Intellectual Capital, Compliance with Industry Standards and Sustainability Reporting Practices among Manufacturing Firms in Kampala Metropolitan Area.
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Date
2025-11-25
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Makerere University Business School
Abstract
This study investigated the relationship between Intellectual Capital (IC), compliance with industrial standards, and Sustainability Reporting Practices (SRPs) among manufacturing firms in the Kampala Metropolitan Area (KMA), Uganda. The study was motivated by the increasing global and local emphasis on sustainability and the need for manufacturing firms in developing countries to adopt transparent and responsible reporting practices. While SRPs are influenced by numerous organizational and institutional factors, this research focused on the role of IC specifically human capital and structural capital, and the extent to which firms comply with industrial standards as determinants of SRP adoption. A cross-sectional research design was employed, targeting member firms of the Uganda Manufacturers’ Association (UMA). The study population comprised 1,100 paid-up UMA member firms operating in the KMA. Primary data were collected using a structured questionnaire distributed to key personnel in the sampled firms. The questionnaire was divided into sections addressing demographic characteristics, components of IC, compliance with industrial standards, and the extent of SRPs. Validity of the instrument was ensured through expert review and computation of the Content Validity Index (CVI), with a CVI threshold of 0.80 deemed acceptable. Reliability was confirmed through Cronbach’s alpha, with a minimum cut-off of 0.70. The findings revealed a significant positive relationship between IC and SRPs, indicating that firms with more developed human capital and internal knowledge systems were more likely to adopt sustainability reporting. Similarly, compliance with industrial standards was positively associated with SRP engagement, suggesting that regulatory adherence fosters transparency and structured reporting. The study concludes that both Intellectual Capital and compliance with industrial standards are key drivers of sustainability reporting among manufacturing firms in Uganda. These findings have important implications for policy and practice, as they highlight the need for capacity building in IC and stronger enforcement of industry standards to promote sustainable business practices. The study recommends strategic investment in training, recruitment of sustainability experts, and institutional support for standardized reporting frameworks. Overall, this research contributes to the growing body of knowledge on corporate sustainability in developing economies and offers practical insights for enhancing SRPs in Uganda’s industrial sector.
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This is a master's thesis.
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Citation
Andabati, D. (2025) Intellectual Capital, Compliance with Industry Standards and Sustainability Reporting Practices among Manufacturing Firms in Kampala Metropolitan Area. Makerere University Business School.