Department of Finance, Accounting and Microfinance

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Benefits, firm size and adoption of international financial reporting standards for small and medium enterprises in Uganda
(Kyambogo University (un published work), 2019-10) Namujjuzi, Sylvia
The objectives of the study were to analyse the influence of cost saving benefits on the adoption of IFRS for SMEs in Kawempe division urban council, to analyse the influence of decision making benefits on the adoption of IFRS for SMEs in Kawempe division urban council, to establish the moderating influence of firm size on the relationship between cost saving benefits and adoption of IFRS for SMEs in Kawempe division urban council and to establish the moderating influence of firm size on the relationship between decision making benefits and adoption of IFRS for SMEs in Kawempe division urban council. Four null hypotheses were tested based on the objectives. The study aimed at examining adoption of International Financial reporting standards for Small and Medium Sized Enterprises in Uganda with an emphasis of examining the influence of benefits that SMEs perceive from adopting IFRS for SMEs and how these benefits influence adoption of these standards contingent to firm size. The study was underpinned on the Economic Network theory and the Agency theory. A cross sectional survey design was utilised and both quantitative and qualitative data was collected using questionnaires and interviews. A total population of 851 SMEs was considered to obtain quantitative data using questionnaires and a sample of 267 SMEs was obtained using Krejcie & Morgan table (1970), data was obtained from only 230 SMEs using quota sampling and simple random sampling methods giving a response rate of 86.14 percent. Qualitative data from interviews was obtained from 10 respondents using purposive sampling method. Prerequisite tests were carried out were data was tested for normality and multicollinearity, all data was normally distributed and lacked collinearity effects. A multivariate analysis, using a binomial logistic regression model was performed to address objectives one and two while objective three and four was analyzed using a hierarchical multiple regression model. Findings from the logistic regression showed that Cost saving benefits have a positive significant influence on adoption of IFRS for SMEs and therefor the null hypothesis was not supported (p< 0.05) while Decision making benefits have a non-significant influence on adoption of IFRS for SMEs therefore null hypothesis was supported (p>0.05). Findings from the hierarchical regression showed that Firm size has a positive significant moderating influence on the relationship between cost saving benefits and adoption of IFRS for SMEs and therefore the null hypothesis was not supported (p<0.05). Further more, Firm size has a positive significant moderating influence on the relationship between decision making benefits and adoption of IFRS for SMEs and thus the null hypothesis was not supported (p<0.05). It was concluded that adoption of IFRS for SMEs can be enhanced if emphasis is put on all the benefits of adoption as well as firm size. The study recommends that policy makers should develop a concrete policy and support strategies to enhance adoption benefits and in so doing, the different firm sizes need to be put into consideration. Future studies can consider carrying out the same study while involving SMEs in other areas of Uganda and the scope of the study would also be extended by involving comparative studies with other countries. Key Words: Benefits, firm size, Adoption, International Financial Reporting Standards for Small and Medium Enterprises and Small and Medium Enterprises
Dynamic capabilities and institutional size of financial cooperatives
(Practical Action Publishing, 2020) Michael, Omeke; Pascal, T. Ngoboka; Isaac, N. Nkote; Isaac, Kayongo
The study examines the relationship between dynamic capabilities and institutional size of financial cooperatives. A mixed research design was adopted to study 269 savings and credit cooperatives (SACCOs) in Uganda. Structural equation modelling and content analysis were carried out. The results indicate that dynamic capabilities and institutional size of financial cooperatives are significant and positively related. Further, the constructs of dynamic capability of coordination, learning, and competitive response contribute to the increase in membership, capital base, returns to members, and portfolio quality of SACCOs. The study concludes that the size and development of financial cooperatives depends heavily on the institutional and managerial capabilities for coordination, learning, and competitive responses to the environment. The study’s contribution is to highlight the complexity of the environment in which the financial cooperatives operate and the importance of dynamic capabilities to succeed.
