SERVICE INNOVATION AND ORGANISATIONAL PERFORMANCE: MEDIATING ROLE OF CUSTOMER SATISFACTION

Abstract

Innovation plays a key role in the success of businesses the world over. The purpose for this study is to explore the mediating role of job customer satisfaction in the relationship between service innovation and organisational performance. Data for the study was obtained from 450 commercial bank customers in Ghana using structured questionnaire. The PLS-SEM was the main analytical tool used to analyse the research findings via AMOS 22. Findings from this study revealed a positive and significant relationship between service innovation and organizational performance. Additionally, the study revealed that customer satisfaction was found to have positive and significant effect on organisational performance. However, there was no significant relationship between service innovation and customer satisfaction in this study. The study contributes to existing literature on service innovation from a developing country context. The implications for the study are also discussed.