Intellectual capital and competitive advantage in Uganda’s microfinance industry

2017 ◽  
Vol 8 (4) ◽  
pp. 498-514 ◽  
Author(s):  
Nixon Kamukama ◽  
Tumwine Sulait
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Methodological Approach ◽  
Hierarchical Regression ◽  
Future Research ◽  
Individual Contribution ◽  
Microfinance Institutions ◽  
Cross Sectional ◽  
Content Type ◽  
The Individual

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.

Nonlinear and complementary effects of responsive and proactive market orientation on firms’ competitive advantage

2019 ◽  
Vol 32 (4) ◽  
pp. 841-859
Author(s):  
Fabian F. Osorio Tinoco ◽  
Miguel Hernández-Espallardo ◽  
Augusto Rodriguez-Orejuela
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Hierarchical Regression ◽  
Future Research ◽  
Manufacturing Companies ◽  
Positive Interaction ◽  
Cross Sectional ◽  
Content Type ◽  
Positive Effects ◽  
Proactive Market Orientation

Purpose The purpose of this paper is to clarify how responsive market orientation (RMO) and proactive market orientation (PMO) create competitive advantage. Design/methodology/approach Nonlinear and interaction effects are tested by applying hierarchical regression analysis to a sample of 272 Colombian manufacturing companies. Findings The results show that although market orientation promotes the competitive advantage of a business, both approaches – responsive and proactive – exhibit saturation effects and a positive interaction. Research limitations/implications The main limitation of this study is the cross-sectional design and the use of a single source for data collection. It is suggested that future research includes different orientations combined with these two market orientations – responsive and proactive – for achieving competitive advantage. In addition, further studies could replicate this analysis for different environmental conditions. Originality/value This paper simultaneously evaluates the nonlinear and complementary effects of RMO and PMO. From a strategic standpoint, it presents an empirical confirmation of the familiarity trap, the failure trap and the positive effects of combining RMO and PMO.

A borrowing cost model for effective performance of SMEs in Uganda

2015 ◽  
Vol 11 (2) ◽  
pp. 74-89 ◽  
Author(s):  
Sulait Tumwine ◽  
Richard Akisimire ◽  
Nixon Kamukama ◽  
Gad Mutaremwa
Keyword(s):  
Interest Rate ◽  
Cost Model ◽  
Methodological Approach ◽  
Sub Saharan Africa ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
Effective Performance ◽  
Sub Saharan ◽  
And Performance

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.

Do empowered employees absorb knowledge?

2014 ◽  
Vol 37 (2) ◽  
pp. 130-151 ◽  
Author(s):  
Evangelia Siachou ◽  
Panagiotis Gkorezis
Keyword(s):  
Geographical Area ◽  
Three Dimensions ◽  
Hierarchical Regression ◽  
Cross Sectional ◽  
Content Type ◽  
Individual Level ◽  
Manufacturing Organizations ◽  
The Individual ◽  
The Impact ◽  
The Relationship

Purpose – The present study aims to contribute to the limited empirical research regarding the individual level antecedents of absorptive capacity (AC). In this vein, the authors examined the impact of employees' psychological empowerment (PE) dimensions on their AC. Moreover, the authors explored the magnitude of the relationship between one of PE four dimensions, namely competence, and AC compared to that of the rest three dimensions of PE. Design/methodology/approach – The authors collected data from 100 private employees working in two manufacturing organizations. In order to investigate the hypotheses, the authors conducted hierarchical regression and usefulness analysis. Findings – As predicted, the present results showed that all four PE dimensions affected employees' AC. Furthermore, competence demonstrated the strongest impact among all PE dimensions. Research limitations/implications – Data were drawn from two manufacturing organizations located in specific geographical area. Thus, this may constrain the generalizability of the results. Also, the cross-sectional analysis of the data cannot directly assess causality. Originality/value – To the best of the authors' knowledge, this is the first empirical study examining the relationship between PE and AC.

