article · SAGE Open
This study investigated how innovation adoption affects the performance of banks in Ghana. Data was collected from 450 bank employees and customers in the Kumasi metropolitan area, and analysed using exploratory factor analysis, confirmatory factor analysis, and structural equation modelling. The research identified organisational, product, process, and marketing innovations as key dimensions contributing to bank innovation. Findings showed a direct and positive relationship between product, marketing, and organisational innovations and bank performance. Furthermore, innovation capability was positively linked to all four innovation dimensions. The study also revealed a significant positive relationship between market, process, and product innovations and overall firm performance, suggesting that selecting appropriate innovation types can boost bank performance and customer satisfaction.
Understanding how different types of innovation impact bank performance is vital for financial institutions operating in competitive markets. This research offers practical insights for banks to strategically implement innovations, potentially leading to improved services, greater customer satisfaction, and stronger financial health in an emerging market context.
This applied research provides actionable insights for bank executives, strategists, and managers. By understanding which innovation types (organisational, product, process, marketing) most effectively drive performance and customer satisfaction, banks can make informed strategic decisions. The findings are near-market, offering guidance for immediate implementation in developing innovation strategies and improving operational outcomes within the banking sector.
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Innovation is considered a key driver for long-term success of firms in today’s competitive markets. This study explored the effect of innovation adoption on performance of banks in Ghana. Data for the study were obtained from 450 respondents comprising bank employees and customers in the Kumasi metropolitan area in Ghana. An exploratory factor analysis, confirmatory factor analysis, and structural equation modeling were used to analyze the data via SmartPLS 3 and SPSS V.22. Findings from this study revealed that the innovation dimensions that contribute to bank innovation are organizational, product, process, and marketing innovations. The study further revealed a direct and positive relationship between innovation dimensions (product, marketing, and organizational innovations) and bank performance. In addition, findings from this study showed a positive relationship between innovation capability and the four dimensions of innovation (organizational, product, process, and market innovations). Also, the findings revealed a significant and positive relationship between the dimensions of innovation (market, process, and product innovations) and firm performance. The practical implication is that, choosing the appropriate innovation types can enhance bank performance as well as satisfy customer needs. This study extends the literature on innovation adoption and organizational performance in the financial services from an emerging market context.
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DOI: 10.1177/2158244020920892
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