Process, Product and Marketing Innovations as Drivers of Market Share in Ghanaian Universal Banks | Chapter 6 | New Advances in Business, Management and Economics Vol. 11

 

The banking industry has undergone a significant transformation over the past decade, shaped by technological advancements, regulatory shifts, and evolving consumer behaviours. In Ghana, the banking sector faces several challenges, including operational inefficiencies, rapidly changing consumer preferences, and recurrent banking crises that have eroded public confidence. While innovation is recognised as a critical driver of service quality and market share, there remains limited clarity on which specific innovation processes most effectively enhance banking performance. This study examined the impact of four innovation process types—organisational, product, process, and marketing—on the market share of universal banking services in Ghana. Data were collected from 100 managers across four universal banks, with respondents categorised by managerial roles for deeper analysis. An email-based survey was administered over several weeks, with respondents categorised by managerial roles for deeper analysis. Structural equation modelling was employed to test hypotheses, generating path coefficients, t-statistics, and p-values.

 

The findings highlight process, product, and marketing innovations as significant drivers of market share, with process innovation emerging as the most influential factor. Marketing and product innovations follow in importance, while organisational innovation shows a comparatively limited impact. Process innovation (β = 0.252) emerged as the most pivotal factor shaping bank market shares in Ghana. The result was closely followed by marketing innovation (β = 0.251), product innovation (β = 0.242), and organisational innovation (β = 0.159). This quantified hierarchy provides a clear understanding of the relative significance of each innovation type within Ghana's banking sector.

 

The study offers actionable insights for strategic decision-making, resource allocation, and policy formulation, helping stakeholders enhance market share and overall performance. By shedding light on the specific innovation processes that drive success, the research equips practitioners with tools to better meet evolving customer needs and gain a competitive edge in Ghana’s dynamic banking landscape. Additionally, addressing the challenges of organisational innovation remains crucial for maximising its potential impact. This research contributes to the existing body of knowledge and lays a foundation for future studies to further optimise innovation strategies in the banking industry. The study is limited to four innovation types and a small sample of banks, highlighting the need for future research to involve broader samples and explore the interconnected nature of innovation.

 

 

Author(s) Details

Cosmos Kwasi Gyadu
School of Business, Capella University, Minneapolis, United States.

 

Please see the book here :- https://doi.org/10.9734/bpi/nabme/v11/6467