School of Business (SB) Collections

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    The causes of rural poverty in Uganda: a case study of Wakiso Sub County, Wakiso District.
    ( 2005-12) Kasule, Ahmed Twaha
    The problem of rural poverty in Uganda has persisted despite the various efforts by the government to alleviate it and its continued existence has impacted negatively on the overall development efforts in the country. This study sought to investigate the causes of rural poverty in Uganda, with a specific focus on Wakiso Sub-County found in the central part of the country. The results from this study have confirmed the observed phenomenon of a high level of rural poverty in Uganda. The most significant causes were found to be; large size of households, low education levels attained by the household heads, low asset holdings and insufficient expenditure on essential needs of life. It was recommended that greater attention should be focused on the provision of education to the poor, greater support for alternative income generating activities and encouraging the population to control the sizes of their families. Other recommendations included the provision of low rate credit facilities and encouraging the poor to diversify their asset holding.
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    Teamwork, organisational controls, Organization Citizenship Behaviour (OCB), decision making and performance management in Mulago hospital
    ( 2006) Naluzze, Jesca
    There is increasing deterioration of delivery of health services in Mulago Hospital as exhibited in this study and the health sector in general. In this study, the relationships among organizational controls, teamwork, OCB, decision-making, and performance management were investigated in Mulago Hospital. The study used a survey design and the respondents Questionnaires and interview guides were the research instruments used to collect data from the respondents. Measurements of the study variables were the already established, published, reviewed and validated by the previous scholars. The instruments were also tested for validity and reliability and the indexes were above 0.7 thus the question used was proved appropriate for this study. It was established that; Increasing loss of morale and teamwork amongst the health workers has created a workforce that acts not from duty – consciousness, but out of desperation to survive, without any due regard to the patients’ health. It is becoming more difficult to achieve national health targets and hospital objectives as most health workers are more preoccupied with their meager pay as well as covering what cannot be covered financially at their workplaces rather than the performance required of them to achieve pre-set targets and objectives thus affecting the proper attendance to patients. Data was collected using questionnaires and interview guides, and analyzed for the degree of variances between and within the variables and its impact on the development of human resources and performance management within Mulago hospital. The results show that there is strong correlation between teamwork and performance management and none between OCB and decision-making. These results are discussed in light of the prevailing health service delivery system in Uganda. Recommendations and areas for further research are also explored.
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    Trade liberalization policies and the competitiveness of export firms in Uganda
    (Makerere University, 2007) Naluyombya, Lukiya
    Uganda has implemented trade liberalization policies since 1987. Deregulation, market opening and privatisation are expected to spur productivity, foster export competitiveness and improve resource allocation. Export firms are expected to take full advantage of the special measures and more favorable provisions to improve their competitiveness. Despite the efforts to establish conditions that will facilitate exporting activities, the response of export firms to the opportunities to improve their competitiveness is not adequately assessed. The study was intended to establish whether trade liberalization policies stimulated export firms to adjust allocation and utilisation of resources in order to improve their competitiveness. A cross sectional survey was done across firms in Wakiso, Kampala and Mukono districts. Measurement of variables was done using correlation and regression analyses. Results showed that trade liberalization increased output, domestic competitiveness but has not been effective in fostering export competitiveness and improving resource allocation.
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    A critical examination of the budgeting procedures and budget execution in Uganda Local Governments: The case of Kabale District
    ( 2007) Muhwezi-Murari, Maurice Alex
    A budget is a tool for management to express in figures its future intentions. It provides a yardstick by which individuals or groups can be measured and rewarded. It provides room for decentralisation of authority without losing information required for purposes of control. Budgets provide a mechanism to control in detail the revenue, costs, cash and capital expenditure. (Nugus, 1998, P 2). Budgets must be managed and controlled. This is to ensure proper utilisation of the limited resources. Budgetary control is a system of controlling costs, which includes the preparation of budgets, co-ordinating the departments and establishing responsibilities, comparing actual performance with the budgeted and acting upon results to achieve optimum resource utilisation.
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    Competence, reflective and organisational learning, organisational commitment, task performance and organisational citizenship behavior: a case study in Bank of Uganda
    ( 2007-06) Musoke, Laura M.
