The Determining Factors for Innovation Performance Success (An Empirical Study of Indonesian Commercial Banking)

Abstract

The purpose of this paper is to provide a determining factors of Innovation performance in banking industry. A systematic empirical study was conducted to explore the implementation organization culture as a determining factor of innovation success. This study used non-probability sampling techniques with purposive sampling techniques at commercial banks in Indonesia. A research framework is created based on the Hofstede’s organizational culture dimensions, Eurostat and the Economic Development Organization (EOCD). Structural Equation Model (SEM) is applied to assess the model fit and to test the research hypotheses. The result of the model fit assessment concluded that all the proposed model is acceptable. The estimated model, found support for the role of 6 (six) hofstede’s organization culture dimension in affecting Innovation Performance Success. This study provides new information in the emerging context of innovation performance of banking industry.