EXAMINING THE EFFECT OF NETWORKING ON ORGANIZATIONAL PERFORMANCE IN THE BANKING INDUSTRY: EVIDENCE FROM NIGERIA

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

Abstract


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.

 

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networking, organisational performance, banks, innovation

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

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