NRU :: Browsing by Author "Korutaro Nkundabanyanga, Stephen"

Browsing by Author "Korutaro Nkundabanyanga, Stephen"

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The association between accounting standards, legal framework and the quality of financial reporting by a government ministry in Uganda
(Journal of Accounting in Emerging Economies, 2013) Korutaro Nkundabanyanga, Stephen; Tauringana, Venancio; Balunywa, Waswa; Naigo Emitu, Stephen
The purpose of this study is to examine the association between accounting standards, legal framework and the quality of financial reporting by the Ministry of Water and Environment in Uganda. Design/methodology/approach – The study used a self-administered questionnaire to survey 120 staff and stakeholders of the Ministry of the Water and Environment. Correlation analysis was employed to determine the association between accounting standards, legal framework and the quality of financial reporting. Findings – Results indicate that accounting standards and legal framework are all positively and significantly associated with the quality of financial reporting, providing evidence of the effect of accounting standards and legal framework on the quality of financial reporting in Uganda Research limitations/implications – Scarce literature using African data means that it is not possible to compare the findings to previous research. Practical implications – The finding of an association between accounting standards, the legal framework and quality of financial reporting implies that the government of Uganda needs to adopt a more robust approach in enforcing compliance to improve the quality of financial reports produced by the Ministry of Water and Environment. Originality/value – This study contributes to the dearth of evidence on government accounting literature in Africa by investigating for the first time, the association between accounting standards, legal framework and the quality of financial reporting by a government department.
Audit committee effectiveness, internal audit function, firm-specific attributes and internet financial reporting: a managerial perception-based evidence
(Journal of Financial Reporting and Accounting, 2022) Bananuka, Juma; Korutaro Nkundabanyanga, Stephen
This study aims to examine the contribution of audit committee effectiveness (ACE), internal audit function (IAF) and firm-specific attributes to internet financial reporting (IFR). It also seeks to understand which ACE and IAF attributes contribute to variances in IFR. Design/methodology/approach – Data are collected through a questionnaire survey of 40 financial services firms. Findings – The analysis shows that ACE and IAF significantly contribute to positive variances in IFR. It also shows that among the firm-specific attributes, only capital structure significantly contributes to positive variances in IFR. Audit committee meetings and authority contribute significantly to positive variances in IFR unlike audit committee expertise and independence. In terms of the IAF attributes, the risk management role and the regulatory compliance role contribute significantly to positive variances in IFR as compared to the governance processes role and evaluation of the internal control role. Originality/value – This study enhances our understanding of the relationship between ACE, IAF, firmspecific attributes and IFR in an environment where IFR is not mandated and where corporate governance practices are very much in infancy. This is especially so given that for the first time, to the best of the authors’ knowledge, the contribution made by ACE, IAF and firm-specific attributes in IFR using evidence from an African developing country (Uganda) is now documented in a single study.
Audit quality differences amongst audit firms in a developing economy: The case of Uganda
(Journal of Accounting in Emerging Economies, 2016) Kaawaase, Twaha K.; Juma Assad, Mussa; Kitindi, Ernest G.; Korutaro Nkundabanyanga, Stephen
Purpose – The purpose of this paper is to report findings of audit quality differences amongst audit firms in a developing country. Specifically, the authors examine the assumption of marked audit quality differences amongst large audit firms (Big 4s) and the small and medium practices (SMPs). Design/methodology/approach – First, the authors develop scales for assessing perceived audit quality in the financial services sector based on qualitative data obtained from 106 audit practitioners, 31 credit analysts and 13 board members. The authors use NVivo© to analyse the 13 transcribed interviews and follow “cross-case analysis” to visualize dimensions and scales of audit quality. Then the authors use measurement scales developed and obtain quantitative data from 183 board members and top executives in the financial services sector and test for perceived audit quality differences amongst audit firms using a Mann-Whitney U test. Findings – The findings suggest that audit quality is a multi-dimensional construct comprising of levels of discretionary accruals; compliance of audited accounts to accounting standards, law and regulations; and audit fees. Based on these measures, the authors find that Big 4 audit firms ensure more compliance with accounting standards, law and other regulatory requirements than SMPs. However, taking all the three audit quality dimensions together reveals no significant differences in audit quality levels between Big 4 and SMPs. Research limitations/implications – In terms of auditor selection and retention, it is important that audit firms are assessed based on their ability to constrain discretionary accruals, to produce audited accounts that comply with requirements of accounting standards, the law and regulations; and to examine the fees they charge in relation to quality of service, than on their size. Also, as the results of this study suggest that Big 4 audit firms might be needed for compliance with accounting standards, law and other regulatory requirements, their audit ties in with the most basic level of auditing requiring probity and legality which, in practice, requires a low level of judgement to be exercised by those performing the audit. It might be useful for Big 4 and other audit firms to embark also on higher level of auditing requiring higher level of judgement. Future research may wish to examine auditing firms’ proclivity to higher level judgment audit. Originality/value – Previous research reveals no consistent way of measuring audit quality and has been inconclusive on the subject of audit quality differential amongst audit firms. The authors create audit quality scales which can be used in assessing perceived audit quality in a developing country context and provide initial evidence of no significant differences between large audit firms and the SMPs regarding audit quality in Uganda.