    The study involving the levels of organizational citizenship behavior in Bank of Uganda staff highlights the increasing importance of use of competences in all the human resource functions of the bank. A cross sectional survey design was employed. Using a case study involving 120 respondents comprising all the departments at Kampala head office and Jinja and Mbarara currency centers, a descriptive and co relational research design was used to investigate the relationship between competences, reflective/organizational learning, organizational commitment, task performance and organizational citizenship behavior. The findings indicated that all the independent variables had a significant positive relationship with the dependent variable (OCB). From the regressional model, task performance was found to be the major predictor of organizational citizenship behavior in Bank of Uganda, while ANOVA descriptive revealed that the longer the staff stayed in the Bank, the higher the organizational commitment
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    Management of change: the decentralisation process in Uganda
    (Makerere University, 2007-06) Okello, John Charles
    The study, involved the use of competency model in highlighting the importance of change management competencies in managing change in organization's. Using a case study involving 73 respondents from 5 different local government's, it investigated the relationship between change management competence and performance, empowerment and performance, change management competency and resistance to change. The study also sought mechanism through which change management competencies can be developed to support the successful implementation of decentralization in Uganda. The study used a descriptive survey design which involved the development of a tool to rate the competency of local government staff based on competency analysis. ft also incorporated other instruments to capture mechanism to develop change management competencies. The study revealed a significant positive correlation and thus relationship between: a) Change management competencies and performance of the local governments; b) empowerment and local government performance; c) change management competencies and resistance to change among local government managers. The study also established using regression analysis that change management competencies, resistance to change, and empowerment predict up to 54% of local government performance.
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    Relational norms and tax compliance among individual income tax payers in Uganda
    ( 2007-08) Kakembo, George Batte
    The purpose of the study was to examine the relationship between relational norms and tax compliance among individual income taxpayers in Uganda. A cross sectional survey design (one short) was used. Data was gathered using a self administered structured questionnaire. Taxpayers in the various areas of Kampala filled the questionnaire. The respondents were drawn from the 3 major tax categories using a sample size of 131 respondents, data was analyzed using SPSS. The study revealed that relational norms are significantly positively related to intentions and attitudes. Mutuality one of the components of relational norms was also found to be significantly related to tax compliance and attitude. Intention to pay taxes was also observed to be significantly positively related to attitudes and tax compliance. The report concludes that relational norms greatly influence the taxpayers intentions to pay taxes. Attitudes and intentions to pay taxes also greatly affect the level of taxpayers compliance. A taxpayer with high intentions to pay will always have a positive attitude towards meeting his tax obligations and hence likely to be very compliant.
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    Human resource practices, empowerment, procedural justice, commitment and teacher OCB in schools: a case of selected public secondary schools in Kampala and Wakiso Districts
    ( 2008-09) Nabanenya, Flavia Ntulume
    The main purpose of the study was the relationship between HR Practices, Empowerment, Procedural Justice, Commitment and Organizational Citizenships Behavior. The objectives of the study were the relationship between HR Practices and Empowerment, HR Practices and Procedural Justice, HR Practices and Commitment, HR Practices, Empowerment and OCB, and HR Practices, Procedural Justice, Commitment and OCB. The study was carried out by developing a Conceptual framework which was related according to the objectives. A survey was conducted using secondary school teachers and head teachers in the selected schools in Kampala and Wakiso Districts. A convince and persuasive sampling was used to select 220 respondents. The research methods employed included self-administered questionnaires for the teachers and a supervisor rated OCB questionnaire for the head teachers. The results revealed a positive significant relationship between HR Practices and Commitment. Commitment is strongly correlated with OCB than any other Variables. This report indicates that there is a need to improve on the HR Practices in secondary schools and how they are administrated, empower the teachers at all levels, design fair procedures which are accepted by all the school in order to make the teachers committed to their work, so that they are able to go an extra mile in what they do for the school thus OCB
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    Social norms and tax compliance among small business enterprises in Uganda
    (Makerere University, 2009-08) Nabaweesi, Jennifer
    The study was prompted by the high and alarming rates of non tax compliance among Small Business Enterprises in Uganda. The reason of this study was therefore to establish the relationship between Social Norms, Taxpayers’ Morale and Tax Compliance among Small Business Enterprises in Uganda. To achieve the above purpose, a cross-sectional research design together with the explanatory research design and analytical research design were used in the survey. The survey population included Small Business Enterprises operating in Kampala district. Purposive and simple random sampling methods were used to select samples used in the study. Self administered questionnaires were used to collect data from SBEs. Data was collected from 235 respondents. Data was analysed using SPSS (Statistical Package for Social Scientist). The study found that Social Norms, Taxpayers’ Morale and Tax Compliance are significantly correlated. Hence, putting in place deliberate strategies aimed at improving these soft elements would yield high levels of Tax Compliance among Small Business Enterprises. The study also recommended that the tax assessment procedures should be improved to enhance trust of the government, Uganda Revenue Authority should establish harmonious working relationship with all stakeholders, and there should be massive sensitization programmes to increase awareness and educate the public as well as remind them that they are partners as opposed to mere subjects who must pay. Once Uganda Revenue Authority adopts this stance, they are likely to be perceived as more accountable and trustable and the tax paying public will most likely comply in its obligation to pay.
