The Impact of Service Innovation on Employee Performance: The Mediating Role of IC at Palestinian Banking رسالة ماجستير

Abstract

This study aimed mainly to show the impact of service innovation on employee performance, taking into consideration the mediating role of intellectual capital in the Palestinian-banking sector. Therefore, the study adopted the descriptive and analytical approach, using the questionnaire as the main tool of gathering the needed data from employees in the Palestinian Banking Sector. However, the population of the study consists of employees in the Palestinian Banking Sector, and the sample of the study was (150) employees. The sample has been selected by using the random sampling technique, and data were analyzed using SPSS v.25 and AMOS V.24. Accordingly, the study revealed that the service innovation has a positive significant impact on employee performance (R2=0.434), in which intellectual capital has a low significant mediating role in the relationship between service innovation and employee performance. Moreover, the overall service innovation was low in the Palestinian banking sector (operation innovation low, and technology innovation). In addition, the study shows that regarding employee performance, the dimension of adaptive performance, task Performance, and contextual performance was low. However, the study shows a low level of intellectual capital implementation in the banking sector in Palestine. Whereas, the study shows a significant statistical evidence for the positive relationship between service innovation and employee performance VI Based on the results, the study recommends that Banks in Palestine should take into consideration the importance of existed services innovation, and should invest in the existed intellectual capital, toward improving their performance. In addition, under the shadow of high competition, banks in Palestine must allow employees to apply their innovation-based services, toward maintaining their existence. Moreover, managers at banks should concern highly on raising up their employees performance, throughout service innovation, and generate the intellectual capital of the banks.