Service Innovation and Customers’ Satisfaction of Selected Micro Finance Banks in Ogun State, Nigeria

The untimely adoption of modern business practice through technological innovation has hindered service quality, customers’ satisfaction and the general growth of Micro finance banks in Nigeria. The study examined the effect of service innovation which consist of New Service Concept, New Service Process, and New Technology on customer satisfaction of selected micro finance banks in Ogun state Nigeria. The study adopted a cross- sectional survey research design with the aid of structured questionnaire which enabled the researcher to obtain firsthand information from the respondents. The population for this study is the customers of Micro Finance banks (MBF) in Ogun State in which (17) microfinance banks customers were conveniently selected for the survey. Due to the infinite nature of the population (MFBs Bank Customers) the study adopted a sample determination model by Cochran (1977) which is mainly used for an infinite population of this nature to arrive at the sample size of (384) respondents. The data collected was analysed using partial least square structural equation modeling (PLS-SEM 4.0). The findings of the study revealed that all the hypotheses (H1, H2, H3, and H4) are accepted, indicating that each of the independent variable dimensions has significant effect on the dependent variable. That’s new service concept has significant effect on customers satisfaction of MFBs. The study concluded that the three dimensions of service innovation, namely New Service Concept, New Service Process, and New Technology, had a positive and substantial influence on customer satisfaction among the selected micro finance banks in Nigeria. Therefore, the study recommended that the management of microfinance banks in Ogun state should constantly adopt service innovation dimensions to outperform competitors in order to increase their customer satisfactions.