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Managing Digital Money

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DOI: 10.5465/amj.2015.4002

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娀 Academy of Management Journal
2015, Vol. 58, No. 2, 325–333.
http://dx.doi.org/10.5465/amj.2015.4002

FROM THE EDITORS

MANAGING DIGITAL MONEY

Editor’s note: This editorial is part of a series ogies is likely to accelerate the virtuality of
written by editors and co-authored with a senior transactions, and hence their scale and scope (e.g.,
executive, thought leader, or scholar from a dif- Brynjolfsson & McAfee, 2014; Chuen, 2015), lubri-
ferent field to explore new content areas and cating frictions in the financial system to make “the
grand challenges with the goal of expanding the world go around” more quickly and extensively.
scope, interestingness, and relevance of the work Digital money dematerializes by moving every-
presented in the Academy of Management Jour- day economic transactions—payments, transfers,
nal. The principle is to use the editorial notes as receipts—from the physical to the digital world.
“stage setters” to open up fresh new areas of Although its progress will be evolutionary as the
inquiry for management research. GG technology and its social and economic influences
“Money,” as Liza Minnelli and Joel Grey sing in interact, it is potentially a transformational tech-
the movie Cabaret, “makes the world go around” nology. It allows, for example, people to transact
(Kander & Ebb, 1966). Since gold coins emerged in without the need for a bank account or a credit
Turkey more than 2,500 years ago, money as a card, a significant advantage in some developing
measure and store of value and a medium of ex- countries; it reduces entry costs to provide new
change has been crucial for economic and social opportunities for economic and social entrepre-
development. Commerce relies on the ability of neurship; and it increases social cohesion and gov-
strangers to transact over time and distance, and ernment efficiency through improved tax collec-
money allows them to do so. The forms of money tion and the use of digital remittances. Digital
have changed along with technology. Coins valued money makes transactions faster, cheaper, and
on their precious metal content were replaced by more widespread. It disintermediates, connecting
symbolic base metal and complemented by intrin- people and money more closely. When we use the
sically worthless notes made of paper. As the in- Internet to shop and pay by credit or debit card, we
formation technology revolution progressed, and incur an intermediary cost. When we purchase for-
especially since credit cards were introduced in the eign currency at an airport, we suffer the broad
1960s, financial dealings have become increasingly spreads in exchange rates used to profit the inter-
virtual (Ferguson, 2012). Cash accounts for only mediary. Non-cash transactions almost always re-
7% of economic transactions in the United States. quire the services of a bank or financial services
Trades, loans, and purchases are increasingly being company. Digital money can remove the need for
undertaken digitally, with an estimated 57 billion many of these intermediaries.
credit card transactions undertaken in 2012 (Cap- For individuals, digital money offers the potential
gemini & The Royal Bank of Scotland, 2013). for easier and cheaper access to finance, but raises the
A new technology, digital money, has emerged as specter of reduced privacy and potential insecurity in
a medium of exchange and a measure and store of financial dealings. For organizations, it offers oppor-
value in electronic form. “Digital money” refers to tunities for revenue growth in existing and new mar-
any means of payment that has cash equivalence kets, and reduces the costs of handling cash and of-
but is stored in a purely digital form. It is used in fers efficiencies in managing invoices and receipts
the commercial transactions of goods and services and reducing auditing costs. However, digital money
in a highly connected world where trade is increas- also brings increased uncertainty and complexity into
ingly globalized and where the majority of the the business environment, with doubt over the tech-
world’s population is becoming urbanized. Digital nological choices to be made and lower entry costs
money has been facilitated by use of technologies inviting new business entrants to disrupt the status
such as mobile phones, cloud computing, data ana- quo. For society, it can reduce tax avoidance, aid
lytics, encryption and storage, and near field com- social payments, reduce the health risks of han-
munication technology. Diffusion of these technol- dling germ-carrying cash, and conceivably bring
325
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326 Academy of Management Journal April

