Browsing by Author "Nkundabanyanga, Stephen K."
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Item Board role performance in service organisations: the importance of human capital in the context of a developing country(Social Responsibility Journal., 2014) Nkundabanyanga, Stephen K.; Balunywa, Waswa; Tauringana, Venancio; Ntayi, Joseph M.The purpose of this paper is to draw from multiple theories of upper echelons, stakeholder, agency, resource-based view and stewardship to establish the extent to which human capital (other than that of the board itself) in service organisations affect board role performance in those service sector firms. Design/methodology/approach – This study is cross-sectional and correlational. Analyses are conducted using SPSS and Analysis of Moment Structures software on a sample of 128 service firms in Uganda. Findings – Findings reveal that dimensions of employee safety, entrepreneurial skills, entrepreneurial development, employee welfare and employee relations fit the model of human capital and predict up to 69.1 per cent of the variance in board role performance. The results of this study reveal that board role performance is affected by prior decisions, for example, to invest in corporate social responsibility (CSR) activities, targeting employees that augment firm characteristics like existence of appropriate human capital. Essentially, an improvement in the quality of human capital explains positive variances in board role performance. Research limitations/implications – Cross-sectional data do not allow for testing of the process aspect of the models; however, they provide evidence that the models can stand empirical tests. Additional research should examine the process aspects of human capital and board role performance. Practical implications – Most companies in developing nations have relied on normative guidelines in prescribing what boards need to enhance performance, probably explaining why some boards have not been successful in their role performance. This research confirms that appropriate human capital, which can be leveraged through CSR ideals of employee safety, recognition, welfare and training in entrepreneurship, consistent with the stakeholder theory, can facilitate the board in the performance of its roles. In the developing country context, organisations’ boards could use these findings as a guideline, that is, what to focus on in the context of human capital development in organisations because doing so improves their own role performance. Originality/value – This study is one of the few that partly account for endogeneity in the study of boards, a methodological concern previously cited in literature (Bascle, 2008; Hamilton and Nickerson, 2003). Empirical associations between board role performance and organisational performance would not be useful unless we are able to grasp the causal mechanisms that lie behind those empirical associations (Hambrick, 2007). Thus, this study contributes to literature that tries to account for variances in board role performance and supports a multi-theoretical approach as a relevant framework in the study of human capital and board role performance.Item Board role performance in Uganda’s services sector firms(Journal of Public Administration and Policy Research, 2012) Nkundabanyanga, Stephen K.; Ahiauzu, AugustineThe present paper sought to confirm factors that are relevant to board role performance in Uganda and as a corollary empirically tested the relationship between individual dimensions of the model of board role performance. The study was cross-sectional and correlational and the analysis was conducted using Structural Equation Modelling (SEM) with Analysis of Moment Structures (AMOS) software on a sample of 128 service firms in Uganda. Findings indicate that a four-dimensional model of board role performance was determined to be the best fitting model for Ugandan service firms. From the results we do claim, that board role performance causes the scores observed on the measured variables of boundary spanning, effective partnership, environmental scanning and control of the organization. The measured variables are the individual dimensions of the model of board role performance. The present study provides one of the few studies that have analysed with confirmatory factor analysis (CFA) using AMOS to test board role performance measurement model and provides a benchmark for Uganda’s service firms wishing to leverage performance of their boards. However, using cross-sectional data does not allow for testing of the process aspect of the model; still, it provides evidence that the model can stand empirical tests of the four elements of the model. Additional research should examine the process aspects of board role performance and also test our model in predicting firm financial performance. The model in this paper might improve the quality of board role performance and apply to other sectors of Uganda’s firms to avert the problem of ineffective boards as evidenced by consistent firm failures in Uganda. By improving the quality of board role performance, boards will demonstrate their relevance in company direction and improvement of company value to the benefit of all stakeholders.Item Corporate governance, ethics, internal controls and compliance with IFRS(Journal of Financial Reporting and Accounting, 2018) Nalukenge, Irene; Nkundabanyanga, Stephen K.; Ntayi, Joseph M.Purpose – The purpose of this paper is to establish the relationship between corporate governance, ethical culture, Internal Controls over Financial Reporting (ICFR) and compliance with International