Linking communication to innovation success in the financial services industry: a case study analysis

Abstract

Reports the findings of an exploratory case study research on the contribution of internal and external communication to the commercial success of financial service innovations. An extensive case study research involving four innovation projects was conducted within a leading Belgian bank. The desk research and the 32 in‐depth interviews with senior managers and project leaders served as a platform for theory development. A propositional framework was developed that offers a contingency perspective regarding the role of communication during the different stages of the service innovation process. While many of the existing studies in the field have exclusively focused on external communication, the effectiveness of internal communication is a critical success factor. Furthermore, path dependency effects were created in the project life‐cycle of the financial service innovation projects. Finally, the findings suggest that the effectiveness of internal and external communication depends on the level of intangibility, heterogeneity, simultaneity and perishability of the new service offering.