Competitive advantage: mediator of managerial competence and financial performance of commercial banks in Uganda
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Date
2017
Journal Title
Journal ISSN
Volume Title
Publisher
African Journal of Economic and Management Studies
Abstract
This paper examines the mediating role of competitive advantage in the relationship between managerial competence and financial performance of commercial banks in Uganda. Design/methodology/approach – A cross-sectional survey was employed using 22 fully licensed and operational commercial banks in Uganda. Data were analyzed using descriptive
statistics, zero order correlation, and hierarchical regression analyses. Further, the bootstrap method was used to test the mediation effect of competitive advantage. All the analyses were performed using SPSS v21. Findings – The findings reinforce the important position of managerial competence on financial performance of commercial banks. First, managerial competence enhances firms’ competitive advantage. Second, managerial competence has an indirect effect on financial performance
through competitive advantage. Overall, managerial competence and competitive advantage are strong predictors of financial performance of commercial banks. Research limitations/implications – The study employed only a single research methodological
approach, therefore future research could be undertaken using a mixed approach and triangulate to compare findings. Furthermore, the findings from the present study are cross-sectional, considering the limitations there in, a longitudinal approach should be explored.
Description
Keywords
Managerial competence, Competitive advantage, Financial performance
Citation
Nixon Kamukama, Diana Susan Kyomuhangi, Richard Akisimire, Laura A Orobia, (2017) "Competitive advantage: mediator of managerial competence and financial performance of commercial banks in Uganda", African Journal of Economic and Management Studies, Vol. 8 Issue: 2,pp. -, doi: 10.1108/AJEMS-10-2016-0142