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The Formation of Institutional Demands: A Study of Regulatory Initiatives on Financial Robo-Advising
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies, Uppsala, Sweden.ORCID iD: 0000-0002-4536-0259
2022 (English)Manuscript (preprint) (Other academic)
Abstract [en]

Financial robo-advising and knowledge on how regulatory initiatives influence organisations are two areas that are not very well understood. We know that institutional demands, such as regulations, can influence organisations, as discussed by DiMaggio and Powell (1983), but there is a dearth of research on how. In particular, how regulatory initiatives related to a new emerging phenomenon, such as financial robo-advising, influence organisations. Even before specific regulations have been adopted, regulatory initiatives manifested in texts can influence organisations (see Cooren, 2004; Fairclough, 1992; Phillips et al., 2004; Vaara et al., 2010). The purpose of this paper is to study how institutional demands, manifested as regulatory initiatives, influence financial robo-advising. To do so, I conducted a qualitative study where I critically analysed potential effects, based on four regulatory texts on financial robo-advising. These texts include regulatory documents by the financial regulatory bodies in Sweden and in EU that have been produced on this topic. The study finds that a new technology such as financial robo-advising is strongly influenced by the regulatory discourse and how both financial advising and financial robo-advising are defined. I show how the new form of financial advising, including financial robo-advising, comes into being, by the interplay of text and talks between the regulator and involved stakeholders. The study also finds that financial robo-advisors can be viewed as intermediators of hard information, even though the advice may not be interpreted or viewed as such.

Place, publisher, year, edition, pages
2022. , p. 32
Keywords [en]
Financial robo-advising, Institutional demands, Regulatory initiatives, Hard and soft information
National Category
Business Administration
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:oru:diva-117899OAI: oai:DiVA.org:oru-117899DiVA, id: diva2:1922708
Available from: 2024-12-19 Created: 2024-12-19 Last updated: 2025-01-24Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
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  • Other locale
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Output format
  • html
  • text
  • asciidoc
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