Board governance, intellectual capital and firm performance Importance of multiplicative effects
(Journal of Economic and Administrative Sciences, 2016) Korutaro Nkundabanyanga, Stephen
Purpose – The purpose of this paper is to examine the relationship between the combined (multiplicative) effect of board governance and intellectual capital (IC) on firm performance. Design/methodology/approach – This study is cross-sectional and follows a positivist view of testing pre-specified hypotheses. The study uses a respondent sample of 128 service firms operating in Kampala, directors or managers are the unit of enquiry. Structural equation modelling with analysis of moment structures is used for statistical modelling. Findings – Board governance and IC make significant contributions to firm performance. However, their interaction is a significant booster to services sector firms’ performance in Uganda. Research limitations/implications – Although an attempt is made at controlling for common method variance in particular by proactive instrument design and testing, and usage of the Harman single factor analytical technique, its influence may not have been dealt away completely owing to failure to obtain a plausible common marker variable. Well, it is meaningful to identify the significant positive multiplicative effects of board governance and IC so as uncover what is needed in service firms to improve their performance. Originality/value – Studies explaining firm performance via board governance only and which ignored the synergistic effects of board governance and IC have often missed the reality that the performance of the firm can significantly be improved by means of leveraging IC while simultaneously calling for effective board governance.
Business process management and service delivery; a case of Uganda’s public entities
(World Journal of Entrepreneurship, Management and Sustainable Development, 2014) Kamukama, Nixon; Tumwine, Sulait; Opiso, Julius; Korutaro Nkundabanyanga, Stephen
The purpose of this paper is to test empirically a variety of hypotheses related to business process management (BPM) and service delivery within public entities and contracting companies in Uganda. Design/methodology/approach – Avalid research instrument was utilized to conduct a survey on 20 government ministries, ten government departments and 13 service providers (contractors) who are representative of the 40 government entities and 25 service providers in Uganda. Correlation and regression analysis were conducted to ascertain the validity of the hypotheses. Findings – Statistical support was found for eight out of the nine hypotheses tested. Research limitations/implications – Only a single research methodological approach was employed, future research through interviews could be undertaken. Multiple respondents in public entities and service providers were studied, neglecting other key stakeholders like service users. Finally, BPM was studied and by the virtual of the results, there are other elements that contribute to service delivery that were not part of this study. Practical implications – There is need to intensify initiatives to encourage greater understanding and acceptance of BPM, employ a viable BPM strategy that includes risk management, building highlevel innovation, strong human resource capacity, providers expertise in order to provide optimal service to both service buyers and users. Originality/value – This is the first paper in sub-Saharan Africa to tests empirically the relationship between BPM and service delivery in the Ugandan context of service buyers and providers and provides support for the relationship and process management.
