Service Innovation and Organizational Success of Commercial Banks in Port Harcourt
Keywords:
Service Innovation, Mobile Apps, ATM, Productivity, Customer Satisfaction, TAMAbstract
The aim of study was to evaluate the relationship between service innovation and organizational success of commercial banks in Port Harcourt. The specific objectives are to determine the connection between mobile Apps and ATM and organizational success of commercial banks in Port Harcourt. The study selected five new generational banks, and conveniently visited 3 branches of each of the banks with 10 copies of closed-ended questionnaire, which amounted 150 samples; and upon data retrieval and clean-up, 128 responses wee fit for the analysis. Spearman’s rank order correlation coefficient was used for the analysis, and the results found a significant relationship between service innovation and organizational success of commercial banks in Port Harcourt, with highest effect between ATM and customer satisfaction. The study among others suggested that based on the concept of service dominant-logic, customer have become one of the most valuable resource that organizations can not just overlook; that is, they must try as much as they can at all times, seek customers’ opinions during service delivery decisions or decisions that will aid boost customer experiences.
Downloads
References
Adelowo, S. A. & Mohammed, E. A. (2010). Challenges of Automated Teller Machine (ATM) Usage and Fraud Occurrences in Nigeria – A Case Study of Selected Banks in Minna Metropolis. Journal of Internet Banking and Commerce, 15, 2, 2-10. http://www.arraydev.com/commerce/jibc/
Agarwal, S., Krishna, E. M. & Dev, C. S. (2003). Market Orientation and Performance in Service Firms: Role of Innovation. Journal of Services Marketing, 17, 1, 68-82.
Ajalie, S. N. (2017). Effect of Employee Motivation on Organizational Productivity (A Study of May & Baker Plc. Ota, Ogun State, Nigeria). Being a Master’s Thesis Submitted to the Department of Business Management, College of Development Studies, Covenant University, Ota. In Partial Fulfillment of the Requirement for the Award of Master’s Degree (M.Sc.) in Business Administration.
Alex, A. K. (2014). The Impact of e-Banking on Customer Service and Profitability of Banks in Ghana. Global Journal of Commerce and Management Perspective, 3, 1, 61-65.
Anurag, S, Tyagi, R. & Raddi, S (2009). Mobile Payment 2.0: The Next-Generation Model,” in HSBC”s Guide to cash, Supply Chain and Treasury Management in Asia Pacific.Ed.178-183.
Awais, A. T. S. (2011). Academic Publications on Innovation Management in Banks (1998–2008): A research note. Innovation, 13, 2, 236-260.
Ayhan, K., Yaşar, Ö. & Muhammet, R. Y. (2017). The Effect of Innovation Activities on Organizational Performance: a Research on Hotel Businesses. Journal of Recreation and Tourism Research, 4, 1, 49-59.
Bhatti, K. K. & Qureshi, T. M. (2007). Impact of Employee Participation on Job Satisfaction, Employee Commitment and Employee Productivity. International Review of Business Research, 3, 54-68.
Blundell, R., Griffiths, R. & Reenen. J. V. (1999). Market Share, Market Value and Innovation in a Panel of British Manufacturing Firms. Rev. Econom. Stud, 66, 3, 529-554.
Berry, L. L., Shankar, V., Parish, J. T., Cadwallader, S. & Dotzel, T. (2006). Creating New Markets through Service Innovation. Sloan Management Review, 47, 2, 56-63.
Cefis, E. & Marsili, O. (2005). A Matter of Life and Death: Innovation and Firm Survival. Industry Corporate Change, 14, 6, 1167-1192.
Charles, M. (2014). Customers Satisfaction with ATM Banking in Malawi. African Journal of Business Management, 8, 7, 218-227.
