TITLE PAGE

MIDLANDS STATE UNIVERSITY

FACULTY OF COMMERCE

THE IMPORTANCE OF TECHNOLOGICAL INNOVATION ON

ORGANISATIONAL SURVIVAL IN THE ZIMBABWEAN BANKING SECTOR

BY

CM2

REGISTRATION NUMBER

R15581V

SUBMITTED TO THE MIDLANDS STATE UNIVERSITY IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR MASTERS IN BUSINESS
ADMINISTRATION
(MBA)

GWERU, ZIMBABWE

MAY
 YEAR: 2016
MIDLANDS STATE UNIVERSITY

RELEASE FORM

NAME OF AUTHOR: Mufaro Musara

TITLE OF PROJECT: The importance of technological innovation on

organisational survival in the Zimbabwean banking
sector

PROGRAMME FOR WHICH PROJECT

WAS PRESENTED: Masters in Business Administration (MBA)

YEAR GRANTED: 2016

Permission is hereby granted to the Midlands State

University Library to produce single copies of this
project and to lend or sell such copies for private,
scholarly or scientific research purposes only. The
author reserves other publication rights and neither the
project nor extensive extracts from it may be printed or
otherwise reproduced without the author’s written
permission.

SIGNED: ………………………………………………

PERMANENT ADDRESS:

DATE: May 2016

 MIDLANDS STATE UNIVERISTY

APPROVAL FORM

The undersigned certify that they have read and recommended to the Midlands State
University for acceptance of a dissertation entitled “The importance of technological
innovation on organisational survival in the Zimbabwean banking sector”, submitted by
CM2 in partial fulfilment of the requirements for the degree of Masters in Business
Administration (MBA).

………………………………………………………..

SUPERVISOR

…………………………………………………..

CHAIRPERSON

……………………………………………………………………….

LIBRARIAN

DATE:……………………….
 DECLARATION ON PLAGIARISM

I, Mufaro Musara, Registration number R15581V declare that this thesis is my own work. It
is submitted for the Masters of Business Administration at Midlands State University. It has
not been submitted for any other degree or examination in any other university.

Signature……………………………………………………………………………..
 DEDICATION

To my supportive wife and my God sent son and daughter.

ACKNOWLEDGEMENTS
I would first like to thank my thesis advisor DCM at Midlands State University. The door to
his office was always open whenever I ran into a trouble spot or had a question about my
research or writing. He consistently allowed this paper to be my own work, but steered me in
the right the direction whenever he thought I needed it.

I would like to thank the organizations that allowed me access to their persons to gather
information, i appreciate their professional input and as without their bravery i would not
have been able to complete this piece of work.

Finally, I must express my very profound gratitude to my wife and my son, for bearing with
the long nights and weekends away from home. To my parents for providing me with
unfailing support and continuous encouragement throughout my years of study and through
the process of researching and writing this dissertation. This accomplishment would not have
been possible without them. Thank you.
 ABSTRACT

This study was done in order to establish the importance of information technology
innovations on organisational survival in the Zimbabwean banking sector. The objectives of
the study were to analyse the importance which is attached to technological innovation in
Zimbabwean banks, establish the technological preparedness of Zimbabwean banks for the
market competition, investigate the challenges which hinder innovation in Zimbabwean
banks and identify the growth opportunities which are associated with technological
innovations in the Zimbabwean banking sector. The study was conducted among 272
employees in the banking sector who were selected using convenience sampling .The study
was conducted in Harare where the head offices of the banks are located. A structured
questionnaire was used to collect data for the study and analysis was done using SPSS23
statistical software. The study established that banks had no challenges in coordinating
different areas in the organisation in implementing innovations. Most of the banks prioritised
innovation and had active and effective innovation committees to drive the innovation
process. Most of the employees however indicated that their organisations were not doing
well in the actual process of coming up with innovations. The banks attached importance to
the uptake of trending technologies and viewed technology as an effective way of gaining
competitive advantage. The banks possessed the necessary technology which they needed to
compete effectively but were not effective in exploiting the technologies which were
available to them. Organisational culture, resistance to change, leadership commitment and
lack of funding were not considered to be significant challenges which hindered innovation in
the banks. Technological innovations in the banking sector were found to give opportunities
for reaching new markets, building customer loyalty and building brand image. The study
concluded that banks in Zimbabwe were not doing well in terms of innovation. The study
also concluded that Zimbabwean banks attached significant importance to the possession of
trending technologies. There were no significant challenges which hindered technological
innovations in banks. It was also concluded that technological innovations had significant
effect on organisational survival. It was recommended that banks should come up with clear
documented policies for implementing new innovations. Further studies can be conducted in
order to explore the success factors in the implementation of information technology
innovations on the banking sector
 TABLE OF CONTENTS

TITLE PAGE..........................................................................................................................i
RELEASE FORM..................................................................................................................ii
APPROVAL FORM.............................................................................................................iii
DECLARATION ON PLAGIARISM..................................................................................iv
DEDICATION.......................................................................................................................v
ACKNOWLEDGEMENTS..................................................................................................vi
ABSTRACT.........................................................................................................................vii
LIST OF TABLES...............................................................................................................xii
LIST OF FIGURES............................................................................................................xiii
1 CHAPTER ONE : INTRODUCTION...............................................................................1
1.1 Introduction.................................................................................................................1
1.2 Background to the study..............................................................................................1
1.3 The research problem..................................................................................................2
1.4 Significance of Study..................................................................................................3
1.5 The objectives of the study..........................................................................................3
1.6 Research questions......................................................................................................4
1.7 Hypothesis...................................................................................................................4
1.8 Delimitations...............................................................................................................4
1.8.1 Research scope.....................................................................................................4
1.8.2 Time scope...........................................................................................................4
1.8.3 Geographical Scope.............................................................................................5
1.8.4 Literature Scope...................................................................................................5
1.8.5 Methodological Scope..........................................................................................5
1.9 Conceptual Framework...............................................................................................5
1.10 Limitations...............................................................................................................6
1.10.1 Geographical scope..............................................................................................6
1.10.2 Research subjects’ bias........................................................................................6
1.11 Definitions of key terms, concepts and variables....................................................7
1.12 Chapter Summary....................................................................................................7
2 CHAPTER 2 : LITERATURE REVIEW..........................................................................8
2.1 Introduction.................................................................................................................8
2.2 Technological innovations...........................................................................................8
2.3 Theories of innovations...............................................................................................8
 2.3.1 Theory of diffusion..............................................................................................8
2.3.2 Innovation Decision Process..............................................................................10
2.3.3 Attributes of Innovations and Rates of adption..................................................12
2.3.4 Theory of innovation translation........................................................................14
2.3.5 Complexity Theory............................................................................................15
2.4 Importance of technological innovations..................................................................15
2.5 Factors which inhibit innovation in organisations.....................................................17
2.6 Growth opportunities from innovation and technology............................................18
2.7 Competitiveness of production methods...................................................................19
2.8 Empirical literature....................................................................................................20
2.9 Conclusion.................................................................................................................21
3 CHAPTER THREE : METHODOLOGY.......................................................................22
3.1 Introduction...............................................................................................................22
3.2 Research Approach....................................................................................................22
3.3 Research design.........................................................................................................22
3.4 Study Population.......................................................................................................23
3.5 Sample size................................................................................................................23
3.6 Sampling procedures.................................................................................................23
3.7 Data Sources..............................................................................................................23
3.8 Research Instruments.................................................................................................23
3.9 Data collection procedures........................................................................................24
3.10 Issues of reliability and validity.............................................................................24
3.11 Ethical considerations............................................................................................24
3.12 Conclusion.............................................................................................................24
4 CHAPTER 4: DATA PRESENTATION AND ANALYSIS..........................................26
4.1 Introduction...............................................................................................................26
4.2 Response rate.............................................................................................................26
4.3 Demographic characteristics of respondents.............................................................26
4.3.1 Gender................................................................................................................26
4.3.2 Position...............................................................................................................27
4.4 Importance of technological innovation in organisations.........................................28
4.4.1 Ability of leaders in different functional areas to work together.......................28
4.4.2 Effectiveness in breaking down barriers between functional areas...................29
4.4.3 Formal approach for generating ideas and using creativity/innovation.............29
4.4.4 Organisation’s actual performance in innovating..............................................30
4.4.5 Prioritisation of innovation................................................................................30
 4.4.6 Effectiveness of innovation committee..............................................................31
4.5 Technological preparedness of Zimbabwean banks for the competition in the market
32
4.5.1 Importance attached to possession of trending technologies.............................32
4.5.2 Technology as a source of competitive advantage.............................................33
4.5.3 Possession of technology...................................................................................34
4.5.4 Effectiveness in exploiting the potential of available technology.....................35
4.6 Challenges which hinder innovation in Zimbabwean banks.....................................36
4.6.1 Organisational culture........................................................................................36
4.6.2 Resistance to change..........................................................................................37
4.6.3 Leadership commitment.....................................................................................38
4.6.4 Lack of funding..................................................................................................39
4.7 Growth opportunities associated with technology and innovation............................40
4.7.1 Reaching new markets.......................................................................................40
4.7.2 Customer loyalty................................................................................................41
4.7.3 Brand image.......................................................................................................42
4.8 Hypotheses testing.....................................................................................................43
4.8.1 Reliability tests...................................................................................................43
4.8.2 Pearson’s correlation coefficients......................................................................44
4.9 Conclusion.................................................................................................................45
5 CHAPTER 5 : SUMMARY,CONCLUSIONS AND RECOMMENDATIONS............46
5.1 Introduction...............................................................................................................46
5.2 Statement of objectives..............................................................................................46
5.2.1 To analyse importance attached to technological innovation in Zimbabwean
Bank 46
5.2.2 To establish the technological preparedness of Zimbabwean banks for the
competition in the market.................................................................................................46
5.2.3 To investigate the challenges which hinder innovation in Zimbabwean banks.47
5.2.4 To identify the growth opportunities which are associated with technological
innovations in the Zimbabwean banking sector...............................................................47
5.3 Conclusions...............................................................................................................47
5.3.1 Importance which is attached to technological innovation................................47
5.3.2 Technological preparedness for the competition in the market.........................47
5.3.3 Challenges which hinder innovation..................................................................48
5.3.4 Growth opportunities which are associated with technological innovations.....48
5.3.5 Hypothesis..........................................................................................................49
5.4 Recommendations.....................................................................................................49
 5.4.1 Innovation policy...............................................................................................49
5.4.2 Rewards for innovation......................................................................................49
5.4.3 Adoption of trending technologies.....................................................................49
5.5 Suggestions for further studies..................................................................................49
References................................................................................................................................51
Appendices...........................................................................................................................58
 LIST OF TABLES
Table 4-1 : Response rate.........................................................................................................26
Table 4-2 Ability of leaders in different functional areas to work together.............................28
Table 4-3 : Effectiveness in breaking down barriers between functional areas.......................29
Table 4-4 : Formal approach for generating ideas and using creativity /innovation...............29
Table 4-5: Reliability test for adoption of technological innovation.......................................44
Table 4-6: Reliability test for bank's survival..........................................................................44
Table 4-7 : Correlation coefficients for adoption of innovations and bank survival...............44
 LIST OF FIGURES
Figure 1.1 : Conceptual Framework...........................................................................................6
Figure 4.1 : Gender of respondents..........................................................................................27
Figure 4.2 : Position of respondents.........................................................................................28
Figure 4.3 : Prioritisation of innovation...................................................................................31
Figure 4.4: Effectiveness of innovation committee.................................................................32
Figure 4.5 : Importance which is attached to possession of trending technologies.................33
Figure 4.6 : Technology as a source of competitive advantage...............................................34
Figure 4.7 : Banks' possession of technology..........................................................................35
Figure 4.8 : Effectiveness in exploiting available technology.................................................36
Figure 4.9 : Extent to which organisational culture is hindering innovation...........................37
Figure 4.10 : Extent to which resistance to change is hindering innovation............................38
Figure 4.11 : Extent to which leadership commitment hinders innovation.............................39
Figure 4.12 : Banks which sometimes lacked funding for acquisition of new technologies...40
Figure 4.13 : Use of innovation as a way to reach new markets..............................................41
Figure 4.14 : Use of innovation as a way to build customer loyalty........................................42
Figure 4.15 : Use of innovation in building brand image........................................................43
 CHAPTER ONE:

