African Journal of Business and Management (AJBUMA)

DETERMINANTS OF FINANCIAL INCLUSION OF WORKING WOMEN IN UGANDA

2023-12-08T16:25:56+00:00

This study sought illuminate the determinants of financial inclusion among working women. The
two objectives of this investigation were to establish the effect of financial literacy on financial
inclusion and the effect of self-efficacy on financial inclusion among working women in Uganda.
The empowerment theory and the social cognitive theory underpinned the study. A correlational
cross-sectional design was used. Using the recommended Krejcie & Morgan table at a 5% level
of significance, a sample size of 384 is derived and used from a population of 327,930 working
women (+15 years) in all the five divisions of Kampala district in Uganda. A closed-ended
structured questionnaire was used to obtain the primary data. Pearson correlation analysis was
done to find out how the study variables are related. The hypotheses were subjected to empirical
validation through the utilization of Multiple Regression Analysis. The results show that Financial
Literacy positively and significantly (B=0.383, β= 0.365, p<0.01) affected Financial Inclusion.
Additionally, the results confirm that self-efficacy positively and significantly (B=0.091, β= 0.114,
p<0.05) affected Financial Inclusion. Thus, the results of the validation of study hypotheses led to
their rejection. The researchers recommend that the government of Uganda should intentionally
design policies that empower working women to be financially literate like approving training
curricula that have content of financial literacy focusing on financial behaviour, financial skills
and financial attitudes. Additionally, initiatives that target working women to build their self-belief
to use the existing financial services such as use of role models should be supported.
Keywords: Financial Literacy, Self-efficacy, Financial Inclusion, Working Women, Empowerment
Theory and Social Cognitive Theory.

OPERATIONAL INNOVATION PRACTICES EFFECT ON PERFORMANCE OF MANUFACTURING FIRMS: EMPIRICAL EVIDENCE FROM FIRMS IN KENYA

2023-12-08T16:25:56+00:00

The concept of firm performance was premised on operational innovations. The interplay of these
factor's dimensions contributes towards the firm's performance outcome. The factors, which
include innovations in the marketplace, products, processes, and technologies, make up
operational innovation. Thus, achieving ultimate performance requires that the manufacturing
firm remains at the market's competitive edge by applying innovative technology manifested
through markets, processes, and products. This study focused on the performance of Kenyan
manufacturing firms and operational innovational practices relationship. Positivism criteria are
used because it revolves around scientific laws and principles that increase the reliability of the
investigation's findings for generalization. A descriptive research design was adopted, which
entailed collecting data from many firms, and therefore was the best approach to increase the
survey reliability. The number of firms involved in the study was 182, all with active Kenya
Association of Manufacturers (KAM) affiliation. The firms were put into 14 subcategories of
manufacturing based on the product they manufacture. Statistical Package for the Social Sciences
(SPSS) and smart PLS4 tools were used for data analysis. Also, using regression analysis, the
results revealed that operational innovation practices significantly influences manufacturing
firms’ performance in Kenya. While looking at the effects of the dimensions of operational
innovation on firm performance, the results indicated that process innovation had the most
significant impact while technological innovation had the least. The outcome revealed which
operational innovation is significant and should be focused by the operation managers during
product design to gain competitive edge in the industry.
Keywords: Firm Performance, Market Innovation, Operational Innovation, Process Innovation,
Product Innovation.

CAPITAL STRUCTURE, PROFITABILITY, GROWTH AND FIRM VALUE: A CRITICAL LITERATURE REVIEW

2023-12-08T16:25:56+00:00

Future research preparations and development of in-depth exploration forms the key objective of the
independent study paper. The paper sought to answer this research question; what is the effect of
capital structure, profitability, and growth on firm value. Aim of this paper was to determine the effect
of capital structure on firm value, the effect of profitability and growth on the relationship between
capital structure and firm value and the joint effect of capital structure, profitability, and growth on
firm value. It discussed several empirical studies aimed at establishing research gaps. It discussed
major theories namely; pecking order theory, market-timing theory, trade off theory and Modigliani
and Miller theory. Trade off theory by Myers asserts that striking the balance of costs and the
associated advantages of leverage improves the firm’s value and profitability. Firms, which are more
profitable, can use debt financing which fosters growth and value. From empirical evidence,
association between capital structure, profitability, growth, and firm value is mixed. Capital structure
and value is still a puzzle due to differing theoretical perspective and conflicting opinions. The
conceptual framework consist the explanatory variable which is capital structure as parameterized by
debt to equity ratio, debt ratio and debt to capital ratio, moderating variable is growth as measured
by revenue growth, market share growth and assets growth. Intervening variable is profitability as
indicated by return on assets, net profit margin, and return on equity. Value is the response variable
as measured by Tobin’s Q. Synthesis of the review was by defining research objectives and literature
search. The key findings from the review was the empirical mixed evidence and the concepts of capital
structure of entities, profitability, growth, and firm value have not been widely studied. The review
concludes no conclusive findings due to inconsistencies in the outcomes, which calls for more research.
Further, critical review of existing theories is critical in contributing to the contemporary debate.
Additionally, more robust statistical tools and techniques are critical in the analysis of data with an aim
of solving the puzzle. This review will be of great benefit to industry practitioners engaged in
determining capital structure choices especially on the need by firms to decide and keep up optimal
financing structure important to shield them against risks. Further synthesis of literature is key in
confirming existing theoretical and empirical linkages.