Showing papers in "business management review in 2017"

Firm capabilities, entrepreneurial competency and performance of ugandan smes

Abstract: This paper is based on a study that examined the relationship between the firms’ capabilities, entrepreneurial competency and performance of Small and Medium Enterprises (SMEs) in Uganda. The study used stratified random sampling to derive a sample of 314 SMEs and a cross-sectional research design. Data was collected using self-administered questionnaires that were filled out by firm owners and managers as units of enquiry whereas a firm was the unit of analysis. The study findings indicate that an increase in the level of a firm’s capabilities through competent management, market linkages and marketing capabilities leads to enhanced SME performance. As entrepreneurial competences and firm capabilities predict 30.4 percent of the variance in SME performance, SME owners and managers, through their entrepreneurial competences, can use firm capabilities as tools to influence their firms’ operations to enhance their performance. Future research can be carried out in other geographical places to verify whether what was observed in Uganda specifically in Jinja district is applicable to the rest of the world. Similarly, future research can explore other predictors of SME performance.

Acceptance of mobile phone payments systems in tanzania: technology acceptance model approach

Abstract: This paper presents a quantitative study on the users’ acceptance of mobile phone payment systems (MPPS). Basing on the technology acceptance model (TAM), the study specifically evaluated the influence of ease of use; perceived usefulness; service quality; and information systems qualities of payment systems in the adoption and use of MPPS. A questionnaire survey was carried with 300 users out of which 260 were clean for data analysis using SPSS version 21. To supplement the survey, the study deployed interviews. The regression results indicate significant influence of the regressed variables with slightly low values of the adjusted R-square. The findings on information quality and perceived usefulness had lesser influence (beta values below average) whereas ease of use, and services quality were positively rated factors to accepting the systems. Several other factors behind acceptance were also identified in the interview, including premium pricing, level of understanding, and perceived risks. The findings extend knowledge on the application of TAM to mobile payments in a developing country such as Tanzania. They provide awareness on contributory factors to accepting the technology to Tanzania Communication Regulatory Authority (TCRA) and country’s central bank, Bank of Tanzania (BoT) in their managing and controlling processes. They also provided practitioners with knowledge on the challenges and ways of tapping into the advantages of ICT. The findings were limited to four regions in Tanzania.

Effects of clients’ literacy on default and delinquency of savings and credit co-operative societies in tanzania

Abstract: This study examines the influence of economic and financial literacy on the delinquency and default rate of clients of rural Savings and Credit Co-operative Societies (SACCOSs) in Tanzania. The data were collected from a random sample of 200 individual loan beneficiaries drawn from eight SACCOSs, and analysed using regression models. The findings established that the level of economic and financial literacy of rural borrowers is very low. The study also found a negative relationship between economic literacy and financial literacy, on the one hand, and default and delinquency, on the other. This suggests that borrowers’ inability to make prudent borrowing and investment decisions, rather than poor intentions, is the main explanation behind the failure to meet debt obligations. Therefore, conventional microfinance may be penalising those with the least human capital, who happen to be the poorest people. The findings underline the need to invest in enhancing the poor’s human capital to ensure sustainable financial deepening and a positive impact on poverty.

Entrepreneurial orientation among social enterprises in uganda

Abstract: This study examines the relationship between entrepreneurial orientation (EO) and social enterprise growth. A sample of 144 was selected from 548 registered social enterprises in Kampala city of Uganda using simple random sampling. The paper uses cross-sectional data. It has established that there is a significant positive correlation between the level of Innovativeness and Social Enterprise Growth, implying that that, as social entrepreneurs invest more in both radical and incremental innovations, they are likely to realise growth in competitiveness. Moreover, the study has found that risk orientation and proactiveness have a significant correlation with social enterprises growth. In other words, when social enterprises prepare good business plans, practice effective business controls while constantly seeking opportunities, they are likely to experience growth. In fact, EO, as a global construct, explains up to 37.3 percent of the variance in social enterprise growth . As such, the social enterprise sector needs to develop EO mechanisms for utilisation in creating and exploring opportunities for growth. Although the social enterprise sector has experienced phenomenal growth, there is need to develop an entrepreneurial capacity-building framework to support growth, sustainability and competitiveness of these enterprises. Indeed, the study recommends encouraging social entrepreneurs to make financial investments in research and development in addition to carrying out market environmental scanning to identify market changes, constant social product and service improvements and new social product development so as to access differentiated markets and realise requisite growth. On the whole, this paper presents and extends the debate on the relevance of EO and contextual evidence of social enterprises and their nature of entrepreneurial orientation in a developing economy where the level and practice of philanthropy has unique challenges for supporting social entrepreneurship.

