Browsing by Author "Kasoga, Pendo Shukrani"
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Item An assessment of over-indebtedness among microfinance institutions’ borrowers: the Tanzanian perspective(Informa UK Limited, 2021-01-01) Kasoga, Pendo Shukrani; Tegambwage, Amani Gration; Tamer ElshandidyThe introduction of microfinance institutions is viewed as the best alter native source of financial services for low-income earners as a means to raise their income and reduce poverty. However, empirical research has indicated that the majority of microfinance institutions’ borrowers are over-indebted. Over indebtedness has negative consequences for debtors, creditors, and for the economy as a whole. Since over-indebtedness is a context-specific phenomenon, it lacks universally accepted indicators. This study aims to validate indicators of over indebtedness and examine the situation of over-indebtedness among micro borrowers in the context of Tanzania. A survey of 535 micro-borrowers was con ducted using a semi-structured questionnaire. Descriptive, thematic, and logistic regression techniques were employed for data analysis. Findings show that debt-to income ratio, multiple borrowing, and delinquency have a positive and significant effect on over-indebtedness. Further, findings indicate that over-indebted micro borrowers in Tanzania spend 75% or more of monthly income on servicing debts; are in the state of delinquency; are unable to meet basic needs due to loan repayment expenditure, have three or more credit commitments, and are in delin quency. To reduce over-indebtedness and hence poverty among micro-borrowers,Item Antecedents of customer loyalty in Islamic banking: evidence from Tanzania(Emerald Publishing Limited, 2021) Tegambwage, Amani Gration; Kasoga, Pendo ShukraniPurpose – This study aims to examine the association between relationship quality, service quality, customer satisfaction, switching barriers and Islamic banking customer loyalty using evidence from Tanzania. Design/methodology/approach – This study used correlational research design to test the hypotheses. Completed questionnaires were received from 572 Islamic bank customers in three major cities of Tanzania (Dar es Salaam, Dodoma and Zanzibar). Findings – There is a significant positive relationship between relationship quality, service quality, customer satisfaction and customer loyalty. Switching barriers have an insignificant effect on customer loyalty. Further, the four antecedents contribute differentially to customer loyalty, with service quality having the most significant contribution. Practical implications – The findings of the study can help managers of Islamic banks build and maintain customer loyalty through high service quality, high customer satisfaction and high-quality bank–customer relationships and attain a competitive advantage that would enable Islamic banks to grow and succeed in a competitive banking environment. Originality/value – This study provides new insights on Islamic banking consumer loyalty by comparing the levels of contributions of the customer loyalty antecedents in a single study. This knowledge would enable Islamic banks to identify antecedents that have the highest contribution to customer loyalty and where best to target marketing attention and limited corporate resources.Item Attributes of the internal audit function and effectiveness of internal audit services: evidence from local government authorities in Tanzania(Emerald, 2021-08-25) Mahyoro, Athuman Kalokola; Kasoga, Pendo ShukraniThe purpose of this study is to examine how the level of attributes of the internal audit function relates to the effectiveness of internal audit services in local government authorities (LGAs) in Tanzania. Data have been collected through a survey whereby 510 respondents from LGAs in Tanzania through their Heads of Internal Audit Functions, Internal Auditors and Chairpersons of Audit Committees respond to the questionnaire. The data were subjected to principal component analysis and exploratory factor analysis to reduce the set of items and to provide continuous scores for use in multiple regression analyses. The findings reveal that audit quality; organization setting and auditee attributes have a significant positive influence on the effectiveness of internal audit services in LGAs in Tanzania. The study covered only LGAs in Tanzania. Future research in this field should address the gaps identified in the study. This paper highlights areas that need management attention on the improvement of the effectiveness of internal audit units. This paper contributes to the literature of both internal auditing and management studies by linking the level of attributes of internal audit function which are audit quality, organization setting, auditee attributes and effectiveness of internal audit services in TanzaniaItem Determinants of customer loyalty in Islamic banking: the role of religiosity(Emerald Publishing Limited, 2023) Tegambwage, Amani Gration; Kasoga, Pendo ShukraniPurpose – The purpose of this study is to investigate the moderation effects of religiosity in the relationship between service quality (SQ), customer satisfaction (CS), relationship quality (RQ) and Islamic banking (IB) loyalty in a non-Islamic country. Design/methodology/approach – This study used a quantitative approach and a cross-sectional research design. The data was collected by a closed-ended questionnaire from a systematic sample of 267 customers of full-fledged Islamic banks in Tanzania. Structural equation modeling and regression analysis techniques were used to analyze the data. Findings – Results indicate that religiosity is a significant (p < 0.05) moderator of the relationship between SQ and loyalty (b = 0.176), and between CS and loyalty (b = 0.263). However, religiosity sharpens the impact of CS on loyalty (b increases from 0.170 to 0.263, p < 0.05) and does not sharpen the impact of SQ on loyalty (b decreases from 0.338 to 0.176, p < 0.05). The results further indicate that religiosity is not a significant moderator (p > 0.05) in the link between RQ and loyalty (b = 0.112). Research limitations/implications – This study used only full-fledged Islamic banks in Tanzania. Therefore, future research could be undertaken by including conventional banks that have introduced an IB window. Practical implications – To build and maintain a loyal customer base, Islamic banks should take advantage of religiosity by providing a wide range of Sharia-based products and services that truly distinguish them from conventional banks. Accordingly, policymakers should establish an appropriate legal framework to enable Islamic banks to leverage religiosity to sharpen the impact of CS on loyalty and hence maintain loyalty in non-Islamic countries like Tanzania. Originality/value – This study proposes and validates the theoretical model of loyalty in IB by showing the role of religiosity as a moderator in a non-Islamic country. This knowledge strengthens the overall understanding of loyalty in IB. To the best of the authors’ knowledge, this