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    Accessibility to long term finance: Its determinants and effect on growth of EIB-funded Small and Medium size Entreprises in Uganda's hotel industry
    (Makerere University, 2009-09) Sekyewa, Godfrey
    The purpose of the study was to examine not only the level at which SMEs in Uganda’s Hotel sector access long-term finance extended by the EIB-APEX and the factors influencing this level but also the relationship between them and the level of the SMEs’ business growth. This was as a result of the observation that most of the SMEs were achieving dismal business growth yet it was not clear whether this was due to the level of their accessibility to long-term finance. The study was conducted as a cross sectional survey involving an analytical design. Its objectives were to examine the level of business growth of the SMEs in Uganda’s Hotel industry, to investigate the level at which these SMEs access long-term finance extended by the EIB-APEX, to establish the factors influencing the level of this access, and to examine the relationship between the level of business growth of these SMEs and their level of access to long-term finance. Data was collected from SME managers using questionnaires and analyzed using the descriptive, ANOVA, factor analysis, correlation and regression methods of the SPSS programme. The findings show that the level of business growth of the SMEs in Uganda’s Hotel industry was 46.3% predicted by the level of the SMEs’ access to EIB-APEX long-term finance. SME competences were established to have the most significant influence on the level of SMEs’ access to this finance. The level of this access and that of the business growth of the SMEs were both reported as low. The study, thus, concluded by emphasizing the need to improve the level of business growth of the SMEs. To achieve this, it was recommended that SME management and lending institutions should improve the SMEs’ access to loan finance by solving the flaws in the factors influencing this access.
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    Willingness to pay for environmental conservation: a contingent valuation analysis of the communities living around the Queen Elizabeth Protected Area in Kasese District, Western Uganda
    ( 2009-09) Mayora, Chrispus
    National Parks and the environment as a whole provide many services that contribute to human wellbeing and poverty alleviation to the extent that some groups of people particularly those that live around them are highly dependent on services provided by these sites and are directly harmed by their degradation. Benefits include increased revenues to government, employment and a better environment, improving living standards for the population and the fragile flora and fauna also benefit, since more conservation is used to protect endangered species. However, in trying to value these benefits to the community, traditional market based methods do not adequately value them, owing to the fact that much local resource use takes place at the subsistence level, outside formal market systems. This has practical policy implications not only in placing environmental protection firmly on the agenda of economic planners and decision makers, but also make a strong case for increased investment in environmentally protected areas in the interest of sustainable economic development and social equity. In this study, we use Contingent Valuation Method to elicit willingness to pay for environmental conservation. We also estimate the costs of the Queen Elizabeth National Park (QENP) to the surrounding community, A total of 129 households were included in the survey and respondents were subjected to an elicitation questionnaire that presents an environmentally destructive scenario, and the costs to them that come with it if they were Willing to Pay to avoid those costs. A Random Utility Model is used and a Probit regression adopted. The effects of household socio-economic characteristics that affect individual WTP decisions are also analyzed using probit analysis The results indicate that at least 56 per cent of the people are willing to contribute to environmental conservation programs with an estimated Total WTP amounting toUS$97,180.54. However the social cost due to existence of the QENP on the adjacent community was estimated at US$61,644. We also find that distance from national park and amount to contribute (bid/start price) were significant determinants of willingness to pay. From the policy perspective, these findings are fundamental and point to certain policy implications that include co-management practices in environmental protection, community mobilization and education, enhanced incentives to the community to appreciate the benefits from the environment particularly the national park, and strengthening monitoring and problem animal management (PAM) systems, to allow for coexistence of the national park and the community.