Women entrepreneurs’ strategies and tourism development in zanzibar

Abstract: This article uses the concept of enactment to determine how the strategies women adopt to work in the tourism industry contribute to the development of the industry in Zanzibar. The article positions women as capable of negotiating with the structures that constrain their participation in the tourism industry and that they are an integral part of the environment they live or operate in. It identifies the strategies they use and their coping mechanism. As women in the Zanzibar archipelago have generally been limited in their exposure to formal education, they deploy their household competence to thrive in the industry. In addition, they play a balancing act to ensure they accommodate the needs of their marriages and societal culture while engaging in the tourism industry. Besides they trust and act upon their own choices. The strategies they adopt are either for maintaining respect by conforming to the established norms and values or getting more benefits from tourism by neglecting complying with those traditions. As such, women choose to work as producers, retailers or distributers. Through their work choices, the women in Zanzibar have added value to the distribution chain and contribute by supplying crafts and cosmetics that help to foster cultural tourism.

The influence of administrative features and users’ attributes on the success of technological aspects for e-government implementation in tanzania: users’ perspectives

Abstract: Electronic government (e-government) has been a policy issue for several nations since 1990s. Although e-government is vital due to its importance inenhancing efficiency in public sector services, itsimplementation has manychallenges. This study, therefore, aimed at examining the administrative features and users’ attributes as far as technological aspects are concerned, for e-government implementation. Data wascollected by using structured questionnaires served to Customs Staff and Tax Practitioners in DaresSalaam Region. This data included technological aspects (e.g.ICT infrastructure and support); user’s attributes (e.g. education levels); and administrative aspects in ICT regulations. Itwasanalysed quantitatively using descriptive statistics,factor analysis and finally, thestudy hypotheses were tested using structural equation modelling. The results show that the developed model was supportive as users’ attributes and administrative aspects were bothpositively related to success of technological aspects relevant for e-government implementation. Consequently, governments need to give attention to administrative issues of ICT policies, regulations,as well as people-related matters such as ICT knowledge for the success of technologicalaspectsuseful in e-government operations. However, the research addressed concerns withinTanzania’s context, one of the developing countries; and such findings might not be generalised. It would be very informative if the study was replicated in other developing countries, to determine the pattern of influence of administrative characteristics and users’ attributes on e-government.

Influence of perceived environmental turbulence on market orientation of service firms in tanzania

Abstract: The article examines the influences of perceived environmental turbulence on market orientation of service firms in Tanzania. A conceptual framework linking perceived environmental turbulence and market orientation was developed and tested using a sample of 178 service firms. The sample comprised hotels, travel agents and tour operators and insurance agents. Structural Equation Modelling was used to analyse data. Results indicate that the perceived environmental turbulence components, namely, perceived technological turbulence and perceived market turbulence influence positively the market orientation of service firms whereas the perceived competitive intensity influences negatively the market orientation of service firms in Tanzania. The findings contribute to the theory of antecedents and consequences of market orientation developed by Kohli and Jaworski (1990) by adding a new set of factors that influence market orientation of business firms. On the basis of these findings, the paper recommends to service firms for them to be vigilant with changes taking place in the technological environment. They need also to be heedful of changes in customer needs, preferences, composition and tastes and embrace market orientation as a strategic orientation for navigating in highly turbulent environments . The paper also recommends further study to investigate factors that influence managers’ perception of competitive intensity.

