International Journal of Art & Humanity Science (IJAHS) e-ISSN: 2349-5235, www.ijahs.com Volume 3 Issue 1, (Jan-Feb 2016), PP. 09-23

Innovative Entrepreneurship with Special Reference to Yes Bank

Dr. Santanu Kumar Das

Abstract “Innovation is the specific function of the Entrepreneur” -Peter Drucker It takes a lower price or a better mousetrap to win over potential customers. This is especially true in the developed world, but to gain a foothold in rapidly emerging economies, it is essential to unleash new products, concepts and services while paying strict attention to costs. Mr Rana Kapoor, The founder, Managing Director & CEO of Yes Bank and also the “Entrepreneurial Banker of the decade 2001-2010” has truly exemplified innovative entrepreneurship by entering quite late into the overbanked and the underserviced market of India and transforming Yes Bank into “Full Service Commercial Bank” within a short span of six years. 1. Need for the research To understand what makes entrepreneurship with innovation a success in emerging countries. 2. Objectives/Purpose of the Research a. To analyze the various innovative strategies like Knowledge Banking implemented by Yes Bank in the overcrowded Indian Banking Sector to sustain its position. b. To determine the factors that differentiates Yes Bank from the rest of the lot and provides it competitive advantage. 3. Theoretical Perspective This paper also analyzes the innovative entrepreneurial concepts within the organization that makes Yes Bank a successful professional entrepreneurship outcome. Also how various innovative strategies combined with other dimensions help create competitive advantage for the organization. 4. Proposed Hypothesis a .There is a positive relationship between innovative entrepreneurship and sustenance in the competition by acquiring core competency and competitive advantage. b. Innovative entrepreneurships are the key to overall economic development in emerging economies. 5. Research Methodology The research process involved the following steps. First, a literature review was undertaken to identify the competitive advantage dimensions in retail banking and corporate and commercial banking. After gaining the support of the senior management of the bank the next step was to perform a qualitative research study which provided the basis for the scale development. Two focus groups consisted of customers of the participating bank were performed focusing upon the main issues of interest i.e. to identify determinants of 9|Page

International Journal of Art & Humanity Science (IJAHS) e-ISSN: 2349-5235, www.ijahs.com Volume 3 Issue 1, (Jan-Feb 2016), PP. 09-23

competitive advantage. In addition, an in-depth interview with the bank marketing director and a pilot survey with five branch managers were performed. Finally, a quantitative research was implemented where one sample T Test was used to prove the impact of the dimensions of the competitive advantage. Based on the results of Reliability Analysis two different sets of questionnaires for corporate and commercial banking and branch banking was finalized. A total of 16 attributes for branch banking and 13 for corporate commercial banking are set out in the questionnaire. These items were measured using 5-point Likert -type scales from 1 (“strongly disagree) to 5 (“strongly agree”). Total of 200 customers have been contacted for the research purpose. 6. Data Analysis and Expected Findings The data collected has been analyzed using various statistical tools to check the validity of the proposed hypothesis. a. The paper will hence help us to understand the key differentiating factors that entrepreneurship with innovation has in an emerging economy. b. The paper will also throw light on the various innovative strategies adopted by Yes bank to sustain itself, even though being a late entrant in the market. c. The paper will also give an insight towards the customers’ perception towards the new concept of Knowledge Banking which proves to be the core competency of Yes Bank.

Keywords: Competitive Advantage, Innovation, Responsiveness, Yes Bank.

Customer

Satisfaction,

Entrepreneurship,

---------------------------------------------------------------------------------------------------------------* Assistant Professor, P.G. Department of Business Administration, Kalam Institute of Technology, Berhampur, Odisha; PIN: 761003 ----------------------------------------------------------------------------------------------------------------