Contingency factors and budget actors’ behaviour during COVID-19: the case of Uganda
(Journal of Public Budgeting, Accounting & Financial Management, 2022) Korutaro Nkundabanyanga, Stephen; Jayasinghe, Kelum; Abaho, Ernest; Mugambe, Kenneth
The purpose of this study is to examine the viewpoints and experiences of multiple budget actors to understand their particular budget related behaviours contingent upon the COVID-19 (C19) pandemic of a developing country. Design/methodology/approach – This study uses Uganda as a case study and employs semi-structured interview method for the data collection. In trying to generate themes and patterns, data are analysed through three levels of coding: open, axial and selective coding. The contingency theory is used to interpret the data. Findings – The task of budgeting formulation, implementation and control in times of C19 lead to varied actual behaviours of budget actors because of the environmental uncertainty, inappropriate structural and technological conditions and manipulative organisational cultures contingent upon the Ugandan C19 budget context. Research limitations/implications – The insights generated from the study can be useful for the national governments of emerging economies, e.g. African countries, to understand the conditions that influence the budget actors’ behaviour and together, develop long-term financial resilience strategies to face future emergencies. Originality/value – This study contributes to accounting and public budgeting theory by showing that contingency theory is a relevant framework for understanding budget actors’ behaviour in emergency situations. The study potentially strengthens the contingency theory framework through its incorporation of organisational culture perspective into the “people” element.
Environmental management accounting, board role performance, company characteristics and environmental performance disclosure
(Journal of Accounting & Organizational Change, 2021) Korutaro Nkundabanyanga, Stephen; Muramuzi, Bruno; Alinda, Kassim
The increasing environmental challenges require efforts to expand the scope of accounting to better evaluate organizations’ behaviour/practices. This paper aims to report the results of studying the link between environmental management accounting (EMA), board role performance (BRP), company characteristics and environmental performance disclosure (EPD) of Ugandan manufacturing firms. Design/methodology/approach – The study was correlational and cross-sectional. The results are obtained through content analysis of company reports, websites and a questionnaire survey of 102 large and medium manufacturing firms in four districts of Uganda. Findings – Results indicate that EMA causes significant variances in EPD in manufacturing firms. Also, BRP and firm size explain variances in EPD through EMA. Research limitations/implications – The research does not control for industry type. Still, the results offer hope on how the reliability of environmental performance information that companies voluntarily provide outside financial statements, can be improved. Originality/value – Results potentially extend available literature by providing a mechanism through which the environmental performance information is obtained for onward disclosure.
Exploring the link between vulnerability of energy systems and social acceptance of renewable energy in two selected districts of Uganda
(International Journal of Energy Sector Management, 2020) Korutaro Nkundabanyanga, Stephen; Muhwezi, Moses; Musimenta, Doreen; Nuwasiima, Sharon
This paper aims to show preliminary evidence of the link between the perceived low vulnerability of vital energy systems (LVRE) and social acceptance of renewable energy (SARE) while treating environmental opportunities and threats (EOPT), renewable energy technological innovations (TECH) and business model innovations as possible antecedents. Design/methodology/approach – The objectives are delivered through a survey of 199 households (potential and actual customers/suppliers of electric power and renewable energy gadgets in Kampala and Wakiso districts of Uganda), and the data obtained were analysed using ordinary least squares (OLS) regression. Findings – Both LVRE and EOPT, on their own, significantly predict SARE. TECH significantlymediate in the relation between EOPT and SARE. The highest form of SARE is market acceptance. Also, the current state of vulnerability of vital energy systems in the two Ugandan districts seems to espouse energy security as the real value of renewable energy. The study further finds that to deliver high SARE, there is a need to encompass potential user performance expectations of renewable energy technologies. Research implications/limitation – Because the current results are from only two cities (districts) of Uganda and also based on a non-probability sample, generalizing them can be considered remote. In other words, it appears that more complex models need developing and testing in the future concerning LVRE and SARE. The present preliminary results are offered as a stimulus to such efforts. Well, it is expected, and, consistent with the diffusion of innovations theory (Rogers, 1995), that the population in Kampala and Wakiso districts are potential change agents (i.e. capable of influencing others in rural areas of Uganda). Originality/value – The study estimates the direct and indirect effects to show how strongly TECH operate. Basing on OLS regression coefficients, the indirect effects are larger. Using the medgraph, we find probably for the first time, the adoption of technological innovation explains a significant part of the link between EOPT and SARE in the current study setting.