Influence of perceived trust in rural consumer mobile payment service adoption: an understanding of moderation effects of gender and age

Abstract: Mobile Payment Services present a noble potential to increase financial inclusiveness by extending access to financial services to rural consumers, which have to contend with severely access to traditional financial facilities such as Automated Teller Machines (ATMs), bank branches and other financial institutions. Despite the potential that mobile payment services offer, perceived uncertainties present one of the causes behind low consumer mobile payment services adoption in rural areas. Yet, the extent to which perceived trust influence behavioural intention to adopt mobile payment services in Tanzania differ among younger and older rural consumers, and, female and male rural consumers has not been made clear and/or undocumented. A recent survey conducted in Pwani (Coast) region employed the Partial Least Square- Structure Equation Model (PLS-SEM) method to test established research model which involved two constructs and two moderators: perceived trust constructs, which was moderated by age and gender, and behavioural intention constructs adopted from the Unified Theory of Acceptance and Use of Technology (UTAUT). The analysis has established that perceived trust strongly and positively influences the adoption of mobile payment services in rural areas; however, the group moderation effects of gender and age were found not to be statistically significant, hence calling for mechanisms aimed to reduce uncertainties that consumers encounter in using mobile payment systems in all age groups and both genders since they give the same impetus to the perception of trust matters, and the presence of adequate structural assurance such as regulations and safeguards relating to usage of mobile payment systems in the country.

The issue of undeserving patent monopolies in innovation-based businesses and implications thereof for underprivileged consumers

Abstract: The issue of undeserving patent monopolies is not new The monopoly rights resulting from patent protection triggered hot debates in different phases of the evolution of the patent system The patent monopolies have been particularly controversial when granted undeservingly This paper provides a historical background of the issue of undeserving patent monopolies and endeavours to highlight implications thereof for underprivileged consumers The first part of the paper discusses initial two phases in the evolution of the patent system In the first phase, the monopolies were granted in the absence of any well-defined patentability criteria In the second phase, there were patentability criteria but the patent system lacked a requirement of review or examination of patent applications The second part of this paper discusses the current phase when patents are granted as per well-defined patentability criteria after examination of the patent applications but still many undeserving applications arguably make it to the grant and have serious implications for consumers Keeping in view the scope of this study, the analysis in this part is confined to ramifications of undeserving patent monopolies in the innovation-based pharmaceutical industry only The last part sums up the discussion and concludes the paper

Trade balance determinants in east african countries

Abstract: East African Community (EAC) countries run huge trade imbalances and have maintained it as high as five percent for many years. Many countries including those from EAC borrow to sustain their budget deficits. This borrowing raised concerns about the sustainability of these imbalances and long-term consequences. Therefore, the main objective of this paper is to examine empirically the determinants of trade balance in East African countries and propose possible trade balance deterioration remedies. The proposed trade balance model was estimated using cointegration regression under the Full Modified Least Square (FMOLS) followed by the Vector Error Correction Model (VECM). Different mixed results were obtained across countries under study. However, among all other variables, this study found Foreign Direct Investment (FDI) as the main variable of interest and probable solution in improving the trade balance of EAC countries. EAC countries should, therefore, concentrate on export-oriented development policies which focus on export-oriented manufacturing industries because large amounts of FDI flow into those areas already.

Entrepreneurial activities and growth of women businesses: a case of tanzania

Abstract: The purpose of this paper is to examine the factors that affect the growth of women’s businesses in Tanzania. It focuses on education and training, financing, family, double-burden double-shift and networking and market as factors that hinder women’s business growth. To achieve this objective, a cross-section survey of women’s SMEs in Tanzania was carried out. It used a sample of 254 randomly selected women entrepreneurs from cloth, wholesaling, retailing, hair salon, food vending, handicraft, mobile money, microfinance institution, tailoring, charcoal selling, fish selling and vegetable selling businesses in Tanzania to test the four hypotheses formulated for the study’s purpose. Using Multiple Linear Regression Analysis, the study found that all four factors act as barriers to the growth of women’s businesses. It was further established that, education and training, financing, family, doubleburden double-shift, networking and markets are factors that hinder the growth of women’s businesses. The study concludes that women entrepreneurs can benefit a lot from networking events that allow them to get access to different resources. The study recommends that business from sub-Saharan Africa should learn from this study and be sensitive to how training and skills for business owners constitute important aspects for their businesses growth.