INTRODUCTION

1 CHAPTER ONE : INTRODUCTION

1.1 Introduction

This study aims to bring to light the gap in the Zimbabwean Business sector, that of a lack of
innovation leading to a decline in the competitiveness of the organisations in our country.
The stagnation of continuous improvement of business and manufacturing processes being
the main reason most organisations are failing in this challenging economic environment.
This chapter will give the foundation of the research paper. It will give a brief overview of
the background to the study, problem statement, research objectives and design, significance,
delimitations and limitations.

1.2 Background to the study

The growth of internet technologies and easy access for most of the population through
relatively cheap handheld devices has expanded the opportunities for Zimbabwean Banks to
come up with new and innovative products. In such a competitive environment as the one
which is prevailing in the Zimbabwean economy, businesses which fail to innovate may fall
behind the competition and fail to survive in business. This study assessed the importance of
technological innovation on organisational survival in the Zimbabwean banking sector.

According to Anabila & Awunyo-Vitor (2013) innovation does not only have an impct on the
productivity and profitability of firms , but that it it goes to the lives and foundations of
businesses. In most sectors innovation has actually become the main compettive factor ahead
of price (Damanpour, Walker & Avellaneda 2009). Pellissier (2008) contributed that
innovation is a powerful driver for firms which are attempting to penetrate new markets and
capture market share from existing firms. However Radjou, Prabhu & Ahuja (2012) noted
that in many organisations ,innovation is just mere rhetoric as no concrete measures for
innovation are discernible. In a competitive business environmnt , George, McGahan &
Prabhu (2012) note that businesses which do not innovate may eventually fail to survive.
According to Berndt, Saunders & Petzer (2010), there is a plethora of new technologies
which are available to the banking sectors and can be used to come up with innovative new
products and services. In the USA Mauro, Hernandez & Afonso Mazzon (2007) found that
there was a significant relationship between innovativeness and growth in market share
among commercial banks. In China Luo et al. (2010) found that the probability of ruin for
banks which are innovative is lower than for those which are less innovative. Nyangosi,
Arora & Singh (2009) considered the role of innovation in organisational survival in India
and Kenya and found that innovation had a significant influence on organisational survival.

The banking sector in Zimbabwe has seen many cases of failure mainly due to the poor state
of the economy. Since the dollarisation of the economy in 2009, 15 banks have collapsed
under a burden of date, failure to attain required capitalisation levels and failure to compete in
the market (Chikoko, Mutambanadzo & Vhimisai 2012). Reserve Bank of Zimbabwe (2015)
stated that some of the banks including Allied Bank had failed because of the failure to keep
up with technological innovations in the industry which resulted in them failing to come up
with competitive products and services. Currently, local banks are investing huge sums of
money in technological innovations in a bid to maintain their competitiveness. For instance
Steward Bank has used innovative new products to grow from being a successor to the ailing
TN Bank in 2012 to holding the largest deposits in the country (Reserve Bank of Zimbabwe,
2015).

Innovation has been the key differntiating factor among Zimbabwean banks as they try to
outdo each other in coming up with innovative products and services. The fight for new
customers is becoming incraesingly centred around the level of innovation and innovation
services a bank has to offer. This might result in depressed performances for banks which do
not innovate and thereby affecting their probability of failure.This study assessed the
importance of technological innovation on organisational survival in the Zimbabwean
banking sector.

1.3 The research problem

The Zimbabwean banking sector has lost 15 members who failed during the period from
2009 to 2015. Bank failures were mainly caused by internal weaknesses in the institutions,
including the failure to acquire technological innovations which would make them more
competitive in the market. The importance of technological innovations on organisational
survival in the banking sector has however still not been established with certainty as
empirical studies on the subject are scant. This study will therefore assess the importance of
technological innovations on organisational survival in the Zimbabwean banking sector.

1.4 Significance of Study

This study is being undertaken to investigate technology adoption toward company survival,
competitiveness and growth under a challenged business environment such as that of
Zimbabwe. The outcomes of the study will contribute; to an ICT policy shift aimed towards
business growth and sustainability, towards a scientific proof or argument about
implementation of technology adoption and it’s practically towards business triumph. This
study is feasible as companies across the globe have shown a correlation between technology
adoption and company performance. Therefore this study will bring guide to the business
community in Zimbabwe about technology adoption contributions and implications towards
their competiveness in-line with global business trends. Since company success is due to
good leadership and innovation. Innovation and technology applications for internal and
external use will be investigated leading this research towards a sound convincing
conclusion.

To practice - Many organisations in more developed nations are employing agile organisation
principles that drive them towards competitiveness and sustainability in this fast paced
business environment. The aim is to improve Zimbabwean organisations implementation of
innovative policies. Thus this research seeks to investigate on the importance of technology
and innovation for organisational agility and survival within the Zimbabwean domain.

To theory - The output of this study is source material that Zimbabwean businesses can
absorb, diffuse and implement and therefore improve their competitiveness by assimilation of
new technological innovations. Literature available covers innovation or agility as stand-
alone studies and not as a study of one affecting the other. This study will seek to add to the
body of knowledge so as to be of benefit to Zimbabwean organisations and inferentially the
global business industry.
 1.5 The objectives of the study

The purpose of the study is to assess the importance of technological innovations on

organisational survival in Zimbabwean banks. Specific objectives were:

1. To analyse importance attached to technological innovation in Zimbabwean Bank

2. To establish the technological preparedness of Zimbabwean banks for the competition
in the market
3. To investigate the challenges which hinder innovation in Zimbabwean banks
4. To identify the growth opportunities which are associated with technological
innovations in the Zimbabwean banking sector

1.6 Research questions

1. How much importance is attached to technological innovation by Zimbabwean banks?

2. What is the level of technological preparedness of Zimbabwean banks to compete in
the market?
3. What are the challenges which hinder technological innovations in Zimbabwean
banks?
4. What are the growth opportunities which are associated with new technological
innovations in the Zimbabwean banking sector?

1.7 Hypothesis

Null Hypothesis Ho: Adoption of technological innovations does not have significant
influence on a bank’s survival

Alternative Hypothesis H1: Adoption of technological innovations has significant influence

on bank’s survival

1.8 Delimitations

1.8.1 Research scope

The study will focus on analysing as technological innovation and systems within the
organization, organisational structures and policies to gauge to what extent they allow for
innovative idea creation as well.
1.8.2 Time scope

The research will be conducted over a 7 month period. Data will be collected during the 7
month period and focus on technological innovations during that particular period.

1.8.3 Geographical Scope

My study will focus on the Harare Metropolitan area, as this hosts the head offices for all the
banks in Zimbabwe.

1.8.4 Literature Scope

The study will focus on literature covering issues on technological innovation as well as
business agility literature, effects of technological innovation on organizational performance
based articles and journals.

1.8.5 Methodological Scope

The study will be undertaken using quantitative analysis employing the use of surveys, and
historic data as well as interviews. . The researcher will use both the primary and secondary
data sources to collect information. Primary data will be gathered from respondents through
face to face interviews and questionnaires. Secondary data will include official documents,
management reports and other source documents from the media, journal articles and
websites.

1.9 Conceptual Framework

Figure 1.1 presents the conceptual framework for the study.

 Importance which is attached
to innovative technologies

Technological preparedness
to compete in the market

Organisational survival

Challenges which hinder

technological innovations

Growth opportunities which

are asociated with new
technological innovations

Figure 1.1 : Conceptual Framework

The conceptual framework above shows how various factors interplay to influence the
survival of organisations.