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Innovative Entrepreneurship with Special Reference to Yes Bank Entrepreneurship in emerging markets is distinctive from that practiced in more developed countries. Better understanding these distinctions is critical to private sector development in developing countries. Of particular interest are new and growth-oriented enterprises, which have a greater capacity to create sustainable economic growth than microenterprises or longestablished SMEs with limited growth prospects. The distinctions between growth-oriented entrepreneurs in developing and developed markets are rooted in the inefficiency of markets in many developing countries, but the response of entrepreneurs to these inefficiencies is often surprising and counterintuitive. The wealth and poverty of developing countries has been linked in modern times to the entrepreneurial nature of their economies. Where it has existed in plenty, entrepreneurship has played an important role in economic growth, innovation, and competitiveness and it may also play a role over time in poverty alleviation (Landes 1998). Yet, entrepreneurship in developing countries is arguably the least studied significant economic and social phenomenon in the world today. Global manufacturers increasingly regard competing successfully in emerging markets as key to their corporate strategy. Identifying the opportunity these markets represent, however, is the easy part. The much more difficult task is determining what it takes to sustain profitable growth in these markets. There is little doubt that emerging markets present a tremendous opportunity for global manufacturers. Not only do countries such as China, India, Russia, and Brazil offer lower operating costs, but they are also home to rapidly growing middle classes that are potentially huge markets for the products and services of global marketers. While some companies have achieved success by relying on their existing product lines in emerging markets, global marketers have the opportunity to achieve even greater market share and profitable growth by developing innovative products and services tailored to local customer needs. By going beyond their traditional innovation strategies targeted to the needs of developed markets—and taking advantage of their global capabilities—product and service marketers can use emerging markets to drive commercially viable innovation. To tap the full commercial potential of emerging markets, marketers will need to innovate in the following key areas:

1. Rethinking value propositions 2. Globalizing research and development 3. Tailoring talent management 4. Mastering the complexity of global value chains 5. Managing risks Good innovation practices help enhance a firm's competitive advantage (e.g., Afuah 1998; Bharadwaj et al. 1993). As many innovation activities involve adding new services, expanding existing ones and/or improving the service delivery process, the success of an organization hinges on how well it implements its service innovation (Berry et al. 2006) to create new markets. Our aim was to shed new and important light on these constructs in the banking services industry. The choice of banking services was influenced by the desire to investigate service firms in a highly competitive, dynamic and technologydriven industry. The rapidly changing business environment of the financial services sector has led to an upsurge in innovation-related activities (Blazevic & Lievens 2004). 11 | P a g e

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More recent empirical research—most notably based on the World Business Environment Survey (WBES) and the Global Entrepreneurship Monitor (GEM) project—have helped us to better understand the diversity, if not the dynamics, of new firm formation in developing countries. While methodological weaknesses may limit the robustness of the GEM data, they offer the first broad cross-country comparisons of entrepreneurship and, in particular, allow comparisons of the levels and possible drivers of opportunity-based entrepreneurship. Recent research (Romer 1990, Beck et al. 2004) has reminded us that new firms are more likely to grow. Growth-oriented firms are more likely to create new employment opportunities than stagnant ones. This paper tries to bring out the result of the combination of entrepreneurship with innovation in an emerging economy and how this proves to be a successful strategy to sustain in an emerging economy.

THEORETICAL BACKGROUND Over 400 million individuals in developing countries are owners or managers of new firms (Reynolds et al. 2004). Of these, over 200 million are found in China and India alone, compared with just 18 million entrepreneurs in the United States. Yet, in one of the best general books on the state of research on entrepreneurship, China is mentioned on two pages and India is not mentioned at all (Bhide 2000). Entrepreneurship is not a well-developed component of modern economic theory. Many neoclassical economists find it difficult to reconcile the requirements of rational decision-making with the functions ascribed to entrepreneurship—coordination, arbitrage, innovation, and uncertainty bearing (Barreto 1989). Entrepreneurs have been described variously as bearers of risk (Cantillon 1755 and Knight 1921), agents that bring together the factors of production (Say 1803), or organizers of innovation (Schumpeter 1942). However, none of these thinkers distinguished between entrepreneurs operating in different business environments or considered differences between entrepreneurship in wealthy and poor countries at various stages in economic history. Academic interest in entrepreneurs in developing countries began in the wake of decolonization, with interest until recently concentrating mainly on small-scale industrialization (for example, Schmitz 1982) and microenterprises (for example, Robinson 2001-2). Four types of entrepreneurial firms have been identified in developing countries: newly established, established by not growing, established but growing slowly, and graduates to a larger size (Liedholm and Mead 1999). SERVICE INNOVATION Two commonly raised categories of service innovation are product innovation and process innovation (e.g., Avlonitis et al. 2001; Crawford & Benedetto 2002; Gadrey et al. 1995; Gallouj & Weinstein 1997; Hertog 2000; Hipp et al. 2000; Lyytinen & Rose 2003; Uchupalanan 2000). For example, Gadrey et al. (1995) categorized four types of service innovation according to service context, namely innovations in service products, architectural innovations that bundle or un-bundle existing service products, innovations that result from the modification of an existing service product and innovations in processes and organization for an existing service product. Further, Lyytinen & Rose (2003) identified service process innovations as services that (1) support the administrative core (administrative process innovation), (2) support functional processes (technological processes innovation), (3)