TOWARDS SOCIAL MEDIA USAGE FOR PROMOTIONAL ACTIVITIES IN TANZANIAN PENSION SCHEMES A Factor Scores Regression Analysis of Perceived Factors

Abstract: This study assessed perceived factors for social media usage among pension schemes in Tanzania in their endeavour to enhance their promotional activities. Specifically, it sought to assess perception by pension firms regarding social media as promotional tools for their activities in the pension firms. The study involved 96 Social Security Organisations (SSOs) employees from four Pension Schemes (NSSF, GEPF, PSPF and PPF) headquarters in Dar es Salaam. Analysis was done using Statistical Package for Social Sciences (SPSS Version 20) using factor analysis and later regression analysis. Through regression analysis, findings indicated that social media usage for promotional activities is predicted by perceived usefulness, ease of use, and trustworthiness. This is a result of positive relationship between social media usage and the three independent variables. The study urges top management to provide support that would facilitate social media usage through adequate budget allocation for training, equipment acquisition and maintenance. In so doing, it will, in turn, impart positive organisational culture change and increase understanding on social media usefulness. Also SSOs should integrate both traditional media with social media to tap the impact of each to specific target markets.

Analysis of education levels and small business financial worth in uganda

Abstract: A common impression prevails that the higher the education of business owners the lower the business prosperity, that the highly educated individuals suffer from the ‘paralysis of analysis’ and so their firms are alleged to financially starve due to excessive financial risk analyzes. This motivated investigations of the effect of educational levels of small business owners on small business financial worth. Financial worthiness in this study is defined by the financial value of the total assets of the firm while the educational levels constitute, secondary education, post-secondary and university degree. From a heterogeneous sample of 528 small firms in Uganda evidence on these variables is presented. Using negative binomial regression, results overturn the predominant ‘paralysis of analysis’ perspective effect on small firm asset growth. Although some education levels are reported not to move with the higher financial worth levels, overall there was significant influence of progressive education level on small business financial worth. Thus, the education level of business owners augments the existing perspectives of the human capital theory, where by the different weights of the secondary, post-secondary and university degree education levels are outlined on the small business landscape. Additionally, attractions of more firm resources that are linked to the secondary education level extend the perspective of the resource based view especially in matters regarding the knowledge resources in Uganda.

The impact of owner’s identity on corporate capital structure

Abstract: This paper examines how the identity of corporate owners affects corporate leverage in the UK. Using data from a sample of 643 listed UK firms, the results show that family-controlled firms have higher debt ratios than companies controlled by financial institutions. The implication is that family-controlled companies prefer debt to equity in their capital structure due to either a control-enhancing mechanism and/or firm’s protection from take-over threats. The paper, further confirms that corporate control contestability has also a positive impact on debt ratio. In essence, a smaller value of control contestability signifies more equal distribution of the voting power between the two largest shareholders. This finding is in line with the monitoring hypothesis of the second largest shareholder, hence suggesting that the involvement of the second largest shareholder in monitoring the activities of the largest shareholder reduces the second-order agency costs, the agency conflict between minority and majority shareholders.

FUNDRAISING INITIATIVES IN CHILDREN’S WELFARE PROJECTS – PERSPECTIVES FROM LOCAL NGOs

Abstract: Despite the existence of numerous sources of funding such as the government, multilateral agencies, corporate sponsorship, family foundations and individual donors, NGOs in Tanzania are still experiencing challenges in obtaining children welfare project funds. This study set out to examine the effectiveness of fundraising initiatives undertaken by local NGOs to improve the welfare of orphans and vulnerable children in Ilala District, Tanzania. A holistic multiple case study design was employed using semi-structured interviews with local NGO leaders. With the assistance of Nvivo software programme, pattern coding was inductively used to bring together coded information into more compact and meaningful groupings. Research findings reveal that local NGOs have taken different initiatives to mobilise financial resources. These initiatives include grant applications, fundraising events, personal solicitation, telephone fundraising, internet fundraising and the use of solicitation letters. However, these efforts have not managed to bring about the desired outcomes for the majority of local NGOs. Hence, this study concludes that local NGOs in Tanzania urgently require improved fundraising capacity so as to sustain their operations.

Investigation of budgetary performance measurement practices and use of accounting information in tanzanian local government authorities (lgas) decision making process