1.10 Limitations

1.10.1 Geographical scope

The study’s’ geographical scope is only limited to Harare this has a weakness in that this
might fail to represent the whole business community of Zimbabwe.

1.10.2 Research subjects’ bias

The questionnaires which the researcher will use might either not be filled in correctly, or not
returned by the respondents. To mitigate the effect of this the researcher will increase the
number of questionnaires circulated, to counter for such events.

Some research subjects may refuse to disclose accurate information due to fear of the
unknown even though questionnaires are anonymous. The researcher will mitigate this
limitation by adhering to business research ethics (confidentiality) and assuring respondents
that their identities will be kept anonymous. The researcher will also have to bring a letter
from the university and clearly explain that the information being collected is for academic
purposes.

1.11 Definitions of key terms, concepts and variables

Innovation is the process of translating an idea or invention into a good or service that creates
value or for which customers will pay. To be called an innovation, an idea must be replicable
at an economical cost and must satisfy a specific need (Huang et al 2012). The ability for
companies to stay competitive in their business by adjusting and adapting to new innovative
ideas and using these ideas to create new products and services as well as new business
models.

1.12 Chapter Summary

Chapter one was an introduction chapter and covered background to the study. The researcher
also presented the Research objectives and the research questions were also formulated. The
chapter contains the delimitations where research will be limited to a case of Harare
Metropolitan area seeing as most operational companies were located in this area, the
researcher also gave the significance of the study in this chapter. The next chapter will
provide the theoretical and empirical literature review on the topic under research.
 CHAPTER 2:

LITERATURE REVIEW

2 CHAPTER 2 : LITERATURE REVIEW

2.1 Introduction

The chapter seeks to look at the conceptual framework for technological innovations on
organisational and its impact or effect on agility and survival of companies. The research
seeks to array and define various theories that are applicable to the current study. Over the
past years, theories have been brought forward that connected to specific issues of
innovations. These theories include: Theory of diffusion, Theory of innovation translation,
Complexity Theory. In trying to shed more light on the topic under discussion, some of the
above mentioned theories will be used by the writer so that the subject under the study can be
easily understood. It is the writer’s submission that these theories will be of great significance
as they aid the achievement of organisational technological innovation.

2.2 Technological innovations

Teece (2000) defined technological innovations as new products and processes and
significant technological changes of products and processes. An innovation has been effected
if it has been introduced on the market and it connotes merchandise innovation. Karagouni
(2016 ) defined technology as the logical study of the techniques for creating or doing certain
things. Schroeder (2008) suggest that the concept of technology entails developing wide
range of mean, ideas and process apart from equipment, machine and tools.

2.3 Theories of innovations

There are various theories of innovations and these theories that seek to demonstrate the
growth of, impact and effect of innovation on organisations. the diffusion theory, translations
theory and the complexity theory treat the concept of innovation from different perspectives.

2.3.1 Theory of diffusion

The diffusion theory seeks to expound the spread of new ideas in an organisation was
expounded by Rogers (2003). This theory was first developed in the 1950s and it is relevant
in the field of technology and innovations. The theory seeks to investigate the adoption of
technological and innovations in organisation. Sahin (2006) suggest that the theory of
diffusion is relevant and appropriate in the study of technology and innovations adoption.
The diffusion theory is premised on upon four elements which is: innovation, communication
channels, time and social system.

Rogers (2003) suggests that innovation is an idea, project or practise that is alleged to be new
by certain individuals. Sahin (2006) suggest that innovation may have been introduced some
time back, but people may treat it as new, then it may be still new technology or innovations
for them. The newness of innovations is influenced by factors like knowledge, persuasion
and decision.

Rogers (2003) suggest that uncertainity is an imperative to the adoption of techology.

Innovations results may generate uncertainity and that effects are the changes that can be
experienced by individuals or a group of people(social system) as result of the embracing or
rejection of an innovation. Sahin (2006) suggest that to mitigate the effect of uncertainity in
adoption of innovations people should be educated about its advantages and disadvantages
for them to be aware of the consequences of the innovations. Rogers (2003) suggest that the
consequences can be classified in the following manner: functional or dysfunctional,
desirable or undesirable, direct or indirect and anticipated or unanticipated.

Another element of diffusion of innovations process is the communication channels. Rogers

(2003) suggest communication entails a process in which construct and share information
materials to foster a mutual understanding. Information is generated from sources like
individuals or organisations that produce a message. This communication usually occur
through channels and a channel entails a conduit through which information transferred from
one source to another. Rogers (2003) considered that diffusion is a distinct means of
communication and it encompass different elements such as innovation, more than one
people, units of adoption, and channels of communication. Channels of communication
encompasses interpersonal communication and mass media. Mass media channels includes
radio, Tv, newspapers and interaction between two individuals (interpersonal channels) .
Rogers (2003) suggest that diffusion is a social process that encompass interpersonnal
communication relationships. As a result of this interpesonal relationships are key to
dissemination information or to transform individual attitudes. Rogers (2003) argues that
diffusion requires a form of heterophily, that is extent to which same people interacting share
different characteristics like beliefs,social economic status and education.

Rogers (2003) suggest that time is a crucial aspect is in most cases is disregarded in
behavioural researches. Diffusion of innovations requires time and time is important in terms
of diffusion of innovation process, the rate of adoption and adopter categorization.

According to Rogers (2003) social system consitute another element of diffusion process and
this entails a set of interconnected aspects engaged in joint problem solving to achieve a
certain goal. Diffusion of knowledge occurs in the social system and it is driven by the social
set up of the social system. Rogers (2003) argues that structure is the designed arrangement
of the units of a system and the character of the social system influence individuals’
innovativeness.

2.3.2 Innovation Decision Process

Rogers (2003) designates Innovation Decision Process as an information seeking and

processing task where one is enthused to reduce or mitigate uncertainity concerning benefits
and drawbacks of an innovation. Rogers (2003) suggest that innovation-decision process
comprises of five steps that is : 1) knowledge stage

2) Persuasion stage

3) Decision stage

4) Implementation stage

5)confirmation stage

According Rogers (2003), knowledge constitute the first stage of the innovation-decision
process and at this stage, that’s where one can learn about the presence of innovation and
pursues information concerning the innovation. At this instance people will be asking crtical
questions like “who”, “what”, “where” and “why.” In most cases indiviuals would want to
enquire about on who brought the innovations, what is the innovation and how it operates.
Rogers( 2003) considers that there are three types of knowledge that emnates from those
questions that is (i) awareness- knowledge (ii) how- to-knowledge and (iii) principle-
knowledge.
Awareness knowledge constitutes the know-how of the innovation’s existence. This category
of knowledge stimulates or motivate individuals to learn more concerning innovation and
eventually to embrace it. It aslo stimulates individuals to learn about other two categories of
knowledge. Secondly, how-to-knowledgeis concerned about one may use innovations or new
technology properly. Rogers (2003) suggest that knowledge is an essentail variable in the
adoption and use of innovations and adoption of innovations is influenced by the knowledge
acquired prior to the adoption. principle-knowledge- this category of knowledge encompasses
functioning principles relating how and why innovation operates. Seemann (2003) suggest
that teaching, education and practice expreince provides the basis on how to use innovations.

2) Persuasion stage

The Persuasion stage constitute a stage when one has posetive or negative behaviour towards
innowvation or new technology. Rogers (2003) suggest that individuals shape their attitude or
behaviour after they have become aware of innovations and this stage is feeling centered.
Soclial reinforcement becomes into play as peers may influence individuals’ beliefs, opinion
and attitude.

3) Decision stage

At this stage individuals make choices to adopt or reject the innovation. Rogers( 2003)
suggest that at this juncture adoption entails full use of techlogy or innovation and rejection
shows that innovation have not been adopted. Innovations with trial basis can be easly be
adopted as individuals wants attempt to use it to come up with their adoption decision. Glanz
et al.( 2008) contradicts Rogers( 2003) in that in some organisations the adoption of
innovations is determined by leaders and authority structures that makes decision regardless
of the features of innovation itself. Wejnert (2002) shared the similar view with Glanz et al.
( 2008) in that the gating function of varibles influence adoption of technology.

4) Implementation stage

At this stage innovation is put into practice and implementation may trigger some degree of
uncertainity that is involved in diffusion. Uncertainity connotes adoption of technlogy or
innovation can be still a problem and people implementing innovations must be cognisence
of the consequences of implementation of innovations.Rogers (2003) suggest that individuals
adopt innovation depending on the situation on the ground. Individuals may then evaluate
the usefulness of innovations.

5) confirmation stage

confirmation stage connotes a point when individual makes a decision concerning acceptance
and rejection of innovations. at this stage individuals finalise their decision to continue
making of use of innovation and they may utlise that innovation to the fullest potential.

2.3.3 Attributes of Innovations and Rates of adption

There are five attributes of innovation which encompass five features of innovations: (i)
relative advantage, (ii)compatibility, (iii) complexity, (iv) triablility, (v) observability. Rogers
(2003) suggest that one’s perception of these features can be employed to predict the rate of
adoption of innovations. Rogers suggest that innovations or technology that provide greater
relative advantage, compability, simplicity, triability and observability will be embraced at a
quick rate as compared to other innovations. these features speed up the rate to which
innovations diffusion process is adopted.

Rogers (2003) suggest that the rate of adoption of innovation may vary and he defined the
rate of adoption as the relative speed to which an innovation is embraced by participants of a
social system. For example the amount of people who embraced the innovations for a certain
period of time can be measured by as the rate of adoption. Things like innovation-decision
type, communication channnels , social system and these aspects can be used to predict the
rate of adoption of innovations.