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expand and support customer interfacing processes (technological service innovation) and (4) support inter-organizational processes and operations (technological integration innovation). SERVICE INNOVATION PROCESS AND COMPETITIVE ADVANTAGE Competitive advantage can be gained when an organization produces its goods or services more cheaply than its competitors and resolves bargaining situations to its own advantage (Bakos & Treacy 1986). Recent discussions on competitive advantage have broadened the scope from value chain and value creation capabilities perspectives (e.g., Barney 1991; Piccoli & Ives 2005) and suggest that competitive advantage is gained through outstanding organizational conditions and strong value creation capabilities in a firm. That is, competitive advantage is achieved by fully deploying and using idiosyncratic, valuable and inimitable resources and capabilities (Bhatt & Grover 2005) and can be viewed externally as outcome performance and internally as organizational capabilities. Competitive advantage is a management concept that has been so popular in the contemporary literature of management nowadays. The reasons behind such popularity include the rapid change that organizations face today, the complexity of the business environment, the impacts of globalization and unstructured markets, the ever changing consumer needs, competition, the revolution of information technology and communications, and the liberation of global trade (Al-Rousan and Qawasmeh, 2009). Despite the fact that interests in this subject has started many decades ago, it wasn't till the 60's of the twentieth century that the concept has spread out when Edmund Learned & Kenneth Andrews described SWOT analysis denoting strength as a competitive advantage (Schendel, 1994:1). Nevertheless, Porter recognized competitive advantage as a strategic goal; that is a dependent variable and the reason behind this is that the good performance is related to achieving a competitive advantage (Read & Difillipi, 1990:90). It is believed that the framework presented by Michael Porter is one of the most well-known tools that are used in theoretical as well as empirical research, since it pays attention to all activities carried out by an organization with respect to its external environment (Al-Rousan and Qawasmeh, 2009). COMPETITIVE DIMENSIONS One of the organizations' major concerns is to care about customers' needs and wants and transform such needs and wants into targeted aptitudes or areas called "competitive dimensions". These dimensions that organizations focus on and show great interest in, while providing services and products so as to meet market demand, can help organizations achieve competitive advantage (Krajewski & Ritzman, 1999). These competitive dimensions, as we claim, are three: Innovation, Customer Satisfaction and Responsiveness. a) Innovation It is commonly defined as 'the initiation, adoption and implementation of ideas or activity that are new to the adopting organization' (e.g., Daft 1978; Fichman 2001; Pierce & Delbecq 1977) and entails identifying and using opportunities to create new products, services, or work practices (e.g., Tushman & Nadler 1986; Van de Ven 1986). When faced with keen competition, one of a firm's predominant problems is whether to pursue an aggressive growth strategy through service innovation practices. Early studies on service innovation suggested that service was in itself a product or at least an integral part of a product and should be 13 | P a g e

