SOCIAL CAPITAL AND EMPLOYEES’ CREATIVITY IN THE NIGERIAN BANKING INDUSTRY
Keywords:
Cognitive capital, Employees, creativity, Relational social capital, Social capital, Structural social capital
Abstract
The Nigerian banking sector faces unprecedented challenges amid the rapid emergence of Fintech companies revolutionizing financial services. This study investigates the role of social capital in fostering employees’ creativity within this dynamic landscape. Grounded in Social Capital Theory and Resource-Based View Theory, the study explores how structural, cognitive, and relational dimensions of social capital influence measure of employees’ creativitysuch as expertise or domain-relevant skills, creative-thinking skills, and intrinsic task motivation in the Nigerian banking industry. Through a cross-sectional survey of 307 randomly selected employees from 20 purposively drawn banks in Rivers State, Nigeria, data was collected and analyzed using statistical methods including the Pearson Product Moment Correlation Coefficient. The findings revealed that Structural social capital, characterized by well-established channels for information sharing and strong professional relationships, positively influences employees’ creativity. Similarly, content or communication capital, reflecting shared understanding and alignment with organizational values, and relationalcapital, fostering camaraderie and trust, contribute significantly to employees’ creativity. Based on these findings, recommendations are provided for bank management to prioritize initiatives that strengthen social capital, promote collaboration, provide training, recognize creativity, and foster diversity and inclusion to drive innovation and maintain competitiveness in the banking sector.
References
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Allan, G., and Phillipson, C. (2017). Social networks and social exclusion: sociological and policy perspectives. Routledge.
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Bhatti, S. H., Vorobyev, D., Zakariya, R., and Christofi, M. (2020). Social capital, knowledge sharing, work meaningfulness and creativity: evidence from the Pakistani pharmaceutical industry. Journal of Intellectual Capital, ahead-of-print(ahead-of-print). https://doi.org/10.1108/jic-02-2020-0065
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Han, J., Han, J., and Brass, D. J. (2014). Human capital diversity in the creation of social capital for team creativity. Journal of organizational behavior, 35(1), 54-71.
Hazleton, V. and Kennan, W. (2000) “Social capital: reconceptualizing the bottom line.” Corporate Communications, Vol. 5(2). PP. 81–6.
Jia, L., Shaw, J. D., Tsui, A. S., and Park, T. Y. (2014). A social–structural perspective on employee–organization relationships and team creativity. Academy of Management Journal, 57(3), 869-891.
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Lin, N. (2017). Building a network theory of social capital. Social capital, 3-28.
Liu, C. H. S. (2018). Examining social capital, organizational learning and knowledge transfer in cultural and creative industries of practice. Tourism Management, 64, 258-270.
Mujere, N. (2016). Sampling in research. In Mixed methods research for improved scientific study (pp. 107-121). IGI Global.
Muniady, R. A. L., Mamun, A. A., Mohamad, M. R., Permarupan, P. Y., and Zainol, N. R. B. (2015). The effect of cognitive and relational social capital on structural social capital and micro-enterprise performance. Sage Open, 5(4), 2158244015611187.
Musebe, E. A. (2012). Resources, capabilities, and competitive advantage (Doctoral dissertation).
Newell, A., and Simon, H. A. (1972). Human problem solving: Prentice Hall
Nahapiet, J. and Ghoshal, S. (1998) “Social capital, intellectual capital, and the organizational advantage.” Academy of Management Review 23(3). PP. 242–66.
Nasir, J., Ibrahim, R. M., Sarwar, M. A., Sarwar, B., Al-Rahmi, W. M., Alturise, F., ... & Uddin, M. (2022). The effects of transformational leadership, organizational innovation, work stressors, and creativity on employee performance in SMEs. Frontiers in Psychology, 13, 772104.
Oussi, R., and Chtourou, W. (2020). Social capital dimensions and employees’ creativity: Does cognitive style matter? Competitiveness Review: An International Business Journal, 30(1), 4–21. https://doi.org/10.1108/cr-11-2019-0124
Pitelis, C. N. (2004). Edith Penrose and the resource-based view of (international) business strategy. International Business Review, 13(4), 523–532. https://doi.org/10.1016/j.ibusrev.2004.04.002
PricewaterhouseCoopers. (2020). Fintech and the Banking sector in Nigeria. PwC. https://www.pwc.com/ng/en/publications/fintech-and-the-banking-sector-in-nigeria.html
Roy, D., and Basu, P. C. (2021). Digital transformation of banking institutions. India Banking and Finance Report 2021.
Seriki, O. (2020). Resource-Based View. Encyclopedia of Sustainable Management, 1–4. Springer. https://doi.org/10.1007/978-3-030-02006-4_469-1
Singha, S. (2024). Nurturing Positive Organizational Climates to Enhance Work Success: A Positive Psychology Approach. In Fostering Organizational Sustainability With Positive Psychology (pp. 84-107). IGI Global.
Smith, V. (2023). Managing in the corporate interest: Control and resistance in an American bank. Univ of California Press.
