Appraising Intellectual Capital and Effective Banking Industry Management in Nigeria

Abstract:This article appraised the probable effects of Intellectual Capital on effective Banking Industry Management in Nigeria. Intellectual Capital proxies’ namely: Human capital, Structural capital and Relationship capital were engaged in formulating three null hypotheses that were estimated and analyzed to explain effective Banking industry management. The study adopted Survey research design and data were assembled through questionnaire administration and estimated utilizing Pearson’s Product-Moment Correlation Co-efficient (PPMCC) denoted by ‘r’. The results were robust as the PPMCC or ‘r’ coefficients for H01 that explored Human Capital and effective Banking management exhibited extreme high value of 0.8762 suggesting that the variable is significant. Its corresponding (r2) coefficient stood at 0.7677 indicating that the model has high predictive power. The values of ‘r’ and (r2) coefficients of H02 that evaluated Structural capital were equally high though H03 that appraised Relationship capital exhibited somewhat moderate to high values of ‘r’ and (r2) coefficients. Overall, the results led us to conclude that Intellectual capital is an essential prerequisite for effective banking industry management and could be counted relevant to formulating policies to augment effective management of banks. We therefore recommend that banks should invest immensely on Human, Structural and Relationship capital programs to improve and sustain effective banking industry managementKeywords: Intellectual capital, Human capital, Structural capital, Relationship capital, Banking management, Nigeria.American Economic Association JEL Classification: G1, G2, G4