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managed under new product development for service companies (e.g., Easingwood 1986). More recently, a number of studies have focused broadly on service itself, investigating issues in new service development processes, such as customer participation (e.g., de Brentani 1989; Magnusson et al. 2003; Martin & Horne 1993, 1995) and the importance of idea generation, screening and development (e.g., Alam & Perry 2002; Barczak 1995). Others have suggested that project learning (Blazevic & Lievens 2004; Blazevic et al. 2003) and communication (Lievens et al. 1999) are critical to service development. In sum, to create new markets, firms must implement specific service innovation practices to develop scalar business models, manage customer experience, monitor employee performance and provide managerial process innovation (Atuahene-Gima, 1996; Berry et al., 2006). b) Customer Satisfaction Customer satisfaction has been recognized in marketing through and practice as a central concept as well as an important goal of all business activities (Yi, 1990; Anderson et al., 1994). Oliver (1980) defined that ―customer satisfactions is a summary of psychological state when the emotions surrounding disconfirmed expectations are coupled with the consumer‘s prior feelings about consumption experience. Parasuraman (1994) suggested that the customer satisfaction is influenced by service quality, product quality and cost. Overall satisfaction refers to the customers rating on a particular event based on all dimensions and experience. Bitner & Zeithaml (2003) stated that satisfaction is the customers‘evaluation of a product or service in terms of whether that product or service has met their needs and expectations. Customer satisfaction can be represented as follows: Customer satisfaction=Performance Features + Behavioural Features + Price. Mixed findings exist regarding the casual direction between service quality and satisfaction (Lee, et al., 2000): does customer satisfaction lead to service quality or vice versa. Yavas et al. (1997) explained that although some studies interpreted service quality perceptions as an outcome of satisfaction, recent studies have characterized service quality as an antecedent of satisfaction. We accept the position that customers can evaluate a service (be satisfied or dissatisfied) only after they perceive it. Many authors who studied the relationship between perceived service quality and customer satisfaction have shown that service quality determines customer satisfaction (Anderson et al., 1994; Cronin and Taylor, 1992; Iacobucci et al., 1994; Rust and Zahorik, 1993 – all cited in Cristobal etal., 2007; Arasli et al., 2005; Bloemer et al, 1998; Levesque and McDougall, 1996; Wang et al., 2003; Yavas et al., 1997.

ResponsivenessIn a Turkish study Yavas et al. (1997) confirmed that three dimensions of service quality: tangibles, responsiveness and empathy are significant predictors of customer satisfaction. To achieve customer satisfaction banks cannot ignore the role of customer-contact personnel. Reliability, responsiveness-empathy and tangibles were also the explanatory variables in predicting customer satisfaction for Greek Cypriot bank customers (Arasli et al., 2005). A study in retail banking also proved that among other drivers of customer satisfaction the key explanatory variables are the dimensions of service quality, such as core and relational performance, problem encountered and satisfaction with problem recovery (Levesque and McDougall, 1996). A positive and significant association also existed between customers’ 14 | P a g e

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satisfaction and the core (reliability) and relational (tangibles, responsiveness, empathy and assurance) dimensions of service quality (Jamal and Nasser, 2002).

INDIAN BANKING MARKET & YES BANK The forces of liberalization and globalization of banking service market have forced the different players in the sector to maintain their market share by focusing on retaining existing customers by providing high quality service. The banking companies continuously seek new ways to acquire, retain and increase their customer base. Most of the service providers handle the non-price tool as their weapon to create a customer builds business by buying more, paying premium prices and providing new referrals through word of mouth over a period of time. In this 21st century the digital revolution has transformed the economy in to a new economy which empowered the customer with new set of capabilities such as: 1. Access to greater amount of information. 2. Wider variety of available good and services, 3. Greater ease of interacting with the service provider. YES BANK At this point of time when Indian bank market was being considered as overcrowded and underserviced, Yes Bank entered the market with its unique marketing strategy. YES BANK has exemplified ‗creating and sharing value‘ for all its stakeholders, and has created a differentiated Banking Paradigm. As part of the differentiated strategy, YES BANK has had a strong focus on Development Banking, as is evident from the cutting-edge work that the Bank has done in the area of Food & Agribusiness, Infrastructure, Microfinance, and Sustainability which in most cases has been first-of-its kind in India. YES BANK has been recognized amongst the Top and the Fastest Growing Bank in various Indian Banking League Tables by prestigious media houses and Global Advisory Firms, and has received national and international honours for their various Businesses including Corporate Finance, Investment Banking, Treasury, Transaction Banking, and Sustainable practices through responsible Banking. The Bank has received several recognitions for our world-class IT infrastructure, and payments solutions, as well as excellence in Human Capital. The sustained growth of Yes Bank is based on the key pillars of Growth, Trust, Technology, Human Capital, Transparency and Responsible Banking. Yes Bank is committed towards building the ―Best Quality Bank of the World in India‖ – resting on the strengths of its six key pillars and differentiation built through exemplary Customer Service, to ensure that it provides the finest Banking experience to its customers. YES BANK believes that differentiation begins with its service and trust mark embedded in ‗YES‘, which represents the Bank‘s fundamental goal of being a highly service-oriented Financial Institution. The endeavour at YES BANK is to provide an unprecedented Delightful Banking Experience to all its customers. The name YES signifies:

