NRU :: Browsing by Author "Mpeera Ntayi, Joseph"

Browsing by Author "Mpeera Ntayi, Joseph"

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Accountability as a Mediator between Deontological Ethical Orientations and Public Interest in Ugandan Public Primary Schools
(Public Organization Review, 2021) Kwemarira, Godwin; Kigozi, Munene J. C.; Mpeera Ntayi, Joseph; Wazinge Magoola, Isaac
The study explains the mediating role of accountability in the relationship between deontological ethical orientations and public interest using the stewardship theory. Data were collected from a sample of 361 UPE schools in Central and Western Uganda. Data were analyzed using SPSS and SEM. Existing studies focused on the direct relationship between deontological ethical orientations and public interest. Therefore, this study examines the mediating role of accountability in the relationship between deontological ethical orientations and public interest using data from government primary schools. The findings reveal that accountability partially mediates the relationship between deontological ethical orientations and public interest.
Adaptation and Strategic Retirement of Secondary School Teachers
(Public Organization Review, 2021) Obella, Elisha; Kigozi Munene, John C.; Mpeera Ntayi, Joseph; Kagaari, James
This study explains strategic retirement amongst Uganda’s secondary school teachers using work adjustment and development theories. Data relating to psychological adaptation and socio cultural adaptation were attained using a cross-sectional quantitative approach. Primary data was collected using a self-administered questionnaire from 356 responses were received out of the 381 questionnaires that were distributed in 112 secondary schools in western and eastern Uganda. Data were analyzed using Statistical Program for Social Sciences (SPSS) and Analysis of Moment Structures (AMOS). The authors found that there a significant positive relationship between adaptation and strategic retirement amongst Uganda’s secondary school teachers.
Analyzing the relationship between financial literacy and financial inclusion by microfinance banks in developing countries: social network theoretical approach
(International Journal of Sociology and Social Policy, 2020) Okello Candiya Bongomin, George; Mpeera Ntayi, Joseph; Akol Malinga, Charles
The main purpose of this study is to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. Design/methodology/approach – The study adopted a cross-sectional research design and data were collected from the poor who resides in rural Uganda. Structural equation modelling (SEM) through analysis of moment structures (AMOS) was used to analyze the data. Bootstrap approach with 5,000 samples was run to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. Findings – The results showed that social network significantly and positively mediate the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. In addition, financial literacy also has a direct significant and positive effect on financial inclusion. Overall, the findings suggest that the presence of social network fully mediate the effect of financial literacy on financial inclusion of the poor by microfinance banks in developing countries. Research limitations/implications – This study adopted a cross-sectional research design and data were collected using a semi-structured questionnaire. Future studies could adopt longitudinal research design to establish the dynamic characteristics of the samples under study over time. Besides, this study collected data from only poor households who were clients of microfinance banks located in rural Uganda. It ignored the other section of the population who were not the poor. Therefore, future studies could use the other section of the population who are clients of commercial banks. Practical implications – The advocates of financial literacy and managers of microfinance banks in developing countries should ensure using existing local structures such as community and village associations to conduct financial literacy training. The village associations help in mobilizing members who are close-knit based on the existing societal ties that can be used as a channel for disseminating vital financial literacy information. Indeed, financial literacy workshops, seminars, and business clinics can be easily conducted to individuals who are members of the village associations. Originality/value – This paper integrates social network theory in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. Social network acts as a conduit through which financial knowledge and skills flow to increase the scope of financial inclusion of the poor in developing countries.
