Abstract
This chapter examines the paradox of financial innovations and innovators in the US and abroad over the last two decades. The 1980’s and 1990’s saw a flurry of new financial products and services despite such innovations being costly to develop by pioneers and easy to imitate by rivals. An examination of one particular class of financial innovations, asset-backed securities (ABS’), and one particular financial innovator, Citicorp, suggests that the paradox might be explained by examining cumulative first-mover performance effects across related product and geographic market contexts. Our case study and broader quantitative study of ABS innovations at Citicorp supports this ‘cumulative first-mover effects’ proposition with important implications for future research and practice in international strategic management, finance and banking.
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Vaaler, P.M. (2001). A Tale of Two Citis. In: Jacque, L.L., Vaaler, P.M. (eds) Financial Innovations and the Welfare of Nations. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-1623-1_11
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DOI: https://doi.org/10.1007/978-1-4615-1623-1_11
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