Abstract
This paper presents a conceptual framework that could be applied to the relevant empirical research studies on the relative importance of the concept of corporate governance in order to strengthen the innovative practices in financial services industry. The main data and information for the development of this model is obtained from of the available literature, web sites and supplemented with interviews conducted with key relevant stake holders in financial sector. Thus, this research framework could be utilized to examine the corporate governance and innovation related issues in the other industrial sectors though it has been originally designed for the financial services industry.
Introduction
We, “the mankind” have passed various eras since our origin on the planet called earth about 200,000 years ago and by now, we all have stepped on to the era called knowledge-based era (knowledgebased society). In this knowledge-based era, almost all the artifacts in the world are considered to be an offshoot of these knowledge-driven processes. The importance of the concept of knowledge could simply be realized through the quotation made by the world-renowned polymath and scientist, Benjamin Franklin, “An investment in knowledge pays the best interest.” .Within this knowledgebased society, one of the most widely discussing concepts, which is inevitably a consequence of knowledge, is the innovation. Innovation is a result of both the invention (based on knowledge) and commercial viability. This innovation could be witnessed in different industrial sectors of an economy or a nation and this research paper emphasizes on the innovative practices occurring in the financial services industry, which are commonly referred to as financial innovation. Though there is multiplicity of factors affecting this financial innovation behavior of a particular organization, this paper especially focuses on the impact of corporate governance and its main constituents.