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    Budgeting, donor assistance, co-funding and service delivery in local governments: a case study EU-MPP projects in Busia District
    ( 2009-09) Chimulwa, Wycliffe
    The study investigated the relationship between Budgeting, Donor Assistance, Co-funding and Service Delivery in local governments. Specifically, the study sought to establish the relationship between; Co-funding and Service Delivery; Budgeting and Service Delivery; and the relationship between Donor Assistance and Service Delivery for which Busia district local government was used as a case study. A cross sectional correlation approach was employed to undertake the study. Stratified random sampling and disproportionate sampling technique involving a sample of 78 respondents was used to collect data about the study variables of budgeting, Donor assistance, co-funding and efficiency in service delivery. Different li-kert scale questions were used to measure the corresponding variables. Principal axis factor analysis with varimax rotation was conducted to extract the five components used to measure budgeting. Given the satisfactory cronbach's coefficient alpha for items measuring co-funding, donor Aid and efficiency in service delivery, items corresponding to the respective variables were summated to come up with a single factor for each variable. Spearman correlation analysis was used to determine the relationships between the desired variables and a regression mode estimated by least square's estimation method was employed to determine the factors significant for efficient service delivery. All the analysis was conducted using the statistical package for social scientists (SPSS). The findings revealed significant positive linear relationships between Budgeting, Donor Assistance, Co-funding and Service Delivery pair-wise. The results of the regression analysis revealed Co-funding to be the most significant predictor of efficiency in Service Delivery. This implies that donors should emphasize co-funding as a precondition to donor assistance. Given the significance of budgeting as a determinant of efficient service delivery, it is concluded that local governments should plan their services and contribute to project costs if they are to attract more project aid and deliver efficient services.
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    Organisational culture, empowerment, job-satisfaction and commitment to the implementation of intergrated financial management system in the Public Sector in Uganda
    (Makerere University, 2009-09) Etidau, John F. A.
    The study set out to examine organizational culture, empowerment, job-satisfaction and their effect on to commitment to the implementation of the integrated financial management system by Government of Uganda in both central, local government and agencies. A conceptual model was developed by then researcher which demonstrates the relationship between organizational culture, as an independent variable and empowerment and jobsatisfaction as moderating variables and their effect on the dependant variable commitment to the implementation of the IFMS. The research objectives set out to determine the significance of the correlation between the independent variables and dependent variables. A cross-sectional survey design was adopted to take a snapshot of events as they existed at that particular point in time. The instruments were developed to capture the constructs of organizational culture, empowerment, jobsatisfaction and the commitment to IFMS implementation. A sample size of 200 respondents was randomly selected. 120 respondents representing 60% were realized and considered satisfactory. The results indicated strong and significant positive correlations between organizational culture, empowerment, jobsatisfaction and commitment of IFMS implementation. The study concludes that organizational culture influences empowerment of employees implementing IFMS and all constructs organizational culture, empowerment, jobsatisfaction and significant correlations with commitment to IFMS. The study therefore, recommends that various change initiatives in the public sector in Uganda need to build a conducive, enabling culture that fosters empowerment of staff leading to jobsatisfaction with a resulting maximization of commitment to public sector integrated financial management system implementation. The delivery of services by Government of Uganda to its citizenry should uphold the principles of governance namely transparency, accountability, efficiency, effectiveness.
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    Innovativeness, customer value, and the growth of SMEs in Uganda: a case of radio broadcast media in Kampala.
    ( 2009-11) Mulyagonja, Eseza
    The study examined the relationship between firm Innovativeness, Customer Value, Brand Equity, Brand Preference and the growth of FM radio broadcasting organizations in Uganda. Through a cross-sectional study, respondents categorized as radio station managers, advertisers and the listening audience was used to determine innovativeness, customer value, brand equity, brand preference and the growth of 17 FM radio stations in Kampala. The listening audience was further segmented along occupation lines as demographic patterns are reflected in the buying behavior and decision making processes of individuals, thereby making a correlation with a consumer’s media usage patterns possible. Regression analysis found a good fit between the predictors and the dependent variables. Innovativeness and customer value were found to be significant antecedents of brand equity and brand preference. Brand equity, brand preference and SME growth were significantly correlated. The results confirmed empirical studies which established that innovations that create and deliver added value contribute significantly to the success of brands. Significant growth in both sales and profitability comes to brands that show large improvements in their strength and value along the dimensions of brand image, brand loyalty, perceived quality, and brand awareness. Brands that fail to demonstrate strength and value along those dimensions are not the preferred brands and show the least growth in sales and eventually profitability. These results support previous findings that state that innovative brands create more customer value, and brand equity is a strong antecedent for brand preference, which in turn translates into growth in sales, market share, and profitability.