Analyzing the relationship between institutional frameworks and financial inclusion in rural Uganda: A social network perspective
(International Journal of Emerging Markets, 2018) Candiya Bongomin Okello, George; Munene, John C.; Mpeera Ntayi, Joseph; Malinga Akol, Charles
The purpose of this paper is to report the findings on the mediating effect of social network in the relationship between institutional frameworks and financial inclusion in rural Uganda. Design/Methodology/Approach – The study adopts a cross-sectional research design to collect data used to test for mediation under this study. Structural equation model (SEM) through use of Bootstrap in AMOS (analysis of moment structures) was adopted to establish existence and type of mediation by social network in the relationship between institutional frameworks and financial inclusion. Results – Social network had a partial mediating effect through institutional frameworks on financial inclusion. In addition, institutional frameworks through its regulative, normative, and cultural-cognitive pillars also have a significant direct effect on financial inclusion. Besides, social networks had a significant effect on financial inclusion. This suggests that there exist both a direct effect of institutional frameworks on financial inclusion and an indirect effect of institutional frameworks through social network on financial inclusion. Research limitations/shortcomings – While the sample for this study was big enough, it limited itself to only poor households in rural Uganda. Besides, the current study adopted cross-sectional design, thus, leaving out longitudinal design to investigate the characteristics in our sample over time. Originality/Value – The study recommends that social network, which acts as a conduit through which useful information flow and can be shared, play a critical role in mediating in the relationship between institutional frameworks and financial inclusion in rural Uganda. Therefore, our study contributes to existing body of literature by highlighting the mediating influence of social network in the relationship between institutional frameworks and financial inclusion, especially in rural Uganda. Contribution – The study makes significant empirical contribution and implications to financial inclusion policy makers on evidence of the critical role played by social network in indirectly enhancing the relationship between institutional frameworks and financial inclusion of the poor who are vulnerable to exclusion by main stream financial services providers.
Antecedents of stakeholder management in public private partnership projects in Uganda
(World Journal of Entrepreneurship, Management and Sustainable Development, 2019) Mwesigwa, Rogers; Bagire, Vincent; Mpeera Ntayi, Joseph; Munene, John C.
The purpose of this paper is to assess stakeholder management antecedents in public private partnership (PPP) projects in Uganda. Design/methodology/approach – This study is cross sectional and quantitative in nature. Data were collected by means of a questionnaire survey from a sample of 94 PPP projects in Uganda. Stratified random sampling was used in selecting projects for this study. Smart PLS–SEM was used for analysis. Findings – Results from the study show that the key antecedents of stakeholder management include; communication, engagement, commitment and trust. Communication was found to be the strongest antecedent of stakeholder management. Results also show that trust and commitment are insignificantly associated with stakeholder management in PPP projects. Research limitations/implications – This paper is limited to the antecedents of stakeholder management in PPP projects in Uganda. Further studies should be conducted in the public and private sectors where there are also multiple stakeholders. Practical implications – The paper has documented the antecedents of stakeholder management in PPP projects in Uganda. The results will help project managers and policy makers appreciate the different antecedents of stakeholder management and how they are important in managing interests and expectations of different stakeholders. Originality/value – This research focused on the key antecedents of stakeholder management in PPP projects within the Ugandan context.
Board governance quality and risk disclosure compliance among financial institutions in Uganda
(Journal of Asian Business and Economic Studies, 2020) Nkuutu, Geofrey; Mpeera Ntayi, Joseph; Nabeeta Nkote, Isaac; Munene, John; Kaberuka, Will
This paper aims to examine the impact of board governance quality (BGQ) and its mechanisms, namely board activity, board independence, board communication and board expertise, on the level of risk disclosure compliance (RDC) among financial institutions (FIs) in Uganda. Design/methodology/approach – The study adopts a cross-sectional design where data are collected through a questionnaire survey and audited financial statements of 83 FIs. The authors employ partial least square structural equation modeling (SmartPLS32.7) to test hypotheses. Findings – The authors find that the level of RDC in Ugandan FIs is low. Further, the study finds the positive relation between BGQ and RDC. Moreover, the authors find that RDC is positively and significantly related with board activity, board independence, board communication and board expertise. Furthermore, the authors find that the level of RDC is positively and significantly related to ownership type, firmsize and board size, respectively. Nevertheless, industry type, number of branches and firm age are insignificantly related to RDC. Practical implications – The study provides relevant insights into regulators and policy makers with early symptoms of potential problems regarding weak board governance in FIs. Policy makers may also use these findings as a guideline tool for improving existing board governance frameworks in place and development of new disclosure policies. In addition, the study provides an input into the review and amendments of existing corporate governance codes for the regulators. Originality/value – This study offers the empirical evidence on the nexus between BGQ and RDC of FIs in Uganda. Moreover, the study also offers evidence on how BGQ mechanisms impact RDC. The study also further adds theoretical foundations to the RDC literature.
Citizens’ Behaviour and Accountability: The Power of Social Capital in Sub-Saharan African Local Governments
(International Journal of Public Administration, 2020) Maxwell Ogentho, Poul; Munene, John C.; Kamukama, Nixon; Mpeera Ntayi, Joseph
The study attempts to explain the power of social capital in the association between citizens’ behaviour and accountability in local governments. This study is anchored on social capital theory because previous studies have largely used citizenship, agency and stewardship theories to explain accountability. Data relating to the predictor constructs were found to be significant predictors of accountability. Data were collected using standard closed ended questionnaires administered to citizens who were both the unit of inquiry and unit of analysis. This article urges citizens to leverage on social capital to garner critical mass, as they come together to demand accountability. These study findings present both policy and managerial implications which we discuss.
Citizens’ Behaviour and Compliance in Sub Saharan Africa Local Governments: the Role of Social Capital
(Public Organization Review, 2021) Ogentho, Maxwell Poul; Kamukama, Nixon; Munene, John C.; Mpeera Ntayi, Joseph; Mafabi, Samuel
This study uses social capital theory to explain the power of social capital in mediating relationship between citizens’ behaviour and compliance in local governments. The research builds on past studies that used citizenship, agency and stewardship theories to examine the mediating role of social capital in the association between citizens’ behaviour and compliance in local governments. The findings revealed that social capital partially mediates the association between citizens’ behaviour and compliance. This article urges citizens to come together, leveraging on social capital to garner critical mass to drive compliance. The study findings present both policy and managerial implications.
Collective action among rural poor: Does it enhance financial intermediation by banks for financial inclusion in developing economies?
(International Journal of Bank Marketing, 2018) Okello Candiya Bongomin, George; Munene, John C.; Mpeera Ntayi, Joseph; Akol Malinga, Charles
The purpose of this paper is to establish the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. Design/methodology/approach – The paper uses structural equation modeling (SEM) through bootstrap approach constructed using analysis of moment structures to test for the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. Besides, the paper adopts Baron and Kenny’s (1986) approach to establish whether conditions for mediation by collective action exist. Findings – The results revealed that collective action significantly mediates the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. The findings further indicated that the mediated model had better model fit indices than the non-mediated model under SEM bootstrap. Furthermore, the results showed that both collective action and financial intermediation have significant and direct impacts on financial inclusion of the poor in rural Uganda. Therefore, the findings suggest that the presence of collective action boost financial intermediation for improved financial inclusion of the poor in rural Uganda. Research limitations/implications – The study used quantitative data collected through cross-sectional research design. Further studies through the use of interviews could be adopted in future. Methodologically, the study adopted use of SEM bootstrap approach to establish the mediating effect of collective action. However, it ignored the Sobel’s test and MedGraph methods. Future studies could adopt the use of alternative methods of Sobel’s test and MedGraph. Additionally, the study focused only on semi-formal financial institutions. Hence, further studies may consider the use of data collected from formal and informal institutions. Practical implications – Policy makers and managers of financial institutions should consider the role of collective action in promoting economic development, especially in developing countries. They should create structures and design financial services and products that promote collective action among the poor in rural Uganda. Originality/value – Although several scholars have articulated financial inclusion based on both the supply and demand side factors, this is the first study to test the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda using SEM bootstrap approach. Theoretically, the study combines the role of collective action with financial intermediation to promote financial inclusion. Financial intermediation theory ignores the role played by collective action in the intermediation process between the surplus and deficit units.
Contract Enforcement ICBE policy BRIEF in Ugandan Business Transactions: The Case of Small and Medium Enterprises
(TrustAfrica, 2013) Mpeera Ntayi, Joseph; Rooks, Gerrit; Eyaa, Sarah; Zeija, Flavian
This study examines the extent to which small and medium sized business in Uganda use formal agreements when purchasing supplies. It also looks at the dispute resolution mechanisms the SMEs use when suppliers do not honor their contractual obligations to deliver supplies on time. The paper is based on a survey with a sample of 422 Ugandan Small Scale Businesses and 417 medium enterprises. The businesses surveyed were drawn from manufacturing, construction, hotels and restaurants, education, wholesale and retail trade sectors. Respondents were managers who deal with the purchasing function within their businesses. Data were collected using a questionnaire which was made up of both closed and open-ended questions to corroborate responses from respondents.
