Ontology of Knowledge-Based Capital Management and Performance of Deposit Money Banks (DMBs) in Nigeria
Keywords:
knowledge-based capital, human capital efficiency, structural capital efficiency, relational capital efficiency, return on capital employed
Abstract
The continued decline in economic conditions and political environment has heightened the mass exit of experienced and skilled professionals from Nigeria in search of greener pastures in other countries even as the proliferation of knowledge and information technology is advancing the economies of the world. The objective of this study is to examine the sensitivity of knowledge-based capital management on the performance of deposit money banks (DMBs) in Nigeria. The specific objectives of the study are: to ascertain the effect of human capital efficiency; structural capital efficiency; and relational capital efficiency on the return on capital employed by deposit money banks in Nigeria from 2012 to 2021. The study adopted an ex-post facto research design, and data were generated from the audited annual reports. Panel-corrected standard errors (PCSEs) regression was used to analyse the data. The results revealed statistically significant positive effects of human capital efficiency on return on capital employed by DMBs in Nigeria; and a significant negative effect of structural capital and relational capital efficiencies on return on capital employed by DMBs in Nigeria. These findings imply that human capital drives efficiency in knowledge-based capital; however, proper integration of all components of knowledge capital in a coherent knowledge management strategy is desirable.
References
Abualoush, S., Masa’deh, R., Bataineh, K., & Alrowwad, A. (2018). The role of knowledge management process and intellectual capital as intermediary variables between knowledge management infrastructure and organization performance. Interdisciplinary Journal of Information, Knowledge, and Management, 13, 279-309. https://doi.org/10.28945/4088
Amin, S., Usman, M., Sohail, N. & Aslam, S. (2018). Relationship between intellectual capital and financial performance: the moderating role of knowledge assets. Pakistan Journal of Commerce and Social Sciences, 12(2), 521-547.
Andrews, D. & de Serres, A. (2012). Intangible assets, resource allocation and growth: a framework for analysis. OECD Economics Department Working Paper: 989. www.econpapers.repec.org/paper/oececoaaa/989-en.htm
Attar, M., Kang, K., & Sohieb, O. (2019). Knowledge sharing practices, intellectual capital and organizational performance. Proceedings of the 52nd Hawaii International Conference on System Sciences. www.researchgate.net/publication/330533229
Baygi, B., M., Zolfani, H., S., Rezaeiniya, N., & Aghdaie, M. H. (2011). Using Fuzzy AHP to Develop Intellectual Capital Evaluation Model in Hotel Industry. European Journal of Scientific Research, 59(2), 170-178.
Benevene, P., Kong, E., Lucchesi, M., & Cortini, M. (2019). Intellectual capital management among Italian non-profit socio-cooperatives. Journal of Workplace Learning, 1(1), 17-31. https://doi.org/10.3389/fpsyg.2020.00729
Bontis, N., Janosevic, S., & Dzenopoljac, V. (2015). Intellectual capital in Serbia's hotel industry. International Journal of Contemporary Hospitality Management, 27(6), 1365-1384.
Chu, S., Gong, X., Fang, Z., Lan, H. & Gou, H. (2019). Diversification, relational capital and bank performance: evidence from commercial banks in China. Advances in Economics, Business and Management Research, 118(1), 296-301.
Danjuma, K., J. & Ajike, A., M. (2016). Human capital efficiency and corporate performance: the Nigerian perspective. The International Journal of Business & Management, 4(3), 1-9.
Datta, S. K., & De, T. (2017). Role of relational capital and firm performance: analysis of a cluster of bell-metal enterprises in a rural region in West Bengal, India. Journal of Entrepreneurship and Organization Management, 6(1), 1-6.
Eletu, I., T. & Ukoha, O. (2017). Human capital development and corporate performance: a study of food and beverages firms in Port Harcourt. International Journal of Advanced Academic Research | Social & Management Sciences, 3(6), 63-82.
Haghshenas, H. & Barzegar, G. (2014). Intellectual capital and knowledge assets for value creation. Science and Nature, 3(1), 21-25.
