EFFECT OF RELATIONAL CAPITAL ON ORGANIZATIONAL PERFORMANCE IN THE MANUFACTURING SECTOR IN EDO STATE

This study investigates the impact of relational capital on organizational performance within the manufacturing sector in Benin City. Grounded in the Relational Capital theory, the research explores how customer relationship capital, supplier relationship capital and community relationship capital serve as strategic resources that enhance operational performance. Utilizing a descriptive survey design, data were collected from selected representative of 300 respondents using a structured questionnaire. The instrument employed a four-point Likert scale (Strongly Agree, Agree, Disagree, Strongly Disagree) to capture respondents’ perceptions regarding the effectiveness of relational capital input on manufacturing organizations. Multiple regression analysis was conducted to examine the relationships between the independent variables—customer relationship capital, customer relationship capital and community relationship capital—and the dependent variable, organizational performance. Findings reveal that all dimensions of relational capital positively and significantly contribute to enhanced organizational performance in the manufacturing sector. It was recommended that manufacturing firms should implement effective customer relationship management practices to foster customer loyalty and satisfaction, which are critical for improved performance. Also manufacturing firms should incorporate relational capital into their strategic planning processes to align organizational goals with stakeholder expectations and enhance overall performance