billions of previously disenfranchised people and purchase from shops and vending machines. In
into the global financial system, but it poses chal- cases such as public services transport, the move-
lenging questions of balancing freedoms and ment to full digital payment methods reduces the
openness with the need for oversight and regula- inconvenience of queuing for tickets and signifi-
tion. It also brings with it risks and concerns cantly reduces costs for operators. Digital money
about cyber security and electronic crime. also makes it easier to donate to charities, removing
Digital money raises numerous important ques- the need for donors to fill out forms and write
tions for management scholars. What will its im- checks while also reducing administrative costs for
pact be on business growth and competition? the charity. Digital money could be a relevant con-
Which business strategies and models, technolo- text to study transaction cost economics, organiza-
gies and platforms will emerge and be most suc- tional design, and coordination costs.
cessful? What opportunities does it offer for en- The range of digital money uses on mobile
trepreneurship and new models of innovation? devices is likely to increase, but not without con-
What is an appropriate regulatory balance, en- flict, contention, and competition. As digital
couraging private initiative but protecting citi- money involves a wide range of institutions—
zens? How might digital transactions be best ac- including banks and financial institutions, mo-
counted and independently audited? And what bile phone manufacturers and operators, Internet
are its implications for trust between people and service providers, open source communities, and
organizations and within society when identities applications developers—yet involves a few core
are digital and open to fraud? This editorial is not technical standards, it remain a complex, frag-
intended to offer a survey of the state and poten- mented, and rapidly evolving ecosystem. As well
tial of digital money, or provide a comprehensive as the technical issues to be resolved, experi-
research agenda. Instead it aims to highlight the ments are occurring with new business models,
significance of digital money as a transforma- consideration is being given to a variety of over-
tional innovation and the consequences and op- sights by central banking authorities, and there
portunities for management scholarship. are major social issues to be resolved around
digital security and privacy. In such a fluid and
unpredictable context, it is difficult to provide
EXTENT OF USE
authoritative data on the aggregate extent and
Digital money has widespread implications impact of digital money. It is possible, however,
throughout the private and public sector, and for to discuss a number of its platforms and to assess
organizations such as charities. It affects the flows the extent to which nations are prepared for dig-
of transactions in commercial banking and other ital money.
financial services. Business-to-business, business-
to-government, and bank-to-bank transactions are
Platforms
increasingly conducted digitally. It also profoundly
affects the retail and consumer market. Through the The concept of innovation ecosystems helps
development of online shopping with companies analysis of digital money’s evolution. “Innova-
such as Amazon and Alibaba and payment plat- tion ecosystems” have been defined as a network
forms such as PayPal, consumers have become of interconnected organizations structured
comfortable transacting digitally. Many of us have around a focal firm or a platform, incorporating
rapidly become accustomed to shop and pay, and both production- and use-side participants, and
do our banking, online. focusing on the development of new value
The locus of many of these economic transac- through innovation (Adner & Kapoor, 2010; Au-
tions is moving to our smartphone, with the mobile tio & Thomas, 2014). Two examples of such plat-
Internet being the most rapidly expanding area of forms are Apple Pay or Alipay (in China), both
consumer electronics. According to the GSMA, an payment platforms, and bitcoin, a “cryptocur-
association of nearly 800 mobile operators world- rency” based around an open source protocol.
wide, the 2.2 billion mobile Internet subscriptions The digital money platform Apple Pay was
in 2014 will increase to 3.8 billion by 2020 (GSMA, launched in 2014. It embraces a number of indus-
2014: 12). In more and more places around the try technical standards, such as near field com-
world, we can use mobile phones to pay for subway munications, and means to secure sensitive fi-
fares, road tolls, and parking, settle restaurant bills, nancial data. To set up its system, Apple has
2015 Dodgson, Gann, Wladawsky-Berger, Sultan, and George 327

