The Impact of Internet Capabilities and Market Sensing Capability on New Service Development: The Mediating Role of Innovation Capability (Case Study: Saman Bank)

Alireza Bakhshizadeh¹ Elaheh Shahbazi² Farshad Yahizadeh³

1) Assistant Professor, Department of Business Administration, Islamic Azad University, South Tehran Branch, Tehran, Iran.
2) M.A. Student in Business Administration (E-Commerce), Islamic Azad University, South Tehran Branch, Tehran, Iran.
3) M.A. Student in Business Administration (Marketing), Islamic Azad University, Electronic Branch, Tehran, Iran.

IOI Code : ABFK-ABFFKK
Publication : The third international conference on new researches in management, law, humanities and entrepreneurship(icmlhe.ir)
Abstract :
    The present study aims to examine the effect of Internet capabilities and market sensing capability on new service development, considering the mediating role of innovation capability in Saman Bank. This research is applied in terms of purpose and descriptive–survey in terms of data collection method. The required data were gathered through a questionnaire designed based on library and field studies. The statistical population consisted of 707 experts and managers at different levels of Saman Bank, from which a sample of 250 participants was selected using Cochran’s formula and simple random sampling. In this study, Internet capabilities and market sensing capability were considered independent variables, new service development was treated as the dependent variable, and innovation capability was examined as the mediating variable. Content and face validity were used to assess the validity of the questionnaire, and Cronbach’s alpha coefficient was employed to evaluate its reliability. Data analysis was conducted using structural equation modeling (SEM) in LISREL software. The results indicate that Internet capabilities and market sensing capability have both direct and indirect effects—through innovation capability—on new service development. Furthermore, the findings demonstrate that innovation capability plays a significant mediating role in strengthening the impact of Internet capabilities and market sensing capability on new service development. Overall, enhancing Internet-based infrastructures and improving the organization’s ability to identify and understand market needs can foster higher levels of innovation and consequently support the improvement and development of new services in the banking industry.

Keywords : internet capabilities market sensing capability innovation innovation capability new service development banking structural equation modeling (sem)