(i) relative advantage

rogers (2003) suggest that relative advantage is one of the strongest predictors of adoption of
innovations and this feature entails the extent to which an innovation is regarded as better
than the idea it succeeds. Th social status and cost constitute the relative advantage. This
entails that early adopters of technology are more status-motivated for embracing
innovations, conversely, the late adopters regards innovationsas of less importance.
Rogers(2003) distiguished two categories of innovations: preventative and non preventive
(incremental) innovations. preventaive innovations is a new concept that individual embraces
to eliminate unwanted future event and preventive innovation are generally adopted at slow
rate as their relative advantage is most cases are uncertain. Non preventive innovations
provides a posetive outcome within a short period of time.

(ii)compatibility

According to Rogers (2003), compatibility entails the extent to which an innovation is

regarded as consistent with the currrent values, needs and demands of potentail adopters and
past expriences. McKenzie, (2001) suggest that lack compatibility in Information-
Technology with a person may adversely affect one’s use of IT. Rogers (2003) suggest that
innovations must influence individual’s viewa, values, need, beliefs and opinion to moderate
the uncertainity and increase the rate of adoption. For innovations to be adopted easly, it must
be easy and clear to individuals.

(iv) triablility

The concept of triablility entails the extent to which an innovation may be tested with on a
limited basis and it is interrelated to with the proportion of adoption. Rogers (2003) suggest
that the more chances at which innovations are tried or tested, the quicker its adoption is. At
the trial stage, innovations can be modified or transformed by potential adopters.
Modification or reinvention may foster a quick adoption of innovations. Rogers (2003)
suggest that early adopters treat triability as important feature of innovations as compared to
ate adopters.

(v) observability

Rogers (2003) suggest that observability is the last feature of innovation and it entails the
extend to which the outcomes of an innovations are detectable to other people. Glanz et al.
( 2008) notes that peer obersvation is important to motivate other to adopt innovation. The
concept of observability like other features of innovation, it is interrelated with the proportion
of adoption of innovation.

Rogers suggest that his theory is applicable to various range of domains for instance
technology, policy innovations, consumer products, health programmes, agricultural practices
and other relevant fields. Greenhalgh (2004) suggest that diffusion theory is applicable to
research that are based on communications studies, marketing rural and medical sociology.
Haider and Kreps (2004) suggest that the theory has its own limitations and it is biased
towards its pro-innovation.

2.3.4 Theory of innovation translation

This theory focuses on the technical traits of an innovation and it regard social as the
framework in which its process of development and adoption take place. Amantino-de-
Andrade (2004) suggest that this approach can be used to explain the technological
transformation through social interactions. Law (1991) note that social structure and the
technology are interlocked. Attainment of innovaions and technology transmission may give
the impression that the aspects are separate, however, this is simply a proof of that the actor
network has become stable.

The theory treats adoption innovations comes as a result of the actions of every one in the
channel of actions who interact with it. Each participant shapes the the innovations to their
own needs or ends. Lyytinen and Rose (2006) suggest that if people stops to adopt
innovations the it merely stops and the process of adoption should be continous change. Law
(1991) suggest innovatins have to be black-boxed and transformations are created by the
actors controlling it. Holmström and Robey (2002) note that the network changes in
enrolement, dissemination and control are important factors in the adoption of technology.

Law (1991) suggest that the social system that is the interaction between actors that human
and non-human plays a crucail role in the translation of innovations and innovations are
formed from chains of weaker to stronger links of human and non-human coalitions. Each
participtant translates and backs its own resources to the form and ultimate shape of the
emerging black box and the black-box is created when interests move in the similar direction.
Tatnall (2003) suggest that other aspects like attitudes, towards innovations, conceptions of
capability, expectations and assumptions of innovations should be taken into account inorder
to comprehend the impact of technology and its change. Law (1991) suggest that nothing is
completely social and nothing is completely technical. Tatnall (2003) note that what appears
to be social is also partially technical therefore the theory deals with social-technical aspects
of technology.

Law (1991) suggest the mere fact that an actor possesses certain power does not merely mean
that he/she can effect change, however, he/she can be motivated to perform certain actions.
Tatnall and Lepa( 2003) notes that the translation model sees the movement of technology
through space and time in hands of humans and each human may react differenty to
innovations. through that reaction human may accept,reject, betray ,modify or add it.
Addition or modification of it may result in it spreading it. Tatnall (2003) suggest that
adoption of innovations arises from the actions of people in the chain of actors who are
interacting with the innovations.

2.3.5 Complexity Theory

The complexity theory is a combination of wide range of theoretical models in the scientific
field. It is relevant to the study of complex organization that is made up of various elements
that interact in intricate ways. Therefore theory seeks to examine elements and interactions
like the world of technology that has innovations, organisations and languages.

The complexity theory is applicable in the context of adoption of new technology and
innovations. Frenken (2006) suggest that complexity can denote complex interface structures
of various aspects of in technological system and it can also denote collaboration between
proxies in innovation networks. It can also refer to interface between agents in innovation
networks. Cowan (2004) suggest that this theory proves to be relevant in the domain of
technology. Cowan (2004) suggest that one to comprehend the complex system of
innovations one has to outline its elements and their interactions. Innovations involve
improvements in performance. Innovators can do trial and errors to test their innovations

Cowan (2004) suggest that complex networks seeks to define the degree of network
connections between innovating agents and the diffusion of technology. The theory is
applicable to the study of innovations as networks are essential to technologies. Network can
involve interaction between close or nearest neighbours and in some circumstances people
interact with distant people and randomly. This gives rise to regular, small world and random
networks. Cowan and Jonard (2004) suggest that network systems are important in the
processes of knowledge creation. They suggest that small world are fertile for knowledge
production and that production of knowledge require agents that interact with others. The
sharing of information allows the spread of ideas of innovations. The network system has
influence of the success of the learning process.
 2.4 Importance of technological innovations

Technological innovations are of strategic importance to organisations of institutions and

innovation is essential for the changing the environment of the organisation. Van der Waldt
(2004) report that innovations are of strategic importance to the management and supervision
of a company because they allow managers and supervisors in an organisation to maintain
control, regulate, administer, supervise of the large part of the organisation successfully,
attaining the expected goals. Greenhalgh et al. (2004) note that innovations permit wider
access to various departments of the organisation through various means of technology and
innovations increases manageability of organisations. Melville et al.( 2004) notes that
innovations allow generation of new ideas and designs and generation of administrative
innovation that create better production in organisation.

Innovations play a strategic role to organisations since it helps them to fight competition from
other organisations. Chin et al.( 2008) suggest that innovations allow organisations to fight
competition at local level and international level. Cooke et al ( 2000) report that innovation is
important to organisation in terms of prices, market structure, and demand pull factors and
competition. Innovations transfers information and organisations can easy access information
and they can easily access international stock of information and organisations can use that
information to strengthen their position and solve their problems in order to compete with
others. Gottinger( 2006) notes that innovations allow diffusion of knowledge and ideas at a
local and international level. Cooke et al ( 2000) notes that diffusion of ideas allows local
innovations to take place and adoption of innovations by local organisations places them in a
better position in the world of competition. Gottinger( 2006) report that organisations with
the capacity to absorb innovations can diversify their investments to survive in the world of
competition. Innovations permit organisations make use of international information and
respond to market signals. Innovations allow creation of new products and service and
innovations are adopted to create new better and cheaper products which are demanded by
customers.

Huat (2011) suggests that innovations play an important role in equipping workers of an
organisation with knowledge. Du Plessis (2007) notes that innovations helps to improve the
traditional that the workers of an organisation possess and the level of training and
knowledge that the workers possess is important for the future adoption of innovations and
this offers a comparative advantage to organisations. Håkansson and Waluszewski (2007)
report that iinnovations increases the quality of human capital which directly impact the
capability of organisations to conduct future innovations.Vuong et al. (2014) suggest that
learning process take through innovations as individuals learn through practice or by using
the innovations. Ruttan (2001) notes that this leads to generation of tacit knowledge that
knowledge become embodied in individuals or firm and that knowledge can be transmitted to
other individuals

2.5 Factors which inhibit innovation in organisations

Tolba and Mourad (2011) suggest that there are individual, internal and external factors that
affect innovation in organisations. chandrasekeran and Tellis (2008) suggest that
individualistic and Collectivism are critical to the adoption of innovations as they possesses
beliefs and norms that influence their decision to adopt technology. Perez-Altered (2009)
notes that individuals relies on the personnel beliefs and group customs that are not followed
or followed. Wickliffe and Pysarchik (2001) notes that individual’s associates with groups of
people that influence their decision in the long term. Individuals can facilitate innovation
acceptance or supress its diffusion.

Dawyer et al. (2004) pointed out that Factors like uncertainty also affect the adoption of
innovation in organisations. This entails that uncertainty can facilitate the adoption of
technology or supress the adoption of innovations. Hotsstede (2001) defined uncertainty as a
cultural dimension that affect adoption of innovations and high degree of uncertainty actually
lead to stiff rules that hampers acceptance of innovations. In organisation, the management
acceptance of risk also affect innovations in organisations. The management team that have
fear of risks cannot engage in high risk innovations.

Tolba and Mourad (2011) suggest that opinion and involvement of leaders also affects the
adoption of innovations. Goldsmith and Witt (2005) notes that there is connection between
opinion of leaders and innovations and leaders with posetive opinion are likely to influence
adoption of innovations in their organisations. Lyons and Hinderson supports that leaders can
spread postive message concerning innovations, whill posetively impact the rate of diffusion
of innovations. Morrison et al. (200) notes that the top management tean commitment to
support innovation also affects the adoption of innovations. the management team can act as
barriers to innovations since they make decisions in the adoption of new innovations.

Factors like organisation flexibility and responsiveness also affect or inhibit innovation in
organisations. Organisations that quiclkly respond to changes have more room to adopt new
innovations in order to adapt quickly to the changes. Organisations that are rigid have little
for embracing innovations. organisations must respond to changes in the production and
market sector for its survival. Innovations permits organisation to adapt to changes in the
market .