Financial Reporting Standards (IFRS) by microfinance institutions (MFIs). Design/methodology/approach – This is a cross-sectional survey based on a sample of 85 MFIs in Uganda. Hypotheses were tested using partial least squares (PLS) analysis technique. An unweighed IFRS compliance index to capture the level of compliance with IFRS was constructed. Yet to capture corporate governance, ethical culture and ICFR variables, the perceptions of top management of MFIs have been taken into consideration. Findings – Corporate governance, ethical culture and ICFR, each makes a significant contribution to compliance with IFRS. Also both corporate governance and ethical culture are significantly associated with ICFR. However, compliance with IFRS by MFIs is better enhanced by corporate governance and ethical culture through ICFR. Research limitations/implications – Results support the idea that in terms of agency and virtue ethics theories, the board should support ICFR to minimize egocentric managers and other employees and also inculcate an ethical culture to achieve better compliance with IFRS because corporate governance and ethical culture are associated with sound ICFR which in turn lead to compliance with IFRS. Practical/implications – Boards of MFIs should encourage investments that improve ICFR. At the same time, regulators should ensure that boards are composed of members with financial expertise, with no conflict of interest and introduce mechanisms that encourage boards to perform their roles. Originality/value – The study contributes towards a methodological position by showing that the behavioural perspective of corporate governance can be an alternative to the boards’ structural variables in investigating compliance with IFRS. A direct association of ethical culture and compliance with IFRS and an indirect association through ICFR can be envisaged.Item Corporate governance: Ownership structure, board structure and performance of public sector entities(Journal of Public Administration and Policy Research, 2011) Tusiime, Immaculate; Nkundabanyanga, Stephen K.; Nkote, Isaac N.This study seek to examine ownership structure, board structure and their relationship with public sector entities’ performance in Uganda. A cross-sectional and correlational research design with a sample of 85 public sector entities in Uganda was used. The findings portrayed that, CEO duality is not yet an issue as far as the performance of public sector entities in Uganda is concerned. Findings indicate that 67% of the variance in public sector entities’ performance is explained by ownership structure and board structure. Evidence has emerged that it is necessary to reduce government ownership in public sector entities in Uganda to achieve better performance. The significance of this paper is also to contribute to the dearth of literature on the African experience concerning public sector management and performance. The study is carried out in Uganda where corporate governance code is not highly developed and the sample size for this study may limit its generalization. Our findings underlie the importance of privatization in enhancing proper performance of public sector entities.Item Correlates of academic misconduct and CSR proclivity of students(Journal of Applied Research in Higher Education, 2014) Nkundabanyanga, Stephen K.; Omagor, Charles; Nalukenge, IreneThe purpose of this paper is to examine the effect of the fraud triangle, Machiavellianism, academic misconduct and corporate social responsibility (CSR) proclivity of students. Design/methodology/approach – The present study surveyed 471 university students. The study was cross-sectional and employed structural equation modelling in statistical modelling. Findings – The study provides evidence that perceived opportunity to cheat in examinations is the single most important factor accounting for significant variations in rationalization and academic misconduct. Similarly, low Machiavellians significantly get inclined to CSR ideals. The fraud triangle alone accounts for 36 per cent of the variations in academic misconduct, hence the error variance is 64 per cent of academic misconduct itself. This error variance increases to 78 per cent when a combination of perceived opportunity, rationalization, Machiavellianism is considered. Moreover, both Machiavellianism and academic misconduct account for 17 per cent of variations in students’ proclivity to CSR ideals. Research limitations/implications – Results imply that creating a setting that significantly increases a student’s anticipated negative affect from academic misconduct, or effectively impedes rationalization ex ante, might prevent some students from academic misconduct in the first place and then they will become good African corporate citizens. Nevertheless, although the unit of analysis was students, these were from a single university – something akin to a case study. The quantitative results should therefore be interpreted with this shortcoming in mind. Originality/value – This paper contributes to the search for predictors of academic misconduct in the African setting and as a corollary, for a theory explaining academic misconduct. Those students perceiving opportunity to cheat in examinations are also able to rationalize and hence engage in academic misconduct. This rationalization is enhanced or reduced through Machiavellianism.Item Institutionalizing corporate social responsibility (CSR) in Uganda: does it matter?