Financial controls and the perceived performance of the sugar factory in a family business enterprise: evidence from the Madhvani sugar factory in Uganda
Loading...
Date
2017-04
Authors
Kaziba Mpaata, Bumali
Lubogoyi, Bumali
Okiria, John Charles
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This paper examines what it takes for family businesses to succeed with a focus on the Madhvani group sugar factory in
Uganda. A sample of thirty (36) supervisors was used to determine the effect of financial control practices on the perceived performance
of the factory. The main purpose of the study was to examine the effect of financial controls in predicting the performance of the sugar
factory which has been a success story for the family for decades now. The specific objectives were; (1) to determine the relationship
between compliance with financial policies and procedures and the perceived performance of the sugar industry; (2) to establish the
relationship between the application of adequate financial and management controls and the perceived performance of the sugar
factory; and (3) to ascertain the effect of safeguarding assets on perceived performance of the sugar factory. Results reveal that; (i) there
is a significant and positive correlation between compliance with financial policies and procedures and the perceived performance of the
sugar factory [r = .774**, p<0.0001]; (ii) there is a significant and positive relationship between adequate financial and management
controls and the perceived performance of the sugar factory (r = .894**,p<0.0001). Similarly, the research indicated a significant and
positive correlation between safeguarding assets and the perceived performance of the factory [r = .844**, p<0.0001]. In addition, Anova
results also support the tested hypothesis that there is a significant and positive main effect of financial controls on the perceived
performance of the sugar factory [F = 135.921, p<0.0001]. It was concluded that family firms that strive to be well-managed with strong
financial controls succeed because they are built with the financial discipline to last and survive generations. Therefore, the need for a
professional administrative business approach is arguably critical for a successful family enterprise.
Description
Keywords
Financial controls, management, performance, family business, safeguarding
Citation
Kaziba,M.Abdul.,Lubogoyi,B.,Okiria,J.B.,2017.Financial controls and the perceived performance of the sugar factory in a family business enterprise: evidence from the Madhvani sugar factory in Uganda