Sustainable performance among power companies in Uganda: role of stakeholder orientation, human capital, regulatory governance, and management control systems

Abstract

Purpose The purpose of this study is to investigate the connections between the regulatory governance, human capital, stakeholder orientation, management control systems (MCSs) and sustainable performance (SP) of power companies. The authors especially looked at how much regulatory governance, human capital, stakeholder orientation and MCSs affect the SP across power companies in Uganda. Design/methodology/approach This is a cross-sectional and correlational study. Data were collected from 105 power companies using a questionnaire and analysed using SPSS. Findings Stakeholder orientation, MCSs, human capital and regulatory governance significantly predict variances in the SP of power providers in Uganda. Stakeholder orientation is the most important predictor of SP of power companies. Research limitations/implications The absence of validation from important stakeholders and the major reliance on company-provided data in existing research on SP raises the possibility of self-desirability bias. To evaluate and verify the information supplied by firms with external stakeholders, further studies might consider using an explanatory mixed methods technique, in which quantitative data are initially gathered from the managers of power companies and analysed and then validated by interviews with important stakeholders. Originality/value Using stakeholder, legitimacy and resource-based theories has provided a better explanation for SP which is a multi-dimensional notion. Moreover, the study adds to the body of perception-based research that offers direct management incentives for SP. The perspectives of managers have been gathered through the use of self-administered questionnaires to gather impressions of managers of businesses, which has helped to tap into all aspects of SP. The study’s results offer, probably for the first time to the best of the authors’ knowledge, evidence of the contextual elements that affect SP in African nations like Uganda particularly in the power sector.