to minimize the possibility of illegal behavior as
well as transactions. Such application, can also reduce the likelihood for money laundry, as it is much easier to identify who is the one operate the entire transaction, and also easier to trace the unusual capital flow.
The modern financial technology application are beyond the traditional settings infrastructure, such as the peer to peer lending in emerging countries as Africa, combined with the application of big data analysis, use the borrower’s web-browsing and transaction history archive in the device, can help the peer to peer lending firms minimize much of the risk in terms of default risk, to provide the more effective lending rate to attract borrowers, while improved the payback period as well as payback rate, to make the entire business model profitable. Such application is directly against the financial institutions, in the ways that traditional financial institutions is very time consuming for them to conduct a loan assessment, takes a lot of time, missed out a lot of the potential good borrower by its traditional performance indicator, the missed of data analytics, keeps the financial institution expose itself continually in an asymmetric information, in lending money to the wrong hands, which needs to be improved.
Therefore, this study helps financial institution confirm as well as aware of the challenges brought by financial technology companies, by its traditional infrastructure, in the modern society, it compose large group of digital citizens, which the mobile banking application as well as other digital marketing talents are still lack of in the current financial institution, therefore, to best provide the possible solution for this issue is for financial institutions to use the integrated intellectual capital model to identify its key strength and weakness, and planned accordingly to live up in FinTech Era.
Future Research Suggestions
For the future research, it is advice to conduct the research in different geographical region as well as in multiple different industry or sectors, to compare if the findings are consistent and true. Also the missed of comparison analysis between firms or organizations can be performed in the future research to best helps the researcher as well as the general public aware of the real differences in terms of FinTech challenges, to best understand how can traditional financial institution deal with such issue, to continue strive for excellence, and deliver exceptional performances..
To construct a better and more rigorous research finding, it is strongly advice for future research to conduct an industry-wide or country-wide research, with large sample collected, to best depict the FinTech challenges to traditional financial institutions in Taiwan. Due to the evolvement of the FinTech are still on the go, it is best for future research to carefully observe its development, directions, trend, to have a more holistic understanding for the FinTech and the challenges brought by FinTech accordingly.
The future research can also focus on other issue, rather than only focus on FinTech challenges, as the dynamic business environment of twenty-first century, financial institutions worldwide facing an unprecedented challenges, such as global economy slow-down, the possible collapse of European Union Economy and many other interesting issue are worth to research, and conduct research based in Taiwan financial institutions or financial institutions across various countries to compare with how will such challenges or issues may affect the knowledge management strategies, the facilitate usage of knowledge enabler, how intellectual capital can be best apply to meet with the new standard in generating an outstanding performance as a whole.
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