THE EFFECT OF INNOVATION PRACTICES ON MARKET PERFORMANCE IN THE BANKING SECTOR: EMPIRICAL STUDY OF 10 SELECTED BANKS IN GHANA.
Competition within the banking industry intensifies daily due to globalization, deregulation, increasing global and domestic competition, new technologies, and e-commerce. As a result, individuals and companies are beginning to evaluate and apply innovative strategies and entrepreneurial abilities to gain a competitive advantage. This paper aims to examine the impact of innovation on market performance in the Ghanaian banking sector. Self-administered questionnaires were used to collect the data from customers of 10 selected banks in Ghana. Out of the 1000 questionnaires, 712 were valid, accounting for 71.2% of the actual response rate, and regression analysis was adopted to analyze the final data. The result demonstrated a positive and significant relationship between innovation practices and market performance in the banking sector. The study reveals that service, process, marketing, and administrative innovation are essential factors affecting market performance in the banking sector. Therefore, banks should focus on mobilizing resources to ensure improvement in service delivery, service processes, marketing of service, and organizational structure.
Keywords: Innovation, Innovation management, Market performance, Ghana, Banking sector.
