Exploring the mediating role of social capital in the relationship between financial intermediation and financial inclusion in rural Uganda

2018 ◽  
Vol 45 (5) ◽  
pp. 829-847 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
John C. Munene ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Social Capital ◽  
Research Design ◽  
Financial Intermediation ◽  
Financial Inclusion ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
The Poor ◽  
The Relationship

Purpose The purpose of this paper is to establish the mediating role of social capital in the relationship between financial intermediation and financial inclusion in rural Uganda. Design/methodology/approach The current study used cross-sectional research design and a semi-structured questionnaire was used to collect data for this study. The study applied structural equation modeling through bootstrap approach in AMOS to establish the mediating role of social capital in the relationship between financial intermediation and financial inclusion. Findings The results indicated that social capital significantly mediates the relationship between financial intermediation and financial inclusion in rural Uganda. Therefore, it can be deduced that social capital among the poor play an important role in promoting financial intermediation for improved financial inclusion in rural Uganda. Research limitations/implications Although the sample was large, it may not be generalized to other segments of the population. Data were collected from only poor households located in rural Uganda. Besides, the study was cross-sectional, thus, limiting efforts in investigating certain characteristics of the sample over time. Perhaps future studies could adopt the use of longitudinal research design. Practical implications Financial institutions such as banks should rely on social capital as a substitute for physical collateral in order to promote financial inclusion, especially among the poor in rural Uganda. Originality/value This study provides empirical evidence on phenomenon not studied in rural areas in Sub-Saharan Africa where the poor use social capital embedded in customs and norms for doing business. The results highlight the importance of social capital in mediating the relationship between financial intermediation and financial inclusion of the poor in rural Uganda.

Collective action among rural poor

2019 ◽  
Vol 37 (1) ◽  
pp. 20-43
Author(s):  
George Okello Candiya Bongomin ◽  
John C. Munene ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Collective Action ◽  
Financial Institutions ◽  
Financial Intermediation ◽  
Financial Inclusion ◽  
Content Type ◽  
Mediating Role ◽  
The Poor ◽  
Bootstrap Approach ◽  
The Relationship

PurposeThe purpose of this paper is to establish the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda.Design/methodology/approachThe paper uses structural equation modeling (SEM) through bootstrap approach constructed using analysis of moment structures to test for the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. Besides, the paper adopts Baron and Kenny’s (1986) approach to establish whether conditions for mediation by collective action exist.FindingsThe results revealed that collective action significantly mediates the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. The findings further indicated that the mediated model had better model fit indices than the non-mediated model under SEM bootstrap. Furthermore, the results showed that both collective action and financial intermediation have significant and direct impacts on financial inclusion of the poor in rural Uganda. Therefore, the findings suggest that the presence of collective action boost financial intermediation for improved financial inclusion of the poor in rural Uganda.Research limitations/implicationsThe study used quantitative data collected through cross-sectional research design. Further studies through the use of interviews could be adopted in future. Methodologically, the study adopted use of SEM bootstrap approach to establish the mediating effect of collective action. However, it ignored the Sobel’s test and MedGraph methods. Future studies could adopt the use of alternative methods of Sobel’s test and MedGraph. Additionally, the study focused only on semi-formal financial institutions. Hence, further studies may consider the use of data collected from formal and informal institutions.Practical implicationsPolicy makers and managers of financial institutions should consider the role of collective action in promoting economic development, especially in developing countries. They should create structures and design financial services and products that promote collective action among the poor in rural Uganda.Originality/valueAlthough several scholars have articulated financial inclusion based on both the supply and demand side factors, this is the first study to test the mediating role of collective action in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda using SEM bootstrap approach. Theoretically, the study combines the role of collective action with financial intermediation to promote financial inclusion. Financial intermediation theory ignores the role played by collective action in the intermediation process between the surplus and deficit units.