Cheng, D., Liu, G. & Qian, C. (2008). On Determinants of User Acceptance of Internet Banking: A Theoretical Framework and Empirical Study. In Advanced Management of Information for Globalized Enterprises, September. AMIGE 2008. IEEE Symposium on (pp. 1-5). https://doi.org/10.1109/AMIGE.2008.ECP.20
Cheung, C. M. & Lee, M. K. (2005). Consumer Satisfaction with Internet Shopping: a Research Framework and Propositions for Future Research. In Proceedings of the7th international conference on Electronic commerce, August, 327-334. https://doi.org/10.1145/1089551.1089612
Czarnitzki, D. & Kraft, K. (2004). Innovation Indicators and Corporate Credit Ratings: Evidence from German Firms. Econom. Lett, 82, 3,377-384.
Davis, F. D. (1985). A Technology Acceptance Model for Empirically Testing New End-User Information Systems: Theory and Results (Doctoral dissertation), Massachusetts Institute of Technology.
Den Hertog, P. (2000). Knowledge-Intensive Business Services as Co-Producers of Innovation. International Journal of Innovation Management, 4, 4, 491-528.
Durst, S., Mention, A. L. & Poutanen, P. (2015). Service Innovation and its Impact: What do we know about? Investigacione Europeas de Dirección y Economía de la Empresa, 21, 2, 65-72.
Enyonam, A. A-N. (2011).Effect of Customer Service on Customer Satisfaction, a Case Study of Fidelity Bank, Adum, Kumasi. A Thesis Submitted To the Institute Of Distance Learning, Kwame Nkrumah University of Science and Technology in Partial Fulfillment of the Requirements for the Degree of Commonwealth Executive Masters of Business Administration.
Gallouj, F. (2002). Innovation in Services and the Attendant old and new Myths. The Journal of Socio-Economics, 31, 2, 137-154.
Gallouj, F. & Windrum, P. (2009). Services and Services Innovation. Journal of Evolutionary Economics, 19, 2, 141.
Geroski, P., Machin, S. & van Reenen. J. (1993). The Profitability of Innovating Firms. RAND J. Econom., 24, 2, 198-211.
Gianni, F. & Pier, L. P. (2015). An Analysis of Features and Tendencies in Mobile Banking Apps. The 12th International Conference on Mobile Systems and Pervasive Computing (MobiSPC). Procedia Computer Science, 56, 26 – 33.
Grönroos, C. (2007). Service Management and Marketing (3rd ed.). Chichester: John Wiley.
B. H. (2000). Innovation and Market Value. R. Barro, G. Mason, M. O’Mahony, eds. Productivity, Innovation and Economic Performance. Cambridge University Press, Cambridge, UK, 177-198.
Hong, T. L., Cheong, C. B.& Rizal, H. S. (2016). Service Innovation in Malaysian Banking Industry towards Sustainable Competitive Advantage through Environmentally and Socially Practices. Procedia-Social and Behavioral Sciences, 224, 52-59.
Hussein, M. A. & Richard, B. N. (2017). Effect of Automated Teller Machines Usage on Operational Performance of Commercial Banks in Nakuru County, Kenya. International Journal of Economics, Finance and Management Sciences, 5, 3, 62-167. doi: 10.11648/j.ijefm.20170503.14
Ilieska,K. (2009). Services Marketing. Bitola.
Julia, K. & Khadija, K. (2020). Automated Teller Machine (ATM). Investopedia-Personal Finance.
Katono, I. W. (2011). Student Evaluation of e-Service Quality Criteria in Uganda: The Case of Automatic Teller Machines. International Journal of Emerging Markets, 6, 3, 200-216.http://doi.org/10.1108/17468801111144049
Khadka, K. & Maharjan, S. (2017). Customer Satisfaction and Customer Loyalty. Master’s Thesis, Centria University of Applied Sciences, Business Management, Lahti, Finland.
Khaled, A., Anwar, Al-G. & Ameer, S. K. R. (2019). The Effect of Mobile Banking Application on Customer Interaction in the Jordanian Banking Industry. International Journal of Interactive Mobile Technologies (iJIM), 13, 2, 37-49. https://doi.org/10.3991/ijim.v13i02.9262
Kombe,S. & Wafula,M. (2015). Effects of Internet Banking on the Financial Performance of Commercial Banks in Kenya a Case of Kenya Commercial Bank. International Journal of Scientific and Research Publications, 5.Retrieved from http://www.ijsrp.org/research-paper-0515/ijsrp-p4185.pdf
Mairesse, J. & Mohnen, P. (2003) R&D and Productivity: a Re-Examination in Light of the Innovation Surveys. DRUID Summer Conference, 12, 14. Copenhagen.