collaborated with credit card companies, banks, tries around the world.1 By examining the institu-
and merchants. Apple Pay will be accepted ini- tional environment, enabling infrastructure, solu-
tially in over 200,000 merchants. The system is tion provisioning, and propensity to adopt, the
based on Apple’s iPhone 6s smartphone and Ap- index defined four major readiness groups: incipi-
ple Watch smartwatch, so the number of operat- ent (30 countries), emerging (20 countries), in tran-
ing connections in the ecosystem is inevitably sition (20 countries), and materially ready (20
limited by their sales. Traditionally a “closed” countries). The latter countries have supportive
company when it comes to sharing technical in- factors in place, such as effective regulatory envi-
formation and opening up its platforms for third- ronments, but have yet to fully develop digital
party development, Apple is publishing its applica- money systems with universal access.2 The incen-
tion programming interface to encourage innovation tives for countries to move up the readiness index
within its developing ecosystem. Similarly, Alipay, a are discussed in a report funded by, among others,
digital wallet model launched earlier in 2004, pres- the World Bank and the Bill & Melinda Gates Foun-
ently does more than $70 billion and 87% of mobile dation, and which argues that “broader access to
retail transactions annually in China (Chuen, 2015). and participation in the financial system can re-
Launched in 2009, bitcoin is a peer-to-peer pay- duce income inequality, accelerate consumption,
ment system and digital cryptocurrency—that is, a increase investments in human capital, and di-
currency not controlled by nations’ central banks. It rectly help poor people manage risk and absorb
is used by several thousand businesses worldwide. financial shocks” (Klapper & Singer, 2014: ii).
Recognized for its advanced cryptography that fa- To illustrate the significance of digital readiness,
the Citi/Imperial College study estimated that a
cilitates safe and comparatively inexpensive trans-
10% increase in digital readiness score and com-
actions, it remains controversial for reasons of its
mensurate increase in adoption could translate to
volatility in exchange rates, absence of oversight in
$1 trillion moving from the informal to the formal
areas such as taxation and consumer protection,
economy, with an associated increase of around
and the opportunities it provides for money laun-
$100 billion in increased tax revenues (Dave et al.,
dering (e.g., Chuen, 2015). The system also has the
2014: 8). The 10% increase would bring an addi-
disadvantage of irreversibility: once a transaction
tional 220 million people into the formal financial
occurs, there is no recourse if a mistake has been
sector, increasing deposits by $80 –100 billion and
made. Inevitably, given the high degree of uncer- loans by $70 –90 billion.
tainty surrounding its path of development, opin-
ions are starkly polarized as to its future. Many
consider the protocols and algorithms underpin- INNOVATION AND ENTREPRENEURSHIP
ning bitcoin, and currencies like it, to be high po- One of the most powerful consequences of the
tential (Ali, Barrdear, Clews, & Southgate, 2014), convergence of today’s digital technology is that
but question the eventual efficacy of its currency it provides a universal platform for innovation,
element. There are, however, estimated to be sev- which, in turn, offers rich research prospects for
eral hundred cryptocurrencies, and some anecdotal management scholars in the areas of innovation
evidence of bitcoin’s popularity in, for example, and entrepreneurship. This applies across all finan-
remitting the pay of foreign guest workers back to cial markets, from commercial banking and finan-
their homes without incurring significant exchange cial services to new retail services assisting con-
rate losses. With the average cost of processing a sumers. There are opportunities, for example, to
payday check at 4 –5% of its value, the opportunity study the diffusion of a significant disruptive
for removing such costs through cryptocurrencies global technology, the emergence of “dominant de-
reveals their potential future attraction. signs” and platforms, the management of risk, the

1
http://icg.citi.com/icg/sa/digital_symposium/docs/
Digital Readiness DigitalMoneyIndex30012014.pdf (accessed February
20, 2015).
Citi and Imperial College London have devel- 2
MasterCard has produced another digital readiness
oped a digital money readiness index (Dave, index, showing similar diversity in national prepared-
Shirvaikar, Baxter, Smilowicz, Thomas, & Vernet, ness: http://mobilereadiness.mastercard.com/the-index/
2014), using publicly available data from 90 coun- (accessed February 20, 2015).
328 Academy of Management Journal April

