Skip to main content
SpringerLink
Log in

Payment Systems: An Innovation Perspective

  • Chapter
  • First Online:
Banking on Innovation

Part of the book series: Contributions to Economics ((CE))

Abstract

Innovation concepts underpin the growth and development strategies of the European Union and have been adapted to drive the integration of the Lisbon Strategy with the Financial Services Action Plan. They are at the core of practices to introduce measures promoting the efficiency, stability and reliability of payment systems. European financial integration, particularly the integration of payment clearing and settlement systems, can be seen as a sub-set of Europe’s broader national system of innovation, which is based on a system of social and institutional factors influencing innovation and interactive learning processes. In this chapter we link these goals with the study of innovation beyond technology embodied in products and processes. We show that in studying firm capabilities, competencies, and the distinct resources that contribute towards innovation, we can extend the approach to study new ways of doing things in the services industry. We link this to the ability of firms and industries to increase their competitiveness and to promoting national economic development. As part of this, in this chapter we show how different innovation models contribute to our understanding of these innovation processes.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Abernathy WJ, Clark KB (1985) Mapping the winds of creative destruction. Res Policy 14:3–22

    Article  Google Scholar 

  • Abernathy WJ, Townsend PL (1975) Technology, productivity and process change. Technol Forecast Soc Change 7(4):379–396

    Article  Google Scholar 

  • Abernathy WJ, Utterback JM (1978) Patterns of industrial innovation. Technol Rev(June-July):40–47

    Google Scholar 

  • Afuah A (1998) Innovation management: strategies, implementation, and profits. Oxford University Press, Oxford

    Google Scholar 

  • Afuah A, Bahram N (1995) The hypercube of innovation. Res Policy 24(1):51–76

    Article  Google Scholar 

  • Allen T (1984) Managing the flow of technology. MIT, Cambridge

    Google Scholar 

  • Amit R, Schoemaker PJH (1993) Strategic assets and organizational rent. Strat Manage J 14(1):33–46

    Article  Google Scholar 

  • Andrews K (1987) The concept of corporate strategy. Irwin, Homewood

    Google Scholar 

  • Arrow KJ (1962) The economic implications of learning by doing. Rev Econ Stud 29(80):155–173

    Google Scholar 

  • Bacon F (1605) The advancement of learning. Dent, London

    Google Scholar 

  • Barney J (1991) Firm resources and sustained competitive advantage. J Manage 17(1):99–120

    Article  Google Scholar 

  • Barras R (1986) Towards a theory of innovation in services. Res Policy 15:161–173

    Article  Google Scholar 

  • Barras R (1990) Interactive innovation in financial and business services: the vanguard of the service revolution. Res Policy 19:215–237

    Article  Google Scholar 

  • Beath CM (1991) Supporting the information technology champion. MIS Q 15(3):355–372

    Article  Google Scholar 

  • Bessant J, Rush H (1995) Building bridges for innovation: the role of consultants in technology transfer. Res Policy 24(1):97–114

    Article  Google Scholar 

  • Boynton AC, Zmud RW, Jacobs GC (1994) The influence of IT management practice on it use in large organizations. MIS Q 18(3):299–317

    Article  Google Scholar 

  • Broadbent M, Weill P, StClair D (1994) The role of information technology infrastructure in business process redesign. University of Melbourne Graduate School of Management Working Paper No. 11/94

    Google Scholar 

  • Buzzacchi L, Colombo MG, Mariotti S (1995) Technological regimes and innovation in services: the case of the Italian banking industry. Res Policy 24(1):151–168

    Article  Google Scholar 

  • Chandler AD (1962) Strategy and structure: chapters in the history of industrial enterprise. MIT, Cambridge

    Google Scholar 

  • Christensen JL (1992) The role of finance in national systems of innovation. In Lundvall B (ed) National systems of innovation: towards a theory of innovation and interactive learning. Pinter, London, pp 146–168

    Google Scholar 

  • Clemons EK (1991) Corporate strategies for information technology: a resource-based approach. Computer(November):23–32

    Google Scholar 

  • Clemons EK, Row MC (1991) Sustaining IT advantage: the role of structural differences. MIS Q(September):275–292

    Google Scholar 

  • Cohen MD, Burkhart R, Dosi G, Egidi M, Marengo L, Warglien M, Winter S (1996) Routines and other recurring action patterns of organisations: contemporary research issues. Ind Corp Change 5(3):653–721

