Spiritual Capital and Financial Performance of Deposit Money Banks Listed on the Nigerian Exchange Group (NGX)
DOI:
https://doi.org/10.61143/umyu-jafr.8(1)2025.001Keywords:
Financial performance, Return on Assets (ROA), Social Responsibility, Spiritual Capital, Spiritual MotivationAbstract
The study investigates the relationship between Spiritual Capital and financial performance in deposit money banks listed on the Nigerian Exchange Group (NGX). Specifically, it examines the impact of four dimensions of Spiritual Capital – Spiritual Motivation, Spiritual Culture, Spiritual Survival, and Spiritual Leadership – on financial performance, measured by Return on Assets (ROA). Using panel data from seven banks over five years (2018-2022) and the Random Effects model, the study finds a significant positive relationship between Spiritual Motivation and financial performance. This suggests that banks fostering spiritual values, mission statements, employee motivation, and social responsibility can enhance organizational culture and financial performance. However, no significant relationships were found between Spiritual Culture, Spiritual Survival, and Spiritual Leadership and financial performance. The positive association between Spiritual Motivation and financial performance is attributed to factors like increased employee commitment, productivity, customer service, and enhanced brand reputation. The study recommends that banks prioritize Spiritual Motivation by developing clear mission statements, implementing employee motivation programs, and promoting ethical behaviour and social responsibility initiatives.
References
Abdullah, D. F., & Sofian, S. (2012). The relationship between intellectual capital and corporate performance. Procedia - Social and Behavioral Sciences, 40, 537–541.
Ahmad, S. F. S., Sabian, N. A. A., & Nawi, N. R. C. (2023). The impact of workplace spirituality on employee performance.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595–616.
Cameron, K. S., Dutton, J. E., & Quinn, R. E. (Eds.). (2003). Positive organizational scholarship: Foundations of a new discipline. Berrett-Koehler Publishers.
Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48.
Chakrabarty, M. (2023). Spiritual capital – A new paradigm to improve corporate performance.
Chan, T. W. (2024). Spiritual capital and organizational performance: A critical review of intellectual capital perspectives. Journal of Business Ethics and Sustainability, 19(2), 134–150.
Cohen, L., Manion, L., & Morrison, K. (2011). Research methods in education (7th ed.). Routledge.
Conger, J. A., & Kanungo, R. N. (1988). The empowerment process: Integrating theory and practice. Academy of Management Review, 13(3), 471–482.
Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. New Society Publishers.
Emecheta, B. C. (2019). Spiritual capital and organisational resilience of banks in Anambra State, South-Eastern Nigeria [Unpublished doctoral dissertation]. Department of Business Administration, University of Nigeria, Nsukka.
Emmons, R. A. (2000). Is spirituality an intelligence? Motivation, cognition, and the psychology of ultimate concern. The International Journal for the Psychology of Religion, 10(1), 3–26.
Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1–4.
Fairholm, G. W. (1996). Spiritual leadership: Fulfilling whole-self needs at work. Leadership & Organization Development Journal, 17(5), 11–17.
Finke, R. (2003). Spiritual capital: Definitions, applications, and new frontiers [Paper presentation]. Spiritual Capital Planning Meeting, Cambridge, MA, United States.
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Fry, L. W. (2003). Toward a theory of spiritual leadership. The Leadership Quarterly, 14(6), 693–727.
Garcia, E., Martinez, L., & Rodriguez, A. (2017). Spiritual capital and financial performance in deposit money banks: A comparative analysis. Journal of Banking & Finance, 85, 56–67.
Garcia-Zamor, J. C. (2003). Workplace spirituality and organizational performance. Public Administration Review, 63(3), 355–363.
Ghorbani, M., & Yekta, R. P. (2019). Investigating the relationship between spiritual capital and job performance with organizational citizenship behaviors in employees: Evidence from Iran.
Giacalone, R. A., & Jurkiewicz, C. L. (2003). Handbook of workplace spirituality and organizational performance. M.E. Sharpe.
Indrawati, N. K., & Muljaningsih, S. (2022). Achieving competitive advantage through spiritual capital, innovation work behavior, and organizational learning.
Iorun, J. I., & Iorlaha, M. (2022). Effect of spiritual capital on performance of small and medium enterprises (SMEs) in Benue State.
Ismail, Y. (2005). The role of spiritual capital in organizational performance: A conceptual framework. International Journal of Business and Management Studies, 2(1), 15–27.
Khalique, M. (2013). Impact of intellectual capital on the organizational performance of SMEs in Malaysia. International Journal of Current Research and Academic Review, 1(1), 1–16.