Haris, M., Yao, H., Tariq, G., Malik, A. & Javaid, H. M. (2019). Intellectual capital performance and profitability of banks: evidence from Pakistan. Journal of Risk and Financial Management, 12(56), 1-26.
Hormiga, E., Batista‐Canino, R. M., & Sanchez‐Medina, A. (2011). The impact of relational capital on the success of new business start‐ups. Journal of Small Business Management, 49(4), 617-638.
Febrian, A. C., Sukresna, I. & Ghozali, I. (2020). Relational capital and marketing performance: the mediating role of SMEs networking in Indonesia. Management Science Letters, 10(1), 3405–3412.
Githaiga, P. N. (2019). Understanding the effect of human capital and firm performance in Kenya: a panel data analysis. Nile Journal of Business and Economics, 12, 3-16.
Gogan, L. M., Duran, D. C. & Draghici, A. (2015). Structural capital - a proposed measurement model. Procedia Economics and Finance, 23(2015), 1139–1146.
Iazzolino, G., Chiappetta, F. & Chiappetta, S. (2018). Relational Capital and financial performance: an empirical analysis on a sample of Italian firms. Problems and Perspectives in Management, 16(1), 245-258.
Jegede, O. O., Baskaran, A. & Muchie, M. (2020). Relationship between knowledge capital and firm’s performance in the resource-based industry. Innovation for Sustainable Integrated Development in Africa, African World Press: 141-162. www.researchgate.net/publication/347520646
Kozak, M. (2011). Strategic approach to intellectual capital development in regions. International Journal of Learning and Intellectual Capital, 8, 76-93. https://doi.org/10.1504/IJLIC.2011.037360
Lopes-Costa, J. A. & Munoz-Canavate, A. (2015). Relational capital and organizational performance in the Portuguese hotel sector in Nuts II Lisbon. Procedia Economics and Finance, 26(2015), 64-71.
McDowell, W. C., Peake, W. O., Coder, L., & Harris, M. L. (2018). Building small firm performance through intellectual capital development: Exploring innovation as the black box. Journal of Business Research, 88, 321-327.
Mulyasari, W. & Murwaningsari, E. (2019). Intellectual capital, competitive advantage, financial performance and company value among banking industries In Indonesia. Advances in Social Sciences Research Journal, 6(4), 78-89.
Nazir, M. I., Tan, Y., & Nazir, M. R. (2021). Intellectual capital performance in the financial sector: Evidence from China, Hong Kong, and Taiwan. International Journal of Finance & Economics, 26(4), 6089-6109.
Nguyen, V. C. (2020). Human capital, capital structure choice and firm profitability in developing countries: An empirical study in Vietnam. Accounting, 6(2020), 127–136.
OECD (2013). Supporting investment in knowledge capital, growth and innovation. OECD Publishing. doi.org/10.1787/97892 64193 307-en.
Oyedokun, G. E & Saidu, B. (2018). Impact of intellectual capital on financial performance of listed Nigerian oil marketing companies. Information and Knowledge Management, 8(9), 13–27.
Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: a study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190-198.
Pulic, A. (2000). Vaic™–an accounting tool for IC management. International Journal of Technology Management, 20(5-8), 702-714. https://doi.org/10.1504/IJTM.2000.002891
Radianto, W. E. & Gumanti T. A. (2019). Human capital analysis of organizational performance mediated by customer capital: case of accounting study program. International Journal of Scientific & Technology Research, 8(12), 3996-4000.
Rahim, A., Atan, R. & Kamaluddin, A. (2017). Human capital efficiency and firm performance: an empirical study on Malaysian technology industry. SHS Web of Conferences, 36(00026). https://doi.org/10.1051/shsconf/2017360002
Raza, A. (2013). Impact of Relational Capital Management on Firm Performance. Abasyn Journal of Social Sciences, 6(1), 65-78. www.ajss.abasyn.edu.pk/admineditor/papers/V6I1-6.pdf
Rodgers, W. (2003). Measurement and reporting of knowledge-based assets. Journal of Intellectual Capital, 4(2), 181-190.