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    Interest rates, foreign exchange rate exposure and firm value: a case of Uganda Telecom Limited (2000 – 2006)
    ( 2009-11-30) Apegu, Robert Roy
    This study focused on the Interest rate, Foreign exchange rate exposure, application of risk management techniques and firm value – a case study of Uganda Telecom Limited. The relationship between Interest rate, Foreign exchange rate exposure, application of risk management techniques and firm value is important in highlighting how a non- financial firm can attain value and sustainability while operating with borrowed funds and importing most of its inputs. A conceptual model adopted from Bordnar, Hayt and Martson (1998) was used as a guide on assessing the relationship between the study variables. Using existing Audited accounts from Uganda Telecom Limited that was analysed using SPSS, from which Zero order correlations were used to summarise the results obtained from the secondary data. The main findings showed positive relationship between the study variables, implying that firm value would be attained with improved application of risk management techniques as these would result into decreased exposures in terms of Interest rate repayments and Foreign exchange transactions, acting as a big source of savings for the company – Uganda Telecom Limited.
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    Determinants of demand for anti retroviral (ARV) drugs in Uganda: a case study of Wakiso District
    ( 2010-03) Kintu, Elia Michael
    The research was motivated by the low ARV demand response following the introduction of generic ARV drugs which lead to a cost reduction in Uganda’s adopted first line ARV treatment (AZT+D4T+NVP) from US$ 456 per month in 2001 to US$ 30 in 2003. With such dramatic fall in the ARV costs, only 10% of the 100,000 ARV eligible patients had access to ARVs. The question then became, “besides price, what else is determining ARV demand?” A field clinical-based survey was conducted with demand for ARVs assumed to be dependent on the price of ARVs and monitoring tests, total expenditure on health care, goods and services, formal education, employment, residential status and proximity to ARV care unit. The findings indicate that affordability of ARVs and CD4 and Viral Load monitoring tests, and being formally educated increased access to ARVs according to the Pearson chi-square at the 1% level of significance. Access to ARVs was also not independent of formal employment, residence, sponsorship status and proximity to care according to the Pearson chi-square at the 5% level of significance. The odds of accessing ARVs increased with an increase in the price of ARVs, monitoring test costs and formal education according to the logit at the 1% level of significance. While ARV price reductions should be secured through increased ARV local supply, test costs should be reduced through the direct observed therapy strategy. Awareness on ARV among the low educated patients should be raised. Access to ARVs among the informal workers should be improved through public-private cost sharing. A” Work for Medicine” initiative should be instituted for patients without sponsorship for ARVs. While Village Health Teams should identify and recommend for treatment the homeless patients, ARV mobile clinics for patients not within easy reach of services are recommended.
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    Local government citizen participation and rural development: reflections on Uganda’s decentralization system
    (Sage journals, 2010-03) Kakumba, Umar
    The governance and development discourse continues to embrace citizen participation as a fundamental mechanism of building local capacity towards poverty reduction and rural development. This article presents a review of the decentralization system of local governance in Uganda and evaluates its participatory mechanisms to establish how far they have enhanced the process of rural development. The review acknowledges achievements in human development, arising from citizen participation and representation, but these are yet to be translated into empowerment and shared benefits for the rural poor. Whereas some powers and functions have been devolved to local governments, the cardinal goals of decentralization seem to be elusive, whereby there is less support of the community’s role in raising resources for local development, demanding accountability from their leaders, participating in planning, and choosing their leaders without manipulation from the local ‘elite’ at the time of elections. The unfolding central government (CG) control rekindles the ‘recentralization’ of decentralization. It is argued that tackling rural development in predominantly agricultural economies like that of Uganda requires participation to link to mechanisms that can boost agricultural production, increased employment and household incomes. Likewise, the central government’s conceived development strategies should enlist participation in order to attain strong local ownership and empowerment. Points for practictioners The greatest challenge of local democratic representation is the failure of its associated human development elements to translate into production and improvement in household incomes. To realize the cardinal goals of decentralization and community participation in rural development requires invigoration of the local community’s role in resource mobilization, demanding accountability from local leaders, participating in planning, and choosing leaders without manipulation from the local elite and central government. Thus, participation must translate into effective representation and empowerment before benefits for all can be realized to spearhead poverty reduction. Likewise, tackling rural development in predominantly agricultural economies requires participation to link to agricultural production, increased employment and household incomes.
