Linking Service Innovation to Organisational Performance

Abstract

Banks are leveraging on innovation to address the major concerns of their employees including improvements in service delivery, operational efficiency, and enhancing the speed of transactions. The purpose for this study was to explore the mediating role of job performance and job satisfaction in the relationship between service innovation and organisational performance. Data for the study was obtained from 250 bank employees in Ghana through structured questionnaire. The PLS-SEM was the main analytical tool used to analyse the research findings. Findings from this study revealed a positive and significant relationship between service innovation and organizational performance. Additionally, the study revealed that employee job satisfaction and productivity positively influence organisational performance. The study further revealed a mediation possibility for job satisfaction and employee productivity in the relationship between service innovation and organisational performance. The implications as well as the theoretical contributions of this study are discussed.