ABSTRACT

The study assessed the effects of social capital on the performance of First Bank and Zenith Bank Nigeria Plc in Abia State. The specific objectives of thestudy were to: ascertain the effect of structural social capital onorganisational profitability; find out the effects of cognitive social capital on organisational responsiveness; and ascertain the effects of relational social capital on the effectiveness of First Bank and Zenith Bank Nigeria Plc. The study adopted survey research design approach. Primary and secondary sources of data were used. The study population consists of all the employees of First Bank and Zenith Bank Nigeria Plc in Abia State. Data obtained from field work were analysed using descriptive statistics and Multiple Regression analysis were used to test the hypotheses. Findings revealed that; the fact that internal coordination and joint working in the organization, institution external coordination with other stakeholders, internal connectivity and cross departmental working within the organization is contributing to the profitability of First Bank Plc and Zenith Bank Plcis 99% verifiable; the fact that departments clearly and widely understanding the institutions mission, values and objectives,; departments believing that the missions and objectives of the institution are valuable is contribution to the responsiveness of First Bank Plc and Zenith Bank Plc is 99%verifiable; that the fact that departments having high level of trust in the organisation’s Directors/Chief Executives, high level of trust among co-workers in departments, and departments having high level of trust in other departments contribution to the effectiveness of First Bank Plc and Zenith Bank Plc are 99% verifiable The study concluded thatformal and informal collaboration and coordination as well as interaction between colleagues, units, departments and network ties which provide access to resources and information in the organization (Structural Social Capital) is positively affecting the profitability of First Bank and Zenith Bank plc, that the embeddedness, willingness and ability of employees in both organisation to define collective goals, share a common understanding and approach to the organisational goals and objectives (Cognitive Social Capital) is facilitating their abilities to satisfy customers demand regularly and in a timely manner (responsiveness), that the level of trust and reciprocity between employees (Relational Social Capital) in First Bank and Zenith Bank Nigeria Plc is aiding the employees to improved quality of business process, improved quality of customers care and attention, which leads to growing number (Effectiveness) of First Bank and Zenith Bank Nigeria Plc customers. This concludes that social capital (Structural, Cognitive and Relational) have a positive and significant effect on the performance (profitability, responsiveness and effectiveness) of First Bank and Zenith Bank Nigeria Plc within the period under review (2008-2017). The following recommendations were underscore: the Managements of First Bank, and Zenith Bank Nigeria Plc should through beneficial work environment build formal and informal collaboration, coordination, interaction between employees in different departments and should create network ties between employees. Management should through ethical and human resource practices build a relationship of trust and mutuality between employees.The need to regularly reinforceorganisational social capital talents by creating viable internal and external networks through professional practices and appropriate technologies were also emphasised.