THE NEXUS AMONG INTER-FIRM COOPETITION, COOPERATION COOPETITION AND DIGITAL FINANCIAL INCLUSION: A CONCEPTUAL ANALYSIS

Abstract

The purpose of this study is to empirically review literature on inter-firm coopetition and how it affects digital financial inclusion. Further, the paper is focusing on Sub-Saharan Africa as it is one of the regions of the world that is affected by lack of access and usage of financial services.  The article provides a review of literature that demonstrates the effect of the simultaneous use of competition and cooperation on firm performance and subsequently financial inclusion, in order to determine the current state of knowledge and provide direction for further research. The specific objectives this study are to: empirically review articles on inter-firm coopetition; review articles on digital financial inclusion; and review articles that concern the relationship between inter-firm coopetition and digital financial inclusion.  The main sources of this literature review were peer reviewed journal articles, edited academic books, articles in professional journals, and statistical data from government websites, and website material from professional associations. A narrative literature review approach was used to search and synthesis peer reviewed journal articles, edited academic books, articles in professional journals, and statistical data from government websites, and website material from professional associations. The study  identified six gaps in the literature as proposed by Miles, (2017) as follows: a population gap since literature on inter-firm coopetition’s applicability to the Sub-Saharan region is scanty; an evidence gap as studies on the welfare effects of inter-firm coopetition have been few, and thus there is rarely much evidence to analyse this subject area; a knowledge gap since it was observed that there is limited knowledge regarding how inter-firm coopetition could affect digital financial inclusion; a practical-knowledge conflict gap, since the use of digital financial services has increased digital financial inclusion by lower than desired levels, and hence the need for further interventions such as the use of the inter-firm coopetition strategy; a methodological gap as most of the literature reviews in coopetition studies use systematic reviews with very few using the narrative review; an empirical gap since evidence on the effect of inter-firm coopetition and digital financial inclusion.  This review found that inter-firm coopetition in relation to its effects on financial inclusion is rarely researched. Further, the literature provided limited evidence of coopetition studies in SSA. This is despite the literature showing that inter-firm coopetition has positive results for firm performance. This literature is specifically from western and eastern countries of the world. This review forms a basis for a study to investigate the effects of inter-firm coopetition on digital financial inclusion in sub-Saharan Africa, specifically Zambia. The findings contribute to literature on business relationships and models which have the capacity to accelerate digital financial inclusion.

Keywords: Bank, Collaboration, Competition, Cooperation, FinTech, Inter-firm coopetition, Mobile Network Operators (MNO); Inter-Firm Coopetition,  Digital Financial Services Providers (DFSPs), Financial Inclusion; Digital Financial Inclusion; Financial Technologies; FinTech

DOI: 10.7176/JESD/14-12-09

Publication date:June 30^th 2023