Cultural orientations and product innovation in the Ghanaian banking sector

• Published in: The Service industries journal Vol. 40; no. 7-8; pp. 518 - 541
• Main Authors: Asaah, Jenkins Atarisigna, Yunfei, Shao, Wadei, Kwame Ansong, Nkrumah, Kofi Frimpong Adasa
• Format: Journal Article
• Language: English
• Published: London Routledge 10-06-2020; Taylor & Francis Ltd
• Subjects: Bank technology; Banking; Banking industry; compete-oriented culture; Culture; extrinsic motivators; financial performance; Innovate-oriented culture; Innovations; product innovation; 以创新为导向的文化， 以竞争为导向的文化，产品创新，金融状况，外在推动力; Ghana
• ISSN: 0264-2069; 1743-9507
• DOI: 10.1080/02642069.2019.1569635

The Ghanaian banking sector plays a major role in the socio-economic development of the country. However, the banks are faced with many challenges which include growing customers' demands, inadequate innovation practices and poor financial performance. With the advent of Information Communication Technologies (ICTs), there are calls for the banks to be more innovative. The paper explores the influence of organizational cultural orientations on product innovation. It also examines the moderating effect of extrinsic motivators on such relationships. Hypotheses were formulated and tested using data collected from the banking sector in Ghana. The findings are that innovate-oriented and compete-oriented cultures have a direct positive influence on product innovation. Both Informational Extrinsic Motivators (IEMs) and Controlling Extrinsic Motivators (CEMs) moderate the relationship between innovate-oriented, compete-oriented cultures and product innovation such that they diminish the positive relationship that exists between such variables. The paper offers theoretical contribution and managerial implications which are discussed.