Exploring the impact of network brokerage behavior in mutual fund retail markets

Purpose: This study advances network brokerage theory by examining both benefits-driven and altruistic brokerage behaviors within the mutual fund retail markets of emerging economies. Design/methodology/approach: Using a methodological combination of netnographic observations and in-depth interviews with fund investors, social influencers, sales agents and staffs from do-it-yourself (DIY) investment platforms, it uncovers the digital evolution of the mutual fund industry. Findings: Our findings illuminate a significant pivot from traditional retail channels to third-party DIY investment platforms, a change accelerated by the recent pandemic. This shift underscores a critical theoretical extension by spotlighting the altruistic actions of social influencers, or key opinion leaders (KOLs), challenging the prevalent focus on solely benefits-driven motives in network brokerage literature. Furthermore, the study reveals a diminishing significance of arbitrage network brokering amidst the industry’s digital overhaul. Originality/value: Concluding with an insightful discussion on its implications to policymakers and practitioners and acknowledging potential limitations, this research offers valuable perspectives for understanding the dynamics of network brokerage in the context of digital transformation within consumer financial markets.