B. K. Saula, B. H. Akinlabi, C. A. Onu


This study was on the networking and organisational performance of deposit money banks in Nigeria. The purpose was to determine how networking capability influences organisational performance of deposit money banks in Nigeria. The design of the study was a survey and the population was 2,413 low, medium, and senior-level managers of five selected deposit money banks in Nigeria licensed by Central Bank of Nigeria (CBN) for commercial banking. The sample was 463 determined using Krejcie and Morgan (1970) formula in addition to an attrition rate of 40%. The study used the stratified proportionate random sampling technique. Primary data were collected using the structured validated questionnaire from the specified units of measurement with instruments assessed for reliability using the Cronbach alpha coefficient. Results demonstrated all constructs to be highly reliable, Cronbach’s alpha coefficients for the constructs ranged from 0.783 to 0.842. The response rate was 86.9%. Data collected were analyzed using multiple linear regression analysis. The finding revealed that networking through ATMs, branches, phones, and the Internet as introduced by Nigerian deposit money banks improved organisational performance (β = 0.139, t = 3.281, p < 0.05). The study recommended that It is also recommended that executive management should spend more on current technology and financial innovation. This will improve bank efficiency and cut expenses. Through financial innovations, the bank may expand its products and services, improving sales and bank performance.


Article visualizations:

Hit counter


networking, organisational performance, banks, innovation

Full Text:



Aminu, I. M., & Shariff, M. N. M. (2015). Influence of strategic orientation on SMEs access to finance in Nigeria. Asian Social Science, 11(4), 298-309.

Amsami, M., Ibrahim, S. B., & Hamid, A. E. A. (2020). Influence of corporate social responsibility actions on customer loyalty towards Nigerian retail banks within north eastern Nigeria. Asian Journal of Empirical Research, 10(2), 40-52.

Ariambe, J. K., & Muturi, W. (2015). Determinants of Branch Network of Commercial Banks in Kenya: A Survey of Commercial Banks in Kisii County, Kenya, International Journal of Economics, Commerce and Management, United Kingdom, 3,6,2348-0386

Aujirpongpan, S., & Hareebin, Y. (2020). The effect of strategic intuition, business analytic, networking capabilities and dynamic strategy on innovation performance: The empirical study Thai processed food exporters. Journal of Asian Finance, Economics, and Business, 7(1), 259-268.

Bengesi, K. M. K., & Roux, I. L. (2014). The influence of dimensions of networking capability in small and medium enterprise performance. International Journal of Business and Social Science, 5(2), 189-200.

Boland, V. (2009). Modern dilemma for world’s oldest bank. Milan: Financial Times.

Bradach, J. L. (2003). Going to Scale Social Enterprise Series, No.9. Harvard: Harvard Business School.

Cenamor, J., Parida, V., & Wincent, J. (2019). How entrepreneurial SMEs compete through digital platforms: The role of digital platform capability, network capability, and ambidexterity. Journal of Business Research, 100, 196-206.

Cenamor, J., Parida, V., & Wincent, J. (2019). How entrepreneurial SMEs compete through digital platforms: The role of digital platform capability, network capability, and ambidexterity. Journal of Business Research, 100, 196-206

Davidsson, P., & Steffens, P. (2009). Growing profitable or growing from profits: Putting the horse in front of the cart, Journal of Business Venturing, 24(4), 388-406.

Dewan, S., and Ren, F. (2011). Information Technology and Firm Boundaries: Impact on Firm Risk and Return Performance. Information Systems Research, 22(2), pp. 369–388.

Drnevich, P. L., and Croson, D. C. (2013). Information Technology and Business-Level

Strategy: Toward an Integrated Theoretical Perspective. MIS Quarterly, 37(2), 483-509.

Egberi, A. K., & Osio, E. J. (2019). Effect of market orientation on organizational performance (A study of the Nigerian banking industry). International Journal of Business and Social Science, 10(12), 93-102.

Evanoff, D. D. and Ors, E. (2008). The Competitive Dynamics of Geographic Deregulation in Banking: Implications for Productive Efficiency. Journal of Money, Credit, and Banking.

Ganjeh, F. M., Sanayei, A., & Tabriz, A. A. (2021). A networking capability perspective on marketing performance of SMEs: The role of market knowledge and entrepreneurial orientation. Journal of Industrial Strategic Management, 6(2), 33-53.

Ghemawat, P. (2001). Distance Still Matters: The Hard Reality of Global Expansion, Harvard: Harvard Business Review.

Ghemawat, P. (2001). Distance Still Matters: The Hard Reality of Global Expansion, Harvard: Harvard Business Review.

Gibson, J. H., Hardy, M., & Buckley, R. (2014). Understanding the role of networking in organizations. Career Development International, 19(2), 146-161.

Hannan, T. H. and Prager, R. A. (2004). The Competitive Implications of Multimarket Bank Branching. Illinois: Journal of Banking and Finance.

Hirtle, B. J. (2007). The return to retail and the performance of US banks, Journal of Banking and Finance, 31, 1101–1133.

Jafarpanah, I., Arasti, M. R., & Mokhtarzadeh, N. (2020). Networking capability of integrator firm: A systematic review of literature and future research agenda. Journal of Science & Technology Policy, 12(4), 49-70.

Kamande, E. G., & Zablon, E. B., & Ariemba, J. (2015). Growth in branches of commercial banks in Kenya, International Journal of Sciences: Basic and Applied Research, 2307-4531.

