Service Innovation and Customers’ Satisfaction of Selected Micro Finance Banks in Ogun State, Nigeria

The untimely adoption of modern business practice through technological innovation has hindered service quality, customers’ satisfaction and the general growth of Micro finance banks in Nigeria. The study examined the effect of service innovation which consist of New Service Concept, New Service Pr...

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Main Authors: Olayinka Abideen Shodiya, Akinbiyi Akintaro, John Olopade
Format: Article
Language:English
Published: UiTM Press 2024-06-01
Series:Journal of International Business, Economics and Entrepreneurship
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Online Access:https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1136
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author Olayinka Abideen Shodiya
Akinbiyi Akintaro
John Olopade
author_facet Olayinka Abideen Shodiya
Akinbiyi Akintaro
John Olopade
author_sort Olayinka Abideen Shodiya
collection DOAJ
description The untimely adoption of modern business practice through technological innovation has hindered service quality, customers’ satisfaction and the general growth of Micro finance banks in Nigeria. The study examined the effect of service innovation which consist of New Service Concept, New Service Process, and New Technology on customer satisfaction of selected micro finance banks in Ogun state Nigeria. The study adopted a cross- sectional survey research design with the aid of structured questionnaire which enabled the researcher to obtain firsthand information from the respondents. The population for this study is the customers of Micro Finance banks (MBF) in Ogun State in which (17) microfinance banks customers were conveniently selected for the survey. Due to the infinite nature of the population (MFBs Bank Customers) the study adopted a sample determination model by Cochran (1977) which is mainly used for an infinite population of this nature to arrive at the sample size of (384) respondents. The data collected was analysed using partial least square structural equation modeling (PLS-SEM 4.0). The findings of the study revealed that all the hypotheses (H1, H2, H3, and H4) are accepted, indicating that each of the independent variable dimensions has significant effect on the dependent variable. That’s new service concept has significant effect on customers satisfaction of MFBs. The study concluded that the three dimensions of service innovation, namely New Service Concept, New Service Process, and New Technology, had a positive and substantial influence on customer satisfaction among the selected micro finance banks in Nigeria. Therefore, the study recommended that the management of microfinance banks in Ogun state should constantly adopt service innovation dimensions to outperform competitors in order to increase their customer satisfactions.
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spelling doaj-art-7eda2c2fc7ed46c19c619e0d85b3fa272024-11-22T07:19:42ZengUiTM PressJournal of International Business, Economics and Entrepreneurship2550-14292024-06-0191Service Innovation and Customers’ Satisfaction of Selected Micro Finance Banks in Ogun State, NigeriaOlayinka Abideen Shodiya0Akinbiyi Akintaro1John Olopade2Crescent University, Abeokuta, Ogun State, NigeriaCrescent University, Abeokuta, Ogun State, NigeriaFederal Polytechnic, Ilaro, Ogun State, Nigeria The untimely adoption of modern business practice through technological innovation has hindered service quality, customers’ satisfaction and the general growth of Micro finance banks in Nigeria. The study examined the effect of service innovation which consist of New Service Concept, New Service Process, and New Technology on customer satisfaction of selected micro finance banks in Ogun state Nigeria. The study adopted a cross- sectional survey research design with the aid of structured questionnaire which enabled the researcher to obtain firsthand information from the respondents. The population for this study is the customers of Micro Finance banks (MBF) in Ogun State in which (17) microfinance banks customers were conveniently selected for the survey. Due to the infinite nature of the population (MFBs Bank Customers) the study adopted a sample determination model by Cochran (1977) which is mainly used for an infinite population of this nature to arrive at the sample size of (384) respondents. The data collected was analysed using partial least square structural equation modeling (PLS-SEM 4.0). The findings of the study revealed that all the hypotheses (H1, H2, H3, and H4) are accepted, indicating that each of the independent variable dimensions has significant effect on the dependent variable. That’s new service concept has significant effect on customers satisfaction of MFBs. The study concluded that the three dimensions of service innovation, namely New Service Concept, New Service Process, and New Technology, had a positive and substantial influence on customer satisfaction among the selected micro finance banks in Nigeria. Therefore, the study recommended that the management of microfinance banks in Ogun state should constantly adopt service innovation dimensions to outperform competitors in order to increase their customer satisfactions. https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1136Service Innovation, New Service Concept, New Service Process, New Technology, Customers’ Satisfaction
spellingShingle Olayinka Abideen Shodiya
Akinbiyi Akintaro
John Olopade
Service Innovation and Customers’ Satisfaction of Selected Micro Finance Banks in Ogun State, Nigeria
Journal of International Business, Economics and Entrepreneurship
Service Innovation, New Service Concept, New Service Process, New Technology, Customers’ Satisfaction
title Service Innovation and Customers’ Satisfaction of Selected Micro Finance Banks in Ogun State, Nigeria
title_full Service Innovation and Customers’ Satisfaction of Selected Micro Finance Banks in Ogun State, Nigeria
title_fullStr Service Innovation and Customers’ Satisfaction of Selected Micro Finance Banks in Ogun State, Nigeria
title_full_unstemmed Service Innovation and Customers’ Satisfaction of Selected Micro Finance Banks in Ogun State, Nigeria
title_short Service Innovation and Customers’ Satisfaction of Selected Micro Finance Banks in Ogun State, Nigeria
title_sort service innovation and customers satisfaction of selected micro finance banks in ogun state nigeria
topic Service Innovation, New Service Concept, New Service Process, New Technology, Customers’ Satisfaction
url https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1136
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AT akinbiyiakintaro serviceinnovationandcustomerssatisfactionofselectedmicrofinancebanksinogunstatenigeria
AT johnolopade serviceinnovationandcustomerssatisfactionofselectedmicrofinancebanksinogunstatenigeria