Miles, I. (2005). Innovation in Services. The Oxford handbook of innovation (Vol. 16) Oxford: Oxford University Press.
Mohammad, R. M., Mehran, R. & Manouchehr, A. (2015).Identification of Service Innovation Dimensions in Service Organizations. International Journal of Management, Accounting and Economics, 2, 7, 737-748.
Morrar, R. (2014). Innovation in Services: A Literature Review. Technology Innovation Management Review, 4, 4, 6-14.http://timreview.ca/article/780
Mosabber, Md. H. (2006). Understanding of ATM (Automated Teller Machine) in Bangladesh. A Thesis Submitted to the Department of Computer Science and Engineering of BRAC University. In partial fulfillment of the requirements for the degree Of Bachelor of Computer Science and Engineering.
Muhammad, I. H. &Muhammad, U. A. (2018). Service Innovation and Service Innovation Performance: A Study of Banking Services. Pakistan Journal of Commerce and Social Sciences, 12, 2, 670-694
Mwange, J. (2011). The Impact of Mobile Banking on Financial Performance of Commercial Banks in Kenya. University of Niarobi. Retrieved from https://chss.uonbi.ac.ke/sites/default/files/chss/JOHNSON%20AMUGONGO%20MWANGE%20D61-67830-2011.pdf
Nambisian, S. (2002). Designing Virtual Customer Environments for New Product Development: Towards a Theory. The Academy of Management Review, 27, 3, 392-413.
Narentheren, K. & Haim, H. (2014). Does Service Innovation Act as a Mediator in Differentiation Strategy and Organizational Performance Nexus? An Empirical Study. Asian Social Science, 10, 11, 123-131. http://dx.doi.org/10.5539/ass.v10n11p123
Nicolai, J. F., Keld, L. & Torben, P. (2011). Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices. Organization Science, 22, 4, 980-999.
Nshimiyimana, A. & Wenpei, C. (2019). An Empirical Study Analyzing the ATM Service Quality and Customer Satisfaction Relationship in Rwanda. International Journal of Business and Economics Research,8, 6, 439-451. doi: 10.11648/j.ijber.20190806.24
Odusina, A. O (2014). Automated Teller Machine usage and Customers’ satisfaction in Nigeria. Elite Research Journal of Accounting and Business management, 2, 3, 43-47.
Ranasinghe, A. S. W. & Kosala, C. K. (2017).The Impact of Automated Teller Machines (ATMs) Service on Customer Satisfaction: a Study Based on State Banks in Sri Lanka. Saarj Journal on Banking & Insurance Research, 6, 2.
Susanne, D., Anne-Laure, M. & Petro, P. (2015). Service Innovation and its Impact: What do we know about? Investigaciones Europeas de Dirección y Economía de la Empresa, 21, 65–72.
Tipu, S. A. A. (2011). Academic Publications on Innovation Management in Banks(1998–2008): A Research Note. Innovation: Management, Policy & Practice, 13, 2, 236-260.
Walker, R. M., Damanpour, F. & Devece, A. C. (2010). Management Innovation and Organizational Performance: The Mediating Effect of Performance Management. Journal of Public Administration Research and Theory, 367-386.
Yee, B. Y. & Faziharudean, T. M. (2010). Factors Affecting Customer Loyalty of using Internet Banking in Malaysia. Journal of Electronic Banking Systems, 21.https://doi.org/10.5171/2010.592297
Yongping, Z. & Hee, C. M. (2020). What Drives Customer Satisfaction, Loyalty, and Happiness in Fast-Food Restaurants in China? Perceived Price, Service Quality, Food Quality, Physical Environment Quality, and the Moderating Role of Gender. Foods, 9, 460. Doi: 10.3390/foods9040460
Zaied, R. M., Louati, H., & Affes, H. (2015). The relationship between organizational innovations, internal sources of knowledge and organizational performance. International Journal of Managing Value and Supply Chains, 6, 1.
