Impact of Disruptive Innovation on Business Performance: Mediating Role of Crisis Management and Resilience

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The British University in Dubai (BUiD)
With the advent of disruptive innovations, traditional business models in the commercial banking sector of the United Arab Emirates (UAE) are encountering substantial uncertainties. These uncertainties resemble internal business crises, necessitating effective crisis management strategies and the enhancement of organisational resilience. However, the existing literature lacks a thorough examination of the intricate relationship between disruptive innovation, crisis management and organisational resilience, particularly within the banking sector. This study aims to fill the existing void in the literature. This study is based on a positivistic philosophy and employs a deductive, quantitative approach. A meticulously designed seven-point Likert scale survey was distributed to employees of commercial banks throughout the UAE. The data yielded significant findings through the utilisation of sophisticated analytical tools, such as IBM SPSS, Version 21, and SmartPLS 3.0. Based on the results, one significant finding of this study is the strong positive relationship between disruptive innovation and business performance. This highlights the transformative potential of disruptive innovations in enhancing competitive advantage and supporting long-term growth. Additionally, the research emphasises the crucial roles of organisational resilience and crisis management in navigating challenges and capitalising on opportunities presented by disruptive innovations. Importantly, a synergistic relationship was observed between organisational resilience and crisis management, highlighting the significance of resilient organisations in effectively mitigating and managing crises. This study makes significant contributions to the existing literature in three ways. Firstly, it contextualises the interplay between disruptive innovations, crisis management and organisational resilience within the UAE banking sector, an area that has been largely overlooked. Secondly, it enhances the understanding of the multifaceted impact of disruptive innovation on business performance, particularly within the banking industry. Finally, the study emphasises the importance of organisational resilience and crisis management in successfully navigating the challenging landscape of disruptive innovations. In conclusion, this thesis comprehensively examines the complex relationship between disruptive innovation, organisational resilience, and crisis management within the UAE banking sector. The insights gained highlight the importance of banking institutions strategically positioning themselves so as to withstand the challenges posed by disruptions and to leverage them as catalysts for growth and innovation.
disruptive innovation, business performance, organisational resilience, crisis management