EFFECT OF CORPORATE INNOVATION ON ORGANISATIONAL PERFORMANCE OF DEPOSIT MONEY BANKS IN DELTA STATE, NIGERIA

Abstract

The study examined the effect of corporate innovation on the organisational performance of deposit money banks in Delta State, Nigeria. The study adopted a cross-sectional survey research design. The sample size of 261 was determined using the Taro Yamane formula. A structured questionnaire was used for data collection, and the reliability of the instrument was assessed using Cronbach’s alpha, with coefficients ranging from 0.756 to 0.764, indicating satisfactory internal consistency. Data were analysed using the Statistical Package for the Social Sciences (SPSS) version 25.0, using descriptive and inferential statistics. A total of 261 questionnaires were administered, out of which 247 were retrieved and found completely filled, representing a 94.6% response rate. Findings revealed that strategic foresight had a significant and positive effect on organisational performance (β = 0.435, p < 0.05), service innovation had a significant and positive effect on organisational performance (β = 0.226, p < 0.05), and business model innovation had a significant and positive effect on organisational performance (β = 0.129, p < 0.05). The coefficient of determination (R² = 0.371) indicated that strategic foresight, service innovation and business model innovation jointly explained 37.1% of the variation in organisational performance. The study concluded that corporate innovation significantly influenced the organisational performance of deposit money banks in Delta State, with strategic foresight having the strongest predictive effect. The study recommended that bank management should re-engineer business models by improving value creation and delivery processes and leveraging emerging financial technologies to enhance efficiency and organisational performance.