RELATIONAL CONTRACT AND RESILIENCE OF COMMERCIAL BANKS IN SOUTH-SOUTH, NIGERIA

Wikporo, E.

Department of Business Administration, Faculty of Administration and Management, Rivers State University, Nkpolu-Oroworukwo, Port Harcourt, Nigeria.

Email: eberechiwikporo@gmail.com

and

Oparanma, A. O.

Department of Business Administration, Faculty of Administration and Management, Rivers State University, Nkpolu-Oroworukwo, Port Harcourt, Nigeria.

ABSTRACT

The study examined the relationship between relational contract and resilience of commercial banks in South-South Nigeria. The objectives were to examine relational contract and how it influence resilience with measures: adaptive capacity, situation awareness. The study employed cross-sectional survey design in a non-contrive setting. The population consists of commercial banks in South-South Nigeria. There was no sampling technique; the study used the census sampling method while primary data was collected using questionnaire instrument. The internal reliability of the instrument was achieved through the Cronbach’s Alpha coefficient value. However, after data clearing only 96 respondents were used for data analysis. Spearman’s Rank Order Correlation was used for data analysis and hypothesis testing. The results revealed that relational contract has a very strong positive and significant relationship with adaptive capacity in the commercial banks in South-South, Nigeria. Relational contract has a very strong positive and significant relationship with situational awareness in the commercial banks in South-South, Nigeria. The study finds out that for organizations to become adaptive they must allow transformation to occur through contractual relationship and this can be achieved when employees’ relational contract is horned by the employers on all organizational functions so that they can carry on any activity when the need arises. Management of commercial banks should invest in developing and provides long term career growth path for employees. They need to show concern for the wellbeing of workers. This will breed trust in the employment relationship, making employees practice positive behaviour that is important for the survival and sustainability of the banks.

Keywords:  Relational Contract, resilience, adaptive capacity, situation awareness