2.6 Growth opportunities from innovation and technology

There various benefits from innovation and technology as adoption of technology and
innovations influence other developments to take place. Innovations and technology can
foster growth of organisations in the social and economic sector. It can foster growth to
individuals, groups of people, organisations and the nation at large. Pellissier (2008) reports
that the economic growth in a nation can principally attributed to technology and
innovations. innovations can be adopted to effect changes in the business environement,
products, services and processes. Innovations provides a room growth for growth of
organisations in various ways.

Pellissier (2008) suggest that adoption of technology and innovation may lead to an
improvement in terms of production of products and service and innovations can change the
way companies do business. Innovation provides basis to develop products and serivece as
well as their delivery. George et al.(2012) note that innovations have been used by
organistion like Nestle to provide products rich in nutrients at a lower cost and proper size or
amount. Innovations can be used to change the way products and service are distributed

Socially, George et al.(2012) suggest that innovations can be used to redeem individuals and
communities from a cycle of proverty. The use of innovations provide a ground to improve
the lifehoods of the poor people. Innovations allow disenfranchised classes to participate or to
venture into activities that seeks to enhance thir position in terms of taking control,
ownership, employement and consumption. George et al.(2012) suggest that Innovations
allows access to products and service from all groups of the society. Innovations create
employement opportunities to all people. Suggest that innovations can foster social growth.
Furthermore, Binder and Witt (2011) suggest that adoption of innovations and technology
can foster economic growth. George et al.(2012) discovered that innovations and technology
can be used to produce goods and services at a lower cost and high quality. Innovations can
be used to create jobs for the people. Jaffe et al. (2003) noted that innovations have a force of
change and it is at the centre economic growth. otes that the main source of economic growth
in the more developed countries. They suggest that innovations improves the effiecency of
production means deployement and ensures equal distribution of resources across all sectors.
Garcia and Calantone (2002) notes that incremental innovations can trigger another
innovations or secondary innovations for instance computors. Drastic innovations present a
discontinuity as it replaces the old form of technology and this may lead to new methods of
production. Drastic innovations have the capacity to penetrate systems and influence
resources allocation and thereby increasing production output.

Furthermore, Barrett et al. (2015) noted that adoption of innovation improves organisational
performance. Organisations can take advantage of the innovations to manage their own
resources in a proper manner. Resources that require management are: knowledge, capital,
organisational capabilities. innovations allows organisations to compete with other rival
organisation in the extrection and utlilisation of those resources. Radjou et al.(2012) believes
that organisations can assemble their resources even in poverty conditions. Need (2006)
suggests that innovations can be used to improve the image of an organisation and open
access to new markets.

2.7 Competitiveness of production methods

Karagouni (2016 ) suggest the adoption of new production methods is essential for the
survival of organisations. Damanpour et al (2009) notes that production technologies gives a
company competative advantage and it increases operational performance of organisation.
Rodríguez and Rodríguez (2005) report that technological innovations resources have the
capacity to internationalise organisations. technological innovations gives organisations
know-how, technology and manufaturing capacity, methods. Lin and Germain (2004) notes
tha techology provides organisation with better system of production management, design
and materials. Karagouni (2016 ) supports that competitiveness of organisations depends
deeply on the capacity to access and utlise technologies. Karagouni et al (2013) notes tha
technological knowledge and innovation capabilities are vibrant determinants on means of
which organisations can differentiate themselves from the competetion.

Sohn et al ( 2007) suggest that investiment in technlogies. machinery and equipment have
the capacity to impact posetively on the performance of an organisation in relation to
production. Karagouni (2016 ) also conclude that experience and knowledge of managers and
supervisors bears a direct and important effect on investiment on equipment and machiinery
that increases production. Technological innovations provides a platoform for transmission
and sharing of information and knowledge that will benefit firms. Evers (2011) suggest
advanced technologies enables organisations to attain lucrative and more value added
markets for growth.

Karagouni (2016 ) suggest that there is a close connection between sciences and production
technologies and this create the basis of knowledge and create exceptional competitive
advatages. Damanpour et al. ( 2009) notes that adoption of technological innovationns are
essential for the performance of an organisations. technological innovations improves the
productivity and size of all organisations. Karagouni (2016 ) that technological innovations
helps to achieve quality controls and by so doing organisations will able to fight competetions
from other organisations that produce quality products.quality is the cornerstone of
competitive advantage and that can be achieved through using better technology. Karagouni
(2016 ) believes that investiment in techology pays back and it boosts the cliental base and
mantains loyalty. This will increase sales and mantains financial performance of the
organisations even in economic crisis times.Sohn et al ( 2007) report that adoption of
technological innovations permits oragnisations to adapt to international quality standards.

2.8 Empirical literature

Karagouni (2016 ) review the importance of production technologies and the management are
adopted in strategic management research. The writer seeks to examine the the role of
production of technologies in small-technology organisation in the moment of crisis and
prosperity. It seeks to examine the impact of technologies on the competitive advantage,
innovation and financial performance. The study ussed a qualitative approach and a single
case study was adopted this regard. The study focuses on the importance of production
technologies on organisational survival in the time of economic crisis. The study is helpful to
my research study as Karagouni (2016 ) recommend that production technologies is useful
for survival of extremely vulnerable organisation and they can use production technologies to
develop competetive advantages. The chief limitation of the study is that it is a single case
study research and it only looks at the wood manufacturing industries in Greece. The finding
of the stufdy indicate that manufacturing industries of low-technology seem to have
connections to technology and they are employing production technologiess to survive in
competetion. The author indicate that production technologies are essential for the survival of
companies in economic crisis and they give organisation an competitive advantage as well as
better financial performance. The study will not create the basis of my research, but it will be
valuable supplementary information for my study concerning the essence of technological
innovations for survival and continuatity of organisations.

2.9 Conclusion

The chapter presented a literature review for the study. Theories for innovation and the
adoption of new technological innovations were discussed. The factors which affect the
adoption of new technologies and the growth opportunities for companies which implement
technological innovations were also reviewed .The next chapter presents the methodology
which was used for carrying out the study.
 CHAPTER THREE:

METHODOLOGY

3 CHAPTER THREE : METHODOLOGY

3.1 Introduction

This chapter presents the methodology which was used for the study. The research design,
study population, sampling procedures and data collection procedures are explained and the
rationale for their selection given. The ethical considerations and measures which were taken
to ensure reliability and validity are also presented.

3.2 Research Approach

The research adopted a quantitative approach. According to McMillan and Schumacher

(2014) the quantitative approach offers the advantage of restructuring and reducing a problem
which is complex to a fixed number of variables which is manageable for analysis. The
quantitative aproach enabled the researcher to reduce the research questions to some defined
variables. Quantitative research also enabled the study to use a sample which was
representative of the actual population.

3.3 Research design

The research design was descriptive as it sought to come up with a description of the
importance of technological innovation to organisational survival and agility. The study was
conducted by way of a survey among employees of Zimbabwean banks. The survey design
was ideal for the study as it enabled the collection of data which was not available from other
sources. Fowler Jr (2013) considers that one advantage of the survey research strategy is that
the anonimity of respondents can be maintained, thereby increasing the likelihood of getting
honest responses. The study explored issues about employees’ experiences in their places of
employment and therefore required that they do not fear to be victimised for their views
making the survey approach appropriate.
 3.4 Study Population

The study population consisted of all employees who were employed in bank head offices in
Zimbabwe. Due to the lack of a sampling frame, the study population could not be
ascertained. The study population was therefore considered as infinite.

3.5 Sample size

The study used the online sample size calculator by RAOSOFT (2004) to calculate the
sample size for the study. Based on a confidence interval of 95% and a confidence interval of
5%, the required minim sanple size for an infinite population is 385.

3.6 Sampling procedures

The study adopted convenience sampling. According to Özdemir, Louis and Topbaş, (2011)
convenience sampling is a nonprobability sampling method which entails selection of
individuals who can be reached easily for particiption in the study. The study collected data
from respondents who expressed preparedness and willingness to contribute to the study.
Individuals who were employed in positions which gave them the opportunity to know about
the technological innovations in their organisation were approached to participate in the study
and those who consented to participae were given the study questionnaire to complete. This
process was repeated until the sample size of 385 was achieved.

3.7 Data Sources

The study used primary data. Primary data was collected through a questionnaire which was
administered among employees who were familiar with technological innovations in
companies.

3.8 Research Instruments

The research instrument for the study was a semi-structured questionnaire. The questionnaire
was selected for its ability to collect standardized data from respondents which made
quantitative analysis of the study feasible. The use of a questionnaire also enabled the study
to maintain the anonymity of respondents since aggregate responses were used rather than
individual responses.
 3.9 Data collection procedures

Potential respondents were approached and informed about the study, its purpose and
methodology. After getting their consent to participate in the study, respondents were given
the questionnaire to complete either electronically or the paper version. Respondents were
requested to submit the questionnaire within a week .Follow up calls was made to
participants who did not manage to submit the questionnaire on time to ensure the return of
the questionnaire.

3.10 Issues of reliability and validity

Validity is the extent to which an instrument measures what it is supposed to measure and
performs as it is designed to perform. External validity is the extent to which the results of a
study can be generalized from a sample to a population. Content validity refers to the
appropriateness of the content of an instrument. In other words, do the measures (questions,
observation logs, etc.) accurately assess what we need to know?

The reliability of a research instrument concerns the extent to which the instrument yields the
same results on repeated trials. I will employ the split-halves method, whereby the total
number of items is divided into halves, and a correlation taken between the two halves. This
correlation only estimates the reliability of each half of the test.

3.11 Ethical considerations

The researcher ensured that all the study respondents were given full information about the
study and allowed to make an informed decision to participate in the study. Respondents
were also informed of the right to withdraw their consent without giving a reason. The
researcher also assured respondents that their contributions would remain anonymous and
would not be shared with third parties. No inducements were offered to respondents and the
researcher did not raise their expectations in an unjustified manner or perform activities
which made them feel pressured to participate.

