Impact of corporate culture on product innovation capacity: Evidence of Vietnam commercial bank

Abstract

The purpose of this study is to examine the impact of the bank’s corporate culture on its product innovation in Vietnam. Based on the findings, recommendations are made to improve the bank's ability to innovate. Research hypotheses were put forth based on an analysis of the literature addressing the relationship between corporate culture and innovative potential. The data was obtained from the survey conducted in 2021 with 268 participants from 18 banks in Vietnam. SPSS software was used to verify the research hypotheses. According to the empirical findings of the regression model, creative culture and leadership are the two essential elements through which corporate culture influences Vietnamese commercial banks' creative product offerings. The study’s results are expected to help bank managers use direct efforts and resources in the most effective and efficient way to encourage the bank’s product innovation. Banks in Vietnam need to focus on building a culture that fosters innovation. The leaders of a bank need to be proactive in encouraging changes and taking risks to remain relevant in the market. Moreover, fostering and raising awareness of business culture among bank staff is of utmost importance. The bank needs to have a reasonable customer policy and clearly define the bank's vision and core values and create a culture of good behavior in the bank culture. The bank's product innovation capacity would be improved by promoting these values in the workplace.