    Google Scholar 

  • Cohen W, Levinthal D (1990) Absorptive capacity: a new perspective on learning and innovation. Acad Sci Q 35:128–152

    Article  Google Scholar 

  • Conner KR (1991) A historical comparison of resource-based theory and five schools of thought within industrial organization economics: do we have a new theory of the firm? J Manage 17(1):121–154

    Article  Google Scholar 

  • Cooke P, Uranga MG, Etxebarria G (1997) Regional innovation systems: institutional and organisational dimension. Res Policy 26:475–491

    Article  Google Scholar 

  • Damanpour F (1991) Organizational innovation: a meta-analysis of effects of determinants and moderators. Acad Manage J 34:355–590

    Article  Google Scholar 

  • Dierickx I, Cool K (1989) Asset stock accumulation and the sustaining of competitive advantage. Manage Sci 35(12):1504–1511

    Article  Google Scholar 

  • Dosi G (1982) Technological paradigms and technological trajectories. Res Policy 11:147–162

    Article  Google Scholar 

  • Elam M (1993) Innovation as the craft of combination: perspectives on technology and economy in the spirit of Schumpeter. Department of Technology and Social Change - Linkoping University, Linkoping

    Google Scholar 

  • English M, Brown AW (1984) National policies in information technology: challenge and responses. Oxford Surveys in Information Technology: volume 1. P. I. Zorkoczy. Oxford University Press, Oxford, pp 55–128

    Google Scholar 

  • Enos J (1962) Petroleum progress and profits. MIT, Cambridge

    Google Scholar 

  • Foss NJ (1997) Resources, firms, and strategies: a reader in the resource-based perspective. Oxford University Press, Oxford

    Google Scholar 

  • Foss NJ, Eriksen B (1995) Competitive advantage and industry capabilities. In Montgomery CA (ed) Resource-based and evolutionary theories of the firm: towards a synthesis. Kluwer, London, pp 43–69

    Chapter  Google Scholar 

  • Foss NJ, Knudsen C, Montgomery CA (1995) An exploration of common ground: integrating evolutionary and strategic theories of the firm. In Montgomery CA (ed) Resource-based and evolutionary theories of the firm: towards a synthesis. Kluwer, London, pp 1–17

    Chapter  Google Scholar 

  • Fransman M (1985) Conceptualising technical change in the third world in the 1980s: an interpretive survey. J Dev Stud 21(4):572–652

    Article  Google Scholar 

  • Frankel A, Marquardt J (1983) Payment systems: theory and policy. Board of Governors of the Federal Reserve System, International finance discussion papers

    Google Scholar 

  • Freeman C (1982) The economics of industrial innovation. Frances Pinter, London

    Google Scholar 

  • Freeman C (1987) Technology policy and economic performance: lessons from Japan. Pinter, London

    Google Scholar 

  • Freeman C, Perez C (1988) Structural crisis of adjustment: business cycles and investment behaviour. In Dosi G, Freeman N, Nelson RR, Silverberg G, Soete L (eds) Technical change and economic theory. Frances Pinter, London, pp 38–66

    Google Scholar 

  • Gallouj F, Weinstein O (1997) Innovation in services. Res Policy 26(4-5):537–556

    Article  Google Scholar 

  • Glaser PF (1988) Using technology for competitive advantage: the ATM experience at Citicorp. In Guile BR, Quinn JB (eds) Managing innovation: cases from the services industries. National Academy, Washington DC

    Google Scholar 

  • Grant RM (1991) The resource-based theory of competitive advantage: implications for strategy formulation. Calif Manage Rev 33(3):114–135

    Google Scholar 

  • Grant G, Liebenau J (1997) Understanding firm differences in implementing and exploiting IT: an evolutionary and resource-based perspective. Strategic Management Society, 17th Annual International Conference

    Google Scholar 

  • Gregersen B (1992) The public sector as a pacer in national systems of innovation. In Lundvall B (ed) National systems of innovation: towards a theory of innovation and interactive learning. Pinter, London, pp 129–145

    Google Scholar 

  • Guile BR, Quinn JB (1988a) Managing innovation: cases from the services industries. National Academy, Washington DC

    Google Scholar 

  • Henderson JC (1990) Plugging into strategic partnerships: the critical IS connection. Sloan Manage Rev 31(3):7–18

    Google Scholar 

  • Hicks JR (1932) Theory of wages, Macmillan, London

    Google Scholar 

  • Hobday M (1995) Innovation in East Asia: the challenge to Japan. Edward Elgar, Hants