3.12 Conclusion

This chapter presented the methodology which was used for the study. The research design,
study population, sampling procedures and data collection procedures were explained and the
rationale for their selection given. The ethical considerations and measures which were taken
to ensure reliability and validity were also presented.
 CHAPTER 4

4 CHAPTER 4: DATA PRESENTATION AND ANALYSIS

DATA PRESENTATION AND ANALYSIS

4.1 Introduction

This chapter presents the findings of the study and analyses them in line with the objectives
of the study and the literature review. The data which was collected from the questionnaire
was analysed using SPSS version 23 software, and presented in terms of percentages and
proportions and using graphs and tables.

4.2 Response rate

The study initially targeted to reach 385 respondents for the administration of the study
questionnaire. Table 4.1 presents the response rate for the study.

Table 4-1 : Response rate

Sample size Number of valid responses Response rate

385 272 70.65%

The response rate for the study was 70.65%. The response rate falls within the range of being
above 60% which was given by Demidenko (2007) as a minimum to ensure credibility of a
study’s findings. The achieved sample was adequate for credible findings to be obtained.

4.3 Demographic characteristics of respondents

4.3.1 Gender

Figure 4.1 presents the distribution of respondents according to gender.

 49% Males
51% Females

Figure 4.2 : Gender of respondents

Fifty-one percent of the respondents were males while 48.53% were females. The
respondents were almost equally divided among males and females. The findings suggest that
there is an equal distribution of genders among bank employees in Zimbabwe.

4.3.2 Position

Figure 4.2 presents the distribution of respondents according to their position in the bank
where they were employed.
 15%

Managerial
Non-managerial

85%

Figure 4.3 : Position of respondents

Fifteen percent of the respondents were managerial employees while 84.93% were non-
managerial. Studies by Barathi Kamath (2007) and Brissimis, Delis and Papanikolaou (2008)
also found that the proportion of managerial employees in the banking sector ranged between
15 and 20%. The findings suggest that managerial and nonmangerial employees were
adequately represented in the study.

4.4 Importance of technological innovation in organisations

4.4.1 Ability of leaders in different functional areas to work together

Respondents were asked to rate how well the leaders in different functional areas in their
organisation worked together. The responses were according to a scale from 1 to 5 with 1
representing not well at all and 5 representing very well. Table 4.2 shows the descriptive
statistics for the responses.

Table 4-2 Ability of leaders in different functional areas to work together

N Minimum Maximum Mean Std. Deviation

1 272 1 4 2.67 1.146
Valid N (listwise) 272
The mean for the responses was 2.67 with a standard deviation of 1.146. The mean was in
below the central point of 3 which means it leans towards the not well at all category. The
findings are similar to Vuong et al. (2014) who concluded that coordinanting different
functional areas in an organisation to work together was always a significant challenge .The
findings suggest that the ability of leaders in different functional areas to work together was
low.
4.4.2 Effectiveness in breaking down barriers between functional areas

The respondents were asked how effectively their organization breaks down barriers between
different functional areas so that ideas can be exchanged. The responses were according to a
scale from 1 to 5 with 1 representing not well at all and 5 representing very well. Table 4.3
shows the descriptive statistics for the responses.

Table 4-3 : Effectiveness in breaking down barriers between functional areas

N Minimum Maximum Mean Std. Deviation

2 272 1 4 1.76 1.308
Valid N (listwise) 272

The mean of the responses was 1.76 with a standard deviation of 1.308. The mean response
was in the not well region since it lies between 1 and 2. The findings are in agreement with
Vuong et al. (2014) who found that organisations were not effective in craeting an
atmosphere where the barriers to cooperation are totally eliminated.
4.4.3 Formal approach for generating ideas and using creativity/innovation

The respondents were asked if their organisations had a formal approach for generating ideas
and using creativity/innovation to address business issues. The responses were rated from 1 to
9 with 1 representing Do not have it and 9 representing Have it and use it. The descriptive
statistics for the responses are given in Table 4.4.

Table 4-4 : Formal approach for generating ideas and using creativity /innovation

N Minimum Maximum Mean Std. Deviation

3 272 1 1 1.00 .000
Valid N (listwise) 272
The mean response was 1 with a standard deviation of 0. All the respondents indicated that
their organization did not have a formal approach for generating ideas and using
creativity/innovation to address business issues. The mean of 1 indicates that the banks were
not at all using formal approaches for generating ideas and using creativity/innovation. The
findings are in contradiction to George, McGahan and Prabhu (2012) who found that there
was increased formalisation of the innovation process in organisations. The findings suggest
that the innovation process in Zimbabwean banks was not formalised.
4.4.4 Organisation’s actual performance in innovating

The respondents were asked to rate their organisation’s performance in terms of making
innovation happen. The responses were rated from 1 to 5 with 1 representing need to learn
the basics and 5 representing superior at innovation. The descriptive statistics for the
responses are given in Table 4.5.

N Minimum Maximum Mean Std. Deviation

4 272 1 2 1.22 .415
Valid N (listwise) 272

The mean response was 1.22 with a standard deviation of 0.415. The mean response of 1.22
meant that the organizations were not doing well at all in terms of making innovation happen.
The findings are similar to Chin, Chan and Lam (2008) and Xiaoqing Maggie and Heffernan
(2007) who found low levels of innovativeness in most banks.
4.4.5 Prioritisation of innovation

Respondents were asked to indicate the extent to which they agreed that their organisation
considered innovation to be a top priority. Figure 4.3 shows the responses.
 70.00%

59.19%
60.00%

50.00%
Percentage of respondents

40.00%

30.00%

20.00% 16.18% 16.18%

10.00% 7.72%

0.74%
0.00%
Strongly disagree Disagree Not sure Agree Strongly agree
Response

Figure 4.4 : Prioritisation of innovation

Sixty percent of the respondents agreed that their organisations considered innovation to be a
top priority while 16.18% strongly agreed, 16.18% were not sure, 7.72% disagreed and
0.74% strongly disagreed. Most of the respondents agreed that their organisations considered
innovation to be a top priority. The findings are similar to Xiaoqing Maggie and Heffernan
(2007) who found that Chinese banks considered innovation to be a top priority. The findings
suggest that the banks considered innovation to be a top priority.

4.4.6 Effectiveness of innovation committee

Respondents were asked to indicate the extent to which they agreed that their organisation
had an active and effective innovation committee. Their responses are summarised in Figure
4.4.
 Strongly agree 4.41%

Agree 51.84%
Response

Not sure 35.66%

Disagree 5.88%

Strongly disagree 2.21%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Percentage of respondents

Figure 4.5: Effectiveness of innovation committee

Four percent of the respondents strongly agreed that their organisation had an effective
innovation committee whilst 51.84% agreed, 35.66% were not sure, 5.88% disagreed and
2.21% strongly disagreed. Most of the respondents agreed that their organisation had an
active and effective innovation committee. The findings contradict with Chitungo and
Munongo (2013) who found that banks did not have organised structures for promoting
innovation. It appears that banks in Zimbabwe had active and effective innovation
committees.

4.5 Technological preparedness of Zimbabwean banks for the competition in

the market

4.5.1 Importance attached to possession of trending technologies

Respondents were asked to rate their banks in terms of the level of importance which they
attached to keeping up with trending technologies in the sector. Figure 4.5 presents the
responses which were obtained.
 57.35%
60.00%

50.00%
Percentage of respondents

40.00%

26.84%
30.00%

20.00%

6.99% 7.72%
10.00%
1.10%

0.00%
Very Low Low Not sure High Very High
Response

Figure 4.6 : Importance which is attached to possession of trending technologies

One percent of the respondents indicated that their banks attached very low importance to the
possession of trending technologies while 6.99% considered that the importance which was
attached was low, 26.84% were not sure, and 57.35% considered it high and 7.72%
considered it to be very high. Most of the respondents indicate that their banks attached high
importance to the possession of trending technologies. The findings agree with Luo et al.
(2010) who suggested that banks in the USA attached high importance to the acquisition of
the latest technologies. The findings are in contradiction with Xiaoqing, Maggie and
Heffernan (2007) who found that Chinese banks did not attach importance to the use of
ternding technologies.The findings suggest that Zimbabwean banks attach significant
importance to the possession of trending technologies.

4.5.2 Technology as a source of competitive advantage

The respondents were asked to indicate their level of agreement that technology was a
significant source of competitive advantage in the Zimbabwean banking sector. Their
responses are presented in Figure 4.6.
 4% 2% 4%

Strongly disagree
32%
Disagree
Not sure
Agree
Strongly agree

58%

Figure 4.7 : Technology as a source of competitive advantage

Fifty-eight percent of the respondents agreed that technology was a significant source of
competitive advantage in the banking sector while 4.41% strongly agreed, 1.84% strongly
disagreed, 4.04% disagreed and 31.99% were not sure. Most of the respondents agreed that
technology was a significant source of competitive advantage. The studies concur to Evers
(2011) who considered technology to be a significant source of competitive advantage. It
appears that technology was a significant source of competitive advantage in the
Zimbabwean banking sector.

4.5.3 Possession of technology

The respondents were also asked the extent to which they agreed that their organisation
possessed all the technology which it needed in order to compete effectively in the
Zimbabwean banking sector. Figure 4.7 presents their responses.
 80.00%
73.90%
70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00% 9.93%
0.37% 2.94% 12.87%

0.00%
Strongly disagree
Disagree
Not sure
Agree
Strongly agree

Figure 4.8 : Banks' possession of technology

Three percent of the respondents disagreed that their banks possessed the technology which
they needed in order to compete effectively whilst 0.37% strongly disagreed, 9.93% were not
sure, 73.90% agreed and 12.87% strongly agreed. Most of the respondents agreed that their
banks possessed the technology which they needed in order to compete effectively in the
local market. The findings are in line with Anabila and Awunyo-Vitor (2013) who considered
that Ghanaian banks were technologically equipped to compete effectively. The findings
suggest that Zimbabwean banks were in possession of the technology which they needed to
compete in the local market.