Saddam, S. Z. (2020). The motivation of intellectual capital on firm’s financial performance: analysis on financial sector in Malaysia. International Journal of Academic Research in Accounting, Finance and Management Sciences, 10(2), 195-199. www.dx.doi.org/10.6007/IJARAFMS/v10-i2/7436
Sardo, F., & Serrasqueiro, Z. (2017). A European empirical study of the relationship between firms’ intellectual capital, financial performance and market value. Journal of Intellectual Capital, 18(4), 771-788.
Seleim, A., & Khalil, O. (2011). Understanding the knowledge management-intellectual capital relationship: A two-way analysis. Journal of Intellectual Capital, 12(4), 286-614.
Sherif, M. (2016). The impact of intellectual capital on corporate performance: evidence from the Egyptian insurance market. International Journal of Innovation Management, 20(3), 1-47.
Si, X. J. (2019). Literature review on the relationship between intellectual capital and enterprise performance. Modern Economy, 10, 386-398. https://doi.org/10.4236/me.2019.102026
Siedschlag, I., Lawless, M. & Ubaldo, M. D. (2017). Investment in knowledge-based capital and its contribution to productivity growth: A review of international and Irish evidence. ESRI Working Paper, No. 557, The Economic and Social Research Institute (ESRI), Dublin.
Sira, E., Vavrek, R., Vozarova, I. K. C. & Kotuli, R. (2020). Knowledge economy indicators and their impact on the sustainable competitiveness of the EU countries. Sustainability, 12(4172), 1-22. https://doi.org/10.3390/su12104172
Soheyli, F., Moeinaddin, M. & Nayebzadeh, S. (2014). The relationship between components of intellectual capital and performance of Yazd Tile Companies. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1), 436-452. http://dx.doi.org/10.6007/IJARAFMS/v4-i1/639
Stauropoulou, A. & Sardianou, E. (2019). Understanding and measuring sustainability performance in the banking sector. World Multidisciplinary Earth Sciences Symposium (WMESS 2019) 1- 10. https://doi.org/10.1088/1755-1315/362/1/012128
Sveiby K. E. (2001). A knowledge-based theory of the firm to guide strategy formulation. Journal of Intellectual Capital, 2(4), 334-358.
Tran, N., P. & Vo, D. H. (2020). Human capital efficiency and firm performance across sectors in an emerging market. Cogent Business & Management, 7(1), 1-15.
Zulkifli, N. S., Shukor, Z. A. & Rahman, M. R. C. (2017). Intellectual capital efficiency and firm performance in Malaysia: the effect of government ownership. Asian Journal of Accounting and Governance, 8, 93–105.
Amin, S., Usman, M., Sohail, N. & Aslam, S. (2018). Relationship between intellectual capital and financial performance: the moderating role of knowledge assets. Pakistan Journal of Commerce and Social Sciences, 12(2), 521-547.
Andrews, D. & de Serres, A. (2012). Intangible assets, resource allocation and growth: a framework for analysis. OECD Economics Department Working Paper: 989. www.econpapers.repec.org/paper/oececoaaa/989-en.htm
Attar, M., Kang, K., & Sohieb, O. (2019). Knowledge sharing practices, intellectual capital and organizational performance. Proceedings of the 52nd Hawaii International Conference on System Sciences. www.researchgate.net/publication/330533229
Baygi, B., M., Zolfani, H., S., Rezaeiniya, N., & Aghdaie, M. H. (2011). Using Fuzzy AHP to Develop Intellectual Capital Evaluation Model in Hotel Industry. European Journal of Scientific Research, 59(2), 170-178.
Benevene, P., Kong, E., Lucchesi, M., & Cortini, M. (2019). Intellectual capital management among Italian non-profit socio-cooperatives. Journal of Workplace Learning, 1(1), 17-31. https://doi.org/10.3389/fpsyg.2020.00729
Bontis, N., Janosevic, S., & Dzenopoljac, V. (2015). Intellectual capital in Serbia's hotel industry. International Journal of Contemporary Hospitality Management, 27(6), 1365-1384.
Chu, S., Gong, X., Fang, Z., Lan, H. & Gou, H. (2019). Diversification, relational capital and bank performance: evidence from commercial banks in China. Advances in Economics, Business and Management Research, 118(1), 296-301.
