CHAPTER ONE
1.1 Background To The Study
Product innovation comprise of the
development of new products, modification in design of established
products, or the adoption of the use of new materials or components in
the manufacture of established products. This is to enhance quality and
improve overall performance. The three different classifications of
innovation which aim to develop a company's production methods consist
of Product innovation, cost-cutting innovation and process innovation.
Consequently product innovation consist of two types; incremental
innovation which aims at improving existing products and radical
innovation which aims at developing a new product. New product
development is a strategy developed to replace existing product and for
the prevention of loss of profit or liquidation of business in the long
run. It also plays a vital role in the Product Life Cycle.According to Peter
Drucker in his book 'Innovation and Entrepreneurship' stated that there
exist a correlation between product innovation and entrepreneurship as
both must be explored for a successful business enterprise. The process
involved is the new product development while ]Existing Product Development involves redesigning ,
refurbishing, improving, and manufacturing the existing product .The
benefit include cost reduction, increased revenue , Growth, expansion
and gaining a competitive advantage. Business performance management involves the review of overall business performance with the view of determining how the objective of the business can be attained. This implies that the strategic, operational objectives and the business' set of activities are aligned in order to manage
performance. This enables the managers to better appreciate the
position of the firm and make informed better decisions. Therefore the
research seek to proffer an appraisal of Product innovation and business
performance of Banks in Rivers state
1.2 Statement of the Problem
The adoption of Product innovation to enhance the business performance
Constitute the investment of capital
into the process of the development of the product which constitute risk
and involves uncertainty of product and business failure. Regular
experiment of product development leads to increasing higher cost.
Moreover new product development would also leads to changes in the
processes involving the bank and its customers, suppliers, and external
unit etc.
Which may also affect the business
performance of the bank? Consequently the problem confronting the
research is to proffer an appraisal of Product innovation and business
performance of Banks in Rivers state
1.3 Objectives of the Study
To determine the role of Product innovation on business performance of Banks in Rivers state.
The process involved is the new product development while ]Existing Product Development involves redesigning ,
refurbishing, improving, and manufacturing the existing product .The
benefit include cost reduction, increased revenue , Growth, expansion
and gaining a competitive advantage. Business performance management involves the review of overall business performance with the view of determining how the objective of the business can be attained. This implies that the strategic, operational objectives and the business' set of activities are aligned in order to manage performance. This enables the managers to better appreciate the position of the firm and make informed better decisions
1.4 Research Questions
What is product innovation and business performance?
What is the impact of Product innovation on business performance of Banks in Rivers State?
1.5 Significance of the Study
The study shall proffer an appraisal of Product innovation and business performance of Banks in Rivers state
Product innovation comprise of the
development of new products, modification in design of established
products, or the adoption of the use of new materials or components in
the manufacture of established products. This is to enhance quality and
improve overall performance. The three different classifications of
innovation which aim to develop a company's production methods consist
of Product innovation, cost-cutting innovation and process innovation.
Consequently product innovation consist of two types; incremental
innovation which aims at improving existing products and radical
innovation which aims at developing a new product. New product
development is a strategy developed to replace existing product and for
the prevention of loss of profit or liquidation of business in the long
run.
1.6 Research Hypothesis
Ho The impact of Product innovation on business performance of Banks in Rivers state is low
Hi The impact of Product innovation and business performance of Banks in Rivers state is high
1.7 Scope of the Study
The research focuses on the appraisal of Product innovation and business performance of Banks in Rivers state.
1.8 Limitations of the Study
The research was confronted by some constraints including logistics and geographical factor.
1.9 Definition of Terms
Product innovation comprise of the
development of new products, modification in design of established
products, or the adoption of the use of new materials or components in
the manufacture of established products. This is to enhance quality and
improve overall performance. The three different classifications of
innovation which aim to develop a company's production methods consist
of Product innovation, cost-cutting innovation and process innovation.
Consequently product innovation consist of two types; incremental
innovation which aims at improving existing products and radical
innovation which aims at developing a new product.
REFERENCES
Policy Studies Institute, University of Westminster. "Small Firms' Innovation" (PDF). Retrieved 27 May 2010.
Hoang, Paul (2010). Business & management. [Melton, Vic.]: IBID Press. p. 686. ISBN 978-1876659639.
Wong, S.K.S. (2014), "Impacts of
environmental turbulence on entrepreneurial orientation and new product
success", European Journal of Innovation Management, Vol. 17 No. 2,
pp.229 – 249
Investopedia. Investopedia.Oct 2014.
Bloodgood, James (2014). "Benefits and Drawbacks of Innovation and Imitation" (PDF). International Journal of Innovation and Business Strategy. 02
Hoang, Paul (2010). Business & management. [Melton, Vic.]: IBID Press. p. 688.
Drucker, Peter (2012). Innovation and Entrepreneurship. Routledge. p. 229. ISBN 1136017615.