The role of location in FinTech formation

Laivi Laidroo and Mari Avarmaa

Entrepreneurship & Regional Development, 2020, vol. 32, issue 7-8, 555-572

Abstract: Given the rapid emergence of FinTechs, the objective of this paper is to determine location-specific factors associated with FinTech establishment intensity using Porter’s diamond framework. The analysis is based on a country-level dataset covering the period of 2007–2017 and 107 countries. The results reveal that greater FinTech establishment intensity characterizes smaller countries, countries with stronger information and communications technology (ICT) services clusters, and countries that have experienced a crisis during the recent decade. Greater FinTech establishment intensity is also observed in countries with greater tertiary education enrolment rates, stronger university-industry cooperation, greater fixed line availability, and overall ICT readiness. The macroeconomic situation and indicators of financial development prove to be important determinants of FinTech formation. Given the importance of several dimensions of location’s diamond in FinTech formation, FinTech entrepreneurs could benefit from a careful analysis of the diamond of locations that they are considering as potential places of doing business. Countries hoping to become more attractive FinTech establishment sites, in turn, should focus on the elimination of weaknesses in the location’s diamond in close co-operation with FinTechs.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.1080/08985626.2019.1675777 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:entreg:v:32:y:2020:i:7-8:p:555-572

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TEPN20

DOI: 10.1080/08985626.2019.1675777

Access Statistics for this article

Entrepreneurship & Regional Development is currently edited by Professor Alistair Anderson

More articles in Entrepreneurship & Regional Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().