    Google Scholar 

  • Hopper MD (1987) The strategic use of technology in financial services. In Friars EM and Gogel RN (eds) The financial services handbook: executive insights and solutions. Wiley, New York, pp 291–307

    Google Scholar 

  • Howell JM, Higgins CA (1990) Champions of technological innovation. Adm Sci Q 35:317–341

    Article  Google Scholar 

  • Iansiti M (1993) Real-world R&D: jumping the product generation gap. Harvard Bus Rev May-June:138–147

    Google Scholar 

  • Itami H (1987) Mobilizing invisible assets. Harvard University Press, Cambridge

    Google Scholar 

  • Johnson C (1982) MITI and the Japanese miracle: the growth of industrial policy, 1925–1975. Stanford University Press, Stanford

    Google Scholar 

  • Kay J (1993) Foundations of corporate success. Oxford University Press, Oxford

    Google Scholar 

  • Kealey T (1996) The economic laws of scientific research. Macmillan, London

    Google Scholar 

  • Keen P (1991) Shaping the future: business design through information technology. Harvard Business School Press, Massachusetts

    Google Scholar 

  • Keltner B, Finegold D (1996) Adding value in banking: human resource innovations for service firms. Sloan Manage Rev 38(1):57–68

    Google Scholar 

  • Kim L (1980) Stages of development of industrial technology in a developing country: a model. Res Policy 9:254–277

    Article  Google Scholar 

  • Kim L (1997) Imitation to innovation. Harvard Business School Press, Boston

    Google Scholar 

  • Kim L, Dahlman CJ (1992) Technology policy for industrialization: an integrative framework and Korea’s experience. Res Policy 21:437–452

    Article  Google Scholar 

  • Klevorick AK, Levin RC, Nelson RR, Winter SG (1995) On the sources and significance of inter-industry differences in technological opportunities. Res Policy 24(2):185–205

    Article  Google Scholar 

  • Kline SJ (1985) Innovation is not a linear process. Res Management 28(4)(July/August): 36–45

    Google Scholar 

  • Knudsen C (1995) Theories of the firm, strategic management, and leadership. In Montgomery CA (ed) Resource-based and evolutionary theories of the firm: towards a synthesis. Kluwer, London, pp 179–217

    Chapter  Google Scholar 

  • Lall S (1980) Developing countries as exports of industrial technology. Res Policy 9:24–52

    Article  Google Scholar 

  • Lancaster KJ (1966) A new approach to consumer theory. J Polit Econ 14:133–156

    Google Scholar 

  • Lee J, Bae Z, Choi D (1988) Technology development processes: a model for a developing country with a global perspective. R Manage 18 (3):235–250

    Google Scholar 

  • Lee DMS, Trauth EM, Farwell D (1995) Critical skills and knowledge requirements of is professionals: a joint academic/industry investigation. MIS Q 19 (3):313–340

    Article  Google Scholar 

  • Levinthal DA (1995) Strategic management and the exploration of diversity. In Montgomery CA (ed) Resource-based and evolutionary theories of the firm: towards a synthesis. Kluwer, London, pp 19–42

    Chapter  Google Scholar 

  • Lundvall B (1992) National systems of innovation: towards a theory of innovation and interactive learning. Pinter, London

    Google Scholar 

  • Mahoney JT, Pandian JR (1992) The resource-based view within the conversation of strategic management. Strat Manage J 13 (5):363–380

    Article  Google Scholar 

  • Maijoor S, Witteloostuijn V (1996) An empirical test of the resource-based theory: strategic regulation in the Dutch audit industry. Strat Manage J 17(7):549–569

    Article  Google Scholar 

  • Marx K (1999) Capital: a critical analysis of capitalist production, Oxford University Press, London

    Google Scholar 

  • Mason RO, McKenney JL, Copeland DG (1997) Developing an historical tradition in MIS research. MIS Q(September):257–278

    Google Scholar 

  • Mata FJ, Fuerst WL, Barney JB (1995) Information technology and sustained competitive advantage: a resource-based analysis. MIS Q 19(4):487–505

    Article  Google Scholar 

  • McKenney JL, Copeland RC, Mason RL (1995) Waves of change: business evolution through information technology. Harvard Business School Press, Boston

    Google Scholar 

  • McKenney JL, Mason RO, Copeland DG (1997) Bank of America: the crest and trough of technological leadership. MIS Q Sept:321–353

    Google Scholar 

  • Meyers PW (1990) Non-linear learning in large technological firms: period four implies chaos. Res Policy 19:97–115

