Service innovation, service delivery and customer satisfaction and loyalty in the banking sector of Ghana

The concept of innovation is gaining ground steadily in the context of an increasingly competitive and highly volatile banking sector. The purpose of this paper is to find out the role of service innovation (SI) in the relationship between service delivery (SERVD), customer satisfaction (CSAT) and loyalty in the banking sector of Ghana.

Drawing from banking and marketing literature, a conceptual framework was developed and tested using data from 450 sampled customers of commercial banks in Ghana. The data were analyzed using partial least squares structural equation modeling.

The findings indicate that SI has direct influence on SERVD and CSAT. Again the findings revealed a positive relationship between SERVD, CSAT and bank customer loyalty.

This study offers theoretical support for the adoption of innovative techniques in service provision and delivery.

This paper provides an initial study into innovation management in financial services context in an emerging economy.