development of technical standards, and patterns proudly of how, today, by using mobile phones,
of collaboration in R&D and marketing. There is construction workers could instantaneously remit
growing research interest in studying the emer- their pay to relatives without bank accounts. A
gence and dynamics of business and innovation simple code number sent by SMS allowed relatives
ecosystems and the strategic positioning of compet- to collect cash from ATM machines.
itive advantage within them, and digital money Although not uncontroversial, the effect of mi-
provides an opportunity to study this based on crofinancing very small loans to impoverished peo-
different and competing platforms. ple and villages, provided by organizations such as
In contrast with product innovation, with its fo- the Nobel Peace Prize-winning Grameen Bank, is
cus on natural and engineered physical objects and well known (Yunus, 2003). Many of the rural poor
systems, digital money, like all services innovation, are disenfranchised through having no official re-
is characterized by a focus on organizational sys- cord of their existence, such as birth certificates or
tems made up of people, information, and pro- electoral rolls, preventing them from opening bank
cesses. This dematerialization emphasizes even accounts and taking out loans. Possession of a mo-
more the importance of understanding the nature bile phone with a digital identity provides access to
and patterns of consumption. Product innovation is digital money and the opportunity for billions of
commonly associated with investments in R&D to people to join the formal economy for the first time
create new options, prototyping and testing in new (Dodgson, Gann, Wladawsky-Berger, & George,
product development processes to improve func- 2013). Loans and remittances can be made directly
tionality, and manufacturing at scale in automated to individuals, avoiding usurious loan sharks and
factories to reduce costs. In contrast, intangible ser- circumventing corrupt local officials. The issue of
vice innovations such as digital money are less identity is part of the highly germane question for
front-end loaded and more focused on their cre- management scholars of trust.
ation at the point of consumption. The objective is
delivery of positive consumer experiences, collab-
TRUST
oratively developed but often personalized in na-
ture—for example, in the construction of idiosyn- When we use a credit card, we trust our bank or
cratic financial services for individual insurance financial services company to make the required
and investment requirements. The individualized transaction from our account, and the vendor trusts
and immediate experiences that consumers de- that the correct amount will be transferred
mand of digital services in companies such as into their account. Trust is based on the under-
Google, Amazon, and Netflix apply to digital standing that all parties involved in a transaction
money: there are new demands on how transac- will behave in a mutually acceptable manner (Sako,
tions are expected to occur. 1992). There are issues of trust and trustworthiness
Digital money provides opportunities for more in peer-to-peer lending decisions (e.g., Sonenshein,
“inclusive” innovation. Unlike the business mod- Herzenstein, & Dholakia, 2011). In financial trans-
els of large corporations addressing the “bottom of actions, interpersonal trust is often substituted by
the pyramid,” inclusive innovation allows poor trust in the institutions that intermediate those
people and societies facing problems to develop transactions. Absent such institutions from digital
their own solutions. Using the digital infrastruc- transactions, then questions of trust are heightened.
ture, “bottom-up” ideas can emerge from local Cyber crime is already significant, and everyone
entrepreneurship (George, McGahan, & Prabhu, online has, at one stage or another, been exposed
2012). A Nigerian agrichemical company, Notore, to the appropriately offensive-sounding hacking,
for example, is using a digital money platform to phishing, viruses, and worms. According to a 2012
de-risk its supply chain through just-in-time deliv- survey of more than 8,000 people by the U.K. Office
ery of orders from farmers using mobile phones, of National Statistics (ONS), 3% had lost money
reducing costly inventory for distributors and re- while using the Internet (ONS, 2012; in McGuire &
tailers. In an interview with one of the authors, a Dowling, 2013a: 6), while other surveys have found
bank manager from Sampath Bank in Sri Lanka that 5% and 6% of people had suffered financial
observed that, when he joined the bank 30 years loss through using credit or debit cards online (Ip-
ago, customers used to arrive at the bank’s opening sos MORI, 2013; in McGuire & Dowling, 2013a: 27).
at 09:00 a.m. with their packed lunches, knowing In an ONS survey of more than 42,000 people, 56%
their transactions could take all day. He talked reported receiving one or more potentially fraud-
2015 Dodgson, Gann, Wladawsky-Berger, Sultan, and George 329

