Empirically Testing Some Major Factors for Bank Innovation Success - PDF

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					          Empirically Testing Some Major Factors for Bank Innovation Success
                                    Tor Guimaraes*
                            Tennessee Technological University
                               Major Factors 38505
Empirically Testing Some Cookeville, Tennesseefor Bank Innovation                           Success
                                 tguimaraes@tntech.edu

                                           Tor Guimaraes*
                                  Tennessee Technological University
                                     Cookeville, Tennessee 38505
                                         Bransford Brandon
                                       tguimaraes@tntech.edu
                                   Federal Reserve Bank of Atlanta
                                         Nashville, TN 37203
                                    Bransford.Brandon@atl.frb.org

                                           Bransford Brandon
                                    Federal Reserve Bank of Atlanta
                                           Nashville, TN 37203
                                          Erik Ryan Guimaraes
                                     Bransford.Brandon@atl.frb.org
                                    First National Bank of Tennessee
                                          Cookeville, TN 38501


                                          Erik Ryan Guimaraes
                                    First National Bank of Tennessee
                                          Cookeville, TN 38501

                                               November 1, 2009
            Empirically Testing Some Major Factors for Bank Innovation Success
                                 * Please send all correspondence to this author.


                                              ABSTRACT
                                               November 1, 2009

             Strong competition forces banks to adopt new technologies to redesign business
                                  * Please send all correspondence to this author.
     processes, improve products and services, and support other organizational changes
     necessary for better performance. The separate areas of literature on strategic leadership,
     competitive intelligence, management of technology, and specific characteristics of the
     company’s change process propose their respective importance for successfully
     implementing business innovation. While these factors may indeed be important to
     enhance company competitiveness, the existing literature comprises mostly opinions and
     anecdotal accounts, and contains limited empirical evidence supporting their relationship to
     successfully implementing business innovation. A field test among commercial banks
     branches in the Southeast United States has been used to test an integrated model of these
     relationships. The results provide empirical evidence about the importance of strategic      1
     leadership, competitive intelligence, management of technology, and some specific
     characteristics of the bank’s change process used to conduct
				
DOCUMENT INFO
Description: With the increase in business competition, company survival and success is now determined by its rate of learning. There is a substantial body of knowledge proposing the importance of effective leadership as an ingredient to successful organization change (Waldman, et al., 2001). Unfortunately, there are practically no studies about this area among banks, despite its importance for innovation success in other sectors. The results provide strong evidence regarding the importance of strategic leadership, competitive intelligence, management of technology, and specific characteristics of the bank's change process to the success of business innovation regarding products/services, business processes, organization structure, and organization culture. Given the importance of effectively implementing business innovation in these days of hyper competitiveness, it behooves top managers to do whatever they can to improve their bank's performance in the areas of strategic leadership, competitive intelligence, management of technology, and characteristics of the process used to implement the necessary changes. To improve technology management while implementing business innovation, managers must look at the bank performance in terms of its technology leadership position in the banking sector sectors, knowledge of how to get the best technology available, effective use of specific technologies, and benchmarking the use of specific technologies against the bank's main competitors or best-in-class target organizations.
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