The Mediating Effects of Board Role Performance in the Relationship Between Board Capital and Survival of Financial Cooperatives in Uganda
Savings and Credit Cooperative Societies (SACCOs) in Uganda face persistent survival challenges, often associated with governance limitations and board effectiveness issues. This study investigates the association between board capital, which encompasses both human and social capital, and SACCO sur...
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Seisense
2024-11-01
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| Series: | SEISENSE Business Review |
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| Online Access: | https://journal.seisense.com/sbr/article/view/1139 |
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| author | Francis Yosa Colin Agabalinda Alain Vilard Isoh |
| author_facet | Francis Yosa Colin Agabalinda Alain Vilard Isoh |
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Savings and Credit Cooperative Societies (SACCOs) in Uganda face persistent survival challenges, often associated with governance limitations and board effectiveness issues. This study investigates the association between board capital, which encompasses both human and social capital, and SACCO survival—measured through liquidity and gearing—with board role performance as a potential mediator. Data were collected from 311 participants across 60 SACCOs in a cross-sectional survey. Structural equation modeling analysis indicates that although board capital does not directly influence SACCO survival, it positively correlates with board role performance, which in turn is significantly associated with SACCO survival outcomes of liquidity and gearing. These findings underscore the importance of board engagement in translating board members’ collective expertise, knowledge, and external connections into enhanced liquidity and balanced gearing for SACCOs. Practical implications suggest that SACCOs could benefit from initiatives to strengthen board members' skills and networking capabilities through targeted training, mentorship, and structured networking opportunities. Establishing clear board roles, strengthening accountability mechanisms, and implementing regular performance evaluations are essential practices to bolster SACCO survival. This study contributes a novel perspective by integrating Role Theory with Agency and Resource Dependency Theories, providing a multi-theoretical framework to better understand SACCO survival in a developing economy context. This integration enriches the theoretical landscape and provides actionable insights for strengthening SACCO survival in Uganda’s challenging economic context.
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| format | Article |
| id | doaj-art-9967dadfb5894f8baeaecc5956d7591e |
| institution | OA Journals |
| issn | 2788-7561 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | Seisense |
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| series | SEISENSE Business Review |
| spelling | doaj-art-9967dadfb5894f8baeaecc5956d7591e2025-08-20T02:39:08ZengSeisenseSEISENSE Business Review2788-75612024-11-014110.33215/f49nrk77The Mediating Effects of Board Role Performance in the Relationship Between Board Capital and Survival of Financial Cooperatives in UgandaFrancis Yosa0https://orcid.org/0000-0002-5747-1538Colin Agabalinda1https://orcid.org/0000-0001-6394-7881Alain Vilard Isoh 2https://orcid.org/0000-0002-9891-0760Department of Leadership and Governance, Makerere University Business School, Kampala UgandaDepartment of Business Administration and Sustainability, ICT University, Yaoundé CameroonDepartment of Business Administration and Sustainability, ICT University, Yaoundé Cameroon Savings and Credit Cooperative Societies (SACCOs) in Uganda face persistent survival challenges, often associated with governance limitations and board effectiveness issues. This study investigates the association between board capital, which encompasses both human and social capital, and SACCO survival—measured through liquidity and gearing—with board role performance as a potential mediator. Data were collected from 311 participants across 60 SACCOs in a cross-sectional survey. Structural equation modeling analysis indicates that although board capital does not directly influence SACCO survival, it positively correlates with board role performance, which in turn is significantly associated with SACCO survival outcomes of liquidity and gearing. These findings underscore the importance of board engagement in translating board members’ collective expertise, knowledge, and external connections into enhanced liquidity and balanced gearing for SACCOs. Practical implications suggest that SACCOs could benefit from initiatives to strengthen board members' skills and networking capabilities through targeted training, mentorship, and structured networking opportunities. Establishing clear board roles, strengthening accountability mechanisms, and implementing regular performance evaluations are essential practices to bolster SACCO survival. This study contributes a novel perspective by integrating Role Theory with Agency and Resource Dependency Theories, providing a multi-theoretical framework to better understand SACCO survival in a developing economy context. This integration enriches the theoretical landscape and provides actionable insights for strengthening SACCO survival in Uganda’s challenging economic context. https://journal.seisense.com/sbr/article/view/1139Board Role PerformanceBoard CapitalFinancial CooperativesOrganizational SurvivalUganda |
| spellingShingle | Francis Yosa Colin Agabalinda Alain Vilard Isoh The Mediating Effects of Board Role Performance in the Relationship Between Board Capital and Survival of Financial Cooperatives in Uganda SEISENSE Business Review Board Role Performance Board Capital Financial Cooperatives Organizational Survival Uganda |
| title | The Mediating Effects of Board Role Performance in the Relationship Between Board Capital and Survival of Financial Cooperatives in Uganda |
| title_full | The Mediating Effects of Board Role Performance in the Relationship Between Board Capital and Survival of Financial Cooperatives in Uganda |
| title_fullStr | The Mediating Effects of Board Role Performance in the Relationship Between Board Capital and Survival of Financial Cooperatives in Uganda |
| title_full_unstemmed | The Mediating Effects of Board Role Performance in the Relationship Between Board Capital and Survival of Financial Cooperatives in Uganda |
| title_short | The Mediating Effects of Board Role Performance in the Relationship Between Board Capital and Survival of Financial Cooperatives in Uganda |
| title_sort | mediating effects of board role performance in the relationship between board capital and survival of financial cooperatives in uganda |
| topic | Board Role Performance Board Capital Financial Cooperatives Organizational Survival Uganda |
| url | https://journal.seisense.com/sbr/article/view/1139 |
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