Board Effectiveness, Managerial Competences and Accountability in State Owned Enterprises in Uganda.
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Date
2025-09-04
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Makerere University Business School
Abstract
State-owned Enterprises (SOEs) in Uganda are confronted with accountability challenges characterized by a lack of transparency, non-compliance with policies and regulatory frameworks, and incomplete or inaccurate disclosure. This study examined the relationships among Board Effectiveness, Managerial Competences and Accountability in SOEs in Uganda. Guided by four primary objectives, the research explored the association between board effectiveness and accountability; assessed the link between board effectiveness and managerial competences; investigated the association between managerial competences and accountability and lastly the research analyzed the mediating role of managerial competences in the link between board effectiveness and accountability within Ugandan SOEs. Employing a cross-sectional design with a quantitative approach, data were collected with a designed questionnaire administered to 32 SOEs in Uganda, selected from a population of 35 sampling framework using simple random sampling to choose respondents. Data analysis involved correlation, regression, and mediation techniques using SPSS and MedGraph to test the associations among key variables. The results disclosed a positive and statistically significant connection between board effectiveness and accountability in SOEs (r =.976). A positive, significant association was also found between board effectiveness and managerial competences (r =.454), managerial competences and accountability (r =.532). Regression results indicated that board effectiveness and managerial competences jointly explained 96.1% of the variance in accountability among SOEs (Adjusted R² = .961), with the remaining 3.9% attributed to unexamined factors. Both board effectiveness (β = .926, t = 23.172) and managerial competences (β = .111, t = 2.775) emerged as significant predictors of accountability. Mediation analysis further demonstrated that managerial competences partially mediate the relationship between board effectiveness and accountability (Sobel z = 1.977). This study recommends that Ugandan SOEs enhance accountability by prioritizing the development of managerial competences through targeted training and development programs aimed at improving behavioral outcomes, such as disclosure, transparency, and compliance. Regular evaluation of board competencies, combined with a structured and transparent selection process, is essential to ensure balanced and effective board composition. Support from the government and other stakeholders, including tailored training programs, can further strengthen board capabilities. SOEs should also provide boards with clear role definitions, ethical guidelines, and performance standards. This approach fosters a culture of responsible governance, reinforced by the establishment of consequences for varying levels of accountability, both positive and negative. Finally, the adoption of diverse board expertise ensures alignment between governance practices and SOE objectives, promoting sustainable organizational performance and accountability.
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This is a master's thesis.
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Citation
Abuko, S. (2025) Board Effectiveness, Managerial Competences and Accountability in State Owned Enterprises in Uganda. (Unpublished master’s dissertation). Makerere University Business School, Kampala, Uganda