Innovation strategies and long-term capability : insights from the financial industry

Abstract: In the 21st century, organisations are operating in a highly volatile, constantly changing environment which is continuously affecting organisational operations. Globalisation and technological advances are rapidly developing, resulting in constant market changes and shifts in customer preferences. These changes require constant innovation in most industries and organisations. Innovation in the 21st century is therefore no longer a choice, but an integral part of organisational survival and success. To ensure sustained innovation, innovation strategies have become an increasingly important factor in the survival of many organisations. Innovation strategies enhance organisations to identify core competencies and develop those competencies to establish sustained innovation practices. Innovation strategies such as aggressive innovation, technological innovation, market innovation and opportunity innovation are future-oriented and have a direct influence on organisational performance. The purpose of this study was to investigate innovation strategies and long-term capability for organisations operating within the financial industry in the 21st century. The study adopted a qualitative methodology and used a case study design. Following a thematic approach and using semi-structured interviews, the empirical study was conducted on twenty top managers from twenty different organisations in the financial industry, Gauteng Province. The empirical findings indicated that innovation strategies are important for organisations operating in the financial industry. The findings revealed that innovation strategies enhance an organisation’s competitiveness, giving it a competitive edge and ensure that innovation practices are sustained. Leading organisations in the 21st century continuously innovate in accordance with its implemented innovation strategies, which guide innovation practices and ensure that the innovations are aligned with the organisations’ vision. It is within the literature found and the empirical findings that a conclusion for this study was drawn and recommendations were made. The study concluded that innovation strategies are significantly important for organisational success in the 21st century and it is recommended that organisations use innovation strategies. Future research within the scope of this study is recommended.M.Com. (Business Management