The impact of barriers to Inter-Company Innovation flows and Corporate Entrepreneurship at a Financial Services Organisation in Johannesburg
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
Background: Increasing stability and improving the quality of services are the main challenges facing the financial industry since the 2008 fiscal crisis. In this paper, we explored the barriers within large financial services firms that influence the effectiveness of disruptive and radical innovation. Providing quality services to
customers is one of the pillars of financial services companies. It is imperative that they continuously innovate their services in order to sustain their revenue streams in tough macroeconomic times and amid rapid technological growth.
Research Purpose: This paper investigated the barriers that impact the inter-company innovation flow in the financial service sector and corporate entrepreneurship. In simple terms, we examined the link between corporate entrepreneurship and financial innovation and how barriers to these flows can impact
inter-company innovation. As part of this study, we examined the factors that predict service innovation in the financial services sector such as management support, work discretion, rewards and reinforcement, and organisational boundaries.
Setting: A survey questionnaire was conducted with employees within a Financial Services Organisation in South Africa - across various designations. Research Method and Approach: In order to gather responses from all levels of employees within one of the country's leading banks, a case study approach was adopted. To gather quantitative data, an online survey was conducted using scales for corporate entrepreneurship and service innovation. The inferential statistics were
based on multiple linear regressions and factor analysis.
Main Findings: Several major barriers to innovation and change were identified in the emerging findings, including bureaucracy, poor communication, lack of engagement by employees, management challenges and risk aversion. Based on the study's findings, corporate entrepreneurship predicted certain dimensions of service innovation. There was a significant (p 0.05) correlation between rewards and recognition, management support, and time availability on the basis of service
innovation. Service innovation was not significantly influenced by work discretion or organisational boundaries. Using employee perceptions of barriers to innovation and change, this study provides managers and practitioners with insight into how to improve the organizational conditions to support innovation and change. Based on the results of this study, further research can be conducted in this field. Value of Research: The insights gained from this study can help companies improve commercial services and build competitive advantage through corporate entrepreneurship and address inter-company innovation barriers. According to the results, the financial services industry is unable to innovate in response to society's demand for radical change. Identifying the internal barriers to potential disruptions and radical innovations in large financial services firms are the purpose of this study
Description
A research article submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfillment of the requirements for the degree of Master of Business Administration Johannesburg, 2023
Keywords
Corporate entrepreneurship, Innovation, Corporate venturing, Barriers to innovation, Organisational culture, Service innovation, UCTD
Citation
Maseko, Buyisile. (2023). The impact of barriers to Inter-Company Innovation flows and Corporate Entrepreneurship at a Financial Services Organisation in Johannesburg [Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace.