Intellectual Capital and The Adoption of IFRS 17 Readiness Among Insurance-Related Companies in Uganda.
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Date
2025-12-01
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Makerere University Business School
Abstract
This study examined the role of intellectual capital (IC) on readiness of Uganda’s insurance sector for the adoption of the International Financial Reporting Standard 17 (IFRS 17), a critical transition for sustaining the sector’s 18.57% growth (2022–2023) and economic stability. Grounded on Institutional Theory and the Resource-Based View (RBV), the research investigated how organisational resources in form of intellectual capital shape IFRS 17 adoption preparedness. A cross-sectional survey design with a quantitative approach was employed, integrating quantitative surveys on a purposively selected sample of 143 insurance professionals across Uganda’s insurance entities, including general, life, micro and reinsurance companies. Descriptive statistics show that respondents on average agreed with the items of adoption of IFRS 17 adoption readiness though respondents being aware of the requirements and implications of IFRS 17 for insurance companies was identified as the most important item. The findings from correlation analysis revealed significant positive association between human capital (HC), structural capital, relational capital (RC) and adoption of IFRS 17 adoption readiness. Findings further indicated a significant influence of structural capital and relational capital on adoption of IFRS 17 readiness. However, Human capital was found to be an insignificant predictor of adoption of IFRS 17 readiness. The study concludes that structural capital and relational capital are pivotal drivers of readiness, with Institutional Theory explaining regulatory compliance motives and RBV emphasizing resource optimization. The study recommends that Insurance companies in Uganda should; invest in the infrastructure and develop effective processes, ensure that existing internal systems are appropriate, strengthened and where need be, new systems are implemented. These can enhance effective adoption of IFRS 17 readiness. The study also recommends that Insurance companies should strengthen their relationship with stakeholders such as customers, suppliers and other business partners. This call ultimately enhances effective adoption of IFRS 17 readiness. The study further recommends adoption of holistic implementation plans integrating IC dimensions, policy support for technological upgrades, and cross-sectoral collaboration to share best practices. These insights offer actionable strategies for Uganda’s insurers and policymakers to navigate IFRS 17 complexities, ensuring alignment with global standards while addressing local resource limitations. The findings contribute to IC literature and practical frameworks for accounting transitions in emerging economies.
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This is a master's thesis.
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Naggujja, P. (2025) Intellectual Capital and The Adoption of IFRS 17 Readiness Among Insurance-Related Companies in Uganda.(Unpublished master’s dissertation). Makerere University Business School, Kampala, Uganda.