Creative climate and organisational resilience: the mediating role of innovation

2015 ◽  
Vol 23 (4) ◽  
pp. 564-587 ◽  
Author(s):  
Samuel Mafabi ◽  
John C. Munene ◽  
Augustine Ahiauzu
Keyword(s):  
Public Sector ◽  
Hierarchical Regression ◽  
Future Research ◽  
Long Term Effects ◽  
Cross Sectional ◽  
Content Type ◽  
Mediating Role ◽  
Creative Climate ◽  
Cross Sectional Design

Purpose – This study aims to investigate the mediation role of innovation between creative climate and organisational resilience. Design/methodology/approach – The study used a cross-sectional design to collect data about the study variables from parastatal managers using self-administered questionnaires. Hierarchical regression and Medigraph were used to test hypotheses. Findings – Creative climate has a significant association with innovation and organisational resilience. Innovation partially mediates the effect of creative climate on organisational resilience. Research limitations/implications – The sample size was small involving only parastatals. The results may be different in an expanded public sector. The study was cross-sectional that is limited in examining long-term effects of creative climate and innovation on organisational resilience. Therefore, a longitudinal study design is proposed for future research. Practical implications – Managers in parastatals need to provide a conducive creative climate that promotes innovations for organisational resilience. Originality/value – The study provides empirical evidence on the mediation role of innovation in the relationship between creative climate and organisational resilience in a public sector. The evidence shows the contribution of innovation in striving for organisational resilience based on the creative climate.

Social norm perceptions predict citizenship behaviors

2015 ◽  
Vol 30 (8) ◽  
pp. 894-908 ◽  
Author(s):  
Ryan P. Jacobson ◽  
Kathryn J. L. Jacobson ◽  
Jacqueline N. Hood
Keyword(s):  
Hierarchical Regression ◽  
Need To Belong ◽  
Citizenship Behaviors ◽  
Injunctive Norm ◽  
Injunctive Norms ◽  
Descriptive Norms ◽  
Cross Sectional ◽  
Content Type ◽  
Study Results ◽  
The Individual

Purpose – The purpose of this paper is to examine the extent to which perceptions of injunctive and descriptive norms for workplace organizational citizenship behaviors (OCBs) affect an individual’s frequency of performing such behaviors. The study also explores whether the effects of norm perceptions are moderated by the individual’s need to belong (NTB) to social groups. Design/methodology/approach – Hierarchical regression analysis was used to analyze data from 77 employed MBA students. Perceptions of OCB norms and NTB were assessed with an initial survey. Eight weeks later, a second survey assessed the individual frequency of OCBs. Findings – Descriptive norms, injunctive norms, and NTB independently predicted OCB frequency. Additionally, NTB moderated the effects of injunctive norm perceptions. The injunctive norm was particularly influential for employees high in NTB. Research limitations/implications – Limitations of this study include its cross-sectional nature and the possibility of common method bias. Practical implications – Study results indicate that managers can encourage OCBs by drawing attention to the prevalence of OCBs in the workplace (descriptive norm) and by showing approval of OCBs (injunctive norm). Hiring those with high NTB will also increase OCBs and enhance the effects of any effort on management’s part to signify approval of OCBs. OCBs can also be encouraged through new employee orientation and training that emphasizes the descriptive and injunctive norms for OCBs. Originality/value – This is the first study to demonstrate social norms and NTB as predictors of workplace OCBs. This study also provides the first evidence that the effects of injunctive norms are moderated by NTB.

Innovativeness and performance: the joint effect of relational trust and combinative capability

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gloria Parra-Requena ◽  
María José Ruiz-Ortega ◽  
Pedro M. Garcia-Villaverde ◽  
F. Javier Ramírez
Keyword(s):  
Joint Effect ◽  
Relational Trust ◽  
Hierarchical Regression ◽  
Cross Sectional ◽  
Content Type ◽  
Continuous Innovation ◽  
Footwear Industry ◽  
The Cross ◽  
The Individual ◽  
Configurational Model

