Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v10y2020i2p2158244020920892.html
   My bibliography  Save this article

Innovation Capabilities, Innovation Types, and Firm Performance: Evidence From the Banking Sector of Ghana

Author

Listed:
  • Kong YuSheng
  • Masud Ibrahim
Abstract
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.

Suggested Citation

  • Kong YuSheng & Masud Ibrahim, 2020. "Innovation Capabilities, Innovation Types, and Firm Performance: Evidence From the Banking Sector of Ghana," SAGE Open, , vol. 10(2), pages 21582440209, May.
    • Handle: RePEc:sae:sagope:v:10:y:2020:i:2:p:2158244020920892
    DOI: 10.1177/2158244020920892
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2158244020920892
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2158244020920892?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yilmaz, Cengiz & Alpkan, Lutfihak & Ergun, Ercan, 2005. "Cultural determinants of customer- and learning-oriented value systems and their joint effects on firm performance," Journal of Business Research, Elsevier, vol. 58(10), pages 1340-1352, October.
    2. Beck, Thorsten & Chen, Tao & Lin, Chen & Song, Frank M., 2016. "Financial innovation: The bright and the dark sides," Journal of Banking & Finance, Elsevier, vol. 72(C), pages 28-51.
    3. Mary M. Crossan & Marina Apaydin, 2010. "A Multi‐Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1154-1191, September.
    4. Hee‐Jae Cho & Vladimir Pucik, 2005. "Relationship between innovativeness, quality, growth, profitability, and market value," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 555-575, June.
    5. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    6. Gopalakrishnan, S. & Damanpour, F., 1997. "A review of innovation research in economics, sociology and technology management," Omega, Elsevier, vol. 25(1), pages 15-28, February.
    7. Ulrich Lichtenthaler, 2020. "Agile Innovation: The Complementarity of Design Thinking and Lean Startup," International Journal of Service Science, Management, Engineering, and Technology (IJSSMET), IGI Global, vol. 11(1), pages 157-167, January.
    8. Syed Shah Alam & Vijayesvaran Arumugam & Noor Gani Mohd Nor & Pushpa Kaliappan & Lee Sze Fang, 2013. "Relationships between Innovation Capabilities, Business Performance, Marketing Performance and Financial Performance: A Literature Review," Business and Management Horizons, Macrothink Institute, vol. 1(1), pages 59-73, June.
    9. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    10. Benn Lawson & Danny Samson, 2001. "Developing Innovation Capability In Organisations: A Dynamic Capabilities Approach," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 377-400.
    11. Alfonso Expósito & Juan A. Sanchis-Llopis, 2019. "The relationship between types of innovation and SMEs’ performance: a multi-dimensional empirical assessment," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 115-135, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deborah Terdoo Alabar & Prof. Timothy T. Alabar, 2023. "Examining the Moderating Effect of Knowledge Sharing in the Relationship between Innovation Management Dimensions and Organizational Sustainability of Deposit Money Banks in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(8), pages 20-31, August.
    2. Bünyamin Yasin Çakmak & Büşra Yiğit, 2024. "Where Should a New Graduate Start? A Multi-Source Evaluation of the Banking Sector Business Analyst Signals in an Emerging Economy," Istanbul Business Research, Istanbul University Business School, vol. 53(1), pages 61-80, April.
    3. Vilay Saythongkeo & Vinh D. Le & Lobel Trong Thuy Tran, 2022. "Leadership Styles and Innovation Performance: The Role of Coopetition Capability and In-Learning in Financial Service Firms," SAGE Open, , vol. 12(2), pages 21582440221, May.
    4. Nattarinee Denlertchaikul & Pattanaporn Chatjuthamard & Pornsit Jiraporn & Piyachart Phiromswad, 2022. "The Interaction Effect of Text-Based Corporate Innovation and Economic Policy Uncertainty on Firm Performance," SAGE Open, , vol. 12(4), pages 21582440221, November.
    5. Chijioke Nwachukwu & Hieu Minh Vu, 2022. "Service Innovation, Marketing Innovation and Customer Satisfaction: Moderating Role of Competitive Intensity," SAGE Open, , vol. 12(2), pages 21582440221, April.
    6. Derya Çelik & Ülkü Uzunçarşılı, 2023. "Is the Effect of Organizational Ambidexterity and Technological Innovation Capability on Firm Performance Mediated by Competitive Advantage? An Empirical Research on Turkish Manufacturing and Service ," SAGE Open, , vol. 13(4), pages 21582440231, November.
    7. Xiaoli Wang & Yun Liu & Lingdi Chen & Yifan Zhang, 2022. "Correlation Monitoring Method and model of Science-Technology-Industry in the AI Field: A Case of the Neural Network," SAGE Open, , vol. 12(4), pages 21582440221, December.
    8. Costantiello, Alberto & Laureti, Lucio & Leogrande, Angelo, 2022. "Marketing and Organizational Innovations in Europe," MPRA Paper 114121, University Library of Munich, Germany.