Corporate governance and internal controls over financial reporting in Ugandan MFIs
(Journal of Accounting in Emerging Economies, 2017) Nalukenge, Irene; Tauringana, Ven; Mpeera Ntayi, Joseph
The purpose of this paper is to investigate the relationship between corporate governance and internal controls over financial reporting (ICFR) of microfinance institutions (MFIs) in Uganda. Design/methodology/approach – This study was cross-sectional and correlational. In all, 70 Ugandan MFIs were surveyed and the data were analyzed using SPSS Version 20 to test the nine hypotheses which were put forward. The hypothesized relationships were tested using the ordinary least squares regression. Findings – The findings based on multiple regression analysis suggest that board role performance, expertise and Association of Microfinance Institutions in Uganda (AMFIU) membership are significant predictors of the ICFR. However, board independence and separation of CEO and chairman roles are not significant predictors. The results also show that the firm-specific control variables (auditor type, size, accounting qualification and age) are also not significant. Research limitations/implications – This study has limitations in that it is cross-sectional, thus limiting monitoring changes in behavior over time and also because the effectiveness of the ICFR was assessed using perceptions. Practical implications – Efforts by regulators and other stakeholders to improve the ICFR must focus on the corporate governance aspects such as board expertise and ensure that the board performs its roles. Originality/value – The paper adds to the existing literature on the corporate governance and ICFR by documenting the relationship between the corporate governance and ICFR. The study complements the previous studies on the ICFR by demonstrating that board expertise and board role performance improve the ICFR. Such evidence does not currently exist. The findings also indicate that an MFI which is a member of AMFIU was found to have better ICFR supporting self-regulation.
Determinants of SMMEs Survival in post-war communities in developing countries: testing the interaction effect of government support
(World Journal of Entrepreneurship, Management and Sustainable Development, 2017) Candiya Bongomin Okello, George; Munene, John C.; Mpeera Ntayi, Joseph; Akol Malinga, Charles
The main purpose of the study is to test the interaction effect of government support in the relationship between business skills, capital adequacy, access to finance, access to market, entrepreneurial education, and Small Medium and Micro-enterprises (SMMEs) survival in post-war communities in northern Uganda. Design/methodology/approach – cross sectional research design was used in the study and quantitative data were collected from 304 SMMEs located in Gulu District using a semi-structured questionnaire. Structural equation modelling (SEM) through use of Analysis of Moment Structures was adopted to establish the interaction effect of government support in the relationship between business skills, capital adequacy, access to finance, access to market, entrepreneurial education and SMMEs survival in post-war communities in northern Uganda. Further, Pearson’s correlation analysis was used to show the association between the variables under study. Findings – the results revealed that there is a significant interaction effect of government support in the relationship between business skills, capital adequacy, access to finance, access to market, entrepreneurial education and SMMEs survival in post-war communities in northern Uganda. Besides, the results indicated that business skills, capital adequacy, access to finance, access to market, entrepreneurial education, and government support have significant and positive impacts on SMMEs survival in post war communities in northern Uganda. Research limitations/implications – the study employed cross-sectional research design, thus, ignoring longitudinal study approach. Besides, the sample was selected from only Gulu District, therefore, leaving out other Districts located in northern Uganda. Practical implications – advocates of recovery programmes and interventions in developing countries should consider government support as a vital factor in promoting business skill, capital adequacy, access to finance, access to market, and entrepreneurial education in order to promote SMMEs survival in post-war communities. In addition, governments in developing countries should offer investment incentives and tax waivers to infant SMMEs in post-war communities like in northern Uganda. Originality/value – the study examined the interaction effect of government support in the relationship between business skills, capital adequacy, access to finance, access to market, entrepreneurial education and SMMEs survival in post-war communities in developing countries. Thus, to the best of our knowledge, this is the first attempt to test the interaction effect of government support in the relationship between business skills, capital adequacy, access to finance, access to market, entrepreneurial education and SMMEs survival in post-war communities in northern Uganda. The use of government support as a moderator in the relationship between business skills, capital adequacy, access to finance, access to market, entrepreneurial education and SMMEs survival is scarce in entrepreneurship literature and theory. This creates uniqueness in this study.