Analyzing the relationship between financial literacy and financial inclusion by microfinance banks in developing countries: social network theoretical approach

2020 ◽  
Vol 40 (11/12) ◽  
pp. 1257-1277
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Developing Countries ◽  
Social Network ◽  
Research Design ◽  
Financial Literacy ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Cross Sectional ◽  
Content Type ◽  
The Poor ◽  
The Relationship

PurposeThe main purpose of this study is to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.Design/methodology/approachThe study adopted a cross-sectional research design and data were collected from the poor who resides in rural Uganda. Structural equation modelling (SEM) through analysis of moment structures (AMOS) was used to analyze the data. Bootstrap approach with 5,000 samples was run to establish the mediating effect of social network in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries.FindingsThe results showed that social network significantly and positively mediate the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. In addition, financial literacy also has a direct significant and positive effect on financial inclusion. Overall, the findings suggest that the presence of social network fully mediate the effect of financial literacy on financial inclusion of the poor by microfinance banks in developing countries.Research limitations/implicationsThis study adopted a cross-sectional research design and data were collected using a semi-structured questionnaire. Future studies could adopt longitudinal research design to establish the dynamic characteristics of the samples under study over time. Besides, this study collected data from only poor households who were clients of microfinance banks located in rural Uganda. It ignored the other section of the population who were not the poor. Therefore, future studies could use the other section of the population who are clients of commercial banks.Practical implicationsThe advocates of financial literacy and managers of microfinance banks in developing countries should ensure using existing local structures such as community and village associations to conduct financial literacy training. The village associations help in mobilizing members who are close-knit based on the existing societal ties that can be used as a channel for disseminating vital financial literacy information. Indeed, financial literacy workshops, seminars, and business clinics can be easily conducted to individuals who are members of the village associations.Originality/valueThis paper integrates social network theory in the relationship between financial literacy and financial inclusion of the poor by microfinance banks in developing countries. Social network acts as a conduit through which financial knowledge and skills flow to increase the scope of financial inclusion of the poor in developing countries.

Nexus between financial literacy and financial inclusion

2018 ◽  
Vol 36 (7) ◽  
pp. 1190-1212 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
John C. Munene ◽  
Joseph Mpeera Ntayi ◽  
Charles Akol Malinga
Keyword(s):  
Research Design ◽  
Financial Institutions ◽  
Interaction Effect ◽  
Financial Literacy ◽  
Financial Inclusion ◽  
Cross Sectional ◽  
Content Type ◽  
Future Studies ◽  
The Poor ◽  
The Relationship

Purpose Premised on the argument that cognition structures the way how individuals think and make decisions, the purpose of this paper is to test the interaction effect of cognition in the relationship between financial literacy and financial inclusion of the poor in rural Uganda. Design/methodology/approach The study used cross-sectional research design and quantitative data were collected and analyzed using Statistical Package for Social Sciences. Baron and Kenny guidelines were adopted to test for existence of moderating effect of cognition in the relationship between financial literacy and financial inclusion of the poor in rural Uganda. Furthermore, ModGraph excel software was used to establish the magnitude of moderating effect of cognition in the relationship between financial literacy and financial inclusion of the poor in rural Uganda. Findings The results revealed that cognition significantly moderate the relationship between financial literacy and financial inclusion of the poor in rural Uganda. In addition, both cognition and financial literacy also have direct effects on financial inclusion of the poor in rural Uganda. Research limitations/implications The study adopted cross-sectional research design and data were collected by use of only questionnaires. Future studies through longitudinal research design may be employed. Besides, further studies using interviews may be adopted. Furthermore, this study collected data from only tier 3 financial institutions, thus, ignoring the other financial institutions. Future studies could focus on financial institutions under the other tiers. Practical implications The findings from the study enlightens policy-makers, managers of financial institutions, and financial inclusion advocates on the importance of cognition in enhancing financial literacy among the poor, especially in rural Uganda. Cognition combined with financial literacy helps the poor to make wise financial decisions and choices toward consuming financial services and products provided by formal financial institutions. This leads to increased scope of financial inclusion of the poor in rural Uganda. Therefore, advocates of financial literacy should assess community cultural cognition and utilize them to design and fashion effective financial literacy interventions that can promote financial inclusion. Originality/value The study uses Baron and Kenny and ModGraph excel software to test for the interaction effect of cognition in the relationship between financial literacy and financial inclusion of the poor in rural Uganda. While several studies exist worldwide on financial inclusion, this study is the first to test the interaction effect of cognition in the relationship between financial literacy and financial inclusion of the poor in rural areas in a developing country context.

