Browsing by Author "Kabuye, Frank"

Now showing 1 - 7 of 7
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    Adoption of Islamic banking in a non-Islamic country: evidence from Uganda
    (Journal of Islamic Accounting and Business Research, 2020) Bananuka, Juma; Katamba, David; Nalukenge, Irene; Kabuye, Frank; Sendawula, Kasimu
    This paper aims to examine the concept and practice of Islamic banking in the context of a non-Islamic country such as Uganda. Semi-structured interviews were used to elicit the strategies banks may use to ensure that the Islamic banking system is successful and to ascertain those factors that may hinder its success. Chief executive officers of business associations, heads of committees on Islamic banking and religious leaders were interviewed. The strategies used by financial institutions in ensuring the adoption of Islamic banking are now known such as “creating awareness of Islamic banking’s mode of operation among existing and potential clients.” The findings also show that factors such as “lack of trust among clients” may hinder the success of Islamic banking. The research findings are useful for informing the deliberations of regulators, the business community and financial institutions. The results are applicable only to those countries in the preparation stages of adopting Islamic banking services for the first time, but they could be generalized to any new product launch in any country.
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    Business Networking and Internationalization: Testing the Mediation Role of Organizational Learning
    (World Journal of Entrepreneurship, Management and Sustainable Development, 2020) Sendawula, Kasimu; Ngoma, Muhammed; Bananuka, Juma; Kimuli, Saadat Nakyejwe Lubowa; Kabuye, Frank
    The purpose of this study was to establish the mediation role of organizational learning in the relationship between business networking and internationalization of manufacturing small and medium-sized enterprises (SMEs) using evidence from Uganda. This study is cross sectional and correlational. Data were collected through a questionnaire survey of 96 manufacturing SMEs. Data were analyzed through correlation coefficients, hierarchical regression and mediation analysis using Statistical Package for the Social Sciences and MedGraph - Excel Version.
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    The Influence of Tone at the Top Management Level and Internal Audit Quality on the Effectiveness of Risk Management Practices in the Financial Services Sector
    (Cogent Business & Management, 2019) Kabuye, Frank; Bugambiro, Nicholas; Akugizibwe, Irene; Nuwasiima, Sharon; Naigaga, Sharon
    The purpose of this study is to examine the contribution made by the tone at the top management level and internal audit quality on the effectiveness of risk management practices (RMPs) in the financial services sector. This study is cross-sectional and correlational, and it uses firm-level data that were collected by means of a questionnaire survey from a sample of 62 financial services firms in Uganda. Results suggest that the tone at the top management level and internal audit quality are both significant predictors of effective RMPs. However, the predictive potential of tone at the top management level towards effective RMPs reduces when internal audit quality is present. These results support the idea that in terms of agency theory, top management should oversee and review the organization’s risks as a way of spearheading effective RMPs. Similarly, internal auditors should sufficiently and appropriately review and coordinate risk management efforts in the organization, since high-quality internal audits lead to effective RMPs. Top managers of financial services firms should encourage periodic reviews of the appropriateness and effectiveness of risk management systems and controls. At the same time, regulators should ensure that top managers of financial services firms have adequate risk management expertise, with no conflict of interest and apply mechanisms that detect significant risks in time. The study contributes to the strategic risk management position by showing that the tone at the top management level and internal audit quality sets pace for an organization culture towards effective RMPs.