Financial service outreach correlates Managerial competence and risk-taking behaviour
(International Journal of Social Economics, 2015) Korutaro Nkundabanyanga, Stephen; Opiso, Julius; Balunywa, Waswa; Nabeeta Nkote, Isaac
The purpose of this paper is to establish the relationship between managerial competence, managerial risk-taking behaviour and financial service outreach of microfinance institutions (MFIs). Design/methodology/approach – In this cross-sectional and correlational study, the authors surveyed 52 branches of MFIs from a population of 60 branches of 20 MFIs in eastern Uganda. Two respondents, a branch manager and a senior loan officer, were the units of enquiry for each branch. The authors put forward and tested four hypotheses relating to the significance of the relationship between perceived managerial competence, risk-taking behaviour and financial service outreach using SPSS version 20. The authors established the hypothesized relationships using Pearson correlation coefficients and obtain a mediating effect of risk-taking behaviour using partial corrections and regression analysis. Findings – The results suggest positive and significant relationships between perceived managerial competence, risk-taking behaviour and financial service outreach. However, while the direct relationship between managerial competence and financial service outreach without the mediation effect of risk-taking behaviour of managers was found to be significant, its magnitude reduces when mediation of risk-taking behaviour is allowed. Thus the entire effect does not only go through managerial competence but majorly also, through risk-taking behaviour of managers. Research limitations/implications – This study did not control for environmental factors such as laws and regulations. As such the model may have been under fitted. Nevertheless, the study has introduced a clearer understanding that outreach performance in MFIs rests with competent managers in strategic positions operating in synergy with their risk-taking behaviour. The study informs policy makers that outreach performance of the MFIs depends on the quality of the competence managers have in addition to their risk-taking propensities. Practical implications – Efforts by the stakeholders to improve financial service outreach must be matched with appropriate competences and risk-taking behaviour of managers. Originality/value – The results contribute to extant literature by investigating two explanatory variables for financial service outreach and provide initial evidence of the mediating effect of intrinsic high risk-taking behaviour of managers. Results add to the conceptual improvement in risk-taking behaviour and lend considerable support for the behavioural perspective in the study of financial service outreach of MFIs.
Firm characteristics, innovation, financial resilience and survival of financial institutions
(Journal of Accounting in Emerging Economies, 2019) Korutaro Nkundabanyanga, Stephen; Mugumya, Elizabeth; Nalukenge, Irene; Muhwezi, Moses; Muganga Najjemba, Grace
The purpose of this paper is to examine the relationship among firm characteristics, innovation, financial resilience and survival of financial institutions in Uganda. Design/methodology/approach – This paper employs a cross-sectional research design, and responses from 143 officers of 40 financial institutions are analyzed using Statistical Package for the Social Sciences. The authors used ordinary least squares regression in testing the hypotheses. Findings – The authors find that firm characteristics of size, age, innovation and financial resilience have a predictive force on survival of public interest firms such as financial institutions. Research limitations/implications – The implication drawn here is that a combination of firm characteristics, firm innovation and financial resilience explains a significant contribution in the survival chances of financial institutions. However, as much as firm characteristics and financial resilience are significant, innovation explains more of the variances in financial institutions’ going concern appropriateness. Originality/value – This paper adds to the limited financial institutions literature and provides the first empirical evidence of the efficacy of innovation and financial resilience on financial institutions survival. The auditing profession could consider more seriously the innovation activities and financial resilience of financial institutions in their test for the going concern assumption of such firms.