King’oo, R. N., Kimencu, L., & Kinyua, G. (2020). The role of networking capability on organization performance: A perspective of private universities in Kenya. Journal of Business and Economics Development, 5(3), 178-186.

Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610.

Lee, C. W., & Hidayat, N. (2018). The impact of absorptive capacity on service innovation performance: An empirical study on banking in East Borneo Indonesia. Journal of Applied Finance & Banking, 8(5), 105-116.

Majid, A., Yasir, M., Yousaf, Z., & Qudratullah, H. (2019). Role of network capacity, structural flexibility, and management commitment in defining strategic performance in hospitality industry. International Journal of Contemporary Hospitality Management, 31(8), 3077-3096.

Morimuraa, F., and Sakagawab, Y. (2018) Information technology use in retail chains: Impact on the standardisation of pricing and promotion strategies and performance. Elsevier -Journal of Retailing and Consumer Services, 45, 81–91.

Mu, J., Mu, J., Thomas, E., Peng, G., & Benedetto, A. D. (2017). Strategic orientation and new product development performance: The role of networking capability and networking ability. Industrial Marketing Management, 64, 187-201.

Mustikarini, C. N., & Setyawati, C. Y. (2020). The relationship between entrepreneurial orientation and product development performance in family business located in Java and Bali: The moderating role of networking capability and environmental dynamism. Journal of Tourism, Hospitality and Environment Management, 5(21), 52-73.

Nasir, W. M. N. W. M., Al-Mamun, A., & Breen, J. (2017). Strategic orientation and performance of SMEs in Malaysia. Sage Open, 7(2), 1-13.

Ostadi, H. & Monsef, N. (2014) Assessing the impact of bank concentration and liquidity of Refah bank branches on profitability during the period 1383-190, International Journal of Human Resource Studies, 4(1), 248-258.

Parida, V., Pesamaa, O., Wincent, J., & Westerberg, M. (2017). Network capability, innovativeness, and performance: a multidimensional extension for entrepreneurship. Entrepreneurship & Regional Development, 29(1-2), 94-115

Popescu, D. I., Ceptureanu, S., Alexandru, A., & Ceptureanu, E. G. (2019). Relationships between knowledge absorptive capacity, innovation performance, and information technology. Case study: The Romanian creative industries SMEs. Studies in Informatics and Control, 28(4), 463-475.

Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational performance: Towards methodological best practice. Journal of Management, 35(3), 718-804.

Rogers, E. M. (2003). Diffusion of innovations (5th ed.). New York: Free Press.

Sawaean, F. A. A., & Ali, K. A. M. (2020). The impact of entrepreneurial leadership and learning orientation on organizational performance of SMEs: The mediating role of innovation capacity. Management Science Letters, 10, 369-380.

Sreckovic, M. (2018). The performance effect of network and managerial capabilities of entrepreneurial firms. Small Business Economics, 50(4), 807-824.

Sulistyo, H. (2020). Enhancing the innovation capability through knowledge management capability and networking. Advances in Economics, Business and Management Research, 115, 137-142.

Syahdan, R., Djaelani, Y., & Mahdi, S. A. (2020). Strategic orientation and performance of SMEs in Indonesia: The mediating role of access to finance. Management Science Letter, 10, 1151-1160.

Tarute, A. and Gatautis, R. (2014). ICT impact on SMEs performance; Procedia - Social and

Behavioural Sciences, 110 1218 – 1225.

Thomas, L. (2021). How to use stratified sampling. Available online at https://www.scribbr.com/methodology/stratified-sampling/ accessed on 11 November, 2021.

Tijani, O. O., Adenekan, T. E., & Onamusi, A. B. (2021). The relevance of organizational capabilities for nursing mother’s satisfaction. IAR Journal of Business Management, 2(1), 12-20.

Tseng, C. H., Chang, K. H., & Chen, H. W. (2019). Strategic orientation, environmental innovation capability, and environmental sustainability performance: The case of Taiwanese suppliers. Sustainability, 11(4), 1-19.

Tutar, H., Nart, S., & Bingol, D. (2015). The effects of strategic orientations on innovation capabilities and market performance: The case of ASEM. Procedia-Social and Behavioral Sciences, 207, 709-719.

Tutida, A. Y., Possamai, C. T. N., Barcelos, R. L., & Rossetto, C. R. (2019). Micro foundations of absorptive capacity: A theoretical discussion about the theme. Revista Eletronica Cientifica do CRA-PR, 6(2), 1-15.

Tuwei, H. C., & Willy, M. (2016). Effect of branch network on financial performance in private colleges in Kenya. International Journal of Economics, Commerce and Management, IV(10), 1212-1224,

Tweneboah-Koduah, E. Y., & Farley, A. Y. D. (2016). Relationship between customer satisfaction and customer loyalty in the retail banking sector of Ghana. International Journal of Business and Management, 11(1), 249-262.

Vij, S., & Farooq, R. (2015). The relationship between learning orientation and business performance: Do smaller firms gain more from learning orientation? The IUP Journal of Knowledge Management, XIII(4), 7-28.

Yoon, J., Kim, K. K., & Dedahanov, A. T. (2018). The role of international entrepreneurial orientation in successful internationalization from the network capability perspective. Sustainability, 10(6), 1-14.

DOI: http://dx.doi.org/10.46827/ejmms.v7i4.1391


  • There are currently no refbacks.

Copyright (c) 2022 B. K. Saula, B. H. Akinlabi, C. A. Onu

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2017-2023. European Journal of Management and Marketing Studies (ISSN 2501 - 9988) is a registered trademark of Open Access Publishing GroupAll rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.