    Article  Google Scholar 

  • Montgomery CA (1995) Resource-based and evolutionary theories of the firm: towards a synthesis. Kluwer, London

    Book  Google Scholar 

  • Montgomery CA, Wernerfelt B (1988) Diversification, Ricardian rents, and Tobin’s q. Rand J Econ 19(4):623–632

    Article  Google Scholar 

  • Nelson R (1979) Innovation and economic development: theoretical retrospect and prospect. Buenos Aires, Research Program in Science and Technology, BID/CEPAL/BA/50, United Nations Economic Commission for Latin America, United Nations Development Program, and Inter-American Development Bank

    Google Scholar 

  • Nelson R (1991) Why do firms differ, and how does it matter? Strat Manage J 14:61–74

    Article  Google Scholar 

  • Nelson R, Winter SG (1977) In search of a useful theory of innovation. Res Policy 6:36–76

    Article  Google Scholar 

  • Nelson R, Winter SG (1982) An evolutionary theory of economic change. Harvard University Press, Massachusetts

    Google Scholar 

  • Nonaka I (1994) A dynamic theory of organizational knowledge creation. Organ Sci 5:14–37

    Article  Google Scholar 

  • Nonaka I, Takeuchi H (1995) The knowledge-creating company: how Japanese companies create the dynamics of innovation. Oxford University Press, Oxford

    Google Scholar 

  • North DC (1990) Institutions, institutional change and economic performance. Cambridge University Press, Cambridge

    Google Scholar 

  • Padmore T, Gibson H (1998) Modelling systems of innovation: a framework for industrial cluster analysis in regions. Res Policy 26:625–641

    Article  Google Scholar 

  • Padmore T, Schuetze H, Gibson H (1998) Modelling systems of innovation: an enterprise-centered view. Res Policy 26:605–624

    Article  Google Scholar 

  • Patel P, Pavitt K (1994) National innovation systems: why they are important, and how they might be measured and compared. Econ Innovat New Tech 3:77–95

    Article  Google Scholar 

  • Patel P, Pavitt K (1997) The technological competencies of the world’s largest firms: complex and path-dependent, but not much variety. Res Policy 26(2):141–156

    Article  Google Scholar 

  • Pavitt K (1984) Sectoral patterns of technical change: towards a taxonomy and a theory. Res Policy 13:343–373

    Article  Google Scholar 

  • Pennings JM (1998) Innovations as precursors of organizational performance. In Galliers RD, Baets WRJ (eds) Information technology and organizational transformation: innovation for the 21st century organization. Wiley, Chichester, pp 153–178

    Google Scholar 

  • Penrose ET (1959) The theory of the growth of the firm. Basil Blackwell, Oxford

    Google Scholar 

  • Peteraf MA (1993) The cornerstones of competitive advantage: a resource-based view. Strat Manage J 14(3):179–191

    Article  Google Scholar 

  • Polanyi M (1973) Personal knowledge: towards a post-critical philosophy. Routledge and Kegan Paul, London

    Google Scholar 

  • Porter M (1990) The competitive advantage of nations. Macmillan, London

    Google Scholar 

  • Powell TC, Dent-Micallef A (1997) Information technology as competitive advantage: the role of human, business, and technology resources. Strat Manage J 18(5):375–405

    Article  Google Scholar 

  • Roberts EB, Fusfeld AR (1981) Staffing the innovative technology-based organisation. Sloan Manage Rev:19–34

    Google Scholar 

  • Robins J, Wiersema MF (1995) A resource-based approach to the multibusiness firm: empirical analysis of portfolio interrelationships and corporate financial performance. Strat Manage J 16(4):277–299

    Article  Google Scholar 

  • Rogers EM (1983) Diffusion of innovations. Free, New York

    Google Scholar 

  • Rosenberg N (1981) Inside the black box: technology and economics. Cambridge University Press, Cambridge

    Google Scholar 

  • Rosenberg N (1994) Exploring the black box: technology, economics, and history. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • Ross JW, Beath CM, Goodhue DL (1996) Develop long-term competitiveness through IT assets. Sloan Manage Rev 38(1):31–42

    Google Scholar 

  • Rothwell R (1992) Successful industrial innovation: critical factors for the 1990s. R Manage 22(3):221–239

    Google Scholar 

  • Scarbrough H (1998) Linking strategy and IT-based innovation: the importance of the management of expertise. In Galliers RD, Baets WRJ (eds) Information technology and organizational transformation: innovation for the 21st century organization. Wiley, Chichester, 19–36

