Administrative Innovation and Financial Performance of Deposit Money Banks in Nigeria

Abstract

Banking industry try to serve the interest of many stakeholders like: customers, shareholders, investors, government and so on by finding possible ways of improving their financial performance on daily basis.  This study aimed at determining the effect of administrative innovation on the financial performance of deposit money banks (DMB) in Nigeria. specific objectives were to determine the effect of organizational and marketing innovation on financial performance of DMB in Nigeria. Survey research design was adapted, management of deposit money constituted the population and primary source of data was used. Structural Modelling Equation was used as a tool of analysis. The result revealed that, organizational innovation has a positive but insignificant effect on financial performance of deposit money banks in Nigeria; while marketing innovation has a positive significant on financial performance of DMB in Nigeria. The study concluded that successful administrative innovation reduce cost and eventually lead to increase profitability of banks in Nigerian. Recommendation include banks should continually promote products to new markets and customer group, to improve sales growth for service as a result of changes in design and pricing as is the second dimension that influences their financial performance.