Authors: Isse Sudi Mohamed
Abstract: This study attempts to close a research gap by examining the relationship between innovation and Somalia's commercial banks' competitiveness. The study's primary objective is to assess how innovation could increase the competitiveness of commercial banks. In particular, the study examines the relationship between financial innovation and commercial bank competitiveness, the impact of innovation strategy on commercial banks' competitive position, and the role of technical innovation on competitiveness. The study uses two primary research designs: predictive and explanatory. To shed light on the strength of the relationship between two or more variables at a particular moment in time, an explanatory correlational design was used. Structured questionnaires were used to gather primary data, and cross-sectional and correlational study methodologies were used. A sample of 86 respondents was chosen from the 110 members of the target demographic. The questionnaire's demographic part recorded the respondents' age, gender, marital status, and educational attainment. To guarantee accuracy and consistency, data analysis was carried out in tandem with data gathering. The study's conclusions offer commercial banks doing business in Somalia useful information. The study provides banks with useful advice on how to improve their capacity for innovation in order to get a competitive edge by documenting different types and methods of financial innovation. The findings show that bank competitiveness is significantly impacted by financial innovation and innovation strategy, but there is little correlation between technological innovation and competitiveness. Based on this conclusion, the report advises bank management to put in place efficient systems to improve internal innovation processes, especially by bolstering organizational and technology innovation practices.