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• The essence of the brand completely by conveying all the values and characteristics Attractive, Smart, Simple, Serious, Reliable, Trustworthy, Optimistic, Positive, Efficient, Universal. • Clutter breaking in the banking environment, and affirmative with target clients across business and market segments. Brand Pillars The Yes Bank brand is being built around 6 Key Brand Pillars, which epitomize the growing strengths of the Bank: 1. Knowledge driven human capital 2. Growth 3. Trust 4. Technology 5. Transparency and Responsibilities Banking The various innovative products customized for their large diversity of customers are as follows: CORPORATE BANKING AND COMMERCIAL BANKING Corporate & Institutional Banking provides Knowledge driven banking solutions to Large Corporate and Leading Indian Business Groups with a turnover of over INR 2,000 crores. YES BANK follows a "MONEY DOCTOR" approach towards providing diagnostic and prescriptive solutions, by evaluating specific financial needs, and providing tailor-made solutions to their valuable clients. Commercial Banking is meant to serve this specialized segment of companies with a turnover between INR 200 crores and INR 2000 crores, and provide a strong backbone as Partners to clients throughout their lifecycle, and be a key strategic value driver. CB targets companies in the "high octane" middle market segment, operating across the key emerging sectors like Food and Agribusiness, Life Sciences & Health Care, Media and Entertainment, Engineering, Telecommunications, Information Technology and Infrastructure, thereby laying the foundation of long-term growth. Government Relationship Management-cater to the banking and advisory requirements of the Central Government, State Governments, Central & State Public Sector Undertakings, Boards and other affiliates. Indian Financial Institutions-The IFI Relationship Management experts offer an array of services to the following set of clients: 1) Domestic Banks (Govt. owned, Private and Co-operatives 2) Mutual Funds 3) Insurance Companies 4) Non-Banking Finance Companies (NBFCs)

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5) Housing Finance Companies (HFCs) 6) Private Equity Funds 7) Brokers (both Capital market and Commodity market). International Banking-YES-International Banking team caters to a diverse set of customers including foreign banks with or without presence in India, Multilateral Agencies, NBFCs registered in India and backed by foreign entities, Authorized Dealers and Exchange Houses, India focused Private Equity fund houses and other financial institutions. KNOWLEDGE BANKING YES BANK‘s in-depth knowledge of the sunrise sectors of the Indian economy has enabled it to deliver efficient and customized banking solutions, due to which there has been significant attraction in developing new opportunities and ideas that add long-term shareholder value. YES BANK focuses on key sectors such as Food and Agribusiness, Healthcare, Life Sciences, Media and Entertainment, Telecommunications, Information Technology, Infrastructure and Retailing amongst others, which are the future upcoming and booming sectors. They are committed to support the growth and development of the following sunrise sectors to facilitate the overall development of the country through strategic initiatives as one of the important element of satisfying their specific customer needs even during economic crisis. 1) Food and Agri Business 2) Information Technology (IT) 3) Infrastructure 4) Life Science 5) Media and Entertainment BRANCH BANKING- Personal A key strength and differentiating feature at YES BANK is its knowledge driven approach, which goes beyond the traditional realm of banking, and follows a diagnostic and prescriptive approach towards superior product structuring. Knowledge Bankers provide with expert and in-depth analysis based on customer financial needs and risk profile and helps them to grow their savings. YES BANK clients can be assured of the most personalized service by highly trained and qualified professionals. The high staffs to client ratio always ensure prompt service to exceed customer expectations. Global Indian banking YES BANK understands that as Global Indian, their investment needs are different and as India‘s new age private sector Bank, bank endeavour is to help to make the most of what India has to offer. Yes bank has set up a team of expert‘s work round the clock to develop customized financial solutions for specific needs of the customers. Business Banking-SME Backed by a team of experts along with an array of products, services and resources, YES BANK ensures that identified Small & Medium Businesses excel in the future offering a customized service proposition tailor-made for high transactional volumes. RESEARCH MODEL AND PROPOSED HYPOTHESIS

