The effect of financial innovations on business performance

The purpose of this study is to examine how financial innovation effects theperformance of service firms. Financial innovation is comprised of threedimensions including product/service innovation, organizational innovation,process innovation. The interview technique, a qualitative research method, wasused in this study. The interview questions were prepared by considering thefinancial dimension, customer dimension, internal process dimension, learning anddevelopment dimension of balanced scorecard, a performance evaluation model.Within the scope of the study, the researcher interviewed with the two enterprisesfrom each type of eight service enterprises including accommodation, travelagencies, banks, insurance companies, consulting companies, food and beveragebusinesses and health clubs within the sector. Thus, the data was obtained fromfourteen enterprises. The data obtained by interviews with managers of mentionedbusinesses were analyzed with content analysis method.As a result of the study, it is determined that service companies giveimportance to the dimensions of balanced scorecard model in their decisions tocreate or use financial innovations. Also, according to the results obtained, it isdetermined that some service enterprises have a number of activities used asfinancial innovation.Key Words: Financial Innovation, Performance Evaluation, BalancedScorecard, Service Businesses.