Determinants of successful implementation of donor-funded projects in Uganda
(International Journal of Social Economics, 2015) Mujabi, Shafic; Omuudu Otengei, Samson; Kasekende, Francis; Mpeera Ntayi, Joseph
The purpose of this paper is to examine, empirically the relationship between organizational rationality, knowledge management (KM), risk management and successful implementation of donor-funded projects in Uganda. Design/methodology/approach – Data were obtained from 195 project managers of donor-funded projects both managed within government systems and those outside government using a questionnaire. Zero-order correlation analysis and hierarchical regression analysis were employed to analyze the data. Findings – The paper has two major findings: all the predictor variables are positively and significantly related to successful project implementation; and the relationship is strong enough to cause a 23 percent (R²) increase in the explanatory power in the presence of control variables. Research limitations/implications – The study focussed on selected donor-funded projects in Uganda and this limited the generalization of the findings. Moreover, there was also limited availability of local empirical literature with respect to implementation and performance of donor-funded projects. Practical implications – The results suggest that organizations that embrace organizational rationality, risk management and KM succeed in project implementation. Originality/value – There are many studies that investigate the practices adopted by organizations that implement donor-funded projects, however, this is the first study to the authors’ knowledge that examines the relationship between KM, rationality, risk management and successful implementation of donor-funded projects in Uganda.
Emotional outcomes of Ugandan SME buyer-supplier contractual conflicts
(International Journal of Social Economics, 2012) Mpeera Ntayi, Joseph
The purpose of this paper is to provide a multilevel investigation of the existence and relationship between severity of buyer-supplier contractual conflicts, emotional outcomes and disengagement behaviour arising out of the contractual disputes in Ugandan small to medium-sized enterprises (SMEs). Design/methodology/approach – This paper undertakes a large-scale comprehensive survey covering 839 SMEs’ buyers together with their corresponding suppliers using Krejcie and Morgan sample size determination criteria. Respondents were managers selected on the basis of their purchasing experience and knowledge of the subject matter under investigation. Data were subjected to a confirmatory factor analysis as a quasi-judicial analytical approach to assess the goodness-of-fit of the latent structure underlying the constructs under investigation. Findings – The results demonstrate that both the confirmatory factor analysis and the structural equation model have a good fit. The direct effects of the severity of buyer-supplier conflicts and emotional outcomes of buyer-supplier emotions taken together is significant and explains 37 per cent of the variance in buyer-supplier disengagement. Originality/value – The study predicts the emotional outcomes of buyer-supplier conflicts which were thought to be idiosyncratic, and erratic. Their connection to organizational outcomes was considered convoluted.
Exploring the mediating role of social capital in the relationship between financial intermediation and financial inclusion in rural Uganda
(International Journal of Social Economics, 2018) Okello Candiya Bongomin, George; Munene, John C.; Mpeera Ntayi, Joseph; Akol Malinga, Charles
The purpose of this paper is to establish the mediating role of social capital in the relationship between financial intermediation and financial inclusion in rural Uganda. Design/methodology/approach – The current study used cross-sectional research design and a semi-structured questionnaire was used to collect data for this study. The study applied structural equation modeling through bootstrap approach in AMOS to establish the mediating role of social capital in the relationship between financial intermediation and financial inclusion. Findings – The results indicated that social capital significantly mediates the relationship between financial intermediation and financial inclusion in rural Uganda. Therefore, it can be deduced that social capital among the poor play an important role in promoting financial intermediation for improved financial inclusion in rural Uganda. Research limitations/implications – Although the sample was large, it may not be generalized to other segments of the population. Data were collected from only poor households located in rural Uganda. Besides, the study was cross-sectional, thus, limiting efforts in investigating certain characteristics of the sample over time. Perhaps future studies could adopt the use of longitudinal research design. Practical implications – Financial institutions such as banks should rely on social capital as a substitute for physical collateral in order to promote financial inclusion, especially among the poor in rural Uganda. Originality/value – This study provides empirical evidence on phenomenon not studied in rural areas in Sub-Saharan Africa where the poor use social capital embedded in customs and norms for doing business. The results highlight the importance of social capital in mediating the relationship between financial intermediation and financial inclusion of the poor in rural Uganda.