related communication(s); 16% were offered the consumer markets where ease of digital payments
chance to make an investment with a guaranteed is aided by the melding of different social network
high return; and 15% were offered a loan on “at- platforms. Finding a hotel room on TripAdvisor or
tractive” terms (ONS, 2012; in McGuire & Dowling, Facebook can take you directly to a booking and
2013b: 9). An advantage of digital money transac- payment site, with pre-registered details prevent-
tions is they can have an identifier that makes it ing the need for their repetition. Business-to-busi-
possible to trace how money flows. This can be ness examples include provision of supplier fi-
beneficial, as, for example, it is possible to quickly nance schemes that can be used to assist smaller
recognize fraudulent transactions, and even, businesses manage cash flows and overheads asso-
through early pattern recognition, prevent them ciated with transaction costs. Examples are found
from occurring. But it can also invade privacy, in many sectors, from “shared value” schemes op-
and this accentuates the need for ethical behavior erated by large food manufacturers to subcontrac-
of the service providers. tor payment schemes in construction. These busi-
The potential for fraud without the intermedia- ness models tend to exhibit ease-of-use benefits
tion of well-established and well-regulated institu- for fast and smooth experiences for consumers
tions requires new forms of trust to emerge between and businesses.
people who do not know one another. It is possible Business model innovation is generated by the
to imagine the use of social reputation systems creation of new data about purchasing patterns,
emerging, similar to those denoting a vendor’s trad- transactions, and the flow of money. This can re-
ing history on eBay or user’s online reputation on veal previously unavailable, fine-grained informa-
Airbnb. The approach to trust developed in cryp- tion that can be used to develop new types of ser-
tocurrencies, such as bitcoin, lies in what computer vices for customers in different market segments.
scientists call “distributed authenticity” and bank- Major global banks, for example, seek to innovate
ers call “distributed ledgers.” Essentially, trust lies in transacting digital financial flows across a
in the network of what is called the “block chain” hugely diverse range of retail, business, and gov-
of all previous transactions, with permissions and ernment customers. The extent of the opportunity
authenticity checked by those within the commu- is seen in the case of Citi, where these transactions
nity of users. The relative social and technological amount to $3 trillion a day. This provides an in-
contribution to the construction of trust, and its im- credibly data-rich environment for innovation in
plications for new forms and models of governance which analysis and modeling of digital transactions
(Tihanyi, Graffin, & George, 2014), makes digital and flows is an essential requirement for the devel-
money a context rich for inquiry for strategy scholars. opment of new services. One example is the use of
data analytics and visualization to understand the
flows of digital money in what have become virtual
NEW BUSINESS MODELS
business environments such that third-party audits
Three elements help underpin business model can be carried out to the same exacting standards as
innovations associated with digital money: (1) pur- with traditional payment systems. To illustrate the
suit of efficiency gains by reducing the friction diversity of opportunity, and by way of contrast,
caused in traditional financial transactions, (2) new another example is the provision of payment cards
ways of engaging with customers, and (3) the cre- for sailors in the international merchant navy re-
ation of new businesses based on data gleaned from ducing the need for ships to carry large volumes of
transaction behaviour (George, Haas, & Pentland, cash in different currencies to meet the wage bill.
2014). Improvements in operational efficiency are a
key driver for changes in business models in estab-
BUSINESS COMPETITIVENESS AND GROWTH
lished firms. The novelty is to expose the costs of
traditional forms of transaction and accounting that The development of digital money is character-
can be reduced or eliminated through the introduc- ized by competition between different sectoral in-
tion of digital money. Examples range from differ- terests and technologies. Management scholars
ent forms of e-commerce to reducing the costs of have opportunities to explore and explain the ben-
administering public sector services using online efits of being an incumbent or entrant; first-mover
or mobile payment systems. advantage versus being a fast follower, and the
New business models associated with novel possibilities of open or proprietary approaches to
ways of engaging with customers can be seen in intellectual property. These questions arise in a
330 Academy of Management Journal April