Governing boards and perceived performance of secondary schools: Preliminary evidence from a developing country
(International Journal of Public Sector Management, 2015) Korutaro Nkundabanyanga, Stephen; Tauringana, Venancio; Muhwezi, Moses
The purpose of this paper is to report the results of a study carried out to determine the effect of governing boards on the performance of Ugandan secondary schools. Specifically, the study investigated whether governing boards (board role performance, finance committee role performance, board size, frequency of board meetings and board finance expertise) have an effect on the perceived performance of the schools. Design/methodology/approach – This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 271 schools out of which 200 responded. The data were analysed through ordinary least squares regression using Statistical Package for Social Scientists. Findings – The results suggest that board role performance, finance committee role performance, frequency of meetings and finance expertise of governing boards have a significant effect on the schools’ performance. Research limitations/implications – The authors measure some of the variables qualitatively and perceptively contrary to, for instance, the commonly used quantitative measures of performance, but process factors which are inherently qualitative in nature can better explain variances in secondary schools’ performance. Thus, in this study, the authors do not claim highly refined measurement concepts. More research is therefore needed to better refine qualitative concepts used in this study. The results too suggest that board and finance committee role performance and finance expertise of the board are more important for performance of a school than board size, and frequency of meetings which academics have been focusing on. These findings call for more research to validate the posited relationships. Practical implications – The results are important for governing board policy development; for example, in terms of prescribing the qualifications for schools’ governing board members and also finance committee board members. Originality/value – This study shows that one way to capture the influence of all governing boards’ roles including service role is to adopt a perception-based approach which asks respondents to what extent they think governing boards fulfil all their roles. Unlike previous studies which used proxies for board role performance such as proportion of non-executive directors and board size for monitoring and control and resource provision, the study incorporates proxies as well as perception-based measures of board role performance to determine if governing boards have a significant influence on the performance of Uganda secondary schools.
The impact of financial management practices and competitive advantage on the loan performance of MFIs
(International Journal of Social Economics, 2017) Korutaro Nkundabanyanga, Stephen; Akankunda, Brendah; Nalukenge, Irene
The purpose of this paper is to study the impact of financial management practices and competitive advantage on loan performance of microfinance institutions (MFIs). Design/methodology/approach – In this cross-sectional study, the authors surveyed 70 MFIs in Kampala, Uganda. The authors applied principal component analysis to reduce the number of factors and identify the important elements that capture financial management practices, competitive advantage and loan performance of MFIs. The authors put forward and tested three hypotheses relating to the significance of the relationship between these three variables of MFIs using the statistical software package, SPSS and also apply the normal theory approach developed by Sobel (1982) and Baron and Kenny (1986) in testing the mediation by competitive advantage. Findings – Robust financial management practices are associated with better loan performance of MFIs. Results also reveal a significant positive relationship between the competitive advantage of the MFIs and their loan performance. Furthermore, a significant positive relationship between competitive advantage and loan performance is found. Moreover results also show a full mediation effect of competitive advantage on the association of financial management practices and loan performance, implying that the association of financial management practices of the MFIs on their loan performance is entirely through their competitive advantage. Research limitations/implications – Although there is plenty of literature on loan performance, financial management practices and competitive advantage, there is scarce literature on their effective conceptualization. This together with the imprecise definition of competitive advantage may have affected conceptualization of the authors study. Thus, in this study, the authors do not claim highly refined measurement concepts. Moreover, many of the extant studies for instance have measured loan performance quantitatively, yet process factors which are inherently qualitative in nature can better explain variances in loan performance concept. More research is therefore needed to better refine qualitative concepts used in this study. Practical implications – Efforts by the MFIs management to improve loan performance must be matched with adoption of financial management practices that provide MFIs with sustained competitive advantage over their rivals. Originality/value – In order to explain loan performance of MFIs, and drawing from social economics, management and accounting strands, this study shows that assessing the role of competitive advantage in the relationship between financial management practices and loan performance is imperative. Also, many of the extant studies have measured loan performance quantitatively, yet process factors or antecedents which are inherently qualitative in nature can better explain variances in loan performance concept. Thus this study calls for the refinement of loan performance concept and accounting for endogeneity.
