Abstract
The present paper sought to confirm factors that are relevant to board role performance in Uganda and as a corollary empirically tested the relationship between individual dimensions of the model of board role performance. The study was cross-sectional and correlational and the analysis was conducted using Structural Equation Modelling (SEM) with Analysis of Moment Structures (AMOS) software on a sample of 128 service firms in Uganda. Findings indicate that a four-dimensional model of board role performance was determined to be the best fitting model for Ugandan service firms. From the results we do claim, that board role performance causes the scores observed on the measured variables of boundary spanning, effective partnership, environmental scanning and control of the organization. The measured variables are the individual dimensions of the model of board role performance. The present study provides one of the few studies that have analysed with confirmatory factor analysis (CFA) using AMOS to test board role performance measurement model and provides a benchmark for Uganda’s service firms wishing to leverage performance of their boards. However, using cross-sectional data does not allow for testing of the process aspect of the model; still, it provides evidence that the model can stand empirical tests of the four elements of the model. Additional research should examine the process aspects of board role performance and also test our model in predicting firm financial performance. The model in this paper might improve the quality of board role performance and apply to other sectors of Uganda’s firms to avert the problem of ineffective boards as evidenced by consistent firm failures in Uganda. By improving the quality of board role performance, boards will demonstrate their relevance in company direction and improvement of company value to the benefit of all stakeholders. Key words: Board role performance, service firms, analysis of moment structures (AMOS), Uganda.
Highlights
The overall objective of this study is to confirm factors that are relevant to board role performance in Uganda and empirically test the relationship between individual dimensions of the model of board role performance in Ugandan service firms
More evidence is provided by the Root mean square error of approximation (RMSEA) = 0.041 which is further supported by the Tucker-Lewis Index (TLI) result of 0.980
We asked them to indicate on a five-point Likert scale the extent of their agreement with a number of questions relating to the perceived board role performance in their respective service firms
Summary
The overall objective of this study is to confirm factors that are relevant to board role performance in Uganda and empirically test the relationship between individual dimensions of the model of board role performance in Ugandan service firms. This is because a paucity of empirical board role performance models to use in practice has often led to the perceived attrition of credibility of board role performance among firms. Understanding the nature of effective board role performance is important in management and.
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