diversity of business contexts, ranging, on the one CONCLUSION

hand, from well-established multinational compa-
Money lubricates economic activity. It is also a
nies for which supply chains provide traditional
deeply sensitive social and cultural issue for soci-
retailing operations in all the major markets of the
ety, organizations, and individuals. Changes in the
world to new “micronationals,” such as entirely
way money is created and used cannot be separated
digitally operated peer-to-peer services. Questions
from its economic, technological, social, political,
arise in all sectors about how industry leadership
cultural, historical, religious, and ethical contexts.
in the area is eroded as more of the economy trans-
Digital money is in its early stages of development,
acts digitally and digital money becomes the norm.
Other implications for competitiveness include and these complex and interrelated contextual fac-
the ways in which businesses manage cash flow, tors will influence its future direction and adop-
overheads, and their reporting and audit require- tion, adding to the unpredictability of its trajectory
ments. These are especially burdensome for small of adoption and influence. Nonetheless, a combi-
businesses, and digitalization can significantly as- nation of globalization, urbanization, and digitali-
sist the efficiency of their managerial and financial zation has seen an irreversible shift in the way
accounting and with compliance requirements. money flows in economic systems. These changes
Digital money and the virtualization of consumer appear to be reshaping traditional financial mar-
purchasing patterns and business transactions kets, such as consumer or retail banking and com-
will also create new opportunities to study rates mercial banking, and financial services such as
of turnover of capital, as well as the role of sav- foreign exchange. They invite a significant manage-
ings and interest, foreign exchange, and treasury ment research agenda, and, while there is still
functions. The reduction in the cost of handling much to be discovered, it is possible to speculate
cash is already estimated to be in the order of on some of the factors that will affect its progress.
$55 billion per year in the United States. The Just as digital technology has not produced the
competitiveness of international business trans- paperless office, digital money is unlikely to com-
actions will also be affected. As the digital money pletely replace existing forms of money. Many
readiness indexes suggest (e.g., Dave et al., 2014), businesses and consumers work and live in a dual
those countries and firms that have capabilities world of physical and virtual interaction and trans-
to transact virtually, with less friction, are likely action. There will be competition but coexistence
to gain a competitive advantage. between existing and new institutions, business
The implications for business competitiveness strategies and models, platforms and technologies,
and the growth of the speed and ease of digital and the study of the dynamics in those relation-
transactions therefore raise numerous research ships offer rich research potential. There will be a
questions about investments in new technologies diversity of approaches, with no single formulas for
and value creation and capture (e.g., Kapoor & Lee, success. As transactions dematerialize and disin-
2013). Businesses continually search for new termediate, the question arises of whom leads and
value-creating opportunities, and digital money takes responsibility in this new world. It is possible
provides a high-potential new source, albeit one to speculate that competitive advantage in digital
that is still in its early stages and high risk. There is money ecosystems will depend on the judicious
much to learn about who manages to appropriate balancing of proprietary positions and openness.
benefit from digital money and why. The growth of Partnerships will be a core competitive tool, with
organizations developing digital money businesses issues of partner selection and relationships to the
provides opportunities for the examination of key fore. The digital money ecosystem will require new
theoretical constructs in strategy, from industrial talent in management, science, and technology,
organization, institutional theory, transaction cost and, as with most emerging innovations, it is likely
economics, and game theory to the resource-based that the organizations that employ multidisci-
view and dynamic capabilities theory. It raises plinary staff, are market facing in orientation, and
questions about organizations’ capacity to adapt to operate with a collaborative and open approach are
disruption, involving their absorptive capacity and likely to be favored. There will be an enormous
learning ability. Answers to these questions in such challenge for regulators, and the most effective of
evolving and uncertain environments are likely to them will be proactive to protect societal inter-
emerge from a combination of scholarly research ests while encouraging entrepreneurship and ex-
engaged with empirical examples from practice. perimentation. If privacy can be protected, the
2015 Dodgson, Gann, Wladawsky-Berger, Sultan, and George 331

data that surrounds digital money provides in- REFERENCES

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University of Queensland
Ferguson, N. 2012. The ascent of money: A financial
David Gann history of the world. New York, NY: Penguin.
Imperial College London George, G. 2014. Rethinking management scholarship.
Academy of Management Journal, 57: 1– 6.
Irving Wladawsky-Berger
George, G., Haas, M. R., & Pentland, A. 2014. Big data and
IBM
management. Academy of Management Journal,
Naveed Sultan 57: 321–325.
Citi George, G., McGahan, A. M., & Prabhu, J. 2012. Innova-
tion for inclusive growth: Towards a theoretical
Gerard George framework and a research agenda. Journal of Man-
Singapore Management University agement Studies, 49: 661– 683.
332 Academy of Management Journal April