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Based on the main research questions and aims, in this section of the paper the research analytical framework is presented. Figure1. The Research Analytical Model

Table 1 below describes the main research hypotheses that highlight the affectability of the various dimensions on competitive advantage. Table- 1 Hypothesis

Description

Hypothesis 1 Hypothesis 2 Hypothesis 3

Innovation is the affective dimension of competitive advantage Customer Satisfaction is the affective dimension of competitive advantage Responsiveness is the affective dimension of competitive advantage

RESEARCH METHODOLOGY The research process involved the following steps. First, a literature review was undertaken to identify the competitive advantage dimensions in retail banking and corporate and commercial banking. After gaining the support of the senior management of the bank the next step was to perform a qualitative research study which provided the basis for the scale development. Two focus groups consisted of customers of the participating bank were performed focusing upon the main issues of interest i.e. to identify determinants of competitive advantage. In addition, an in-depth interview with the bank marketing director and a pilot survey with five branch managers were performed. Finally, a quantitative research

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was implemented where one sample T- Test was used to prove the impact of the dimensions of the competitive advantage.

QUESTIONNAIRE Based on the results of Reliability Analysis two different sets of questionnaires for corporate and commercial banking and branch banking were finalized. A total of 16 attributes for branch banking and 13 for corporate commercial banking are set out in the questionnaire. These items were measured using 5-point Likert-type scales from 1 (“strongly disagree”) to 5 (“strongly agree”). SAMPLE AND DATA COLLECTION The target population was composed of customers above 18 years of age who had a bank accounts open at the bank. Data were collected by using a convenience sampling method. Customers were surveyed in front of 9 branches of the bank in Bangalore and Delhi-NCR region. Inclusion of different locations had the purpose of enhancing the generalizability of the findings. A self-administered interview method was used. However, the interviewer was present to help the respondents if necessary. For branch banking one hundred respondents filled in the questionnaires before they entered a particular branch. This ensured that results reflected the respondent‘s overall impression of the bank service quality and not their feelings about a particular service encounter. About57% were male customers and 43% female. Majority of customers that is 36% are in the age group of 40 to 50 years.32% are in the age group of 30 to 40 yrs. Around 40% and 39% are businessmen and employed respectively. For corporate and commercial banking around 86 corporate were approached out of which 80 valid responses were collected. Out of which 68 were availing corporate banking services and remaining 12 were availing commercial banking services. Further they belonged to different sunrise a sector which is represented graphically in Figure 2: FIGURE 2: Corporate and Commercial Banking Sectors

RESULTS & ANALYSIS CORPORATE AND COMMERCIAL BANKING 19 | P a g e

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a) Reliability of the research Table shows the results for reliability test for each of the hypotheses tests. As mentioned in the table, the questionnaire for each of the hypotheses has been reliable. The Alpha Cronbach for the hypotheses is: Table -2 Hypothesis

No. Of Questions

H1 H2 H3

Alpha Cronbach .896 .831 .774 Average=.836

6 4 3

It is quite relevant from the data that the questionnaire constructs re reliable as the Alpha Cronbach‘s coefficient is 0.836 which is technically considered to be good for reliability. b) Analysis In this section of the paper the statistical analysis for test the research hypotheses are investigated and presented. For investigation the affectability of the each of the dimensions of the competitive advantage the one-sample t-test will run and implemented.

