Innovation and performance: case study of a bank in Botswana Online publication date: Wed, 05-Jun-2024
by Mpho M. Gaosegelwe; Gladness L. Monametsi
International Journal of Business Innovation and Research (IJBIR), Vol. 34, No. 2, 2024
Abstract: The purpose of this study is to determine the relationship between innovation, and bank performance. Factor analysis was used to ascertain the reliability of the survey instrument used in the study. Principal components analysis was used to identify and compute composite scores for the factors underlying the scale. The hypotheses were tested using regression analysis to ascertain the relationships of the three-predictor variables with that of the dependent variable. The finding of the factor analysis revealed robustness of the measurement scale, and the scale was found to be moderately internally consistent. Results of the regression analysis showed that product innovation and process innovation are moderate predictors of performance of the bank. In contrast, organisational innovation proved to be a weak predictor of performance. The findings of the study suggest that to improve performance, banks should introduce more innovative products and innovate their processes of delivery to customers.
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