Abstract:
This study assesses the relationship between innovation, performance and competitive advantage
among Ghanaian banks. It uses the subjective way of customer perception to measure
innovation, performance and competitive advantage with questions based on theory. The
customers involved are mainly retail customers who visit their respective banks. The research is
carried out in Accra and encompasses banks listed on the Ghana Stock Exchange. A Structural
Equation Model (SEM) with respect to Confirmatory Factor Analysis (CFA) is used as an
analytical tool. Findings show that; there exists a positive relationship between innovation,
performance and competitive advantage. However, the relationship between performance and
innovation is not that significant. This might be because there are other factors that enhance
performance apart from innovation.