Danjuma, K., J. & Ajike, A., M. (2016). Human capital efficiency and corporate performance: the Nigerian perspective. The International Journal of Business & Management, 4(3), 1-9.
Datta, S. K., & De, T. (2017). Role of relational capital and firm performance: analysis of a cluster of bell-metal enterprises in a rural region in West Bengal, India. Journal of Entrepreneurship and Organization Management, 6(1), 1-6.
Eletu, I., T. & Ukoha, O. (2017). Human capital development and corporate performance: a study of food and beverages firms in Port Harcourt. International Journal of Advanced Academic Research | Social & Management Sciences, 3(6), 63-82.
Haghshenas, H. & Barzegar, G. (2014). Intellectual capital and knowledge assets for value creation. Science and Nature, 3(1), 21-25.
Haris, M., Yao, H., Tariq, G., Malik, A. & Javaid, H. M. (2019). Intellectual capital performance and profitability of banks: evidence from Pakistan. Journal of Risk and Financial Management, 12(56), 1-26.
Hormiga, E., Batista‐Canino, R. M., & Sanchez‐Medina, A. (2011). The impact of relational capital on the success of new business start‐ups. Journal of Small Business Management, 49(4), 617-638.
Febrian, A. C., Sukresna, I. & Ghozali, I. (2020). Relational capital and marketing performance: the mediating role of SMEs networking in Indonesia. Management Science Letters, 10(1), 3405–3412.
Githaiga, P. N. (2019). Understanding the effect of human capital and firm performance in Kenya: a panel data analysis. Nile Journal of Business and Economics, 12, 3-16.
Gogan, L. M., Duran, D. C. & Draghici, A. (2015). Structural capital - a proposed measurement model. Procedia Economics and Finance, 23(2015), 1139–1146.
Iazzolino, G., Chiappetta, F. & Chiappetta, S. (2018). Relational Capital and financial performance: an empirical analysis on a sample of Italian firms. Problems and Perspectives in Management, 16(1), 245-258.
Jegede, O. O., Baskaran, A. & Muchie, M. (2020). Relationship between knowledge capital and firm’s performance in the resource-based industry. Innovation for Sustainable Integrated Development in Africa, African World Press: 141-162. www.researchgate.net/publication/347520646
Kozak, M. (2011). Strategic approach to intellectual capital development in regions. International Journal of Learning and Intellectual Capital, 8, 76-93. https://doi.org/10.1504/IJLIC.2011.037360
Lopes-Costa, J. A. & Munoz-Canavate, A. (2015). Relational capital and organizational performance in the Portuguese hotel sector in Nuts II Lisbon. Procedia Economics and Finance, 26(2015), 64-71.
McDowell, W. C., Peake, W. O., Coder, L., & Harris, M. L. (2018). Building small firm performance through intellectual capital development: Exploring innovation as the black box. Journal of Business Research, 88, 321-327.
Mulyasari, W. & Murwaningsari, E. (2019). Intellectual capital, competitive advantage, financial performance and company value among banking industries In Indonesia. Advances in Social Sciences Research Journal, 6(4), 78-89.
Nazir, M. I., Tan, Y., & Nazir, M. R. (2021). Intellectual capital performance in the financial sector: Evidence from China, Hong Kong, and Taiwan. International Journal of Finance & Economics, 26(4), 6089-6109.
Nguyen, V. C. (2020). Human capital, capital structure choice and firm profitability in developing countries: An empirical study in Vietnam. Accounting, 6(2020), 127–136.
OECD (2013). Supporting investment in knowledge capital, growth and innovation. OECD Publishing. doi.org/10.1787/97892 64193 307-en.
Oyedokun, G. E & Saidu, B. (2018). Impact of intellectual capital on financial performance of listed Nigerian oil marketing companies. Information and Knowledge Management, 8(9), 13–27.
Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: a study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190-198.
