A model for value creation and value allocation through strategic partnerships in financial services institutions (in the insurance and banking industry)

Dissertation

To receive a Ph.D.

Abstract

Statement of the problem The purpose of this research is to design a generic model of strategic partnership in the banking and insurance industry based on the process of value creation and allocation. The main issue in conducting this research is the ever-increasing intensification in the competitive environment and the application of international sanctions, which ultimately makes it necessary and useful to pay attention to strategic partnerships between financial service institutions, especially in the insurance and banking industry, using new methods, technologies and initiatives. The hypothesis analyzes the findings from the questionnaire both from a descriptive and an inferential point of view. In this article, while reviewing the theoretical bases and new methodologies in the field of studying strategic partnership in the field of banking and insurance, the angles of achieving superior organizational performance were also carefully examined and analyzed, and finally the generic model of strategic partnership based on the process of creating and assigning value was presented. The results of the research using confirmatory factor analysis and path analysis and analysis of research hypotheses, the obtained results indicate that there is no relationship between intervening variables on the relationship between strategic partnership and value assignment. Meanwhile, the components of the format in the discussion of strategic partnership have had positive and significant effects on the performance of organizations.

Key words: strategic partnership, value creation and allocation process, banking and insurance industry, organizational performance

1 Chapter 1: Research overview

1.1 Introduction

Currently, success in the global business environment requires organizations with new structures along with completely different management thinking because global pressures It has forced the big companies of the world to reconsider their traditional global strategies and this fact has exposed them to constant transformation, in this situation, some companies have been successful and others have been trying to survive (Rahman Sarasht, 2016). During the last decade, companies from all industries and all over the world have chosen some kind of strategic partnerships to complement their strengths and increase their competitiveness in domestic and international markets (Thompson and Strickland [1], 2005). Today, the use of these different types of these partnerships has become very prosperous because companies can thereby increase their activity networks, communications and computer networks (David, 1997). Many companies have found that these partnerships are very useful in order to manage risk in uncertain markets, share huge investment costs and inject a kind of entrepreneurial spirit for businesses that are in their maturity period (Bamford, Ernst and Faubini[2], 2004). Companies are often faced with difficult decisions about determining the scope of activities that they should carry out internally and whether to carry out these activities alone and as a venture, individually or jointly with the cooperation of one or more partners (Schilling, 2008). The simultaneous evaluation of the external environment and the image of the company makes it possible to identify areas of attractive interactive opportunities for the company, these opportunities are possible ways for investment, the ways that must be evaluated and screened based on the fundamental goal or mission of the company before choosing, and the result of this is the choice of a combination of long-term goals and the main strategy of the company or strategic choice, a choice that provides an optimal position in the external environment for the organization and enables the achievement of the fundamental goal (Piers and Robinson, 2005). The use of strategic partnerships has become widespread in many industries to increase the competitiveness of companies, so that they are referred to as the main element of today's business strategies. Collaborating with others often allows companies to achieve more, more quickly and with less cost or risk than they could achieve alone. However, collaborating with others often requires giving up some control over the development of the innovation as well as some of the expected rewards, in addition to exposing the firm to the risk of transgressions from the partner (or partners) (Thompson et al., 2005).. By establishing cooperative relationships, companies create a network of channels between them that can act as a channel for the passage of information and other resources. Networks that are created between firms can provide member networks with access to a wide range of information (and other resources) that is much wider than what they could have individually. Therefore, inter-company networks have become an engine of innovation, which is increasingly important (Schilling, 2008). Partnering with small companies also allows them to team up to compete with a giant in the industry. Companies of different sizes may also benefit from partnering with each other. The large company puts its resources and capital into the partnership and in return for efficiency and innovation from the smaller company (Holmes[4], 2006). In today's era, when organizations are present in extensive commercial and economic competitions, and the needs of customers have increased and accompanied by the extraordinary acceleration of technological developments, as well as the direct effects that these factors have on increasing the profitability and even the survival of organizations at the global level, it is inevitable that the direction of studies, planning and all the efforts of organizations to improve the quality and reduce the costs of providing services in order to be able to issue services in the financial and investment fields at the global level is inevitable. The use of all the mechanisms, principles, concepts and techniques that meet the needs of organizations in the direction of these two vital and important issues has always been considered. Creation and allocation of value and strategic partnership are two approaches that have always been and are in the focus of interest of organizations due to remarkable successes. But in this research, by applying these two approaches, a double capability will be obtained for creating more value in organizations. 1.2 Statement of the problem In recent years, the implementation of the general policies of Article 44 of the Constitution as a strategy in order to achieve the goals of the twenty-year vision document of the system has finally led to the privatization and transfer of ownership of state-owned companies. The successful implementation of the general policies of Article 44 of the Constitution aims to improve the economic business environment and improve the efficiency of state-owned companies. In this regard, one of the economic sectors that have received serious attention is the insurance and banking industry, where deregulation and the formulation of simple and efficient laws in order to grow and strengthen them as two important sides of the three sides of the capital market have been seriously emphasized. In this regard, creating a competitive advantage by creating new value and using new methods, technologies and initiatives, it is necessary and useful to pay attention to strategic partnerships between financial service institutions, especially in the field of insurance and banking industry, considering the intensification of the competitive environment and the application of international sanctions. On the other hand, taking into account the high cost of transactions, which will be associated with the creation of additional efficiency through cost reduction, is considered one of the main motivations of strategic partnership. This approach, which was first proposed by Coase, describes the behavior of companies to make decisions about the hierarchy and the market with the aim of fully internalizing the activities. The position of the organizational structure and market interactions in the country are arranged in such a way that according to Williamson, strategic partnerships are considered the best and most effective method when nothing happens in any of the two market and hierarchical structures (Williamson [5], 1993). With the changes in the hierarchical structures of the banking and insurance sectors in the country, partnership structures have taken the form of shares. On the other hand, to the extent that financial service institutions move towards the market, they take a non-stock or contractual status, while financial service institutions move towards the hierarchy, increasing the formality and integrity of their activities. Williamson emphasizes joint stock companies (due to common ownership) with the aim of reducing opportunistic behavior. In other words, he considers joint ownership as an incentive to reduce opportunistic behaviors, which results in control and coordination at a lower cost, and as a result, the goal of this view, which is cost reduction, is met. But on the other hand, based on empirical evidence, two factors always lead to an increase in transaction costs, which are uncertainty in the relevant market and the specificity of the asset or activity that must be exchanged.