    9. Omrane, Amina, 2022. "The main determinants and effects of product innovation: An exploratory study on the pastry companies of the region of Sfax (in Tunisia)," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    10. Amare Abawa Esubalew & Sunday Abayomi Adebisi, 2024. "Entrepreneurs' competency, marketing innovation, and enterprise growth: uncovering the mediating role of marketing innovation," Future Business Journal, Springer, vol. 10(1), pages 1-12, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rubio-Andrés, Mercedes & Ramos-González, Mª del Mar & Sastre-Castillo, Miguel Ángel & Gutiérrez-Broncano, Santiago, 2023. "Stakeholder pressure and innovation capacity of SMEs in the COVID-19 pandemic: Mediating and multigroup analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    2. Omrane, Amina, 2022. "The main determinants and effects of product innovation: An exploratory study on the pastry companies of the region of Sfax (in Tunisia)," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    3. Marlenne G. Velazquez-Cazares & Anna M. Gil-Lafuente & Ernesto Leon-Castro & Fabio Blanco-Mesa, 2021. "Innovation capabilities measurement using fuzzy methodologies: a Colombian SMEs case," Computational and Mathematical Organization Theory, Springer, vol. 27(4), pages 384-413, December.
    4. Arranz, N. & Arroyabe, M.F. & Li, Jun & de Arroyabe, J.C. Fernandez, 2019. "An integrated model of organisational innovation and firm performance: Generation, persistence and complementarity," Journal of Business Research, Elsevier, vol. 105(C), pages 270-282.
    5. Rubén Martínez-Alonso & María J. Martínez-Romero & Alfonso A. Rojo-Ramírez, 2019. "Examining the Impact of Innovation Forms on Sustainable Economic Performance: The Influence of Family Management," Sustainability, MDPI, vol. 11(21), pages 1-22, November.
    6. Jalal Rajeh Hanaysha & Mohammed Emad Al-Shaikh & Shanmugan Joghee & Haitham M. Alzoubi, 2022. "Impact of Innovation Capabilities on Business Sustainability in Small and Medium Enterprises," FIIB Business Review, , vol. 11(1), pages 67-78, March.
    7. Gomes, Giancarlo & Seman, Laio Oriel & De Montreuil Carmona, Linda Jessica, 2022. "Industry does matter: Analysing innovation, firm performance and organisational learning heterogeneities on Brazilian manufacturing sectors," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 544-555.
    8. Frank, Alejandro Germán & Cortimiglia, Marcelo Nogueira & Ribeiro, José Luis Duarte & Oliveira, Lindomar Subtil de, 2016. "The effect of innovation activities on innovation outputs in the Brazilian industry: Market-orientation vs. technology-acquisition strategies," Research Policy, Elsevier, vol. 45(3), pages 577-592.
    9. Heredia Pérez, Jorge A. & Geldes, Cristian & Kunc, Martin H. & Flores, Alejandro, 2019. "New approach to the innovation process in emerging economies: The manufacturing sector case in Chile and Peru," Technovation, Elsevier, vol. 79(C), pages 35-55.
    10. Naveed Mushtaq & Wong Wai Peng, 2020. "Can TQM Act as Stimulus to Elevate Firms’ Innovation Performance?: An Empirical Evidence From the Manufacturing Sector of Pakistan," SAGE Open, , vol. 10(4), pages 21582440209, November.
    11. Mary Beth Rousseau & Blake D. Mathias & Laura T. Madden & T. Russell Crook, 2016. "Innovation, Firm Performance, And Appropriation: A Meta-Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-29, April.
    12. Young Sik Cho & Kevin Linderman, 2020. "Resource-Based Product and Process Innovation Model: Theory Development and Empirical Validation," Sustainability, MDPI, vol. 12(3), pages 1-23, January.
    13. Rezart Prifti & Genc Alimehmeti, 2017. "Market orientation, innovation, and firm performance—an analysis of Albanian firms," Journal of Innovation and Entrepreneurship, Springer, vol. 6(1), pages 1-19, December.
    14. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    15. Heira Georgina Valdez-Bocanegra & Gonzalo Maldonado-Guzmán & Carmen Castrejón-Mata, 2020. "The Entrepreneurial Orientation and its Impact on Competitiveness and Growth: Empirical Evidence in the State of Aguascalientes in Mexico," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(3), pages 1-6.
    16. Manrique Hernández-Ramírez & Ronald Mora-Esquivel & Juan Carlos Leiva, 2022. "Orientación emprendedora y desempeno innovador en mipymes. El rol moderador de la orientación estratégica," Estudios Gerenciales, Universidad Icesi, vol. 38(162), pages 95-108, March.
    17. Dimitrios Kafetzopoulos & Evangelos Psomas, 2016. "ORGANISATIONAL LEARNING, NON-TECHNICAL INNOVATION AND CUSTOMER SATISFACTION OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, April.
    18. Georgios Giotis & Evangelia Papadionysiou, 2022. "The Role of Managerial and Technological Innovations in the Tourism Industry: A Review of the Empirical Literature," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    19. Graeme Joseph Allen, 2022. "Concepturealize™: a new contribution to generate real-needs-focussed, user-centred, lean business models," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-33, December.
    20. Hervas-Oliver, Jose-Luis & Sempere-Ripoll, Francisca & Boronat-Moll, Carles, 2012. "Process innovation objectives and management complementarities: patterns, drivers, co-adoption and performance effects," MERIT Working Papers 2012-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:10:y:2020:i:2:p:2158244020920892. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.