EXPLORING THE IMPACT OF MANAGEMENT INNOVATION DIMENSIONS ON FIRM PERFORMANCE: A STUDY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA.

Abstract

The survival of any organization depends on its ability to manage and develop itself in terms of innovation. The capacity of a firm to innovate and bring about transformations will determine the degree to which the firm will enter the industry and the economy. However, evidence from literature has shown that DMBs' performance has been slow, due to inability to maintain competitive advantage, decline in productivity, low profitability, and reduced stakeholder satisfaction, which are suggestively due to insufficient s management innovation practices. Extant studies have attempted to elucidate on the challenges of DMBs and the attendant supposed solutions, conversely, most of the extant research focus on developed countries than developing countries, such as Nigeria. Hence, the study examined the effect of management innovation dimensions such as management structure, culture, and practices on performance of listed DMBs in Nigeria. Survey research design was adopted. The population was 403 directors and top-level management staff of listed DMBs in Nigeria. A sample size of 341 was determined using Cochran’s formula. Simple random sampling technique was adopted. A validated questionnaire was adopted for data collection. Cronbach’s alpha reliability coefficients for the constructs ranged from 0.74 to 0.98. The response rate was 85%. Data were analyzed using descriptive and inferential (multiple) statistics. Findings revealed that management innovation dimensions had significant effect on performance of listed DMBs in Nigeria (Adj.R2 = 0. 812; F (4,335) = 366.910, p < 0.05). The study concluded that management innovation dimensions affected the performance of listed DMBs in Nigeria. The study recommended that for superior performance, top level management must seek new ways to innovate how things are done in the organization through the structures, practices and culture.