Social capital: mediator of financial literacy and financial inclusion in rural Uganda

2016 ◽  
Vol 26 (2) ◽  
pp. 291-312 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi ◽  
John C. Munene ◽  
Isaac Nkote Nabeta
Keyword(s):  
Social Capital ◽  
Financial Literacy ◽  
Financial Inclusion ◽  
Research Approach ◽  
Rural Poor ◽  
Content Type ◽  
Mediating Role ◽  
Poor Households ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating role of social capital in financial literacy and financial inclusion relationship in rural Uganda. The major aim is to establish the role of social capital in the relationship between financial literacy and financial inclusion. Design/methodology/approach The paper adopts and uses MedGraph programme (Excel version 3.0), Sobel and Kenny and Baron tests to test the mediation effect of social capital in the relationship between financial literacy and financial inclusion. Findings The results reveals that social capital is a significant mediator in the relationship between financial literacy and financial inclusion of rural poor in Uganda. Financial literacy did not have a direct effect on financial inclusion, but through full mediation of social capital. Existence of social capital into the relationship boosts the relationship between financial literacy and financial inclusion by 61.6 per cent among rural poor households in Uganda. Thus, the finding suggests that with the absence of social capital, financial literacy may fail to enhance the level of financial inclusion among rural poor households in Uganda. Research limitations/implications This study adopted only single research approach using a questionnaire. However, future research through interview may be of importance. Besides, for the purpose of triangulation, a study involving financial institutions’ staff may be viable. Moreover this study was limited by the fact that it was cross-sectional. Furthermore, a longitudinal study may be useful in future to investigate the mediating impact of social capital spanning over a long period of time. Practical implications Managers, policymakers and financial inclusion practitioners should advocate and embark on building social capital among rural communities, so as to improve on the level of financial inclusion. Originality/value While a large body of research has been carried out on financial literacy, this paper is the first to test the mediating role of social capital in the relationship between financial literacy and financial inclusion, especially in rural Uganda. This study generates evidence and contributes to the powerful influence of social capital in enhancing the level of financial inclusion based on financial literacy.

Personality and boredom at work: the mediating role of job crafting

2019 ◽  
Vol 24 (4) ◽  
pp. 315-330
Author(s):  
Bogdan Oprea ◽  
Dragos Iliescu ◽  
Vlad Burtăverde ◽  
Miruna Dumitrache
Keyword(s):  
Job Crafting ◽  
Negative Consequences ◽  
Cross Sectional ◽  
Content Type ◽  
Work Related ◽  
Mediating Role ◽  
Cross Sectional Design ◽  
The Individual ◽  
The Relationship

Purpose Boredom at work is associated with negative consequences, therefore it is important to investigate whether employees engage in job crafting behaviors that reduce boredom and what are the individual differences associated with these behaviors. The paper aims to discuss these issues. Design/methodology/approach A questionnaire study was designed to examine the mediating role of job crafting in the relationship between conscientiousness and emotional stability and boredom among 252 employees (Study 1) and in the relationship between Machiavellianism and psychopathy and boredom among 216 employees (Study 2). Findings The results showed that conscientiousness is negatively related to work-related boredom. This relationship is mediated by job crafting. Neuroticism and psychopathy are positively associated with boredom at work, but these relationships are not mediated by job crafting behaviors. Research limitations/implications The study was based on self-reported measures, which might raise questions of common-method bias, and the research samples contained mostly women and young employees, which raises questions about generalizability of our findings. At the same time, the cross-sectional design does not allow causal inferences. Practical implications Organizations can select employees based on their personality for jobs that predispose to boredom and give them enough autonomy to be able to craft them. Moreover, they can identify employees who need support to manage their boredom and include them in job crafting interventions. Originality/value Traditionally, boredom at work has been considered as resulting from characteristics of tasks and jobs. The findings indicate that some employees can make self-initiated changes to their work in order to reduce their boredom and possibly its negative consequences.

