CONCLUSION

As the new economic order forces firms to intro­duce changes and new ideas in business, increasing competitiveness through globalization requires corporations to innovate more than ever before.

The most important capability of how to create and maintain competitive advantage through in­novation is the core question in today’s manage­ment. This is mostly valid for the financial sector owing to its role as a major service provider in economy. Innovation, on the whole, makes a major contribution to the survival of banks and insurance companies, which are crucial to the economic growth of developing countries. In this context, the financial services need to innovate and redefine their core strategies in a creative manner. Although acknowledged by a variety of conceptual reserches from the literature, the issue of innovation through its strategic dimensions is far from providing adequate discussion for the scholars or corporations. This study has focused on exploring the determination of innovation, theoretical infrastructure and identification of its strategic value for the banks and insurance companies. Moreover, the study has illustrated the overall picture for the Turkish Financial Industry, particularly the banks and insurance services. Fur­thermore, the current innovative operations of the sector and the impediments against implementing innovation strategies have also been discussed.

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KEY TERMS AND DEFINITIONS

Competition Strategy: Refers to how a cor­poration competes in a particular business in the market.

Competitive Advantage: An advantage that provides the firm to generate greater sales or margins and/or retain more customers than its competitiors through differentiated products or services.

Innovation: The application of new products, services and processes of business that aims to meet new requirements and inarticulate needs of existing market and customers.

R&D Expenditures: Current capital ex­penditures (both public and private) that are undertaken to increase the use of knowledge for new applications of business which comprise the basic researches of a firm and its experimental development.

Strategy: Is a plan of action of a corporation that is designed to achieve a defined goal which will lead to acquire competitive advantage within a specified period of time.

Sustainability: This is generally a term related to business dymanics which is associated with the capacity of corporation to endure its operations, profit and overall practices.

Technological Innovation: Type of innovation that composes the dynamic network of agents in­volved in the generation, diffusion, and the utilisa­tion of technology in a particular industrial area.

This work was previously published in Quality Innovation, edited by LatifAl-Hakim and Chen Jin, pages 340-364, copyright 2014 by Information Science Reference (an imprint of IGI Global).