Complexity behavior in financial cooperatives
(Springer Nature Switzerland, 2021) Michael, Omeke; Pascal, T. Ngoboka; Isaac, Nabeta Nkote; Samuel, Mayanja
In a complex and competitive business ecosystem, market responsiveness, diverse management, and governance approaches are instrumental to achieve sustainable enterprise growth and development. This differs from the traditional command and control approaches of management bounded to inflexible rules and regulations, which inhibit innovation in organizations (McMillan 2008). Anderson (1999) observed that organizations operate in complex, nonlinear, and unpredictable environment. In the developing world, financial cooperatives (FCs) are faced with competitive pressures and witness unpredictable changes in their business operations in the ever-changing business environment.
Financial management practices and performance of savings and credit cooperatives in Nakawa division
(Kyambogo University, 2021-01) Muliira, Edward Emmanuel
This study explored the effect of financial management practices on the performance of savings and credit cooperatives in Nakawa division. The study specifically analyzed the effect of cash management on performance of SACCOs, the effect of credit risk management on the performance of SACCOs and assessed the contribution of financial planning on performance of SACCOs in Nakawa division. The research design used was a mixed study design and both qualitative and quantitative approaches were used. A sample of 105 SACCO employees and 6 key informants, were used for the study. Data was obtained using a structured questionnaire and interview guide for employees and key informants and there after analyzed using descriptive and inferential statistics for quantitative data while thematic content analysis was used for qualitative data. The findings of the study revealed that cash management had a positive significant influence on SACCO performance (Beta = 0.533, P value = 0.000); a positive significant influence of credit risk management on SACCO performance (Beta =0.227, P value = 0.015); and also a positive significant influence of financial planning on SACCO performance (Beta = 0.380, P value 0.000). Its therefore recommended that SACCOs should strive to implement better cash management by keeping minimum capital requirements, diversify investments into other cash inflow ventures, ensure effective loan management through good borrower character assessment, and as well as have training on strategic long-term financial planning for improvement in SACCO performance.
Dynamic capabilities and enterprise growth: the mediating effect of networking
(World Journal of Entrepreneurship, Management and Sustainable Development, 2021-01) Michael, Omeke; Pascal, Ngoboka; Isaac, Nabeta Nkote; Isaac, Kayongo
Purpose Enterprise growth drives competitiveness, innovations, employment creation, income generation and social inclusion in societies. The purpose of this paper is to examine the mediating effect of networking on the relationship between dynamic capabilities and enterprise growth of financial cooperatives. Design/methodology/approach This is a cross-sectional survey and quantitative study of 269 financial cooperatives based on structural equation modelling and bootstrapping techniques analysis. Findings The results reveal that dynamic capabilities are vital in promoting the growth of financial cooperatives. In addition, networking partially enhances the contribution of dynamic capabilities to the growth of financial cooperatives. Therefore, dynamic capabilities and networking play a key role in promoting the growth of financial cooperative enterprises. Research limitations/implications This was a cross-sectional survey. It did not trace the changes in behavioural and attitudinal aspects of enterprise growth over time. A longitudinal approach is recommended. Practical implications It is imperative that managers of financial cooperatives enhance their coordination, learning and competitive response capabilities through consultation, exchange and sharing of information among staff and other stakeholders, to increase the membership, capital and income volumes, depicting growth of financial cooperatives. Originality/value This study provides an insight on the mediating effect of networking on the enterprise growth of financial cooperatives in developing countries founded on networks theoretical framework. Unlike previous studies that modelled direct relationship of enterprise growth.
