This book examines the differential effects of organizational structure and managerial perceptions of the external environment on the types of innovations adopted in the retail banking industry. Many innovations have been championed for the retail banking industry including standardization of services, re engineering, and increased self-service functions, to name but a few. However, successful adoption of innovation requires the backbone of a strong supportive organizational structure, environmental perceptions of managers, and innovation type improves, we may be better able to predict the likelihood that an innovation will be welcomed in a particular organization.

A panel of retail banking executives was assembled for the study of these relationships. The individuals examined recent actual innovations in the industry and categorized each as to whether they were incremental, product, process, or radical innovations. A typology of innovations is revealed with four identified types: incremental innovation (outsourcing), product innovation (investment and mutual fund services), process innovation (optical imaging), and radical innovation (personal computer banking). Surveys were then administered to retail bank executives from 229 institution nation-wide providing evidence as to the extensiveness of adoption of the four types of innovations, organizational structure, and environmental perceptions.