Social capital, employees' well-being and knowledge sharing: does enterprise social networks use matter? Case of Tunisian knowledge-intensive firms

2020 ◽  
Vol 21 (6) ◽  
pp. 1153-1183 ◽  
Author(s):  
Sarra Berraies ◽  
Rym Lajili ◽  
Rached Chtioui
Keyword(s):  
Social Capital ◽  
Social Networks ◽  
Knowledge Sharing ◽  
Well Being ◽  
Content Type ◽  
Mediating Role ◽  
Enterprise Social Networks ◽  
Knowledge Intensive ◽  
The Relationship

PurposeThe objective of this research is to examine the mediating role of employees' well-being in the workplace in the relationship between the dimensions of social capital, namely structural, relational and cognitive social capital and knowledge sharing, as well as the moderating role of enterprise social networks between knowledge sharing and employees' well-being.Design/methodology/approachA quantitative approach was performed within a sample of 168 middle managers working in knowledge-intensive firms in Tunisia. The Partial Least Squares method was used to analyze the data collected.FindingsResults highlight the importance of the dimensions of social capital as a lever for boosting knowledge sharing. It also reveals that employees' well-being plays a mediating role in the link between structural and relational social capital and knowledge sharing. Moreover, findings show that while enterprise social networks use does not moderate the relationship between employees' well-being and knowledge sharing, it has a positive and significant effect on knowledge sharing.Originality/valueOn the basis of a socio-technical perspective of knowledge management, this research pioneers the examination of the mediating effect of employees' well-being in the link between dimensions of social capital and knowledge sharing and the moderating role of enterprise social networks use within knowledge-intensive firms. Findings of this study may help managers of knowledge-intensive firms in boosting knowledge sharing within organizations, in improving knowledge workers' well-being and thus in motivating and retaining these talented employees.

Organisation size, innovativeness, self-organisation and inter-organisational coordination

2020 ◽  
Vol 9 (3) ◽  
pp. 359-394 ◽  
Author(s):  
Henry Mutebi ◽  
Moses Muhwezi ◽  
Joseph Mpeera Ntayi ◽  
John C. Kigozi Munene
Keyword(s):  
Design Methodology ◽  
Humanitarian Relief ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Complementary Role ◽  
Self Organisation ◽  
The Relationship

PurposeThe purpose of this study is to examine how humanitarian organisation size affects inter-organisational coordination and further tested the mediating role of organisational innovativeness, self-organisation in the relationship between humanitarian organisation size and inter-organisational coordination among humanitarian organisations in Uganda.Design/methodology/approachThe study is based on cross-sectional survey; data was collected from 101 humanitarian organisations. The analysis of the proposed hypotheses was done with the help of PLS-SEM using SmartPLS version 3.3.0 for professionals.FindingsThe results show that humanitarian organisation size significantly relates with inter-organisational coordination. In addition, self-organisation and organisational innovativeness play a complementary role between humanitarian organisation size and inter-organisational coordination.Research limitations/implicationsThe findings of this research provide useful insights into the role of humanitarian organisation size in boosting inter-organisational coordination in humanitarian relief delivery. High levels of self-organisation and organisational innovativeness not only improve inter-organisational coordination in humanitarian relief delivery but also enhance the transformation of humanitarian organisation size benefits into inter-organisational coordination.Originality/valueThis research is one of the few studies that investigated the effect of humanitarian organisation size and inter-organisational coordination. It also brings into the limelight the mediating role of self-organisation and organisational innovativeness between humanitarian organisation size and inter-organisational ordination in humanitarian relief delivery.