Financial Inclusion in Rural Uganda: Testing Interaction Effect of Financial Literacy and Networks
(Journal of African Business, 2016) Okello Candiya Bongomin, George; Mpeera Ntayi, Joseph; Munene, John C.; Nkote Nabeta, Isaac
Based on the premise that financial literacy take place in networks to influence the level of financial inclusion, the study examined whether networks moderate in the relationship between financial literacy and financial inclusion among poor households in rural Uganda. Studies have revealed that financial literacy affects the level of financial inclusion. However, these studies have failed to incorporate the moderating role of networks in the relationship between financial literacy and financial inclusion. The results showed that networks positively and significantly moderates in the relationship between financial literacy and financial inclusion with both financial literacy and networks having direct and significant effects.
Financial intermediation and financial inclusion of poor households: Mediating role of social networks in rural Uganda
(Cogent Economics & Finance, 2017) Okello Candiya Bongomin, George; Mpeera Ntayi, Joseph; Munene, John C.; Malinga Akol, Charles
The paper examined the mediating role of social networks in the relationship between financial intermediation and financial inclusion of poor households in rural Uganda. The paper used SPSS (statistical package for social scientist) and applied MedGraph program (Excel version 13), Sobel test, and Kenny & Baron guideline to test for the mediating role of social networks in the relationship between financial intermediation and financial inclusion. Quantitative data were collected from a total sample of 400 poor households living in rural Uganda who were randomly selected for this study. The findings revealed that social networks partially mediate in the relationship between financial intermediation and financial inclusion of poor households in rural Uganda. Besides, social networks and financial intermediation have significant and positive impacts on financial inclusion of poor households in rural Uganda. This implies that some effects of financial intermediation on financial inclusion go through social networks to cause an impact on financial inclusion of poor households in rural Uganda. Therefore, financial institutions such as banks and microfinance institutions should develop financial products and services that promote social networking among poor households in rural Uganda. In addition, they should advocate for participation by poor households in existing village associations and social organizations so as to develop wide social networks. This will help them to gain access to scarce and vital information about available financial services like credit.
Financial intermediation and financial inclusion of the poor: Testing the moderating role of institutional pillars in rural Uganda
(International Journal of Ethics and Systems, 2018) Okello Candiya Bongomin, George; Munene, John C.; Mpeera Ntayi, Joseph; Akol Malinga, Charles
Drawing from the fact that institutions act as incentives and disincentives to human behaviour in financial markets, the purpose of this study is to examine the moderating role of institutional pillars in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. Design/methodology/approach – The study used cross-sectional research design and data were collected from the poor residing in rural Uganda. Statistical package for social sciences was used to analyse the data. Descriptive statistics, correlations and regression analyses were generated. Besides, ModGraph excel programme was adopted to graphically explain the moderating role of institutional pillars in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. Findings – The results revealed that institutional pillars of regulative (formal rules), normative (informal norms) and cultural cognitive (cognition) significantly moderate the relationship between financial intermediation and financial inclusion of the poor. Furthermore, the results also indicated that financial intermediation and institutional pillars have significant effects on financial inclusion of the poor in rural Uganda. Research limitations/implications – The study focuses on only cross-sectional design, thus, leaving out longitudinal study. Future research using longitudinal data that explore behaviours of the poor over time could be useful. In addition, only quantitative data were used to measure variables under study and use of qualitative data were ignored. Thus, further studies using qualitative data are feasible. Practical implications – Policymakers and advocates of financial inclusion in a developing country such as Uganda should adopt institutional pillars (regulative, normative and cultural-cognitive) in promoting financial intermediation in rural areas. The institutional pillars working in combination set the “rule of the game” or “humanly devise constraints” that guide economic exchange by promoting and limiting certain actions of actors in underdeveloped financial market as stipulated by North (1990) and Scott (1995). Originality/value – To the best of the authors’ knowledge, this is the first attempt to examine the moderating role of institutional pillars under the theory of institutions in the relationship between financial intermediation and financial inclusion of the poor in a developing country setting. Indeed, institutions guide contract enforceability and information sharing in human interaction to lower transaction cost in the financial markets. This is missing in literature and theory of financial intermediation in promoting financial inclusion, especially in rural Uganda.
