Research Proposal

Abstract
The purpose of this research is to explore the effect of innovation on organizational
performance of the banking sector. Organizational performance is taken as dependent
variable and process innovation, product innovation and organizational innovation as an
organizational culture are used as independent variables. Primary data is collected for this
research. This is survey research in which questionnaire is administered to 100 employees
belong to different banks in Lahore that are concerned with innovation to ensure accountable
answers. The multiple regression model is used to depict the results.
Keywords: Organizational Performance, Innovation, Organizational Culture, Banking Sector in
Pakistan.

Introduction
Innovation plays variety of role in the development and growth of the organization so that
take the maximum productions. Organization is a societal arrangement of people, an
association or else an institution that has a specific goal. There may be several types of
organizations such as; governments, non-governmental organizations, armed forces,
corporations, international organizations, charities, universities, partnerships, non-profit
organizations. Ultimate goal of the organizations varies from organization to organization.
Just as goal of the armed forces is to protect the country, universities goal is to give proper
education. (karim, Solangi , Larik, Lakho, & Tagar, 2017)
There are much more sectors which contributed in the growth of economy of Pakistan such as
agriculture sector, service sector, manufacturing sector and more. Service sector processes in
Pakistan are main sector of Pakistan while agriculture sector is on second rank.
Manufacturing sector is at third prime sector of Pakistan economy concerning contribution
and have 18.7% role in gross domestic product (GDP) of Pakistan. The growth rate of
manufacturing sector of Pakistan is 3.56% in the fiscal year of 2011-12 and financed
approximately 1485 billion rupees in this sector. Pakistan ministry of Pakistan declared 8%
annual growth of manufacturing sector in 2012 ands more than 100% value addition.

Significance of the Study

The results of this research will redound to the society considering that innovation plays an
important role in present era. Because innovation has a significance impact on firms’
performance and as well on employee’s performance. New technological system and new
things bring in a company may enhance it. As the world become a global village and
innovation become its major part. So, the companies should bring new innovation in
company to make progress otherwise you will be loosed. And this research help the
researcher to uncover the critical areas in innovation.

Literature Review
The research was conduct in Pakistan in Telecom Industries to investigate the relationship
between innovation and firm performance. The results depict that product innovation, process
innovation, and organizational innovation has positive on firm’s performance. The study also
reveals the moderation effects of organizational culture on the product innovation and process
innovation with firm performance is optimized (Suhag, Solangi, Larik, Lakho, & Tagar,
2017).
(Salim & Sulaiman, 2011) in Malaysia the outcome hypothesis to explain the innovation effect
on company performance. The examination hypothesizes that organizational advancement is
decidedly identified with the firm execution which is estimated as far as both budgetary and
advertise measurements both. Findings of the exploration bolster both the theory that firms
advancement affects firm’s execution.
(Khin, Seng, Mohammad, Ying, & Yeap, 2016) examined the relationship between improvements
and SMEs enterprise performances in a Malaysian context. Cultivating an organization’s
power, experience, and subculture would, in addition, decorate employees’ acceptance of,
and alignment with, organizational dreams that promote higher organizational commitment,
this main in the end to increases in innovations and commercial enterprise performances.
(Awan & Javed, 2015)The primary goal of this paper is to discover the results of innovation
types such as product, process, marketing and organizational innovation on distinctive
elements of company performance and employee’s performance such as innovative,
production, marketing and financial overall performance in Unilever Pakistan. The effects
reveal the nice consequences of innovation kinds on employee’s performance. Theoretical
and managerial implications along with barriers for future lookup have additionally been
discussed.

Methodology
Research
 primary research
Sector
 banking sector
Time
 6 month
No of samples
 150
Collect the data
 By questionnaire
Filling the questionnaire
 by banking sectors employees
How many questionnaires
 150

Variables
 Independent variables
 Dependent variables

Independent variables

 Product innovation
 Process innovation
 Organization innovation
 Organza ion culture

Dependent variable
 Organization performance

Data analysis techniques

  by regression method

 Short Summary:
This research study investigates the relationship of innovation with the organizational
performance of the banking sector.
The study adopted a survey research design which measured two variables, dependent and
independent variables.
The independent variables are product innovation, process innovation, organization
innovation organization culture while the dependent variable is organization performance.
Banking sector is selected as the population for this research. The research is survey research
in which the questionnaire is administered to 200 employees that are concerned with
innovation in the banking sector. A sample of 200 questionnaires will fill from employees
that are concerned with innovation in the banking sector to make a sure reasonable response.
Employees in the banking sector are chosen in this regard because they are well familiar with
the innovations and the performance of the organization. Primary data will collect through
questionnaires, which will distribute by researchers among the target population. Through
regression method, data will analyze and results declared by this method.

 Product Innovation:
Product innovation is the improvement of original goods, modify in the design of recognized
goods, or exercise of fresh supplies in the construct of recognized goods. Product innovation
which is latest and, in the past,, it was unfamiliar to the marketplace the business operates in.
Product innovation is defined as the new product which is totally diverse from the old
product and there is an idea that phrase of product innovation goes hand in hand with phrase
of newness

 Process Innovation:
Process innovation is explained as new or enhanced tools, equipment’s, materials, and other
technologies that directly affect the firms that are practicing innovations; those firms’
produces the goods that are further sold in the market. There is big difference between
process innovations and product innovations, which is; new or improved product
technologies that the organization sells for the satisfaction of customers or its clients. Process
innovation means the implementation of a fresh or partially enhanced
manufacturing/production or deliverance system. It enables the production of a given amount
of output that is goods and services with less input.

 Organization Innovation
An organizational innovation is the execution of the novel organizational procedure in the
industry organization practices, workplace business, or outside relations. Organizational
innovation is like outsourcing, partnership, subcontract plus organization work practice such
as quality management, reengineering, and lean management. Organizational innovation is
serious outcome for the business and a foundation to create value.

 Organizational Culture
The ideology, philosophy, mutual assumption, expectations, attitude, beliefs and norms that
tie an organization jointly. The concept of culture is usually linked with foreign, people plus
places that are distant, with convention foreign languages and practices. Organization culture
is reformed and crystallized dynamically and continuously over a period. It is a complete
collection of shared assumptions about a whole work within a specific profession. These
assumptions tell about the concepts such as truth, time, reality and space as these effects’
individuals and groups. Culture is something that has been done with the people, distinctive
quality and approach of an organization. The way things are done, and significant non-
rational qualities organizations have. An organization is said to have a strong culture, which
is mostly defined as they share it on broad basis between the employees.

 Organizational Performance:
Organization performance includes real productivity or outcome of a business which is
calculated in opposite to its planned productivity or targets and aims. Organization
performance has been defined as the capability of firm to accomplish its goals and objectives
with the help of talented administration, good governance and have a constant rededication to
accomplish business objectives. Organizational performance is a sign which deal how well a
business complete its goals. Organizational performance is one of the most key constructs in
the research of management