Research On The Influence Of Innovation Ability Of Urban Commercial Banks On Bank Performance

The predecessor of City Commercial Bank was the Urban Credit Cooperative.In 1995,it was converted into a city commercial bank.After more than 20 years of development,the city commercial banks have made important contributions to local enterprises in financing difficulties,serving local residents,and promoting the development of the local economy.They have become the "third tier" of China's commercial banking system.However,there have been many problems in the development of city commercial banks,such as their unclear positioning,weak innovation capacity and imperfect business structure,and city commercial banks are also facing an increasingly fierce competitive environment,which is not conducive to city business.How the city commercial bank survives and develops in domestic state-owned large-scale commercial banks,joint-stock banks,and numerous urban commercial banks has become the focus of scholars' research.Moreover,the city commercial banks are small in scale and have weak funds,which is not conducive to its development.Therefore,the purpose of this paper is to study how the city commercial bank survives and develops in the fierce competition.This paper uses questionnaires to collect data and divides urban commercial banks' innovation capabilities into two major parts: innovative resource input capabilities and management innovation capabilities.Among them,innovative resource input capabilities include four dimensions of employee innovation capability,customer involvement in innovation capability,capital input capability,and technological innovation capability.Management innovation capabilities include the two dimensions of organizational innovation capabilities and risk control capabilities.Therefore,the city's commercial banks' innovation capability consists of these six dimensions.These six dimensions are used as independent variables for the study,and bank financial performance is used as the dependent variable.As the business model,as a device for regulating technology development and creating economic value,has an important impact on the development and growth of the company.This paper uses the novelty of the bank's business model as a moderating variable to study its impact on the city's commercial bank's innovation ability and bank performance.Through the research results,it is found that the six dimensions of innovative capacity of urban commercial banks have a significant positive effect on bank performance,and the novel business model of urban commercial banks also positively adjusts the four dimensions of employees,technology,customers,and organizations.Finally,according to the conclusions drawn from the empirical research of this paper,relevant suggestions are put forward.This paper believes that the city commercial banks should improve their innovation capabilities in these six dimensions,and also adopt a novel business model according to the specific conditions of city commercial banks.These suggestions are of great significance to the development of city commercial banks.