Innovation and Competitiveness: An Exploratory Study on Turkish Financial Sector

Background

The most important question for how to create and maintain competitive advantage through innovation has become one of the main strategic concerns of the corporations today. In the new business era, in order to survive in the highly competitive arena not only manufacturing but also service industries need to innovate. This is mostly valid for the financial sector because of its role as a service provider of the economy. Innovation makes a major contribution to the survival of banks. In this context, banks and insurance companies have to redefine their core strategies in a creative manner to acquire sustainability in the market. However, there is a lack of evidence for innovation to provide an adequate discussion for the scholars or corporations. Moreover, the literature is diversified by a number of approaches, prescriptions and practices that can be confusing and sometimes contradictory. The study focuses on exploring the determination of innovation, its theoretical background and the innovation strategies that are discussed in the Turkish Financial Sector, particularly in the banks and insurance companies.