Learning Organization Practices and Multidimensional Innovation in the Banking Sector

Abstract

This study sought to examine the effect of learning organization (LO) practices on several different aspects of innovation in the banking industry, through empirical data from Awash Bank in Ethiopia. In order to bridge the existing knowledge gap, the study analyzed the association between LO practices and four different types of innovation, which include process innovation, organizational innovation, marketing innovation, and service innovation. The study employed quantitative and cross-sectional survey methodology, where data were collected from 265 employees by means of structured questionnaires that utilized five-point Likert scale. Following initial reliability and normality tests, the study hypotheses were analyzed through regression and multivariate ANOVA (MANOVA) in IBM SPSS. The results indicate that learning organization practices significantly and positively influence all aspects of innovation. Findings indicate that organizations promoting ongoing learning, knowledge exchange, and cooperative problem-solving are better equipped to create innovative process, frameworks, marketing strategies, and services. The study contributes to the current literature by providing empirical evidence on the diverse impacts of learning organization practices on innovation with in banking sector of developing economy. The result underscore the significance of bolstering cultures focused on learning, banking from leadership, and systems for managing knowledge to improve innovation potential and sustain competitiveness in fast changing financial markets.