Business networking and internationalization: testing the mediation role of organizational learning

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kasimu Sendawula ◽  
Muhammed Ngoma ◽  
Juma Bananuka ◽  
Saadat Nakyejwe Lubowa Kimuli ◽  
Frank Kabuye
Keyword(s):  
Organizational Learning ◽  
Correlation Coefficients ◽  
Hierarchical Regression ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Business Networking ◽  
Correlational Data ◽  
The Relationship

PurposeThe purpose of this study was to establish the mediation role of organizational learning in the relationship between business networking and internationalization of manufacturing small and medium-sized enterprises (SMEs) using evidence from Uganda.Design/methodology/approachThis study is cross sectional and correlational. Data were collected through a questionnaire survey of 96 manufacturing SMEs. Data were analyzed through correlation coefficients, hierarchical regression and mediation analysis using Statistical Package for the Social Sciences and MedGraph - Excel Version.FindingsFindings indicate that organizational learning partially mediates the relationship between business networking and internationalization of SMEs. Results further reveal that business networking and organizational learning significantly predict internationalization of SMEs.Originality/valueThis study contributes to the already existing literature on internationalization of SMEs as it provides initial empirical evidence on the mediating role of organizational learning in the relationship between business networking and internationalization of SMEs using evidence from a developing country – Uganda.

Prior knowledge and social entrepreneurial venture creation: the mediating role of novelty ecosystem

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Isa Nsereko ◽  
Samuel S. Mayanja ◽  
Waswa Balunywa
Keyword(s):  
Prior Knowledge ◽  
Measurement Errors ◽  
Structural Equation ◽  
Equation Modeling ◽  
Venture Creation ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThe purpose of this study is to examine the mediating role of novelty ecosystem in the relationship between prior knowledge and social entrepreneurial venture creation (SEVC) among community-based organizations (CBOs) in Uganda.Design/methodology/approachThe study is cross sectional and quantitative. Data were collected from CBO owner-managers. Mean, standard deviations, correlations and structural equation modeling were conducted to check the relationships among variables.FindingsResults show that both prior knowledge and novelty ecosystem are significantly associated with SEVC. Results further indicate that novelty ecosystem partially mediates the relationship between prior knowledge and SEVC.Research limitations/implicationsThe design was cross sectional in nature, thus limiting monitoring changes in knowledge and its effect on SEVC. The results should be interpreted as they are because there could be some endogeneity biases, which were not detected like measurement errors and failure to identify appropriate instruments.Originality/valueThis study provides an initial empirical evidence on the relationship between prior knowledge, novelty ecosystem and SEVC using evidence from a developing African country – Uganda. Mostly, this provides an initial evidence of the mediation role of novelty ecosystem in the relationship between prior knowledge and SEVC.

Supervisor support and pro-environmental behavior: the mediating role of LMX

2015 ◽  
Vol 53 (5) ◽  
pp. 1045-1060 ◽  
Author(s):  
Panagiotis Gkorezis
Keyword(s):  
Environmental Behavior ◽  
Supervisor Support ◽  
Hierarchical Regression ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Member Exchange ◽  
Mediating Mechanisms ◽  
The Relationship

Purpose – The purpose of this paper is to elucidate the mediating mechanisms of the relationship between supervisor support and pro-environmental behavior. To this end, the quality of the dyadic exchanges between supervisor and subordinates was used. Design/methodology/approach – Data were collected from two different samples. In order to test the present hypotheses hierarchical regression and bootstrapping analysis were conducted. Findings – In congruence with the hypotheses, the results showed that leader-member exchange (LMX) served as a mediator in the relationship between supervisor support and pro-environmental behavior. Research limitations/implications – Data were drawn using a cross-sectional design. As a result, it is precarious to assess causality among the constructs. Furthermore, both studies collected data from a single source, namely employees, and this may inflate the present relationships due to common method bias. Originality/value – To the best of author’s knowledge, no prior empirical study has examined the pivotal role of LMX in affecting employees’ pro-environmental behavior.

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