Governance of Hybrid Fintech Ecosystem: An Examination Using the Generativity‐Control Paradigm

ABSTRACT Digital platforms are increasingly leveraged to address social challenges in the financial sector. However, the fintech sector, particularly in developing economies, is inherently hybrid, creating distinct governance challenges. This study examined the applicability of generativity‐control governance literature to managing dual motives, a federated structure, and a trust‐based value orientation in hybrid fintech ecosystems. Drawing on the digital platform ecosystem governance literature as the theoretical foundation and the concept of holons from information ecology theory as the analytical lens, the study analysed interview data from 41 respondents representing the regulator, ecosystem orchestrator, fintech startups, financial institutions, incubators, and media in the Indian fintech ecosystem. It employed deductive reflexive thematic analysis to analyse the interview data and used secondary data to corroborate the findings. Accordingly, this study conceptualised complementors as holons exhibiting part‐whole behaviour, offering a novel theoretical explanation of how they maintain the generativity‐control balance and address governance challenges to achieve both economic and social outcomes simultaneously in hybrid fintech ecosystems. It also identified and defined three complementary governance mechanisms (demarcation, regulation, and legitimization) that address governance challenges associated with the ecosystem's motives, structure, and value orientation, respectively. Ultimately, the findings extend the information systems governance literature and contribute to the fintech literature by explaining how complementors' collaborative participation, their use of digital public infrastructure, and the provision of regulatory sandboxes within the Indian fintech ecosystem facilitate the generativity‐control balance.