Management Attitudes, Organizational Capabilities and Export Readiness of Firms in the Central Region of Uganda

Abstract

The global business environment is being dominated by the trade liberalization agenda. In this context increasing exports has been an important aspect to many countries like Uganda as it contributes to economic growth. A study was conducted to examine export readiness among firms in Uganda. The specific objectives were; to analyse the export readiness of firms in Uganda, to analyse the relationship between management attitudes and export readiness of firms, to analyze the relationship between organizational capabilities and export readiness, and to analyse the extent to which organizational capabilities mediate the relationship between management attitudes and export readiness. A questionnaire was used to collect data from 139 export firms on their perception and level of export readiness at Uganda Export Promotions Board. Descriptive statistics, factor analysis and inferential statistics in form of correlations and regressions were generated to answer the research questions. The study findings revealed that there was a significant positive relationship between management attitudes and export readiness of firms in Uganda (r = .539, p<.01). Further still export readiness had a significant positive relationship with factors of management attitudes, these are, export commitment (r = .469, p<.01) and international orientation (r = .475, p<.01). There was also a significant positive relationship between organizational capabilities and export readiness (r = .557, P<.01). The sobel test for mediation showed that the mediating effect was significant (Z = 3.177, p<.01), implying that organizational capabilities, has a partial mediation effect on the relationship between management attitudes and export readiness. The study concludes that management attitudes had a positive association with export readiness and organization capabilities hence having positive association with export readiness. To this end therefore, the study recommends focus on creating firm’s competiveness by leveraging on the firm’s organizational capabilities, further research and analysis on foreign markets, as well as setting up of a good information systems to provide management with information about the export market and their customers as well as information regarding their competitors.