Hypothesis H1 H2 H3 * α=0.05

T Statistic 24.000 23.146 13.447

Df 79 79 79

Table-3 Sig Value* .000 .000 .000

Mean 4.54 4.34 4.21

Test Value 3 3 3

Confirm/Reject Confirm Confirm Confirm

BRANCH BANKING a) Reliability of the Research Table shows the results for reliability test for each of the hypotheses tests. As mentioned in the table, the questionnaire for each of the hypotheses has been reliable. The Alpha Cronbach for the hypotheses is explained in table 4. Table-4 Hypothesis

H1 H2 H3

No. Of Questions

8 3 5

Alpha Cronbach .933 .786 .893 Average=.870

Again for Branch Banking the Alpha Cronbach‘s coefficient is 0.870 which means the questionnaire construct is reliable. b) Analysis In this section of the paper the statistical analysis for test the research hypotheses are investigated and presented. For investigation the affectability of the each of the dimensions of the competitive advantage the one-sample t-test will run and implemented.

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Table-5 Hypothesis H1 H2 H3 * α=0.05

T Statistic 32.899 23.743 13.940

Df 99 99 99

Sig* .000 .000 .000

Mean 4.62 4.49 4.21

Test Value 3 3 3

Confirm/Reject Confirm Confirm Confirm

As clear in this table the three dimensions of Competitive Advantage, that is Innovation, Customer Satisfaction and Responsiveness are highly affective for both the banking services. Therefore, for achieving highly competitive advantage it‘s necessary for the bank and organizations in the financial services sector to attend highly in the above 3 dimensions. Also the results show the first main dimension is Innovation that is highly affected on competitive advantage, second being customer satisfaction and third being responsiveness.

CONCLUSIONS & IMPLICATIONS Entrepreneurs in developing countries face a different set of circumstances than their counterparts in developed economies. These differences are rooted in the underlying economies in which they operate. Emerging markets lack a stable of mature markets and the consistency that such markets offer. Consequently, the opportunity for entrepreneurship in emerging markets is pervasive. While Western entrepreneurs operate at the fringes of the economy, emerging market entrepreneurs operate closer to the core – the needs and opportunities are more widespread. Customers in emerging markets are becoming more sophisticated and demanding, expecting products that satisfy their special requirements and preferences. The competition to develop products and services that meet those needs, by manufacturers both from developed and from emerging economies, is now fierce. The drive to rethink product offerings holds the promise of yielding potentially ―disruptive‖ innovations that create new markets by addressing the needs of customers not being served .effectively. While competing in the market, companies can gain a more comprehensive picture of their performance by supplementing financial measures with a broader set of metrics that assess the state of such critical issues as innovation, customer satisfaction, and product/service quality, among others. Hence we conclude that within banking sector the three key factors leading to Competitive advantage are Innovation, Customer Satisfaction and Responsiveness. Concepts like Knowledge Banking by Yes bank prove that the bank has taken serious initiatives to introduce innovative products and services. Also tailor made solutions and customer centric service are the key attributes of customer satisfaction. Knowledgeable advisory team, dedicated trade desk, faster turnaround time and reliable employees constitute the third major affective component that is responsiveness. The largest part of the variability of customer satisfaction can be attributed to the various factors developed during the research process which may be important information for managers working in the banking sector when analyzing reasons for customer satisfaction or dissatisfaction. The importance of how the service is provided can be explained by the fact that bank services have high-credence attributes: it might be difficult for a customer to evaluate the outcome, i.e. what he actually receives from a service after it has been performed therefore he relies on the attributes associated with the process of service delivery (“how”). Often it comes down to having confidence in the service provider‘s skills and to trust that certain tasks have been performed properly. We believe that our study can help bank managers in managing customer satisfaction, bringing out much more innovative and better solutions for their customers. 21 | P a g e

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Bank management should pay special attention to hiring competent, knowledgeable and friendly personnel, to train them, to provide them adequate pay and other benefits; in short, they have to invest in their people to provide higher-quality customer pleasing service resulting into long term relationship with the customers. If the working environment is managed well there is potential for a cycle of success instead of becoming stuck in a cycle of failure (Lovelock and Wirtz, 2007). LIMITATIONS As with any study, the present research has certain limitations. First, the results from a single bank‘s customers might raise concerns about limited generalizability. Different results might have been obtained if the study had included customers of other private and public sector Indian banks as well. Finally, incorporating the consequences of customer satisfaction in retail banking, that is, loyalty and word-of-mouth could provide additional important contributions to the knowledge of service quality influences.

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