4.5.4 Effectiveness in exploiting the potential of available technology

The respondents were asked to rate their bank in terms of its effectiveness in exploiting the
potential of the technology which was available to them. The responses are presented in
Figure 4.8.
 4.04%
Very high

12.13%
High
Response

67.65%
Average

12.87%
Low

3.31%
Very low

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%

Percentage of respondents

Figure 4.9 : Effectiveness in exploiting available technology

Four percent of the respondents rated their bank’s effectiveness in exploiting new technology
as very high, while 12.13% considered it high, 67.65% considered it average, 12.87% low
and 3.31% very low. Most of the respondents considered their bank’s effectiveness in
exploiting new innovations to be average. The findings do not concur to Brissimis, Delis and
Papanikolaou (2008) who found that most banks were not effective in exploiting available
technology. It appears that the banks’ effectiveness in exploiting new technologies was not
high.

4.6 Challenges which hinder innovation in Zimbabwean banks

4.6.1 Organisational culture

The respondents were asked to indicate the extent to which organisational culture hindered
innovation in their bank. Their responses are summarised in Figure 4.9.
 60.00%
56.62%

50.00%
Percentage of respondents

40.00%

30.00%

20.00%
15.07%
13.24%

10.00% 7.72% 7.35%

0.00%
Very low Low Not sure High Very high
Response

Figure 4.10 : Extent to which organisational culture is hindering innovation

Seven percent of the respondents indicated that organisational culture was hindering
innovation to a very low extent while 56.62% indicated that it did so to a low extent, 15.07%
to a high extent 7.35% to a very high extent and 13.24% were not sure. Most of the
respondents perceived that organisational culture hindered innovation to a low extent. The
findings did not agree with Barrett et al. (2015) who found that organisational culture was
instrumental in stifling innovation in organisations. It appears that organisational culture did
not hinder innovation in banks to a significant extent.

4.6.2 Resistance to change

Respondents were asked to indicate the extent to which resistance to change was hindering
innovation in their organisation. Their responses are presented in Figure 4.10.
 Very high 0.00%

High 0.00%
Response

Not sure 15.81%

Low 73.90%

Very low 10.29%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

Percentage of respondents

Figure 4.11 : Extent to which resistance to change is hindering innovation

Ten percent of the respondents perceived that resistance to change hindered innovation in
their organisation to a very low extent while 73.90% found the hindrance to be low and
15.81% were not sure. None of the respondents considered the extent to which resistance to
change was hindering innovation in their organisation to be high or very high. The findings
differ from Hekkert et al. (2007) who found that resistance was a significant challenge in the
implementation of new innovations. It appears that resistance to change did not hinder
innovation in banks to a significant extent.

4.6.3 Leadership commitment

Respondents were asked to indicate the extent to which leadership commitment was
hindering innovation in their bank. Figure 4.11 presents the summary of their responses.
 2% 1% 5%

37%

Very low
Low
Not sure
High
Very high
55%

Figure 4.12 : Extent to which leadership commitment hinders innovation

Fifty-five percent of the respondents indicated that leadership commitment hindered

innovation to a low extent while , 4.78% perceived the extent to be very low, 1.84%
high,1.10% very high and 37.13% were not sure. Most of the respondents perceived that
leadership commitment hindered innovation to a low extent. The findings are in line with
Evers (2011) who found that modern day leaders are in the front line of promoting
innovation. The findings suggest that leadership commitment did not hinder innovation in
banks to a significant extent.

4.6.4 Lack of funding

Respondents were asked whether their banks sometimes lacked funding for the acquisition of
new technologies. The findings are presented in Figure 4.12.
 8%

29%

Yes
No
Not sure

63%

Figure 4.13 : Banks which sometimes lacked funding for acquisition of new technologies

Sixty-three of the banks denied that their banks sometimes lacked funding for the acquisition
of new technologies while, 8.46% were not sure and 28.68% agreed. Most of the respondents
perceived that their organisations never lacked funding for the acquisition of new
technologies. The findings agreed with Chikoko, Mutambanadzo and Vhimisai, 2012) who
suggested that funding for the implementation of innovations was not a challenge in the
Zimbabwean banking sector. The findings suggest that lack of funding was not a significant
hindrance to innovation in Zimbabwean banks.

4.7 Growth opportunities associated with technology and innovation

4.7.1 Reaching new markets

Respondents were asked to indicate the extent to which they agreed that innovation was being
used by their bank as an effective way of reaching new markets. Figure 4.13 presents their
responses.
 44.49%
45.00%

40.00%
32.72%
35.00%
Percentage of respondents

30.00%

25.00%
18.75%
20.00%

15.00%

10.00%
4.04%
5.00%
0.00%
0.00%
Strongly disagree Disagree Not sure Agree Strongly agree
Response

Figure 4.14 : Use of innovation as a way to reach new markets

Nineteen percent of the respondents strongly agreed that their organisation used innovation as
an effective way of reaching new markets while 44.49% agreed, 32.72% were not sure,
4.04% disagreed and 0% strongly disagreed. Most of the respondents agreed that their
organisation used innovation as an effective way to reach new markets. The findings agree
with Frenken (2006) who found that organisations can get access to new markets through the
use of innovations. The findings suggest that innovation had a significant influence on the
penetration of new markets.

4.7.2 Customer loyalty

The respondents were asked if their organisation had used innovation as an effective way of
building customer loyalty. Figure 4.14 presents the responses which were obtained.
 Strongly agree 17.65%

Agree 36.40%
Response

Not sure 30.51%

Disagree 10.29%

Strongly disagree 5.15%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%

Percentage of respondents

Figure 4.15 : Use of innovation as a way to build customer loyalty

Seventeen percent of the respondents strongly agreed that their organisation used innovation
as an effective way of building customer loyalty while 36.40% agreed, 30.51% were not sure,
10.29% disagreed and 5.15% strongly disagreed. Most of the respondents agreed that their
organisation used innovation as an effective way to build customer loyalty. The findings
agree with Du Plessis (2007) who found that customers are loyal to innovative organisations.
The findings suggest that innovation had a significant influence on customer loyalty.

4.7.3 Brand image

The respondents were asked to indicate the extent to which their bank had successfully used
innovation to improve their brand image. Figure 4.15 presents the responses which were
obtained.
 43.01%
45.00%

40.00%

35.00%
Percentage of respondents

27.57%
30.00%

25.00% 19.49%
20.00%

15.00%
8.09%
10.00%
1.84%
5.00%

0.00%
Strongly disagree Disagree Not sure Agree Strongly agree
Response

Figure 4.16 : Use of innovation in building brand image

Forty-three percent of the respondents agreed that their organisation used innovation as an
effective way of building brand image while 19.49% strongly agreed, 27.57 % were not sure,
8.09 % disagreed and 1.84 % strongly disagreed. Most of the respondents agreed that their
organisation used innovation as an effective way to build brand image. The findings agree
with Weerawardena, O'Cass and Julian (2006) who found that building brand image throgh
innovation was instrumental in organisational growth. The findings suggest that innovation
had a significant influence on brand image.

4.8 Hypotheses testing

He study set out to test the hypothesis:

H0: Adoption of technological innovations does not have a significant influence on a bank’s
survival

4.8.1 Reliability tests

Adoption of technological innovations was measured by three items on a Likert scale of 1 to

9 which measured the extent of technological innovation, sustainability of innovations and
appropriateness of innovations. The Cronbach’s alpha was used to test if the three items
constituted a reliable scale. The results of the reliability test are presented in Table 4.5.

Table 4-5: Reliability test for adoption of technological innovation

Cronbach's Alpha N of Items

.750 3

The value of Cronbach’s alpha was 0.750 which falls between the range of 0.7 and 0.9 which
is recommended by Tavakol and Dennick (2011) for a scale to be considered reliable. The
items can therefore be used as ascale to measure adoption of technological innovation.

The bank’s survival was measured using three items which asked the respondents’ to rate the
bank’s chances os short term survival, medium term survival and long term survival
respectively on a likert scale of 1 to 5. To test if the 3 t-items constituted a reliable scale, the
Cronbach’s alpha. Table 4.6 presents the results of the test for reliability.

Table 4-6: Reliability test for bank's survival

Cronbach's Alpha N of Items

.764 3

The value of Cronbach’s alpha for the items which measure tha bank’s chances of survival
was 0.764. According to the criteria set by Tavakol and Dennick (2011), the items constitute
reliable scale for measuring the banks’ chances of survival.

4.8.2 Pearson’s correlation coefficients

Table 4.7 presents the correlation coefficients for adoption of innovations and bank survival.

Table 4-7 : Correlation coefficients for adoption of innovations and bank survival

Adoption of Survival
Adoption Pearson Correlation 1 .676**
Sig. (2-tailed) .000
N 272 272
Survival Pearson Correlation .676** 1
Sig. (2-tailed) .000
N 272 272
The Pearson’s correlation coefficient is 0.676 with a p-value of 0.000. The p-value of the
correlation coefficient is less than 0.01 meaning that it is significant at a level 0.01. The value
of the correlation coefficient is 0.676 and according to Barlow et al. (2010) a value of
Pearson’s correlation coefficient between 0.6 and 0.8 indicates strong positive linear
correlation. There is strong positive linear correlation between adoption of innovations and
banks’ survival.

Reject H0: Adoption of technological innovations does not have significant influence on a
bank’s survival

Accept H1: Adoption of technological innovations has significant influence on a bank’s

survival

The findings are in agreement with Buddelmeyer, Jensen and Webster (2010) and Aragón-
Correa, García-Morales and Cordon-Pozo (2007) who found innovation to be a key
determinant of firm survival . The findings contradict with Brissimis, Delis and Papanikolaou
(2008) who found that survival of banks was not affected by adoption of technological
innovations. Adoption of technological innovations had significant influence on
organisational survival in Zimbabwean banks.

