Innovative Competitive Strategies and the Performance of Financial Institutions in Cameroon: Empirical Evidence from Fako Division

Author

Elingo Ruth Dioh

Abstract

 The financial services industry operates in an increasingly competitive environment characterised by changing customer expectations, technological developments and the growing need for operational efficiency. Financial institutions must therefore adopt appropriate competitive strategies to improve their performance and maintain their position in the market. This study examines the relationship between innovative competitive strategies and the performance of financial institutions in Fako Division, Cameroon. Specifically, it investigates the relationships between process innovation, product innovation, differentiation, cost leadership and institutional performance. A descriptive research design was adopted, and primary data were collected through questionnaires administered to respondents drawn from financial institutions operating in Fako Division. The study used a sample of 60 respondents and analysed the data using descriptive statistics and multiple linear regression. The findings indicate that process innovation and differentiation have positive and statistically significant relationships with institutional performance. However, product innovation and cost leadership exhibit positive but statistically insignificant relationships. The regression model reports an R-squared value of 0.439, indicating that the four strategic variables and the included control variables jointly explain approximately 43.9% of the variation in institutional performance. The findings suggest that financial institutions should place particular emphasis on improving internal processes, strengthening their institutional reputation, developing distinctive services and responding effectively to customer needs. The study contributes to the understanding of competitive strategy and financial institution performance in the Cameroonian context.

Keywords

Competitive strategies, process innovation, product innovation, differentiation, cost leadership, financial institutions, institutional performance Cameroon.

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References

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