Internal control system and financial performance in petroleum industry a case of Vivo energy Uganda
(Kyambogo University, 2021-05) Alamye, Jonathan
The objectives of the study were to examine the effect of internal control environment on financial performance in vivo energy Uganda, to analyze the effect of internal audit function on financial performance in vivo energy Uganda and to assess the effect of internal control activities on financial performance in vivo energy Uganda. Three null hypotheses were tested based on the objectives. The study aimed at examining the effect of internal control system on financial performance in petroleum industry a case of vivo energy Uganda. The study was underpinned on the agency theory. A case study design was utilized and both qualitative and quantitative data was collected using questionnaires and interviews. A total population of 165 respondents was considered to obtain quantitative data using questionnaires and a sample of 159 was obtained using available primary data. Data was obtained from only 150 respondents from different departments using quota sampling and simple random sampling methods giving a response rate of 96.6%. Qualitative data from interviews was obtained from 13 respondents using purposive sampling method. Data was analyzed using descriptive statistics, Pearson correlation, coefficient, regression analysis; significance level was found and the hypothesis testing proved that there is a positive relationship between internal control systems and financial performance in vivo energy Uganda. The multiple correlation results revealed that internal control environment enhance financial performance, internal audit function and internal control activities also enhances financial performance in vivo energy Uganda. The study concluded that the institution has an effective internal audit function but with challenges in its implementation; on financial performance, there is no appropriate procedures for accountability and financial reporting; and it also concluded that there is a positive and significant effect of internal control system on financial performance in vivo energy Uganda. The study recommended competence profiling in the internal audit department; it also recommended an establishment of additional finance generation strategy; and it finally recommended a deliberate attempt to conduct a study on the relationship between managements’ commitment and factors that are external to the organization.
Entreprenuerial orientation and access to bank credit by small and medium enterprizes among Katwe metal fabricators
(Kyambogo University, 2021-06) Babulya, Yiyo
The study examined the entrepreneurial orientation and Access to Bank credit controlled by the size of the firm among Metal Fabrication Small and Medium Enterprises; a Case of Katwe. The study was motivated by the dwindling low rate uptake of access to bank credit among Metal Fabrication SMEs in Katwe. The objectives of the study were to examine the influence of networking on access to bank credit among metal fabrication SMEs in Katwe, to determine the influence of innovativeness on access to bank credit among metal fabrication SMEs in Katwe, to assess the influence of risk-taking on access to bank credit among metal fabrication SMEs in Katwe. Three research question were generated based on the objectives. The study adopted the credit rationing theory to conceptualize the variables as used in the study. A cross sectional survey design was adopted where both quantitative and qualitative data was collected. A sample of 169 Metal Fabrication SMEs were determined using Krejcie & Morgan table out of a population of 300 SMEs was selected. Using a simple random sampling 169 questionnaires were administered to collect quantitative data, only 129 questionnaires were filled and returned constituting a response rate of 76.33%. Qualitative information was collected using an interview guide for triangulation purposes from SME owners, Branch managers, relationship Manager (SMEs), and Chairperson of Katwe metal fabrication association, representative from Uganda development Bank using an interview guide and selected using a purposive sampling method. Diagnostics tests were performed as a prerequisite for the parametric analysis for example data was tested for normality and multicollinearity. In the study, analysis was done at different levels first with descriptive statistics and by a multiple regression analysis. The findings of the study revealed a positive significant influence of networking on access to bank credit (Beta =0.390, P value =0.006), a negative significant influence of innovativeness on access to bank credit (Beta =-0.228, P value =0.008) and a negative significant influence of risk-taking on access to bank credit (Beta =-0.218, P value =0.046). The study recommended that efforts should be made to ensure that these metal fabrication SMEs should connect because networking provides avenues through which the government can channel money such as the “Emyoga Scheme” introduced by His Excellence the President of the Republic of Uganda Additionally, every SMEs should include innovativeness in the organization’s core values. SMEs should work hand in hand with financial providers to understand their level of risk appetite and develop a follow-back position in case of losses for business continuity purposes for example taking insurance. Future study could be directed to finding the moderating effect of financial characteristics between entrepreneurial orientation and access to bank credit Key words: Entrepreneurial orientation, Networking, Innovativeness, Risk-taking, firm size, Access to bank credit and Small and Medium Enterprises
The mediating role of the novelty ecosystem between personality traits, entrepreneurial networks and entrepreneurial ambidexterity among small and medium enterprises
(Journal of Global Entrepreneurship Research, 2021-06) Samuel, Mayanja; Michael, Omeke; Josue, Vajeru Tibamwenda; Henry, Mutebi; Fredrick, Mufta
This paper examines the mediating effect of the novelty ecosystem in the relationship between personality traits, entrepreneurial networking and entrepreneurial ambidexterity. Three hundred eighty-two SMEs in Kampala, Uganda, were studied to explore the influence of the novelty ecosystem. The results show that novelty ecosystem mediates the relationship between personality traits, entrepreneurial networking and entrepreneurial ambidexterity. This suggests that novelty ecosystem is a conduit through which personality traits and entrepreneurial networking relate to entrepreneurial ambidexterity. Business owners/managers should, therefore, create an enabling environment for employees to interact, learn from others through constructive feedback and tolerate learning through slip-ups and putting in place flexible policies to allow creativity. In effect, business owners/managers should create environments that are conducive to opportunity exploration, tension and exploitation.
