Abstract
Innovation is one of value added mean by which service sector organizations can survive. Mobile banking sector is one of the growing sector which has brought service innovation by providing branchless banking facilities through cell phones to customers. Therefore, the aim of this work is to empirically investigate the element that possess the direct and indirect effect on association of innovation capabilities-service innovation among Pakistani mobile banking sector. Data has been gathered from 493 senior middle managers and departmental heads under random sampling strategy. Data was collected and analyzed through Hayes (2017) conditional process approach. The findings revealed that effect of innovation capabilities on service innovation was positively mediated by innovative culture. The indirect effect of absorptive capacity on both innovative culture and service innovation was also found. Results are useful for service sector as it emphasize on the significance of innovation capabilities for underpinning the service innovation.
Keyword(s)
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