Coopetition strategy and industry convergence. Evidence in the Chinese banking market.

The paper examines the strategy adopted by banks in interacting with Fintech. In particular, among different options that range from partnership and acquisition, we investigate how big Banks relate to Bigtech firms. To investigate this question, we explore the strategy adopted by major Chinese banks in interacting with BigTech, using a case study approach. We focus on industry dynamics rather than inter-firm dynamics exploiting the drivers of the convergence process. Evidence reveals that coopetition strategy is adopted as a possible result of the evolutionary process of convergence in the industry. Convergence destabilizes sectoral equilibria, leading firms to generate a confluence of new value proposals, new technologies, and new markets reachable through a coopetition strategy.