GSMA. 2014. Digital inclusion report 2014. London, UK: Yunus, M. 2003. Banker to the poor: Micro-lending and
GSMA. http://www.gsma.com/mobilefordevelop- the battle against world poverty (rev. and updated
ment/wp-content/uploads/2014/11/GSMA_Digital- ed.). New York, NY: Public Affairs.
Inclusion-Report_Web_Singles_2.pdf (accessed Feb-
ruary 10, 2015).
Ipsos, MORI. 2013. Annex B: A survey of public attitudes
to internet security—summary of key findings. In
M.McGuire & S.Dowling, Cyber crime: A review of
Mark Dodgson is professor of innovation management
the evidence—Summary of key findings and im-
at the University of Queensland Business School. He
plications (Home Office research report 75): 23–29.
has been non-executive director of Nestlé Australia
London, UK: Home Office.
and a member of the advisory board of Thiess Pty Ltd.
Kander, J. (Composer), & Ebb, F. (Lyricist). 1966. The He has advised numerous companies and governments
money song (recorded by J. Grey & L. Minelli). On throughout Europe, Asia, and North and South Amer-
Cabaret. New York, NY: ABC Records. ica and has researched and taught innovation in more
Kapoor, R., & Lee, J. M. 2013. Coordinating and compet- than 60 countries.
ing in ecosystems: How organizational forms shape
David Gann is vice president, leading development
new technology investments. Strategic Manage-
and innovation, at Imperial College and holds the
ment Journal, 34: 274 –296.
Chair in Technology and Innovation and Management
Klapper, L., & Singer, D. 2014. The opportunities of digi- at Imperial College Business School. He co-founded
tizing payments. Washington, D.C.: World Bank. Imperial College London’s Digital Economy Lab and
http://www-wds.worldbank.org/external/default/ the Digital City Exchange— cross-faculty research on
WDSContentServer/WDSP/IB/2014/10/27/000 systems and services innovation for the digital econ-
456286_20141027124326/Rendered/PDF/90305 omy. He is chairman of the Smart London Board, re-
0WP0REPLACEMENT0Box385358B00PUBLIC0.pdf porting to the Mayor of London; a member of the
(accessed February 10, 2015). London Enterprise Panel’s Digital, Creative, Science &
McGuire, M., & Dowling, S. 2013a. Summary of key find- Technology Working Group; a member of the U.K.
ings and implications. In Cyber crime: A review of Information Economy Council; and a trustee and board
the evidence (Home Office research report 75). Lon- member of the Institute for Sustainability.
don, UK: Home Office. https://www.gov.uk/govern-
ment/uploads/system/uploads/attachment_data/ Irving Wladawsky-Berger retired from IBM after a 37-
file/246749/horr75-summary.pdf (accessed February year career with the company, where his primary focus
10, 2015). was on innovation and technical strategy. He led a
number of IBM’s companywide initiatives, including
McGuire, M., & Dowling, S. 2013b. Chapter 2: Cyber-en- the Internet and e-business, supercomputing, and Li-
abled crimes—fraud and theft. In Cyber crime: A
nux. As Chairman Emeritus, IBM Academy of Technol-
review of the evidence (Home Office research report
ogy, he continues to participate in a number of IBM’s
75). London, UK: Home Office. https://www.gov.uk/
technical strategy and innovation initiatives. Irving
government/uploads/system/uploads/attachment_
joined Citi as a strategic advisor working on innovation
data/file/248621/horr75-chap2.pdf (accessed February
and technology initiatives, such as the transition to
10, 2015).
mobile digital money and payments. He is visiting
Office of National Statistics. 2012. Crime survey for lecturer at MIT’s Sloan School of Management and
England and Wales, 2011/12 (computer file). New- Engineering Systems Division, and was co-chair of
port, UK: ONS. http://www.ons.gov.uk/ons/rel/ President Clinton’s Information Technology Advisory
crime-stats/crime-statistics/focus-on-property- Committee, as well as a founding member of the Com-
crime--2011-12/index.html (accessed February 10, puter Sciences and Telecommunications Board of the
2015). National Research Council. He is a fellow of the Amer-
Sako, M. 1992. Prices, quality, and trust. Cambridge, ican Academy of Arts and Sciences.
UK: Cambridge University Press.
Naveed Sultan is Global Head of Treasury and Trade
Sonenshein, S., Herzenstein, M., & Dholakia, U. M. 2011. Solutions in Citi’s Institutional Clients Group (ICG).
How accounts shape lending decisions through foster- With over 25 years of institutional banking experience,
ing perceived trustworthiness. Organizational Be- Mr Sultan has been at Citi for more than 20 years, and
havior and Human Decision Processes, 115: 69 – 84. is currently responsible for the business management
Tihanyi, L., Graffin, S., & George, G. 2014. Rethinking of Treasury and Trade Solutions globally – one of ICG’s
governance in management research. Academy of largest global businesses with revenues around $8
Management Journal, 57: 1535–1543. billion.
2015 Dodgson, Gann, Wladawsky-Berger, Sultan, and George 333

Mr Sultan has served as a director on the board of LCH Gerard George is dean and professor of innovation and
Clearnet, Citibank A.S (Turkey) and Citibank Europe entrepreneurship at the Lee Kong Chian School of
Plc. He is also a member of the Operating and Manage- Business at Singapore Management University. He also
ment Committees of the Institutional Clients Group. He serves as the editor of the Academy of Management
is a member of Citi’s Innovation Council and chairs the Journal.
Global Innovation Council for Treasury and Trade
Solutions.

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