PurposeThis work aims to develop a configurational model to explain how relational trust and combinative capability can jointly improve the relationship between innovativeness and firm's performance.Design/methodology/approachThe empirical study was developed on a sample of 224 companies in the footwear industry in Spain. Hierarchical regression analysis was used to test the hypotheses in order to confirm the proposed configurational model.FindingsThe partial results demonstrate the significant effect of relational trust on the innovativeness-performance relationship but, unexpectedly, reveals the non-significant effect of combinative capability on this relationship. The triple interaction effects model provides new insights into the positive effect of combinative capability on the innovativeness-performance relationship once firms gain relational trust from their contacts.Research limitations/implicationsThe cross-sectional nature of the study imposes a limitation on the results. Nevertheless, due to the detailed information required to achieve the aims of the research, a longitudinal study could be excessively complex. In any event, the cross-sectional approach of the study accomplishes the proposed aim.Practical implicationsManagers should involve the employees of the firm in order to improve the effectiveness of continuous innovation, encouraging them to establish trusting relationships with external agents and contributing to combine the relevant external knowledge with the individual and collective knowledge available in the firm.Originality/valueThis work contributes to the existing literature with a more complete picture of the influence of innovativeness on firms' performance, highlighting that performance is affected by the coherence of the configuration of innovativeness, relational trust and combination capability.

Microcredit and political empowerment in Azerbaijan and Kazakhstan

2015 ◽  
Vol 14 (2) ◽  
pp. 130-148 ◽  
Author(s):  
Oksan Bayulgen
Keyword(s):  
Political Development ◽  
Group Analysis ◽  
Future Research ◽  
Extensive Literature ◽  
Microfinance Institutions ◽  
Content Type ◽  
Political Empowerment ◽  
Individual Level ◽  
The Individual ◽  
Gender Type

Purpose – The purpose of this paper is to analyze the political effects of microcredit. The author provides the theoretical connections between microfinance and political empowerment and tests them in the context of Central Asia and the Caucasus, a region that is significantly lagging in political development and yet has a growing microfinance potential. Design/methodology/approach – The author conducted a total of 100 in-depth interviews with microcredit clients in Kazakhstan and Azerbaijan in June 2010 and January 2011, respectively. The author chose my client samples randomly from two of the largest non-governmental microfinance institutions in these countries. Findings – The findings of the survey reveal that microloans have only led to modest improvements in the socioeconomic status of the clients and had almost no effect on their political empowerment. Disaggregating the data further in terms of gender, type of loan and location of credit does not change the overall trends but reveals that to the extent that any political empowerment took place, group clients (mostly women) in urban settings were more aware and involved in political issues than individual clients in the villages. Research limitations/implications – Even with a carefully thought-out design, it is not clear how much the responses reflect the true and complicated impact of microfinance on the clients’ lives, a challenge that may be overcome in future research with focus group analysis or an ethnographic analysis of microcredit clients over a long period of time. Practical implications – Notwithstanding these shortcomings, these observations can help inform microfinance institutions, donor organizations and governments about the true potential of microfinance. A realization of the limits of this unique development tool may prove useful in reorienting the goals of foreign aid and designing a more effective approach to development. Originality/value – Despite the extensive literature on the economic and social effects of microcredit, very little attention has been given to how economic empowerment generated by microcredit can translate into political empowerment at the individual level. This paper lays out the theoretical reasons for why such a relationship might exist and tests these hypotheses systematically in two countries, taking into account gender, type of loan instrument and location of the loan.

Visualizing intellectual capital using service-dominant logic

2017 ◽  
Vol 29 (6) ◽  
pp. 1745-1768 ◽  
Author(s):  
Janet Davey ◽  
Rachael Alsemgeest ◽  
Samuel O’Reilly-Schwass ◽  
Howard Davey ◽  
Mary FitzPatrick
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Value Creation ◽  
Hotel Industry ◽  
Annual Reports ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Reporting Practices ◽  
Operant Resources

Purpose The purpose of this paper is to investigate intellectual capital (IC) reporting, from a service-centric approach, in the hotel industry. The strategic enhancement of value-creation and sustainable competitive advantage requires both management and measurement. Sound measurement and reporting practices enable management performance to be judged; one such practice is IC disclosure. Service-dominant (S-D) logic emphasizes that intangible operant resources, the foundation of IC, are at the core of competitive advantage. Design/methodology/approach A disclosure instrument based on S-D logic and designed specifically for the hotel industry was applied to the annual reports and sustainability reports (in English) of 30 Asian hotel companies. Content analysis measured the disclosures of dynamic IC assets typically overlooked by traditional IC disclosure instruments. Findings The majority of IC communication concerns lower-order basic operant resources. Although more than one-third of the companies’ disclosures of IC assets relate to collaborative processes and practices that support networked value-creation, most disclosures demonstrate a prevailing firm-centric orientation. IC items regarding reciprocated relationship and informational management were minimally reported. Research limitations/implications A single research approach was used. Future research could use other communication channels to triangulate. Practical implications The results highlight opportunities for hotel companies to better report their IC assets as part of their value-creating strategies. Originality/value This research is one of the first to operationalize S-D logic concerning IC. It provides a promising framework for understanding IC reporting in the hotel industry.