(Social Responsibility Journal, 2011) Nkundabanyanga, Stephen K.; Okwee, AlfredThe purpose of this study is to establish the relationship between CSR, managerial discretion, competences, learning and efficiency and perceived corporate financial performance in order to establish the legitimacy and value of CSR, taking managers’ perspectives in Uganda. Design/methodology/approach – The study used quantitative, correlation and regression analyses and collected primary data through a structured questionnaire on a sample of 100 firms. Findings – The results indicate that managerial discretion and competences, learning and efficiency are significant predictors of perceived corporate financial performance, but CSR is not. However, the results show serendipitously that managerial discretion’s predictive potential of perceived corporate performance is moderated by CSR. Result limitations/implications – The study focuses on corporate social responsibility, a concept not very well appreciated and only understood as philanthropic and not really viewed as a means for improved financial performance in Uganda. Practical implications – Our study implies that while upholding the ideals of CSR, companies in Uganda need to enhance managerial discretion in their contracting process and develop competences, learning and efficiency in order to impact positively on performance. Originality/value – This study contributes to the dearth of CSR literature on the African experience by examining the perceptions of managers on CSR’s predictive potential of corporate financial performance in Uganda.Item Literacy, external user-pressure and quality of accounting information of Ugandan SMES(Emerald Insight, 2015) Nalukenge, Irene; Nkundabanyanga, Stephen K.; Tauringana, VenancioPurpose – The overall purpose of this study is to investigate whether literacy levels and external user-pressure by the Uganda Revenue Authority affect the perceived quality of accounting information of Ugandan SMEs. Design/methodology/approach – A postal questionnaire survey of 98 SMEs drawn from Kampala, Uganda was undertaken. Ordinary Least Squares (OLS) regression was used to determine whether literacy levels and external user-pressure affect the quality of accounting information controlling for firm size, accounting qualification and firm age. Findings – The findings suggest that literacy levels and external userpressure influence the perceived quality of accounting information. Accounting qualification and firm age were also found to be positively associated with the quality of accounting information. However, there is no significant relationship between firm size and quality of accounting information. Originality/value – The study provides evidence of the effect of literacy and external user-pressure on the quality of accounting information in a developing country where such evidence does not currently exist. Implications – Since accounting information is important for economic growth, the Ugandan government needs to spend more resources to improve the literacy especially among the SMEs. The Uganda Revenue Authority also needs to maintain pressure on SMEs to improve the quality of information provided by SMEs since such information is important for assessing tax payable.Item A model for effective board governance in Uganda’s services sector firms(Journal of Accounting in Emerging Economies, 2013) Nkundabanyanga, Stephen K.; Ahiauzu, Augustine; Sejjaaka, Samuel K.; Ntayi, Joseph M.The present study was carried out with the purpose of establishing a model of effective board governance in Uganda’s service sector firms. Design/methodology/approach – This study is cross-sectional. The analysis was conducted using Analysis of Moment Structures (AMOS) software on a sample of 128 service firms in Uganda. The perceived effective board governance in Uganda was measured by the perceptions of 128 respondents who are managers or directors in each of those service firms. Three confirmatory factor analysis models were tested and fitted. Findings – The three-dimensional model of effective board governance in Uganda – consisting of control and meetings’ organization, board activity and effective communication – was determined to be the best fitting model. Evidence in support of relevant theories of board governance was adduced. Research limitations/implications – Although plenty of literature on corporate governance exists, there is scarce literature on effective board governance conceptualization and this together with imprecise terminology regarding this area may have affected the authors’ conceptualization of the study. The authors’ study was limited to the service sector firms registered and operating in Kampala, Uganda and it is possible that their results are only applicable to this sector in Uganda. Nevertheless, policy makers of Uganda dealing with financial markets, academicians, company directors, company owners and even general readers interested in the area of effective board governance might find this paper handy. Practical implications – The authors believe that application of their model should improve the quality of board governance in Uganda and can also apply to other sectors of Uganda’s firms to help avert the problem of ineffective boards as evidenced by consistent firm failures in Uganda. By improving the quality of board governance, Ugandan boards will demonstrate their relevance in company direction and improvement of company value to the benefit of all stakeholders. Originality/value – The present study provides one of the few studies that have analysed with confirmatory factor analysis (CFA) using AMOS to test effective board governance measurement model and provides a benchmark for Uganda’s service firms yearning to leverage the use of their boards.