On Cultural Determinants of FinTech Innovation: The Role of Japanese Knowledge Management in Rakuten FinTech

Abstract

The rapid development of financial technologies has increased the importance of innovation as a main factor in gaining competitive advantage. While technological and regulatory factors are widely discussed, the role of cultural determinants remains relatively underexplored. This paper aims to examine how traditional Japanese business culture influences innovation in FinTech, focusing on how it shapes innovation processes, what mechanisms determine the balance between incremental and disruptive innovation, and how Rakuten compares with selected domestic and international organisations. The study applies a qualitative case study approach combined with comparative analysis. The findings indicate that cultural practices support stability and trust, but tend to favour incremental over radical innovation. The study contributes to the literature by linking cultural mechanisms with innovation outcomes in FinTech. Its originality lies in combining a cultural and knowledge management perspective with a corporate-level case analysis. The study is limited by its reliance on publicly available data.