Impact of Petroleum Excise Tax Costs on Firm Productivity in Uganda
(Theoretical medicine and bioethics, 2008) Opiso, Julius; Korutaro Nkundabanyanga, Stephen; Tumwine, Sulait; Kigongo Kaawaase, Twaha; Senyonga, Livingston; Echegu, Simon
The aim of this paper is to investigate the effects of petroleum fuel excise tax costs on productivity of generator-reliant firms in Uganda. Most studies investigated the association between corporate tax and firm productivity, value added tax and firm productivity. This study contributes to the neglected area on the influence of petroleum excise tax costs on firm productivity. In this paper, we employ the ordinary least square (OLS) method for estimations. The results show a negative impact of petroleum fuel excise tax costs on the productivity of manufacturing firms, driven by the severe tax burden. In addition there is a negative significant association between tax cost and household welfare. Therefore tax policy actors should formulate policies that not only raise tax revenue but also boost business growth.
Intellectual capital in Ugandan service firms as mediator of board governance and firm performance
(African Journal of Economic and Management Studies, 2014) Korutaro Nkundabanyanga, Stephen; Ntayi, Joseph M.; Ahiauzu, Augustine; Sejjaaka, Samuel K.
The purpose of this paper is to examine the mediating effect of intellectual capital on the relationship between board governance and perceived firm financial performance. Design/methodology/approach – This study was cross-sectional. Analyses were by SPSS and Analysis of Moment Structure on a sample of 128 firms. Findings – The mediated model provides support for the hypothesis that intellectual capital mediates the relationship between board governance and perceived firm performance. while the direct relationship between board governance and firm financial performance without the mediation effect of intellectual capital was found to be significant, this relationship becomes insignificant when mediation of intellectual capital is allowed. Thus, the entire effect does not only go through the main hypothesised predictor variable (board governance) but majorly also, through intellectual capital. Accordingly, the connection between board governance and firm financial performance is very much weakened by the presence of intellectual capital in the model – confirming that the presence of intellectual capital significantly acts as a conduit in the association between board governance and firm financial performance. Overall, 36 per cent of the variance in perceived firm performance is explained. the error variance being 64 per cent of perceived firm performance itself. Research limitations/implications – The authors surveyed directors or managers of firms and although the influence of common methods variance was minimal, the non-existence of common methods bias could not be guaranteed. Although the constructs have been defined as precisely as possible by drawing upon relevant literature and theory, the measurements used may not perfectly represent all the dimensions. For example board governance concept (used here as a behavioural concept) is very much in its infancy just as intellectual capital is. Similarly the authors have employed perceived firm financial performance as proxy for firm financial performance. The implication is that the constructs used/developed can realistically only be proxies for an underlying latent phenomenon that itself is not fully measureable. Practical implications – In considering the behavioural constructs of the board, a new integrative framework for board effectiveness is much needed as a starting point, followed by examining intellectual capital in firms whose mediating effect should formally be accounted for in the board governance – financial performance equation. Originality/value – Results add to the conceptual improvement in board governance studies and lend considerable support for the behavioural perspective in the study of boards and their firm performance improvement potential. Using qualitative factors for intellectual capital to predict the perceived firm financial performance, this study offers a unique dimension in understanding the causes of poor financial performance. It is always a sign of a maturing discipline (like corporate governance) to examine the role of a third variable in the relationship so as to make meaningful conclusions.
Internal audit function, audit committee effectiveness and accountability in the Ugandan statutory corporations
(Journal of Financial Reporting and Accounting, 2018) Bananuka, Juma; Korutaro Nkundabanyanga, Stephen; Nalukenge, Irene; Kaawaase, Twaha
The purpose of this study is to investigate the contribution of internal audit function and audit committee effectiveness on accountability in statutory corporations (SCs). Design/methodology/approach – This study is cross sectional and correlational. Data have been collected through a questionnaire survey of 52 SCs in Uganda through their Chief Internal Auditors and Chief Finance Officers. Data have been analysed using Statistical Package for Social Sciences. Findings – The internal audit function significantly contributes to accountability of SCs in Uganda and audit committee effectiveness is not where effective internal audit is present in such organisations. However, audit committee effectiveness significantly contributes to accountability when an internal audit function is not present. Research limitations/implications – The use of hierarchical regression is prone to problems associated with sampling error. However, the likelihood of these problems is mitigated by the interface with data. Originality/value – Whereas hitherto both internal audit function and audit committee effectiveness had been viewed as explanations of accountability, this study only confirms the internal audit function as a significant predictor of SCs’ accountability relative to audit committee effectiveness.
