Purpose -The purpose of this paper is to examine the mediating effect of competitive advantage in the relationship between intellectual capital and financial performance in Uganda's microfinance institutions. The major aim is to establish the role of competitive advantage in the relationship between intellectual capital and firm performance. Design/methodology/approach -The paper adopts MedGraph program (Excel version), Sobel tests and the Kenny and Boran approach to test for mediation effects. Findings -Competitive advantage is a significant mediator in the association between intellectual capital and financial performance and boosts the relationship between the two by 22.4 percent in Ugandan microfinance institutions. Further findings confirmed a partial type of mediation between the intellectual capital, competitive advantage and financial performance. Research limitations/implications -Only a single research methodological approach was employed and future research through interviews could be undertaken to triangulate. Furthermore, the findings from the present study are cross-sectional. Future research should be undertaken to examine the mediation effects studied in this paper across time. Practical implications -In order to have a meaningful interpretation of the results of the relationships between study variables, it is always vital to assess the role of the third variable (competitive advantage) in the relationship. This enables practitioners and scholars to comprehend and make legitimate decisions and conclusions that can foster business growth. Originality/value -This is the first study that focuses on testing the mediating effect of competitive advantage on the relationship between intellectual capital and financial performance in Ugandan microfinance institutions.
PurposeThe purpose of this paper is to examine the interaction effect of intellectual capital elements and how they fuse to affect financial performance in microfinance institutions. The major purpose is to explore the appropriate blend or mix of intellectual capital elements that explains the source of value creation – hence performance – in microfinance institutions.Design/methodology/approachThe paper adopts the ModGraph program (Excel version) along with the Kenny and Boran approach to test conditional hypotheses.FindingsThe magnitude effect of human capital on performance depends on any of structural or relational capital; hence the assumption of nonadditivity is met. However, no significant interaction effects were established between relational and structural capital.Research limitations/implicationsOnly a single research methodological approach was employed and future research through interviews could be undertaken to triangulate. Furthermore, the findings from the present study are cross‐sectional – future research should be undertaken to examine the multiplicative effects studied in this paper across timePractical implicationsIn order to boost the wealth of microfinance institutions in Uganda, managers should always endeavor to find a viable intellectual capital mix or blend that can add value to the firm.Originality/valueThis is the first study that focuses on testing the interactive effects of intellectual capital elements on financial performance in Ugandan microfinance institutions.
Purpose – This study aims to investigate the mediation role of innovation between creative climate and organisational resilience. Design/methodology/approach – The study used a cross-sectional design to collect data about the study variables from parastatal managers using self-administered questionnaires. Hierarchical regression and Medigraph were used to test hypotheses. Findings – Creative climate has a significant association with innovation and organisational resilience. Innovation partially mediates the effect of creative climate on organisational resilience. Research limitations/implications – The sample size was small involving only parastatals. The results may be different in an expanded public sector. The study was cross-sectional that is limited in examining long-term effects of creative climate and innovation on organisational resilience. Therefore, a longitudinal study design is proposed for future research. Practical implications – Managers in parastatals need to provide a conducive creative climate that promotes innovations for organisational resilience. Originality/value – The study provides empirical evidence on the mediation role of innovation in the relationship between creative climate and organisational resilience in a public sector. The evidence shows the contribution of innovation in striving for organisational resilience based on the creative climate.
Purpose -The purpose of this paper is to examine the extent to which employee involvement influences organizational effectiveness and to examine the extent to which employee involvement influences profitability, productivity, and market share. Design/methodology/approach -The correlational study was conducted as a cross-sectional survey. Research questionnaires were administered and interviews were held with managers in the organizations studied. A total of 388 managers were randomly drawn from a population of 13,339 managers of all the 24 banks in Nigeria. The independent variable, "employee involvement" was measured by empowerment, team orientation, and capacity development. The dependent variable, "organizational effectiveness" was measured by profitability, productivity, and market share. The measures all used a five-point Likert scale (ranging from 1 ¼ strongly disagree to 5 ¼ strongly agree) and Spearman's rank correlation statistical tool was used to test the hypotheses. Findings -The descriptive statistics of the study variables indicate that employee involvement positively influences organizational effectiveness. The result (Rho ¼ 0.515, po0.05) shows a positive significant relationship between employee involvement and profitability. The result (Rho ¼ 0.126, po0.05) shows a positive relationship between employee involvement and productivity. The result (Rho ¼ 0.256, po0.05) shows a positive relationship between employee involvement and market share.Research limitations/implications -The result cannot be generalized because the study was carried out only in the banking industry. Not all the questionnaires given out were retrieved. Some respondents were reluctant to give out information about their organizations because of fear that such information will get to their competitors. Relevant literature on the topic of African origin were scarce, thus most of the literature reviewed was from Europe and America. Practical implications -The results imply that increase in the level of employee involvement in organizations will enhance profitability, productivity, and market share. This means that employee involvement is associated with organizational effectiveness. Originality/value -The study provides increased understanding, prediction, and appreciation of human behaviour. It enables us analyze the relationship that exist between employee involvement and organizational effectiveness. The study significantly enhances the body of knowledge in this area of management, as it provides reliable empirical results that can be used by scholars and practitioners. It will also help to alert managers to the implications of cultivating a culture of employee involvement that can serve as a competitive advantage. The study will be a challenge to further research because of its findings.
PurposeThe present study was carried out with the purpose of establishing a model of effective board governance in Uganda's service sector firms.Design/methodology/approachThis study is cross‐sectional. The analysis was conducted using Analysis of Moment Structures (AMOS) software on a sample of 128 service firms in Uganda. The perceived effective board governance in Uganda was measured by the perceptions of 128 respondents who are managers or directors in each of those service firms. Three confirmatory factor analysis models were tested and fitted.FindingsThe three‐dimensional model of effective board governance in Uganda – consisting of control and meetings’ organization, board activity and effective communication – was determined to be the best fitting model. Evidence in support of relevant theories of board governance was adduced.Research limitations/implicationsAlthough plenty of literature on corporate governance exists, there is scarce literature on effective board governance conceptualization and this together with imprecise terminology regarding this area may have affected the authors’ conceptualization of the study. The authors’ study was limited to the service sector firms registered and operating in Kampala, Uganda and it is possible that their results are only applicable to this sector in Uganda. Nevertheless, policy makers of Uganda dealing with financial markets, academicians, company directors, company owners and even general readers interested in the area of effective board governance might find this paper handy.Practical implicationsThe authors believe that application of their model should improve the quality of board governance in Uganda and can also apply to other sectors of Uganda's firms to help avert the problem of ineffective boards as evidenced by consistent firm failures in Uganda. By improving the quality of board governance, Ugandan boards will demonstrate their relevance in company direction and improvement of company value to the benefit of all stakeholders.Originality/valueThe present study provides one of the few studies that have analysed with confirmatory factor analysis (CFA) using AMOS to test effective board governance measurement model and provides a benchmark for Uganda's service firms yearning to leverage the use of their boards.
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