Impact of New Product Development on Business Growth in the Nigerian Banking Industry

Impact of New Product Development on Business Growth in the Nigerian Banking Industry

¹Alo, Ebenezer Adebisi. (Ph.D), ²Aun, Isaac Iortimbir (Ph.D) & ¹Ayinde, Moses Oladunni. (Ph.D)

¹Department of Business Administration, College of Management Sciences,

Joseph Ayo Babalola University, Ikeji – Arakeji, Osun State, Nigeria

²Department of Business Administration, Faculty of Management Sciences University of Ilorin, Ilorin, Nigeria

E-mail: ebenezer_alo@yahoo.com

ABSTRACT

The high demand for new and better services at relatively cheaper rates has made it imperative for banks to work harder on the development of new products and services in order to maintain a competitive advantage. This study examined the impact of new product development on the business growth of Nigerian banking industry with particular emphasis on Skye Bank Plc Osun State. The population of the study consisted of sixteen branches of Skye bank Plc in Osun State. The convenience and simple random sampling techniques were employed to select five branches from the population.  A total of 100 copies of questionnaire were administered on the staff of the selected branches. The statistical tools employed in the study were correlation analysis and t-test analysis. The findings of the study revealed that new product development has positive significant relationship on the profit performance and market share of Skye bank (r = .415, N= 100, P(.000)< .01) and new product development has  significant influence on business growth of Skye Bank (t.cal= 25.138 > t.crit=1.66; df=99; p<.05). The study concluded that the understanding of thesuccess factors that drive new product performance at the business unitlevel is critical to the achievement of the goal of new product development, profit performance and market share of Nigerian banking industry. The study recommended that top level management in Nigerian banking industry should be highly involved in the innovative process that supports and encourages the development of new products.Keywords: Product, Product Life Cycle, New Product Devel