Knowledge absorptive capacity: do all its dimensions matter for export performance of SMEs?
(World Journal of Entrepreneurship, Management and Sustainable Development, 2016) Mwesigye Ahimbisibwe, Godwin; Korutaro Nkundabanyanga, Stephen; Nkurunziza, Gideon; Nyamuyonjo, David
In this paper, we study the relationship between knowledge absorptive capacity (KAC) and export performance of developing country SMEs where empirical evidence is currently scarce. We particularly report the contribution of the four dimensions of KAC (knowledge acquisition capacity, assimilation capacity, transformation capacity and application capacity) to export performance. Given the impulsiveness of international business environment, knowledge is an important capability required by SMEs for competition in export markets (Kedia & Bhagat, 1998; Lopez & Rodriguez, 2005) - requiring internationalizing firms to recognize the value of external knowledge and also generate and apply it to commercial ends (Zahra and George 2002). Firms recognizing the importance of external knowledge perform better in exporting; manifest in their likelihood to devise and adapt their products, services and processes that continue to meet the needs of the evolving market (Kropp et al. 2006; Mehmet, 2008). The lack of knowledge has been cited as one of the possible factors explaining the marginal performance of exporting firms in emerging economies (Onyeiwu, 2011; Okello-Obura et al, 2008). But, while the importance of KAC of firms has been widely researched and documented since the influential paper of Cohen and Lenvinthal (1990), most research has concentrated on assessing its impact on the performance of large firms within their domestic markets (Rothermel & Alexandre, 2009; Jansen et al, 2005) as opposed to export markets; moreover, also ignoring its possibility to explain significant variances in performance of exporting SMEs in developing countries. Indeed, Onyeiwu, (2011) posit that the role of KAC has been underplayed by the literature on Africa’s economic growth.
Lending terms, financial literacy and formal credit accessibility
(International Journal of Social Economics, 2014) Korutaro Nkundabanyanga, Stephen; Kasozi, Denis; Nalukenge, Irene; Tauringana, Venancio
The purpose of this paper is to investigate the relationship between commercial bank lending terms, financial literacy and access to formal credit by small and medium enterprises (SMEs). Design/methodology/approach – In this cross-sectional study, the authors surveyed 384 business owners or managers of SMEs in Uganda. The authors applied confirmatory factor analysis to reduce the number of factors and identify the important elements that capture commercial lending terms, financial literacy and access to formal credit. The authors put forward and tested two hypotheses relating to the significance of the relationship between perceived commercial bank lending terms, financial literacy and access to formal credit using structural equation modelling with analysis of moment structures 18. Findings – The results suggest a positive and significant relationship between perceived commercial bank lending terms, financial literacy and access to formal credit. Moreover, the ANOVA results serendipitously show that access to formal credit varies with type of business and turnover. However, collateral and loan repayment periods are not observed variables for commercial bank lending terms. The most significant observed variable for commercial bank lending terms is interest rates. This, together with financial literacy, explains 31 per cent of the variances in access to formal credit by SMEs in Uganda. Research limitations/implications – The study is limited to the SME firms registered and operating in Kampala, Uganda and it is possible that the results are only applicable to these firms in Uganda. Nevertheless, the findings have implications to commercial banks wishing to improve the turnover of their micro-lending schemes. Practical implications – Efforts by the stakeholders to improve financial literacy of SMEs owners and managers must be matched with favourable interest rates if access to formal credit is to be enhanced. Social implications – The findings also have implications for governments aiming at improving access to finance to overcome income inequality problems, and also improve their growth. Originality/value – The results provide initial evidence of the aggregate explanatory power of interest rates and financial literacy for the criterion variable, access to formal credit by SMEs.