Sözbilir, F. (2018). The interaction between social capital, creativity and efficiency in organizations. Thinking Skills and Creativity, 27, 92-100.
Sözbilir, F. (2018). The interaction between social capital, creativity and efficiency in organizations. Thinking Skills and Creativity, 27, 92-100.
Tsai, W. and S. Ghoshal, (1998) “Social capital and value creation: the role of intrafirm networks.” Academy of Management Journal 42(4). PP. 464–76
Utami, H., and Alamanos, E. (2022). Resource-Based Theory: A review. Open.ncl.ac.uk. https://open.ncl.ac.uk/theories/4/resource-based-theory/
Uzkurt, C., Kumar, R., Semih Kimzan, H., and Eminoğlu, G. (2013). Role of innovation in the relationship between organizational culture and firm performance: A study of the banking sector in Turkey. European Journal of innovation management, 16(1), 92-117.
Yang, Y., Lee, P. K., and Cheng, T. C. E. (2016). Continuous improvement competence, employees’ creativity, and new service development performance: A frontline employee perspective. International Journal of Production Economics, 171, 275-288.
Yip, A. W., and Bocken, N. M. (2018). Sustainable business model archetypes for the banking industry. Journal of cleaner production, 174, 150-169.
Yu, X., Li, D., Tsai, C. H., and Wang, C. (2019). The role of psychological capital in employees’ creativity. Career Development International, 24(5), 420-437.
Amabile, T. (1997). "Motivating Creativity In Organizations: On Doing What You Love and Loving What You Do", California Management Review, 40 (1), pp. 39-57
Amabile, T. M. (1983). The social psychology of creativity: A componential conceptualization. Journal of personality and social psychology, 45(2), 357.
Amabile, T. M. (1996). Creativity and innovation in organizations (Vol. 5). Boston: Harvard Business School.
Allan, G., and Phillipson, C. (2017). Social networks and social exclusion: sociological and policy perspectives. Routledge.
Azeem, M., Ahmed, M., Haider, S., and Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635.
Bhatti, S. H., Vorobyev, D., Zakariya, R., and Christofi, M. (2020). Social capital, knowledge sharing, work meaningfulness and creativity: evidence from the Pakistani pharmaceutical industry. Journal of Intellectual Capital, ahead-of-print(ahead-of-print). https://doi.org/10.1108/jic-02-2020-0065
Bina, K., and Olori, W. (2019). Social capital development and organizational innovation in Nigerian banks. International Journal of Advanced Academic Research | Social and Management Sciences |, 5(9), 2488–9849. https://www.ijaar.org/articles/Volume5-Number9/Social-Management-Sciences/ijaar-sms-v5n9-sep19-p15.pdf
Claridge, T. (2018). Introduction to social capital theory. Social Capital Research. https://bit. ly/3nbgsQb.
Claridge, T. (2018). Introduction to Social Capital Theory SOCAP101 Tristan Claridge. https://www.socialcapitalresearch.com/wp-content/uploads/edd/2018/08/Introduction-to-Social-Capital-Theory.pdf
Coates, T. T., and McDermott, C. M. (2002). An exploratory analysis of new competencies: a resource based view perspective. Journal of Operations Management, 20(5), 435-450.
Coleman, (1988) Social capital in the creation of human capital, American Journal of Sociology 94 (supplement), 95–120.
Edmondson, A. C. (2018). The fearless organization: Creating psychological safety in the workplace for learning, innovation, and growth. John Wiley & Sons.
Fu, Q., Cherian, J., Rehman, K., Samad, S., Khan, M. A., Athar Ali, M., Cismas, L. M., and Miculescu, A. (2022). Enhancing Employees’ creativity in the Banking Sector: A Transformational Leadership Framework. Sustainability, 14(8), 4643. https://doi.org/10.3390/su14084643
Ganguly, A., Talukdar, A., and Chatterjee, D. (2019). Evaluating the role of social capital, tacit knowledge sharing, knowledge quality and reciprocity in determining innovation capability of an organization. Journal of knowledge management, 23(6), 1105-1135.
Gannon, B., and Roberts, J. (2018). Social capital: Exploring the theory and empirical divide. Empirical Economics, 58. https://doi.org/10.1007/s00181-018-1556-y
Gannon, B., and Roberts, J. (2018). Social capital: Exploring the theory and empirical divide. Empirical Economics, 58. https://doi.org/10.1007/s00181-018-1556-y
Gilbert, R. J. (2022). Innovation matters: competition policy for the high-technology economy. MIT Press.
Han, J., Han, J., and Brass, D. J. (2014). Human capital diversity in the creation of social capital for team creativity. Journal of organizational behavior, 35(1), 54-71.
Hazleton, V. and Kennan, W. (2000) “Social capital: reconceptualizing the bottom line.” Corporate Communications, Vol. 5(2). PP. 81–6.
Jia, L., Shaw, J. D., Tsui, A. S., and Park, T. Y. (2014). A social–structural perspective on employee–organization relationships and team creativity. Academy of Management Journal, 57(3), 869-891.
