Purpose The paper examines individual contribution of intellectual capital elements to competitive advantage. The purpose of this paper is to explore the weight of individual intellectual capital elements in explaining competitive advantage in Uganda’s microfinance industry. Design/methodology/approach Hierarchical regression was used because of its capacity to indicate precisely what happens to the model as different predictor variables are introduced. Findings This study confirms that the three intellectual capital elements are the strong predictors of competitive advantage and they account for 44 percent of variance in competitive advantage. However, the order of importance of these variables in explaining the variance in competitive advantage in the microfinance industry (basing on their standardized β values) is relational capital, structural capital and human capital. Research limitations/implications Only a single research methodological approach was employed and future research through interviews could be undertaken to triangulate the data. Furthermore, the findings from the present study are cross-sectional; future research should be undertaken to examine the longitudinal effects of intellectual capital elements. Practical implications The findings can help the management to intensify initiatives to encourage greater understanding and acceptance of the concept of intellectual capital that boosts competitive edge in the industry. Originality/value This is the first study that focuses on testing the individual contribution of intellectual capital dimensions to competitive advantage in Uganda’s microfinance institutions.

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 investigate the effect of bank specific factors on interest rate in banking financial institutions (BFIs) of Uganda. Design/methodology/approach To analyze the effect, an OLS random effects regression estimate on a data set of 24 banks from 2008 to 2016 from Bank of Uganda Depository Corporation survey was carried out. Studied bank specific factors including liquidity, operational efficiency, credit risk, capitalization and lending ratio are considered. Findings The results indicate that liquidity, operational efficiency, capitalization and lending out ratio affect the interest rate while credit risk does not. Research limitations/implications The study has confirmed that bank specific factors influence interest rate and other factors such as industry-level and indirect macroeconomic indicators need to be explored. The differences in categories of banks on interest rate would be of importance. Finally, this study concentrated on banks in Uganda, future study would focus on the comparison of Ugandan banks with those of other countries in the East African Region. Practical implications Bank managers should invest in up-to-date technology to reduce operational costs and improve efficiency. Managers of bank should take interest on equity mobilization, because it constitutes a cheaper source of capital to finance asset used in operations and long-term needs of borrowers financing. Government should consider a legislation that provides incentives toward savings and reduction in tax for bank inputs. Originality/value This is the first study that investigates the effect of bank specific factors on interest rate in Uganda’s BFIs.

The focus of this article is to examine the impact of relational capital components on the performance of tea manufacturing firms in Uganda. It aims at disclosing the composition of relational capital components that associate with performance. A study was carried out on 59 managers representing 17 tea manufacturing firms in Uganda. A correlation matrix and multiple regression models were used to test the hypotheses advanced. It was established that the correlations between relational capital components are associated with firm performance. Furthermore, relational capital as a whole accounts for 28.3% of the variation in performance of Uganda`s tea manufacturing sector. Only a single research methodological approach was employed in this study, as such, interviews could be undertaken in future researches. Multiple respondents in a firm were studied, neglecting other key stakeholders outside. Finally, a single element of intellectual capital was studied (RC), though more studies on other elements are necessary. In order to boost the performance, managers should intensify initiatives to encourage greater understanding and acceptance of relational capital and its components, employ a viable relational capital strategy that includes building strong social relational ties with the community and competitors, pay attention to customers and employees in order to identify their needs and provide optimal value for them. This is the first study that focuses on relational capital components effect on firm performance in Uganda tea manufacturing sector.

The aim of this paper is to provide an in-depth exploration of the opportunities and challenges towards the uptake of sustainability practices (SPs) among manufacturing firms in Uganda. SPs are among the notable solutions in overcoming the challenges facing the global environment, society as well as prosperity for all. The paper utilized a qualitative research design following a review approach of relevant scientific, technical as well as government policy papers. From the review, enforcement of the available environmental laws and policies, customer’s awareness, technological innovation, organisational culture and strict governance, emerge as key drivers towards the uptake of SPs in this country. However, weak legislations and enforcement in some instances, lack of sufficient resources to invest in new technologies, high costs of financing, organisational culture, and limited awareness emerge as the main challenges facing the uptake of SPs. Furthermore, our study provides policy implications that could mitigate the challenges identified especially in a least developed country, Uganda.