PurposeThe purpose of this study is twofold (1) to establish the relationship between inventory management, managerial competence and financial performance and (2) to test whether inventory management mediates the relationship between managerial competence and financial performance.Design/methodology/approachWe employed cross-sectional and correlational research designs. A questionnaire survey of 304 small businesses in Uganda was utilized. Hypotheses were tested using a bootstrap analysis technique with the aid of Analysis of Moments Structures (AMOS) software.FindingsResults indicate that inventory management and managerial competence are significantly associated with financial performance of small businesses. Further, inventory management partially mediates the relationship between managerial competence and financial performance.Originality/valueRather than focusing on only the direct effects of managerial competence and inventory management, moreover independently, the indirect effect of inventory management is tested. Further, the behavioral perspective of inventory management, as opposed to financial ratios, is utilized.

Purpose – The purpose of this paper is to develop an effective cost borrowing model of qualitative factors that are relevant to micro and small enterprises (SMEs) better performance. Design/methodology/approach – A valid research instrument was utilized to conduct a survey on 359 SMEs (131 retail businesses, 125 service businesses, 48 farming businesses and 55 other businesses) and 897 respondents that are representative of 397 SMEs and 1,087 respondents. Correlation and regression analysis were conducted to ascertain the validity of the hypotheses. Findings – It was established that cost of borrowing elements (interest rate and loan processing costs) are associated with SME performance. Furthermore, cost of borrowing as a whole accounts for 31.1 percent of the variation in performance Uganda’s SMEs. Research limitations/implications – Only a single research methodological approach was employed, future research through interviews could be undertaken to triangulate. Multiple respondents in SMEs (owner, manager and cashier) were studied neglecting others. Furthermore, the study used the cross-sectional approach – a longitudinal approach should be employed to study the trend over years. Finally, cost of borrowing was studied and by the virtual of the results, there are other factors that contribute to SME performance that were not part of this study. Practical implications – There is need to intensify initiatives to encourage greater understanding and acceptance of cost of borrowing, select appropriate elements that includes interest rate and loan processing costs in order to have affordable source of financing to establish and grow SMEs, provide employment, competitive and contribute to countries GDP. Originality/value – This is the first paper in Sub-Saharan Africa to test empirically the relationship between cost of borrowing and performance of SMEs in the Ugandan context.

Purpose The purpose of this paper is to examine 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. Practical implications Emphasis should be put on improving the knowledge and skills of managers so as to attain a competitive edge in the market and thus register increased profits. This will help practitioners make legitimate decisions and conclusions that can foster business growth. Originality/value A mediation effect of competitive advantage in the relationship between managerial competence and financial performance was tested; previous studies have tended to test the direct effects.

This paper examines the relationship between board member age diversity and financial performance of manufacturing firms in Uganda. A cross section survey research design was employed using 78 manufacturing firms across the country. Data was analysed using descriptive statistics, chi-square analysis and point bi-serial correlation. The results showed that majority of the boards had members with an average age of 35-44years, followed by 25-34 years. In addition, boards comprising of majorly young board members registered low performance level, compared to the boards comprising of majorly older members. Further, the results indicated that board member age diversity is significantly associated with financial performance of manufacturing firms. Like any other research study, this study is limited in the following ways. Since only a single research methodological approach was employed, future research could undertake a mixed approach and triangulate to validate the current findings. Further, a longitudinal approach should be employed to study financial performance trends among manufacturing firms over years. Finally, board member age diversity was studied and by virtual of the results, there are other factors that explain the financial performance of the Uganda’s manufacturing sector that were not part of this study.

This paper tests the moderating role of firm age on the relationship between Chief Executive Officer (CEO) duality and financial performance among manufacturing firms in Uganda. A cross section survey was adopted using 78 manufacturing firms in Uganda. Data was analyzed using descriptive statistics, correlation and hierarchical regression. Modgraph software was also used to ascertain the validity of the set hypothesis. Results reveal that whether the CEO doubles as chairman of board or not, this does not significantly affect firm Financial Performance. However, as the firms grow older, the role of CEO-Board Chairman duality phenomenon gains significance in determining financial performance. Therefore, as firms grow in age, the CEOs should not be the same as Board chairpersons if firms have to perform well financially. Since only a single research methodological approach was employed in this study, future research can undertake to use a mixed methods approach to provide more detailed insights. Further, a longitudinal approach can also be employed to study financial performance trends among manufacturing firms over years. Entrepreneurs of these firms should put emphasis on proper segregation of the CEO role and those of the board chairman especially as firms grow in age. A moderating role of firm age on the relationship between CEO duality and financial performance was tested among manufacturing firms; previous studies have tended to test the direct or mediating effects.