4.9 Conclusion

This chapter was for presentation and analysis of the study’s findings. The analysis was done
in line with the objectives of the study and guided by the literature review. The hypothesis for
the study was tested using Pearson’s correlation analysis. The next chapter presents the
summary conclusions and recommendations of the study.
 CHAPTER 5 :

CONCLUSIONS AND RECOMMENDATIONS

5 CHAPTER 5 : SUMMARY,CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter covers the conclusions of the study and the recommendations which are made
for the stakeholders basing on the findings. The purpose of the study was to analyse the
importance of technological innovation on organizational survival in the banking sector. In
this chapter the objectives of the study are summarized, conclusions stated and motivated and
recommendations offered to stakeholders. The study also goes on to make recommendations
for further studies which could illuminate the topic more and enrich empirical literature.

5.2 Statement of objectives

The study was formulated and conducted on the basis of four key objectives which were
covered adequately during the course of the study. The extent to which the objectives were
covered is as follows:

5.2.1 To analyse importance attached to technological innovation in Zimbabwean

Bank

The study managed to establish the importance which banks attached to technological
innovation. The study established that banks had no challenges in coordinating different areas
in the organisation in implementing innovations. Most of the banks prioritised innovation and
had active and effective innovation committees to drive the innovation process. Most of the
employees however indicated that their organisations were not doing well in the actual
process of coming up with innovations.

5.2.2 To establish the technological preparedness of Zimbabwean banks for the

competition in the market

The study successfully established the technological prepared ness of the Zimbabwean banks
for competing in the market. The banks attached importance to the uptake of trending
technologies and viewed technology as an effective way of gaining competitive advantage.
The banks possessed the necessary technology which they needed to compete effectively but
were not effective in exploiting the technologies which were available to them.

5.2.3 To investigate the challenges which hinder innovation in Zimbabwean banks

The study managed to investigate the challenges which hinder innovation in Zimbabwean
banks. Organisational culture, resistance to change, leadership commitment and lack of
funding were not considered to be significant challenges which hindered innovation in the
banks.

5.2.4 To identify the growth opportunities which are associated with technological
innovations in the Zimbabwean banking sector

The study managed to identify the growth opportunities which are associated with
technological innovations in the Zimbabwean banking sector. Technological innovations in
the banking sector were found to give opportunities for reaching new markets, building
customer loyalty and building brand image.

5.3 Conclusions

5.3.1 Importance which is attached to technological innovation

The findings suggest that the ability of cross functional departments to interact together was
minimal. The findings are similar to Vuong et al. (2014) who concluded that coordinating
different functional areas in an organisation to work together was always a significant
challenge. It appears that banks in Zimbabwe had active and effective innovation committees.
The findings are similar to George, McGahan and Prabhu (2012) who found that there was
increased formalisation of the innovation process in organisations. The findings suggest that
the banks were not doing well in terms of innovation. The findings are similar to Chin, Chan
and Lam (2008) and Xiaoqing Maggie and Heffernan (2007) who found low levels of
innovativeness in most banks.

5.3.2 Technological preparedness for the competition in the market

The findings suggest that Zimbabwean banks attach significant importance to the possession
of trending technologies and through ICT upgrades and broadband availability where able to
compete effectively on the market. The findings agree with Luo et al. (2010) who suggested
that banks in the USA attached high importance to the acquisition of the latest technologies.
The findings are in contradiction with Xiaoqing, Maggie and Heffernan (2007) who found
that Chinese banks did not attach importance to the use of ternding technologies. It appears
that technology was a significant source of competitive advantage in the Zimbabwean
banking sector. The studies concur to Evers (2011) who considered technology to be a
significant source of competitive advantage. The findings suggest that Zimbabwean banks
were in possession of the technology which they needed to compete in the local market. The
findings are in line with Anabila and Awunyo-Vitor (2013) who considered that Ghanaian
banks were technologically equipped to compete effectively. It appears that the banks’
effectiveness in exploiting new technologies was not high. The findings do not concur to
Brissimis, Delis and Papanikolaou (2008) who found that most banks were not effective in
exploiting available technology.

5.3.3 Challenges which hinder innovation

It appears that organisational culture did not hinder innovation in banks to a significant
extent. The findings did not agree with Barrett et al. (2015) who found that organisational
culture was instrumental in stifling innovation in organisations. It appears that resistance to
change did not hinder innovation in banks to a significant extent. The findings differ from
Hekkert et al. (2007) who found that resistance was a significant challenge in the
implementation of new innovations. The findings suggest that leadership commitment did not
hinder innovation in banks to a significant extent. The findings are in line with Evers (2011)
who found that modern day leaders are in the front line of promoting innovation. The
findings suggest that lack of funding was not a significant hindrance to innovation in
Zimbabwean banks. The findings agreed with Chikoko, Mutambanadzo and Vhimisai, 2012)
who suggested that funding for the implementation of innovations was not a challenge in the
Zimbabwean banking sector, but the flow of innovative ideas from employees or customers
through to implementation.

5.3.4 Growth opportunities which are associated with technological innovations

The findings suggest that innovation had a significant influence on the penetration of new
markets. The findings agree with Frenken (2006) who found that organisations can get
access to new markets through the use of innovations. The findings suggest that innovation
had a significant influence on customer loyalty. The findings agree with Du Plessis (2007)
who found that customers are loyal to innovative organisations. The findings suggest that
innovation had a significant influence on brand image. The findings agree with
Weerawardena, O'Cass and Julian (2006) who found that building brand image through
innovation was instrumental in organisational growth.

5.3.5 Hypothesis

Reject H0: Adoption of technological innovations does not have significant influence on a
bank’s survival

Accept H1: Adoption of technological innovations has significant influence on a bank’s

survival

5.4 Recommendations

The study made the following recommendations:

5.4.1 Innovation policy

Considering that banks were not doing well in coordination different areas in order to come
up with innovative technologies banks are recommended to come up with clear and well
documented innovation policy which regulates the way organizational members work
together in developing and implementing innovative technologies.

5.4.2 Rewards for innovation

Considering that banks were not making the best use of the technologies at their disposal, the
study recommends that they should offer rewards for innovative ideas from employees and
other stakeholders as a way of bringing in more innovations to the organisation.

5.4.3 Adoption of trending technologies

Considering that the adoption of innovations was found to have significant influence on the
survival of banks, the banks are recommended to acquire and adopt trending technologies in
order to remain competitive in the market and ensure their survival.
 5.5 Suggestions for further studies

Further studies are recommended to explore the success factors in the implementation of
technological innovations so as to come up with a framework for successful innovations.

Further studies may also be carried out with a focus on the challenges of uptake in the
implementation of new innovations in the banks.
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Appendices

Appendix 1: Questionnaire

The IQ - (Innovation Quotient) Questionnaire

This is a survey of the innovation policies and frameworks in your organization.

The range is 1-5 from lowest to highest,

Gender

  Male     Female 

Positio
n

  Managerial  Nonmanagerial 
  

1 How well do the leaders in different functional areas in your organisation work together?

  Not well at all   1  2  3  4  5    Very well

2 How effectively does your organisation break down barriers between different functional
areas so that ideas can be exchanged?

  Not well at all   1  2  3  4  5    Very well

3 Does your organisation have a formal approach for generating ideas and using
creativity/innovation to address business issues?

  Don't have it   1  3  5  7  9    Have it and use it

4 How would you rate your organisation’s actual performance in making innovation
happen?
  Need to learn Superior at
1  2  3  4  5 
basics   innovation

5 To what extent do you agree that your organization treats innovation as a top priority?

Answer according to the following scale:

1-Strongly disagree 2- Disagree 3- Not sure 4-Agree 5- Strongly agree

  1  2  3  4  5    

6 Please rate the importance which your organization attaches to technological

innovations according to the scale below:

1-Very Low 2- Low 3- Not sure 4- High 5 - Very high

  1  2  3  4  5    

7 To what extent do you agree that technology is a significant source of competitive

advantage for your company?

1-Strongly disagree 2- Disagree 3- Not sure 4-Agree 5- Strongly agree

  1  2  3  4  5 

8 To what extent do you agree that your organization possesses thetechnology it requires
to compete in the market?

1-Strongly disagree 2- Disagree 3- Not sure 4-Agree 5- Strongly agree

  1  2  3  4  5 

9 How would you rate your organisation’s effectiveness in exploiting technological

innovations which are available?

1-Very Low 2- Low 3- Not sure 4- High 5 - Very high

  1  2  3  4  5    

10 To what extent does organizational culture hinder innovation?

1-Very Low 2- Low 3- Not sure 4- High 5 - Very high

  1  2  3  4  5    
11 To what extent does resistance to change hinder innovation in your organization?

1-Very Low 2- Low 3- Not sure 4- High 5 - Very high

  1  2  3  4  5    

12 To what extent does leadership commitment hinder innovation in your organization?

1-Very Low 2- Low 3- Not sure 4- High 5 - Very high

  1  2  3  4  5    

13 To what extent does lack of funding hinder innovation in your organization?

1-Very Low 2- Low 3- Not sure 4- High 5 - Very high

  1  2  3  4  5    

14 To what extent do you agree that you organization is using innovation effectively to
enter new markets?

1-Strongly disagree 2- Disagree 3- Not sure 4-Agree 5- Strongly agree

  1  2  3  4  5    

16 To what extent do you agree that your organization is making effective use of innovation
to build customer loyalty?

1-Strongly disagree 2- Disagree 3- Not sure 4-Agree 5- Strongly agree

  1  2  3  4  5 

17 To what extent do you agree that your organization is making effective use of innovation
to build brand image?

1-Strongly disagree 2- Disagree 3- Not sure 4-Agree 5- Strongly agree

  1  2  3  4  5    

Thank You