Abstract: The main objective of this paper is to examine the relationship between budgetary performance measurement assessment practices and the use of accounting information in the Local Government budgetary decision making processes. The paper specifically seeks to establish relationship between the assessment of Local Government Capital Development Grant (LCDG) and symbolic and instrumental use of accounting information in LGAs’ budgetary decision making process. The motivation of the research objective is based on the peculiar role of performance measurement as New Public Management techniques for achieving efficiency and ensures financial legitimacy in LGAs of developing countries. The paper is informed by New Institutional Theory in which, assessment of LCDG is perceived to have coercive and normative pressures that have direct relationships with symbolic and instrumental use of accounting information in budgetary decision making. Moreover, the assessment of LCDG is expected to have indirect relationship with organisational budgetary performance in term of efficiency and legitimacy. The studies in public sector are dominated with case study strategy whose findings lack generalisability even within the studied context. The paper employed survey strategy and it administered 208 questionnaires to Tanzanian LGAs, political actors and public officials that included executive directors and heads of departments. The selection of such units of analysis is based on the role of councillors and public officials in the LGAs budgetary decision making and their role in adoption and implementation of NPM techniques that include performance measurement practices. The data were analysed by using structural equation modelling (SEM) in order to test six hypotheses in which four attested direct relationships and two attested indirect relationships. The analysis through SEM revealed the role of performance measurement techniques in enhancing the budgetary performance by coercing and professionalising instrumental use of accounting information in budgetary decision making by both political actors and public officials. At large, this paper informs stakeholders such as Central Government who adopt, coordinate, control and implement the assessment of LCDG to ensure that the assessment is conducted efficiently and effectively manner because it leads to positive change in the LGAs’ decision making processes through the use of accounting information.

The mediation effects of buyer-supplier integration on the relationship between supplier-specific investments and supplier-opportunism

Abstract: This research concerns opportunism in a buyer-supplier relationship. Based on transaction cost and relational contracting theories, it examines the mediation effects of the buyer-supplier integration on the relationship between supplier specific investment and opportunism. Mediation effects were estimated using structural equation modelling based on a survey of 111 key informants in the public health facilities in Tanzania. The unit of analysis is the exchange relationship between the Medical Supplies Department (MSD) and the public health facility. The analysis revealed that the buyer-supplier integration negatively mediates the effects of supplier-specific investments on opportunism. In this research, external validity is limited due to a highly regulated environment; as such, more studies should be conducted in different contexts, e.g. culture. The findings from this study have both managerial and theoretical implications. First, purchasing managers should exert more efforts in developing closer relationship with the supplier to mitigate opportunistic behaviours. Second, the government should consider enforcing MSD to make specific investments not only as a means for solving moral hazard problems but also as a means for encouraging and enforcing the development of close co-ordination between the actors. Theoretically, this paper has contributed to the transaction cost theory by indicating that specific investments may not always stand as direct control mechanisms towards opportunism; instead, they can also lead to the development of other relational mechanisms which are effective in mitigating opportunistic behaviours.

Ethnic entrepreneurship and internationalisation in East Africa

Abstract: Using the World Bank Enterprise Surveys panel data for the East African Community, this paper analyses the influence of ethnic origin of entrepreneurs on internationalisation and firm performance. Using traditional probit and OLS estimation techniques in combination with matching strategies to account for selection and nonlinearity, we show that the African Indian background of the entrepreneur is a conditional predictor for international activity. In addition, we show that the effect of exporting in terms of innovation and growth is stronger for indigenous entrepreneurs when compared to African Indian entrepreneurs. Hence, we conclude that learning by exporting in recent times is larger for indigenous entrepreneurs.

Managers or Corporates?: Curbing Non-compliance through Corporate Income Tax Penalty

Abstract: Governments normally impose tax penalties for tax non-compliance. They can either impose financial corporate income tax penalties on corporates or tax managers in cases of corporate income tax non-compliance. However, the effectiveness of these corporate income tax penalty incidences remains largely unknown. This paper examines their effectiveness experimentally. In all, 100 Bachelor of Commerce second-year students at the University of Dar es Salaam participated in the laboratory experiment. The participants were randomly assigned into two groups: of managers and of owner-managers. Then the two groups were subdivided randomly into two groups based on corporate income tax penalty incidences: corporate income tax penalty imposed on managers and corporate, respectively. The study suggests that corporate income tax penalties imposed on managers may be more effective in enhancing corporate income tax compliance in both manager and owner-manager run corporations. Tax authorities should impose corporate income tax penalties on individuals responsible. The study contributes to limited corporate income tax literature, particularly in helping to reconcile the mixed results of prior theoretical research given fixed incentives. Also, it provides the first experimental evidence on the relevance of corporate income tax penalty incidence in the context of Tanzania. Finally, it adds to the scarce corporate income tax compliance literature and to the few studies on this aspect from developing countries.