Ontology of Knowledge-Based Capital Management and Performance of Deposit Money Banks (DMBs) in Nigeria
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.
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