The relationship between perceived ICT facilitation, employee competences and performance of Microfinance Institutions (MFIs) in Uganda: A case of Kampala based MFIs
Wanda, David Robert
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The dissertation focuses on the relationship between Perceived ICT Facilitation, Employee competences and Performance of Microfinance Institutions in Uganda; a case of Kampala based MFIs. The specific objectives were to: establish the relationship between perceived ICT facilitation and employee competences, establish the relationship between employee competences and performance of MFIs, establish the relationship between perceived ICT facilitation and performance of MFIs, and finally to establish the relationships among all the three variables: perceived ICT facilitation, employee competences and performance of MFIs. The study was guided by seeking answers to the research questions posed about the stated objectives. A cross-sectional survey design was used. A Sample of 164 employee respondents was selected from 22 MFIs around Kampala, regulated and unregulated and from an employee population of population of 197.About 90 employees from the MFIs responded forming a valid percentage for analysis, in line with Krejcie& Morgan (1970). Loan officers, supervisors, IT staff and managers were selected on proportionate stratified sampling basis to complete the self administered questionnaires. Secondary data was got from journal articles, institutional journals, the completed questionnaires and internet sources Data was then sorted, edited , coded , fed into the computer and analyzed using SPSS version 10, after it was proved relevant and valid using content validity index CVI ( all of which showed above 0.5) and Cronbach Alpha whose coefficient also showed above 0.5. After that, Zero order correlations were used to summarize the results of the research questions. The results showed positive relationships between the study variables, implying that performance of MFIs would be enhanced with improved perception of ICT facilitation and improved employee competences. This is because the independent variables were positively correlated with the dependent variable. It was specifically noted that of all the independent variables; monitoring, controlling and evaluating skills sub- variables contributed more in fostering performance of MFIs than the remaining sub constructs in employee competences and all the sub variables in perceived ICT facilitation which had however, given a low but positive relationship with performance of MFIs. It was recommended; Microfinance firms should emphasize developing, nurturing and exploiting optimally employee skills, but also improve on the employee perception about the value of ICT if they are to continuously improve performance in terms of portfolio quality, loan recovery and outreach. Basing on the findings of this study, MFIs should specifically develop, harness planning, monitoring, control and evaluation skills of their employees since they were found most positively and significantly correlated with performance than the other competences in the variable.