The Love of Money, pressure to Perform and Unethical Marketing Behavior in the Cosmetic Industry in Uganda
(International Journal of Marketing Studies, 2011) Korutaro Nkundabanyanga, Stephen; Mpamizo, Bruce; Omagor, Charles; Mpeera Ntayi, Joseph
The purpose of the study was to examine the relationship between love of money, pressure to perform and unethical marketing behavior in the cosmetic industry in Uganda. The methodology was cross-sectional and correlational. A questionnaire was administered to collect data on a sample of 169 marketers selected randomly from five cosmetic companies in Uganda. Results indicate that if the salespersons are willing to perform unprofessional assignments for monetary gain or if they have a burning desire for success regardless of how they should succeed, this is bound to result into unethical marketing behavior. Furthermore, the present study reveals that as pressure to perform increases through the achievement of targets and deadlines, unethical behavior increases and moves in the same direction as a result of the effect. Unrealistic targets combined with fixed deadlines promote and strengthen unethical marketing behavior. Thus love of money through its components, Success, Motivator, Evil, Budget and Equity can be moderated by management control - as management control improves, unethical marketing behavior is minimized. Even if the cosmetics industry in Uganda is very much in its infancy with only five manufacturers and this may limit generalizability, this study argues that companies should employ staff with good working experience in the marketing profession and there should be continuous staff screening of their behaviors over the years. Company image should be a top priority and management should design targets that are realistic to avoid continuous reported unethical behaviors among their staff.
Management accounting practices, governing boards and competitive advantage of Ugandan secondary schools
(International Journal of Educational Management, 2018) Korutaro Nkundabanyanga, Stephen; Muhwezi, Moses; Tauringana, Venancio
This paper reports on the results of a study carried out to determine the use of Management Accounting Practices (MAPR) in Ugandan secondary schools. The study also sought to determine whether MAPR and governing boards (board size, gender diversity and frequency of board meetings) influence the perceived competitive advantage. Design/methodology/approach - This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 200 secondary schools. The data was analysed through ordinary least squares regression using Statistical Package for Social Scientists. Findings - There are wide variations in MAP in terms of the extent to which the schools employ management accounting techniques. Also, MAP and governing boards have a predictive force on the schools’ competitive advantage. However, governing board’s size has no effect on competitive advantage. In terms of the control variables, the results suggest that while government school ownership has a positive effect on competitive advantage, the school’s size has no effect. There are intertwining relationships of frequency of board meetings, board size and school size. Result limitations/Implications- The present study was limited to the secondary schools in Uganda which limits generalizability. Still, the results offer important implications for secondary schools’ governing boards, owners and for similar African governments who are a major stakeholder in the secondary school education system. The exact mechanism by which intertwining relationships of frequency of board meetings, board size and school size impact competitive advantage is not been explored in this paper. Future researchers may direct research effort in this endeavour.
Management mechanisms, deterrence measures and public finance regulatory compliance in Uganda
(Journal of Public Budgeting, Accounting & Financial Management, 2019) Korutaro Nkundabanyanga, Stephen; Kyeyune Nakyeyune, Gorettie; Muhwezi, Moses
Despite the advancement of the assumptions of agency and institutional theories whereby monitoring structures and controls form the basis of management, inadequate public finance regulatory compliance among public entities has continued to be a challenge. The purpose of this paper is to examine how to break out of the apparent cycle of failures to comply with public finance regulations. Design/methodology/approach – A cross-sectional study that integrates two approaches (cooperative and coercive models) drawing from the view that in central government agencies, there may be stewards and also agents motivated by self-interest, suggesting that the most promising framework is that which renders the traditional ways of achieving regulatory compliance to be supplemented with the stewardship model. Thus, the authors focus on four variables: management mechanisms, ethical climate, deterrence measures and public finance regulatory compliance all drawn from agency, institutional and stewardship theories. The authors collect data from 67 central government agencies in Uganda using a structured questionnaire. Findings – The authors find that management mechanisms dimensions of leadership support and organisational commitment significantly associate with public finance regulatory compliance and so too are deterrence measures particularly oversight organs, penalties and procedural justices. Research limitations/implications – Public finance regulatory compliance can be improved through management mechanisms and deterrence measures. Originality/value – The study generates empirical evidence on the applicability of stewardship theory in the management of public entities for regulatory compliance

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