Pulic, A. (2000). Vaic™–an accounting tool for IC management. International Journal of Technology Management, 20(5-8), 702-714. https://doi.org/10.1504/IJTM.2000.002891
Radianto, W. E. & Gumanti T. A. (2019). Human capital analysis of organizational performance mediated by customer capital: case of accounting study program. International Journal of Scientific & Technology Research, 8(12), 3996-4000.
Rahim, A., Atan, R. & Kamaluddin, A. (2017). Human capital efficiency and firm performance: an empirical study on Malaysian technology industry. SHS Web of Conferences, 36(00026). https://doi.org/10.1051/shsconf/2017360002
Raza, A. (2013). Impact of Relational Capital Management on Firm Performance. Abasyn Journal of Social Sciences, 6(1), 65-78. www.ajss.abasyn.edu.pk/admineditor/papers/V6I1-6.pdf
Rodgers, W. (2003). Measurement and reporting of knowledge-based assets. Journal of Intellectual Capital, 4(2), 181-190.
Saddam, S. Z. (2020). The motivation of intellectual capital on firm’s financial performance: analysis on financial sector in Malaysia. International Journal of Academic Research in Accounting, Finance and Management Sciences, 10(2), 195-199. www.dx.doi.org/10.6007/IJARAFMS/v10-i2/7436
Sardo, F., & Serrasqueiro, Z. (2017). A European empirical study of the relationship between firms’ intellectual capital, financial performance and market value. Journal of Intellectual Capital, 18(4), 771-788.
Seleim, A., & Khalil, O. (2011). Understanding the knowledge management-intellectual capital relationship: A two-way analysis. Journal of Intellectual Capital, 12(4), 286-614.
Sherif, M. (2016). The impact of intellectual capital on corporate performance: evidence from the Egyptian insurance market. International Journal of Innovation Management, 20(3), 1-47.
Si, X. J. (2019). Literature review on the relationship between intellectual capital and enterprise performance. Modern Economy, 10, 386-398. https://doi.org/10.4236/me.2019.102026
Siedschlag, I., Lawless, M. & Ubaldo, M. D. (2017). Investment in knowledge-based capital and its contribution to productivity growth: A review of international and Irish evidence. ESRI Working Paper, No. 557, The Economic and Social Research Institute (ESRI), Dublin.
Sira, E., Vavrek, R., Vozarova, I. K. C. & Kotuli, R. (2020). Knowledge economy indicators and their impact on the sustainable competitiveness of the EU countries. Sustainability, 12(4172), 1-22. https://doi.org/10.3390/su12104172
Soheyli, F., Moeinaddin, M. & Nayebzadeh, S. (2014). The relationship between components of intellectual capital and performance of Yazd Tile Companies. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1), 436-452. http://dx.doi.org/10.6007/IJARAFMS/v4-i1/639
Stauropoulou, A. & Sardianou, E. (2019). Understanding and measuring sustainability performance in the banking sector. World Multidisciplinary Earth Sciences Symposium (WMESS 2019) 1- 10. https://doi.org/10.1088/1755-1315/362/1/012128
Sveiby K. E. (2001). A knowledge-based theory of the firm to guide strategy formulation. Journal of Intellectual Capital, 2(4), 334-358.
Tran, N., P. & Vo, D. H. (2020). Human capital efficiency and firm performance across sectors in an emerging market. Cogent Business & Management, 7(1), 1-15.
Zulkifli, N. S., Shukor, Z. A. & Rahman, M. R. C. (2017). Intellectual capital efficiency and firm performance in Malaysia: the effect of government ownership. Asian Journal of Accounting and Governance, 8, 93–105.
Published
2023-05-26
How to Cite
Eze, C. U., Okwo, M. I., & Onyemenam, C. M. (2023). Ontology of Knowledge-Based Capital Management and Performance of Deposit Money Banks (DMBs) in Nigeria. European Journal of Science, Innovation and Technology, 3(2), 137-150. Retrieved from https://ejsit-journal.com/index.php/ejsit/article/view/190
Issue
Section
Articles
Copyright (c) 2023 Eze, Charles Uzodinma, Okwo, Mary Ifeoma, Onyemenam, Chinedu Micheal
This work is licensed under a Creative Commons Attribution 4.0 International License.
ISSN 
