Data-Driven Value Creation and Appropriation in Regulated Markets: A Study of UK Fintechs



In this inductive qualitative study, we explore how new ventures create and appropriate value in regulated, data-intensive markets by analyzing the strategies and challenges of UK fintechs at market entry and growth. Our findings highlight the specific challenges of the B2C model, where obstacles in data access force B2C startups to pivot from B2C to B2B. We also document the  tensions between value creation and appropriation in data intensive and regulated contexts, which depend on new ventures' model (B2C or B2B) and their target clients. More specifically, we identify the different  types of clients in B2B and their associated trade-offs, especially in terms of their advantages and disadvantages regarding data scope and strategic growth potential. This study contributes to our understanding of data as a different resource and factor for competitive advantage, the conditions and challenges in value creation and appropriation, and strategic growth potential of different models in the context of data-intensive and regulated markets.