Institutional frames for financial inclusion of poor households in Sub-Saharan Africa Evidence from rural Uganda
(International Journal of Social Economics, 2016) Okello Candiya Bongomin, George; Mpeera Ntayi, Joseph; Munene, John
The purpose of this paper is to examine institutional frames for financial inclusion of poor households in a Sub-Saharan Africa context and provide policy implications in solving the persistent problem of limited inclusion of poor households into mainstream formal financial services in Uganda. Design/methodology/approach – Cross-sectional research design was used in this study. Data were collected from a randomly selected sample of 200 poor households located in Mukono District. Statistical program for Social Scientists and Analysis of Moment Structures were used to generate results. Findings – Results have revealed the presence of regulative, normative, and procedural and declarative cognitive institutional frames, which affect financial inclusion of poor households in rural rural Uganda. The findings and policy implications are discussed in detail in the paper. Originality/value – This study parallels the World Bank Global Findex survey (2012) on general aspects of financial inclusion around the world. It examines frames, which structure behaviours and actions of poor households towards their financial decisions and choices in attempting to improve financial inclusion with a major focus on rural Uganda.
Institutional framing and financial inclusion Testing the mediating effect of financial literacy using SEM bootstrap approach
(International Journal of Social Economics, 2017) Okello Candiya Bongomin, George; Mpeera Ntayi, Joseph; Munene, John C.
The purpose of this paper is to establish the mediating effect of financial literacy in the relationship between institutional framing and financial inclusion among poor households in Uganda with a specific focus on Mokono district. Design/methodology/approach – The study adopted a cross-sectional design. Data were analyzed using structural equation modeling (SEM), which adopted Analysis of Moment Structures to test for mediating effect of financial literacy in the relationship between institutional framing and financial inclusion. Findings – The results revealed that financial literacy had a partial mediating effect in the relationship between institutional framing and financial inclusion. Furthermore, the results indicated that while institutional framing has a direct effect on financial inclusion, it also exerts an indirect effect through financial literacy. This supports the argument that institutional framing that structure the way how poor households interpret, evaluate, comprehend and make sound financial decisions and choices, is enhanced by knowledge and skills acquired through financial literacy by poor households. Research limitations/implications – This study has been limited by adopting only cross-sectional design and quantitative research approach, therefore ignoring longitudinal design and qualitative research approach. Besides, the study uses SEM bootstrap approach and ignores MedGraph method, which is also recommended for testing mediation. Practical implications – Since the results suggest that institutional framing of poor households are partially enhanced by financial literacy to increase financial inclusion, policy makers, practitioners and managers of financial institutions should ensure extending financial literacy programs closer to the poor in order to expand the scope of financial inclusion beyond the current sphere. Indeed, financial literacy programs will boost cognitive abilities of poor households resulting into better financial decisions and choices and, hence increase in demand and consumption of financial services. Originality/value – The study significantly generates empirical evidence by testing the mediating role of financial literacy in the relationship between institutional framing and financial inclusion using SEM bootstrap approach. The study portrays the influential partial effect of financial literacy in enhancing institutional frames of poor households in order to cause improvement in financial inclusion. Indeed, financial literacy programs that entail acquisition of financial knowledge and skills boost cognitive abilities of poor households to easily interpret, evaluate, comprehend meanings, and take correct decisions and actions on financial matters. The mediating effect of financial literacy in the relationship between institutional framing and financial inclusion seems to be lacking in literature and theory. Thus, the paper is the first to relate the influential partial effect of financial literacy in the relationship between institutional framing and financial inclusion among poor households, especially in a developing country context.

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