Developing an innovation orientation in financial services organisations

Abstract

Innovation is the new business mantra, and recent studies have suggested that there is a strong positive relationship between innovation, market positioning strategy and performance. Given the nature of the competitive landscape and the innovation disruption environment in the financial services industry, an innovation orientation can be effective in identifying and executing growth opportunities for organisations. This paper discusses the dynamics of innovation in the financial services industry and delineates the relationship between innovation and market-related strategy. It then introduces an innovation model that can be used as a platform by financial services organisations. The model identifies three areas of consideration — context, culture, and execution — that will help organisations in this industry to develop an innovation orientation.