Impact of Internal Business Environment on Corporate Performance of Deposit Money Bank in Nigeria.

Abstract

This paper has analysed how the internal business environment influences the corporate performance of deposit money banks in Nigeria. The banking industry is a very competitive service-orientated environment where commitment of employees, effectiveness of managers and customer satisfaction are very important to the success of an organisation. Nevertheless, there are still several deposit money banks that struggle with the issues of low employee engagement, a poor decision-making process, and poor customer satisfaction, which implies the necessity to reinforce internal organisational drivers. The research design adopted was a descriptive research design and data were collected using structured questionnaires that were distributed to the bank employees. Out of the 330 questionnaires that were sent out, 322 were duly filled and returned, a response rate of 97.6%. Simple regression analysis was used to test the hypotheses at the 0.05 level. The results indicated that human resources positively impact employee engagement (R = 0.920, R² = 0.846, p < 0.05), leadership style significantly influences decision-making (R = 0.890, R² = 0.792, p < 0.05), and organisational culture positively impacts customer satisfaction (R = 0.875, R² = 0.766, p < 0.05). The study recommends that deposit money banks should reinforce human resource practices by encouraging continuous training, equitable reward systems and supportive work policies; encourage participative and transformational leadership styles; as well as the establishment of a strong customer-centred relationship.