Symbiotic resonance, nexus of generative influence, ecologies of innovation and opportunity exploitation among small and medium enterprises
(Journal of African Business, 2022) Samuel, Mayanja; Joseph, M. Ntayi; Michael, Omeke; Moses, M. Kibirango; Henry, Mutebi
This paper used a quantitative cross-sectional survey design to collect data from 228 small and medium enterprises (SMEs) in Uganda to test the mediating role ecologies of innovation in the relationship between symbiotic resonance, nexus of generative influence and opportunity exploitation, but also, the moderating role of firm size in the relation-ship between symbiotic resonance and ecologies of innovation. The mediated – moderated hypotheses were tested through Partial Least Square Structural Equation Modeling (PLS-SEM) using SmartPLS ver-sion 3.3.0. The study found that ecologies of innovation positively and significantly mediate the relationship between nexus of generative influence and opportunity exploitation. Additionally, we confirmed that firm size moderates the relationship between symbiotic resonance and ecologies of innovation. Managers of SMEs and policy makers should pay more attention to situations where the owner/manager can act as a leader to influence employees positively, create an enabling environment, provide feedback, allow employee to deviate from norms.
Employee turnover and the social outreach (breadth): international evidence from the microfinance industry
(Social Responsibility Journal., 2023-02) Mia, Md Aslam; Jibir, Adamu; Michael, Omeke
Purpose – Earlier studies on employee turnover have invested enormous scholarly mileage to understand and address human resource challenges. Considering the substantial evidence on the negative and non-linear relationship between employee turnover and firms’ performance, the purpose of this study is to investigate the effects of employee turnover on the social outreach (e.g. breadth of outreach) of microfinance institutions (MFIs), also known as the financial inclusion agenda of the Sustainable Development Goals. Design/methodology/approach – To achieve the study objective, the authors collected unbalanced panel data of 1,391 MFIs, covering a total of 96 economies and a period of 2010–2018. The organizational and macroeconomic data were obtained from the World Bank’s Mix Market and World Development Indicators databases, respectively, and subsequently analysed using the pooled ordinary least squares, random effects model, fixed effects model and generalized method of moments. Findings – Overall, the authors found that employee turnover has a positive impact on the social outreach of MFIs, which suggests that employee turnover reduces organizational blindness and groupthink, potentiates efficiency gains and minimizes retention costs. On the contrary, this study does not find evidence of a non-linear effect of employee turnover on the outreach objectives of MFIs. Meanwhile, these effects were observed to vary depending on the proxy, sub-samples and techniques used in the analysis. Originality/value – Motivated by the paucity of literature, the study has uniquely investigated the effect of employee turnover on the social outreach objective of MFIs by using relatively recent and global-level data. The study findings can help managers and the human resource departments to make optimum decisions about employee turnover management.

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