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    Intellectual Capital, Isomorphic Forces and Internal Controls over Financial Reporting in Ugandan Microfinance Institutions
    (Cogent Business & Management, 2021) Kabuye, Frank; Alinda, Kassim; Bugambiro, Nicholas; Kezaabu, Saphurah
    The purpose of this study is to examine the role of intellectual capital and isomorphic forces in strengthening internal controls over financial reporting (ICFR) in microfinance institutions (MFIs). This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 66 MFIs that are members of the Association of Microfinance Institutions of Uganda (AMFIU). Both intellectual capital and isomorphic forces positively and significantly contribute to the strength of ICFR. In terms of control variables, ownership structure, capital structure and firm age are not significant predictors of ICFR. Policy-wise, the regulator(s) of MFIs should always issue-specific and time-bound directives to MFIs with ICFR shortfalls to enhance their control environment. Also, the responsibility of maintaining adequate ICFR should be extended to the management of MFIs by tasking them to account for lapses in ICFR. This would reduce incidences of senior management usurping the powers of the board, which would lead to overriding of ICFR. Also, policies should be specific on the composition of the board to improve its intellectual potential. To the authors’ knowledge, this study provides initial empirical evidence of the influence of intellectual capital and isomorphic forces in strengthening ICFR in MFIs using evidence from a developing African country. Overall, this study found that intellectual capital (entity factor) and isomorphic forces (institutional factors) are all predictors of ICFR. This is possible because managers, employees and those charged with governance of the entity can be influenced by institutional forces that affect ICFR positively.
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    Internal Audit Organisational Status, Competencies, Activities and Fraud Management in the Financial Services Sector
    (Managerial Auditing Journal, 2017) Kabuye, Frank; Nkundabanyanga, Stephen Korutaro; Opiso, Julius; Nakabuye, Zulaika
    The purpose of this paper is to study the relationship between internal audit organisational status, competencies, activities and fraud management. As a corollary, this paper examines the contribution made by the internal audit organisational status, the internal audit competence and the internal audit activities on fraud management in financial services firms. This study is cross-sectional and correlational, and it uses firm-level data that were collected by means of a questionnaire survey from a sample of 54 financial services firms in Kampala – Uganda. Results suggest that the internal audit organisational status and the internal audit competence are significant predictors of fraud management. Contrary to previous thinking, internal audit activities do not significantly predict fraud management. Therefore, once internal auditors have appropriate status and are competent in an organisation, they are likely to perform activities that enhance fraud management. This study focuses on financial services firms in Uganda, and it is possible that these results are only applicable to the financial services sector. More research is therefore needed to further understand the contribution of the internal audit constructs on fraud management in other sectors such as the public sector. The results are important for internal audit policy development, for example, in terms of prescribing the competences and reporting lines for the internal auditors to enhance fraud management in the financial services sector. As far as the authors are aware, no research has hitherto been undertaken that investigates the individual contribution of internal audit organisation status, competence and its activities as internal audit constructs on fraud management.
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    Internal Control Systems, Working Capital Management and Financial Performance of Supermarkets
    (Cogent Business & Management, 2019) Kabuye, Frank; Kato, Joachim; Akugizibwe, Irene; Bugambiro, Nicholas
    The purpose of this paper is to examine the contribution made by the internal control systems and working capital management on financial performance of supermarkets. This study is cross-sectional and correlational, and it uses firm-level data that were collected by means of a questionnaire survey from a sample of 110 supermarkets in Uganda. Results suggest that working capital management is a significant predictor of financial performance. Contrary to previous thinking internal control systems do not significantly predict financial performance. Therefore, once organizations have appropriate working capital management, they are also likely to have adequate internal control systems that enhance financial performance. This study focuses on supermarkets in Uganda, and it is possible that these results are only applicable to the supermarkets. More research is therefore needed to further understand the contribution of the internal control systems and working capital management on financial performance in other sectors. The results are important for internal control and working capital policy development, for example, in terms of prescribing the internal control systems and working capital requirements for the organizations to enhance financial performance. Internal control systems and working capital management have apparently hitherto been the subject of limited consideration by most supermarkets in Uganda. Nevertheless, this study, in possibly the most thorough treatment so far, highlights the areas requiring improvement to enhance financial performance.
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    Value Chain, Productivity and Trade Performance in the Dairy Industry
    (Modern Supply Chain Research and Applications, 2020) Kemitare, Gladys; Kabuye, Frank; Olyanga, Anthony Moni; Rudaheranwa, Nichodemus
    The purpose of this paper was to establish the contribution of value chain and productivity to trade performance in the dairy industry using evidence from Uganda. This study research design is cross-sectional and correlational. Data were collected through a questionnaire survey of 108 dairy farmers, processors and exporters. Data were analysed through correlation coefficients and linear regression using Statistical Package for Social Sciences.