Kim, S., Lee, J., & Park, H. (2016). Spiritual capital and financial performance: A longitudinal analysis of deposit money banks. Longitudinal Studies in Banking, 5(4), 210–225.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610.
Krishnakumar, S., & Neck, C. P. (2002). The "what," "why" and "how" of spirituality in the workplace. Journal of Managerial Psychology, 17(3), 153–164.
Liu, G., & Wang, J. (2013). Spiritual capital and organizational performance: A study of Chinese enterprises. Journal of Business Ethics, 115(3), 427–439.
Mohamed Elias, E., Othman, S. N., & Yaacob, N. A. (2017). Relationship of spirituality leadership style and SMEs performance in halal supply chain. International Journal of Supply Chain Management, 6(2), 166–176.
Neck, C. P., & Milliman, J. F. (1994). Thought self-leadership: Finding spiritual fulfillment in organizational life. Journal of Managerial Psychology, 9(6), 9–16.
Onoh, J. K., & Adebayo, S. O. (2023). Challenges of Nigerian deposit money banks in a dynamic economy. Journal of Banking and Finance, 12(3), 45–67.
Parboteeah, K. P., Hoegl, M., & Cullen, J. B. (2012). Does spirituality matter? An examination of spiritual leadership, ethical climate, and employee outcomes. Journal of Business Ethics, 105(1), 107–120.
Quran. (n.d.). Retrieved from https://quran.com/
Regan, E., & Ghazizadeh, S. (2009). Impact of spirituality on work culture and performance. Management Research News, 32(7), 635–648.
Rousseau, D. M. (1989). Psychological and implied contracts in organizations. Employee Responsibilities and Rights Journal, 2(2), 121–139.
Ryan, R. M., & Deci, E. L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. American Psychologist, 55(1), 68–78.
Schein, E. H. (2010). Organizational culture and leadership (4th ed.). Jossey-Bass.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). Wiley.
Senge, P. M. (1990). The fifth discipline: The art & practice of the learning organization. Doubleday/Currency.
Sipe, J. W., & Frick, D. M. (2009). Seven pillars of servant leadership: Practicing the wisdom of leading by serving. Paulist Press.
Smith, A., Johnson, B., & Rodriguez, C. (2019). Spiritual capital, ethical leadership, and financial performance: Evidence from deposit money banks. Journal of Business Ethics, 146(2), 325–340.
Subhaktiyasa, N., & Andriana, I. (2023). Exploring the role of spiritual leadership in enhancing employee engagement and organizational resilience. Journal of Leadership and Organizational Development, 45(2), 121–136.
The Bible. (n.d.). Retrieved from https://www.biblegateway.com/
Tischler, L., Biberman, J., & McKeage, R. (2002). Linking emotional intelligence, spirituality, and workplace performance: Definitions, models, and ideas for research. Journal of Managerial Psychology, 17(3), 203–218.
Treviño, L. K., & Weaver, G. R. (2003). The role of ethics and social responsibility in organizational decision making. Business Ethics Quarterly, 13(3), 213–232.
Verter, B. (2003). The political and spiritual dimensions of the management control system: A case study of spiritual capital in an Israeli religious kibbutz. Journal of Management Studies, 40(2), 307–340.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.
Wicks, A. C., Freeman, R. E., & Parmar, B. L. (1994). The stakeholder view of the firm: Implications for business ethics. Business Ethics Quarterly, 4(4), 475–491.
Zohar, D., & Marshall, I. N. (2004). Spiritual capital: Wealth we can live by. Berrett-Koehler Publishers.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
UMYU-JAFR recognizes the importance of protecting authors’ intellectual property while promoting the free exchange of knowledge. The journal adopts a copyright-retention model that empowers authors to maintain ownership of their work while granting the journal rights necessary for publication and dissemination.
1. Copyright Ownership
Authors publishing with UMYU-JAFR retain full copyright and publishing rights to their work. By submitting a manuscript, authors agree to grant the journal a non-exclusive license to publish, reproduce, distribute, and archive the article in all forms and media for the purpose of scholarly communication.
2. Licensing Terms
All articles are published under the Creative Commons Attribution–NonCommercial (CC BY-NC) license. This license permits others to share and adapt the material for non-commercial purposes only, provided that proper credit is given to the original author(s) and UMYU-JAFR as the source. Commercial reuse requires written permission from both the author and the editorial office.
3. Author Rights
Authors are free to deposit all versions of their manuscript in institutional or public repositories without embargo, use their published article for teaching and conference presentations, and include their work in future theses or compilations, provided proper citation to the journal is made.
4. Publisher’s Rights
Upon publication, UMYU-JAFR retains the right to host, index, and disseminate the article through its website and partner databases, and to archive the content in long-term preservation systems.
