Effect of Innovation Capability on Organisational Performance of Banks: An Empirical Study
Shaik Kamruddin (Assistant Professor, Department of Management Studies, Maulana Azad National Urdu University, Gachibowli, Hyderabad, India) and Misab P. T.*(Ph.D. Scholar, Department of Management Studies, Maulana Azad National Urdu University, Gachibowli, Hyderabad, India) *Corresponding author's Email
Kamruddin, Shaik and Misab, P. T. (2019), “Effect of Innovation Capability on Organisational Performance of Banks: An Empirical Study”, MERC Global’s International Journal of Management, Vol. 7, Special Issue 1, pp. 82-90.
Submitted: March 04, 2019, Revision received: March 28, 2019, Accepted: April 14, 2019
Innovation capabilities have become the focus of attention from institutions, governments, and firms looking for, bringing changes and something new or improved products and services. Many researchers have tried to seek the role and importance of innovation capabilities in the enhancement of performance and competitive advantage. This study aims to explore the effect of four innovation capabilities, namely product innovation, process innovation, marketing innovation and organisational innovation in the organisational performance of banking institutions. Based on Resource Based View (RBV) of the firm, this study postulate that performance of banks can be explained by the extent of capability possessed by banks to deploy their resources to bring in innovations in the form of product, process, organisational structure or marketing strategy. The data was collected through a stratified random sampling method from 351 managerial staffs of banks in India. The findings of the study have supported all of the hypotheses formulated by the researcher and it shows that the innovation capabilities have a significant and positive effect on organisational performance of banks. The theoretical contributions and suggestions for stakeholder of banks and implications for future research are also discussed.
Innovation Capability, Resource Based View, Banking Industry, Organisational Performance.
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