Financial Innovation Management Strategies for Enhancing Competitive Advantage
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Abstract
This study aims to: (1) examine the conceptual framework for financial innovation management to enhance competitive capacity; (2) analyze the strengths, weaknesses, opportunities, and threats (SWOT) of financial innovation management in relation to competitive capacity; and (3) develop strategic approaches for financial innovation management to improve competitiveness. The research employs a multiphase mixed-method research design, integrating both quantitative and qualitative data collection. The sample consists of 272 organizations or agencies involved in financial innovation development. Research instruments include an assessment form for evaluating the appropriateness of the conceptual framework, a questionnaire on the current and desired states of financial innovation management strategies, and an assessment form for feasibility and appropriateness evaluation. Quantitative data are analyzed using descriptive statistics, including percentage, frequency, mean, standard deviation, and the modified priority needs index (PNIModified). Qualitative data are analyzed through content analysis.
The research findings reveal that; 1) The conceptual framework of financial innovation consists of three categories: (1) financial product innovation, (2) financial process innovation, and (3) institutional innovation. 2) The analysis of strengths, weaknesses, opportunities, and threats (SWOT) in financial innovation management indicates the following; Strengths; The ability to create differentiation and enhance competitiveness, improve efficiency and reduce costs, develop customer experience, and strengthen risk management capabilities. Weaknesses; Challenges in change management, high development and investment costs, regulatory complexity and compliance burdens, and cybersecurity risks. Opportunities; Government and central bank support, collaboration with technology partners, shifts in consumer behavior, and market growth. Threats; Changes in financial laws and regulations, risks associated with rapidly evolving technology, intense competition in the financial industry, and concerns over customer privacy. 3) The strategic approaches for financial innovation management to enhance competitiveness consist of five key strategies; (1) Investment and development of financial technology, (2) Establishing partnerships and collaborations, (3) Managing financial innovation risks, (4) Human resource development and fostering an innovation-driven culture, and (5) Market expansion and creating competitive advantages.
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