The Role of Innovation Culture in Innovation Capability and Performance at Vietnamese Commercial Banks

The research was conducted to examine the effect of bank culture on bank innovation and bank performance. In order to evaluate the relationship and impact among these factors, structural equation modeling (SEM) method was used to test the research hypotheses and path relationships in the proposed model. The data collected from 198 bank officers of 8 commercial banks in Vietnam through the survey were analyzed to examine the relationships. The results show that in the banking sector of Vietnam, organizational culture and innovation have a direct and positive effect on the firm performance aspects of a bank, product innovation. However, organizational innovation was found to have an insignificant regression coefficient on the dimensions of market and finance of a bank's performance. Research results contribute to adding valuable insights for organizations to compete and adapt to changes in the environment, especially in the banking industry. Identifying and strengthening the bank's innovation culture will create value and sustain competitive advantages, which is one of the key factors contributing to the success of Vietnamese commercial banks.