DISRUPTIVE INNOVATION AND COMPETITIVE ADVANTAGE OF DEPOSIT MONEY BANKS IN LAGOS, NIGERIA
Abstract
The advent of disruptive innovation has made deposit money banks in Nigeria adaptive in the competitive landscape. Banks with good competitive advantage tend to perform better than others. However, this is not the case with some banks who suffered decline in competitive advantage because of the activities of neo-banks and other banks. The study examined the effect of disruptive innovation on the competitive advantage of deposit money banks in Lagos, Nigeria. The study adopts the quantitative approach and uses the cross-sectional survey design to sample 508 management and non-management staff of six selected deposit money banks in Lagos, Nigeria. Data were analysed using multiple regression. Findings of the study shows that disruptive innovation dimensions have a significant impact on competitive advantage (Adj.R2 = 0.27, F(4, 480) = 4.33, P < 0.05). The study concluded that disruptive innovation enhanced competitive advantage. It is therefore recommended that management of selected deposit money banks should adopt a culture of innovation in order to stay ahead of competitors, capture significant market share, and attain competitive advantage.
Keywords: Business Model Innovation, Competitive Advantage, Deposit Money Banks, Disruptive Innovation, Innovation Capability
CITATION: Owoeye, D. S., & Makinde, O. G. (2025). Disruptive innovation and competitive advantage of deposit money banks in Lagos, Nigeria. The Strategic Journal of Business & Change Management, 12 (2), 600 – 574. http://dx.doi.org/10.61426/sjbcm.v12i2.3228
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3228
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