Determinants of solo and employer entrepreneurship in Visegrád countries: findings from the Czech Republic, Hungary, Poland and Slovakia

2020 ◽  
Vol 14 (3) ◽  
pp. 447-464
Author(s):  
Ondřej Dvouletý ◽  
Marko Orel
Keyword(s):  
Czech Republic ◽  
Methodological Approach ◽  
Working Hours ◽  
Future Research ◽  
Content Type ◽  
Logistic Regression Models ◽  
Individual Level ◽  
The Individual ◽  
Visegrád Countries

Purpose This study aims to extend the existing body of literature on the individual-level determinants of self-employed persons with (employer entrepreneurs) and without employees (solo self-employed individuals) from the perspective of four post-communist economies (i.e. Czech Republic, Hungary, Poland and Slovakia). Design/methodology/approach The methodological approach is based on the three harmonised waves (2005, 2010 and 2015) of the European Survey on Working Conditions (EWCS). Multi-variate logistic regression models are used to determine the individual-level differences among employees, solo self-employed individuals and job creators in the selected group of countries. Findings The results show significant differences among employees, solo self-employed individuals and job creators, especially when it comes to the role of age, gender, education, previous experience, number of working hours and their determination. Job creators in Visegrád countries have, on average, more years of experience, and higher levels of education (tertiary), than wage-employees. Research limitations/implications This study provides a series of recommendations for future research on the role of family- and household-related characteristics, entrepreneurship-specific education and migration background. Originality/value The previous research on individual determinants of entrepreneurial engagement in Visegrád region was mainly based on the data from the Global Entrepreneurship Monitor. This study offers a novel perspective based on the EWCS data.

Intellectual capital of SMEs in Thailand: an employee behavioural measurement instrument

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khahan Na-Nan ◽  
Suteeluck N. Kanthong ◽  
Kattikamat Khummueng ◽  
Auemporn Dhienhirun
Keyword(s):  
Factor Analysis ◽  
Empirical Evidence ◽  
Intellectual Capital ◽  
Research Performance ◽  
Measurement Instrument ◽  
Future Research ◽  
Validity And Reliability ◽  
Cross Sectional ◽  
Content Type ◽  
Theoretical Concepts

Purpose Intellectual capital (IC) is an important factor to push and drive organisations to achieve competitive advantages and growth. This study aims to develop and test an instrument to measure IC for employee behaviour in the context of small and medium-sized enterprises (SMEs). Design/methodology/approach The measurement instrument was designed after assessing literature reviews on IC that provided a strong theoretical support for application of a specific set of items in the SME context. Instrument validity and reliability were tested for item-objective congruence by five experts. The results ranged between 0.8 and 1.0, with a reliability coefficient of 0.950. Exploratory factor analysis and confirmatory factor analysis were used to confirm construct validity between theoretical and empirical evidence. Data were collected from 240 hairdressers employed by SMEs in Thailand. Findings The results revealed that IC can be classified into two groups as human capital and relational capital. Constructs between theoretical concepts and empirical evidence gave values of χ2 = 42.336, df = 35, p = 0.184, χ2/df = 1.210, GFI = 0.972, AGFI = 0.938, RMSEA = 0.030 and SRMR = 0.018. Research limitations/implications Empirical findings were derived from a sample of 240 hairdressers. However, validation and reliability of the instruments require confirmation in various other contexts with a larger number of samples. This cross-sectional study identified the effects of IC in SMEs, thereby contributing to the ongoing debate regarding the determinants of research performance. Originality/value The IC instrument was determined as valid and fulfilled the knowledge gap concerning SMEs by facilitating future studies on boundaries with IC assessment spanning SME contexts. This instrumental support will assist researchers and academics to develop a more comprehensive understanding of IC and explore its potential in future research areas.

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