Kola-Oyeneyin, T., Kuyoro, M., and Olanrewaju, T. (2020, September 23). Harnessing Nigeria’s fintech potential. Www.mckinsey.com. https://www.mckinsey.com/featured-insights/middle-east-and-africa/harnessing-nigerias-fintech-potential
Kwon, S. W., and Adler, P. S. (2014). Social capital: Maturation of a field of research. Academy of management review, 39(4), 412-422.
Lasrado, F. (2019). Fostering Creativity and Innovation. Springer International Publishing. https://doi.org/10.1007/978-3-319-99121-4
Lee, H.-H., and Yang, T.-T. (2015). Employee Goal Orientation, Work Unit Goal Orientation and Employees’ creativity. Creativity and Innovation Management, 24(4), 659–674. https://doi.org/10.1111/caim.12118
Lin, N. (2017). Building a network theory of social capital. Social capital, 3-28.
Liu, C. H. S. (2018). Examining social capital, organizational learning and knowledge transfer in cultural and creative industries of practice. Tourism Management, 64, 258-270.
Mujere, N. (2016). Sampling in research. In Mixed methods research for improved scientific study (pp. 107-121). IGI Global.
Muniady, R. A. L., Mamun, A. A., Mohamad, M. R., Permarupan, P. Y., and Zainol, N. R. B. (2015). The effect of cognitive and relational social capital on structural social capital and micro-enterprise performance. Sage Open, 5(4), 2158244015611187.
Musebe, E. A. (2012). Resources, capabilities, and competitive advantage (Doctoral dissertation).
Newell, A., and Simon, H. A. (1972). Human problem solving: Prentice Hall
Nahapiet, J. and Ghoshal, S. (1998) “Social capital, intellectual capital, and the organizational advantage.” Academy of Management Review 23(3). PP. 242–66.
Nasir, J., Ibrahim, R. M., Sarwar, M. A., Sarwar, B., Al-Rahmi, W. M., Alturise, F., ... & Uddin, M. (2022). The effects of transformational leadership, organizational innovation, work stressors, and creativity on employee performance in SMEs. Frontiers in Psychology, 13, 772104.
Oussi, R., and Chtourou, W. (2020). Social capital dimensions and employees’ creativity: Does cognitive style matter? Competitiveness Review: An International Business Journal, 30(1), 4–21. https://doi.org/10.1108/cr-11-2019-0124
Pitelis, C. N. (2004). Edith Penrose and the resource-based view of (international) business strategy. International Business Review, 13(4), 523–532. https://doi.org/10.1016/j.ibusrev.2004.04.002
PricewaterhouseCoopers. (2020). Fintech and the Banking sector in Nigeria. PwC. https://www.pwc.com/ng/en/publications/fintech-and-the-banking-sector-in-nigeria.html
Roy, D., and Basu, P. C. (2021). Digital transformation of banking institutions. India Banking and Finance Report 2021.
Seriki, O. (2020). Resource-Based View. Encyclopedia of Sustainable Management, 1–4. Springer. https://doi.org/10.1007/978-3-030-02006-4_469-1
Singha, S. (2024). Nurturing Positive Organizational Climates to Enhance Work Success: A Positive Psychology Approach. In Fostering Organizational Sustainability With Positive Psychology (pp. 84-107). IGI Global.
Smith, V. (2023). Managing in the corporate interest: Control and resistance in an American bank. Univ of California Press.
Sözbilir, F. (2018). The interaction between social capital, creativity and efficiency in organizations. Thinking Skills and Creativity, 27, 92-100.
Sözbilir, F. (2018). The interaction between social capital, creativity and efficiency in organizations. Thinking Skills and Creativity, 27, 92-100.
Tsai, W. and S. Ghoshal, (1998) “Social capital and value creation: the role of intrafirm networks.” Academy of Management Journal 42(4). PP. 464–76
Utami, H., and Alamanos, E. (2022). Resource-Based Theory: A review. Open.ncl.ac.uk. https://open.ncl.ac.uk/theories/4/resource-based-theory/
Uzkurt, C., Kumar, R., Semih Kimzan, H., and Eminoğlu, G. (2013). Role of innovation in the relationship between organizational culture and firm performance: A study of the banking sector in Turkey. European Journal of innovation management, 16(1), 92-117.
Yang, Y., Lee, P. K., and Cheng, T. C. E. (2016). Continuous improvement competence, employees’ creativity, and new service development performance: A frontline employee perspective. International Journal of Production Economics, 171, 275-288.
Yip, A. W., and Bocken, N. M. (2018). Sustainable business model archetypes for the banking industry. Journal of cleaner production, 174, 150-169.
Yu, X., Li, D., Tsai, C. H., and Wang, C. (2019). The role of psychological capital in employees’ creativity. Career Development International, 24(5), 420-437.
Published
2022-11-30
How to Cite
NWIBERE, B. (2022). SOCIAL CAPITAL AND EMPLOYEES’ CREATIVITY IN THE NIGERIAN BANKING INDUSTRY. IJO -International Journal of Business Management ( ISSN 2811-2504 ), 5(11), 01-27. Retrieved from https://ijojournals.com/index.php/bm/article/view/864
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