    Google Scholar 

  • Scherer FM (1984) Innovation and growth: Schumpeterian perspectives. MIT, Cambridge

    Google Scholar 

  • Schmookler J (1966) Invention and economic growth. Harvard University Press, Cambridge

    Google Scholar 

  • Schön DA (1963) Champions for radical new innovations. Harvard Bus Rev 41:77–86

    Google Scholar 

  • Stalk G, Evans P, Shulman LE (1992) Competing on capabilities: the new rules of corporate strategy. Harvard Bus Rev (March-April):57–69

    Google Scholar 

  • Stoneman P (1995) Handbook of the economics of innovation and technological change. Blackwell, Oxford

    Google Scholar 

  • Teece DJ (1986) Profiting from technological innovation: implications for integration, collaboration, licensing and public policy. Res Policy 15:285–306

    Article  Google Scholar 

  • Teece DJ (1988) Technological change and the nature of the firm. In Dosi G, Freeman C, Nelson R, Silverberg G, Soete L (eds) Technical change and economic theory, Pinter, London

    Google Scholar 

  • Teece DJ, Pisano G (1994) The dynamic capabilities of firms: an introduction. Ind Corp Change 3(3):537–557

    Article  Google Scholar 

  • Teece DJ, Pisano G, Shuen A (1997) Dynamic capabilities and strategic management. Strat Manage J 18(7):509–533

    Article  Google Scholar 

  • Tushman M, Nadler D (1986) Organizing for innovation. Calif Manage Rev 28(3):74–92

    Google Scholar 

  • Utterback JM (1994) Mastering the dynamics of innovation. Harvard Business School Press, Boston

    Google Scholar 

  • Wei L (1995) International technology transfer and development of technological capabilities: a theoretical framework. Technol Soc 17(1):103–120

    Article  Google Scholar 

  • Weill P, Lucas HC (1992) Managing the IT investment pyramid for competitive advantage. University of Melbourne Graduate School of Management Working Paper No. 11

    Google Scholar 

  • Wernerfelt B (1984) A resource-based view of the firm. Strat Manage J 5(2):171–180

    Article  Google Scholar 

  • Wernerfelt B (1995) The resource-based view of the firm: ten years after. Strat Manage J 16(3):171–174

    Article  Google Scholar 

  • Winter SG (1987) Knowledge and competence as strategic assets. In Teece DJ (ed) The competitive challenge: strategies for industrial innovation and renewal. Ballinger, Cambridge

    Google Scholar 

  • Winter SG (1995) Four r’s of profitability: rents, resources, routines, and replication. In Montgomery CA (ed) Resource-based and evolutionary theories of the firm: towards a synthesis. Kluwer, London, pp 147–178

    Chapter  Google Scholar 

  • Zander U, Kogut B (1995) Knowledge and the speed of the transfer and imitation of organizational capabilities: an empirical test. Organ Sci 6(1):76–92

    Article  Google Scholar 

  • Fransman M (1986) Technology and economic development. Wheatsheaf Books, Brighton

    Google Scholar 

  • Schumpeter JA (1934) The theory of economic development: an inquiry into profits, capital, credit, interest, and the business cycle. Harvard University Press, Cambridge

    Google Scholar 

  • Swedberg R Joseph A. (1991) Schumpeter: his life and work. Polity, Cambridge

    Google Scholar 

  • Freeman C (1987) Technology policy and economic performance: lessons from Japan. Pinter, London

    Google Scholar 

  • Nelson R, Winter SG (1982) An evolutionary theory of economic change. Harvard University Press, Massachusetts

    Google Scholar 

  • Penrose ET (1959) The theory of the growth of the firm. Basil Blackwell, Oxford

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of Westminster and Bank of Thailand, Bank of Thailand, Pranakhon, 10200, Bangkok, Thailand

    Dr. Tanai Khiaonarong

  2. Department of Management Information Systems and Innovation Group, London School of Economics and Political Science, Houghton Street, WC2A, London, UK

    Dr. Jonathan Liebenau

Authors
  1. Dr. Tanai Khiaonarong
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Dr. Jonathan Liebenau
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Tanai Khiaonarong .

Rights and permissions

Reprints and permissions

Copyright information

© 2009 Physica-Verlag Heidelberg

About this chapter

Cite this chapter

Khiaonarong, T., Liebenau, J. (2009). Payment Systems: An Innovation Perspective. In: Banking on Innovation. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2333-2_2

Download citation

Publish with us

Policies and ethics

Search

Navigation