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    Assessment of local revenue collection and sharing arrangements in rural districts: a case study of Moroto District local government
    ( 2010-06) Olok, Francis Alira
    This study, builds on the tax reform studies already conducted in local governments. It attempts to assess the current practices of local revenue collection and sharing in rural districts, as a means of shedding light on; the status of fiscal transfer system between LGs and administrative units in rural districts of Uganda, using Moroto district local government as a case study. The study focused on, the aggregate local revenue performance, the factors affecting local revenue collections and sharing, it tried to determine how administrative units are coping with the impact of the current LR sharing practices. Lastly, it examined the suitability of the current practice of local revenue sharing policy in relation to the current practices. The analytical constructs were based on; the comparison of average LR performance of the district, against the average performance of other districts with similar characteristics. Factors such as LR collection capacity of the district, adherence to LR sharing policies as stipulated by the 1997, Local Governments Act and the 2007, Local Governments Finance and Accounting Regulation, were used to support the analysis. The findings of the study showed; huge local revenue collection gaps in the district, with LR contributing not more than 2 percent of the district budget, hence increasing the district’s dependency on central government grants, which accounts for over 85 percent of the total district budget. It was further noted that, the current LR sharing in LGs does not take place as provided for by the 1997, Local Governments Act. Finally, on the basis of the findings of this study, it is recommended that; an alternative policy that reduces on the number of LG tiers over which LR is shared in poor rural district be developed, rather than the biased formula based approach currently in use.
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    Operational costs, lending policies and outreach of Urwego Opportunity Microfinance Bank LTD, Rwanda
    (Makerere University, 2010-08) Ndyamuba, Straton
    This study was carried out to investigate the declining outreach levels as a result of lending policies and high operational costs of URWEGO Microfinance Bank. The objectives of the study were to examine the relationships between operational costs, lending policies, repayment rates and outreach of URWEGO microfinance bank. A sample of 50 staff and 171 clients of URWEGO microfinance bank were used in the study. It was observed that there was a significant negative relationship between operational costs and outreach. The study also revealed that there was a significant negative relationship between operational costs and repayment rate. The study findings also showed that there was a significant positive relationship between lending policies and repayment rate. Further analysis of the results indicates that operational costs and lending policies predict 59% of the variance in the outreach. Therefore URWEGO microfinance bank of Rwanda should adopt technological innovations, product refinements, and strengthen capacity that is needed to reduce costs, increase outreach, and boost overall profitability. There is need by the microfinance to minimize the effective interest rates charged on borrowers which may affect the depth of outreach.
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    Intrapreneurial orientation, social networks and firm performance
    ( 2010-09) Aarakit, Sylvia M.
    The purpose of this study was to investigate the relationship between intrapreneurial orientation, social networks and firm performance. The study was guided by the following research objectives; to examine the components of intrapreneurial orientation, to examine the components of social networks, to establish the relationship between intrapreneurial orientation and firm performance, to establish the relationship between social networks and intrapreneurial orientation, to establish the relationship between social networks and firm performance, and to examine the predictor effect of the components on firm performance A cross sectional research design was adopted which involved descriptive, correlation and regression approaches. A sample of 117 firms was selected from the two subsectors of bakery manufacturing and beverage manufacturing in the four divisions of Kampala district. The respondents were purposively selected from each stratum. Findings revealed that there was a significant positive relationship between all the study variables of intrapreneurial orientation, social networks and firm performance. Results from the regression analysis showed that intrapreneurial orientation and social networks significantly predicted 39% of firm performance. It was recommended that owner managers need to put in place policies and programs to support entrepreneurs. This should begin with a diagnosis of their personal characteristics and motives aimed at strengthening proactiveness and innovation that builds a base for more improved firm performance. Also small firms should focus on creating a user friendly environment that enables employees to voice out their endeavors and discoveries.