study is the first to examine the moderation effects of religiosity in the link between RQ and loyalty, and thus between SQ, CS, RQ and loyalty in a single studyItem Does investing in intellectual capital improvefinancial performance? panel evidence from firmslisted in Tanzania DSE(Cogent OA, 2020) Kasoga, Pendo ShukraniDespite that reviews have been done in intellectual capital and the performance of firms, their status has remained uncertain in the emerging economy. Previous studies have generally focused on single industries and have over-looked the input of the service and manufacturing sectors as a whole. This study offers new insight into the area of intellectual capital and its relationship with firms’ performance in Tanzania and evaluates intellectual capital within the service and manufacturing sectors in totality. Using panel regression analysis for the periods of 2010 to 2019, the performance was measured in terms of SG, ROA, ATO, and Tobin’s. Heteroscedasticity and endogeneity were controlled using clustered robust standard errors. The empirical findings demonstrate a significant positive influence between structural capital efficiency and SG, ROA, ATO, and Tobin’s. However, the effect of human capital efficiency and capital employed efficiency were negative which suggests poor investment in human skills and capital of the firms. Further, VAIC was significantly positively associated with SG, ATO, ROA, and Tobin’s Q. It is recommended that to have a competitive advantage, managers and policymakers should focus on the three parts of intellectual capital which are the key drivers of value creation in the organization.Item Heuristic biases and investment decisions: multiple mediation mechanisms of risk tolerance and financial literacy—a survey at the Tanzania stock market(Emerald, 2021-11-01) Kasoga, Pendo ShukraniThe purpose of this research is to examine the effect of heuristic biases on investment decisions through multiple mediation mechanisms of risk tolerance and financial literacy in the Tanzanian stock market. A sample of 316 individual investors in the Tanzanian stock market was obtained through questionnaires. The data were analyzed using structural equation modeling (SEM). The findings show that financial literacy mediates insignificantly the effects of overconfidence, availability, anchoring and representativeness heuristics on investment decisions. Further, financial literacy does not influence the effect of risk tolerance and investment decisions. Risk tolerance is confirmed as a positive mediator of overconfidence, availability, anchoring and representativeness heuristics in investment decisions. Also, the study shows that overconfidence exerts a stronger influence on investment decisions, followed by availability, representativeness, risk tolerance, anchoring and financial literacy. The study deals with real investors. Therefore, it uses fewer items to measure the constructs in order to avoid respondent bias. Further research could examine the effects of heuristic biases on investment decisions by adding or modifying the items of particular constructs and studying institutional investors. The findings can help individual investors to analyze and evaluate their behavior toward stock selection. Securities institutions can use this research to understand investors’ behavior, evaluate future market trends and provide advice to the investors. Previous studies have examined the impact of heuristics on the investment decisions of individual investors. The unique empirical analysis developed in this paper is that it examines the multiple mediation mechanisms of risk tolerance and financial literacy with respect to heuristic biases and investment decisions in the Tanzanian stock marketItem Innovation attributes composite and adoption of Activity-Based Costing (ABC) in Tanzanian manufacturing and service sectors: The mediating role of behavioral preferences(World Scientific Pub Co Pte Ltd, 2023) Molela, Godfrey Frank; Kasoga, Pendo Shukrani; Ismail, Ismail JumaThis study was conducted to explore barriers to ABC adoption in the Tanzanian manufacturing and service sectors, notwithstanding its superiority over the traditional costing system. It went further to suggest solutions to such barriers by evaluating the mediating role of behavioral preferences on the causal relationship between the innovation attributes composite and ABC adoption. Based on the cross-sectional survey design, primary data were collected from a sample of 188 companies located in the Dar es Salaam, Arusha and Dodoma regions. Partial least squares structural equation modeling (PLS-SEM) revealed that none of the behavioral preferences positively mediated the causal relationship between the innovation attributes composite and ABC adoption at level 1. At level 2, the findings show that, it was the mediating effect by the perceived usefulness ([Formula: see text], [Formula: see text]) only that was statistically significant. With the exception of the perceived ease of use, the mediating effects by perceived usefulness ([Formula: see text], [Formula: see text]) and normative beliefs ([Formula: see text], [Formula: see text]) were further confirmed to be statistically significant at level 3 of adoption. Moreover, the mediating effects by the perceived ease of use ([Formula: see text], [Formula: see text]) and normative beliefs ([Formula: see text], [Formula: see text]) were found to be statistically significant at level 4 of adoption. At the highest level 5 of ABC adoption, it was the normative belief ([Formula: see text], [Formula: see text]) only that positively mediated the causal relationship between the innovation attributes composite and ABC adoption.Item Microfinance institutions and women's empowerment: empirical evidence in Tanzania(INDERSCIENCE publishers, 2020) Kasoga, Pendo ShukraniThe study examines whether microfinance institutions (MFIs) empower Tanzanian women and identifies challenges that face women in gaining empowerment. Descriptive survey design involving 525 respondents was employed. Selection was done by simple random technique. Personal interview was used to collect data. Data were analysed using structural equation modelling and thematic analysis. The findings indicate that women participating in the MFIs were empowered in terms of control over income and savings, decision making, freedom to move to the markets or banks, purchase independently and knowledge of legal rights. The ability to purchase furniture independently and to move to the parents and siblings were insignificant. Market and business instability, high interest rate of the loans provided, bureaucracy in loan processing, family responsibility and shortage of capital were the challenges which impede women in gaining empowerment. Policies should be designed which have noteworthy of success which test program and product innovations that address women's difficulties.Item Psychological traits and investment decisions: the mediation mechanism of financial management behavior – evidence from the Tanzanian stock market(Emerald Publishing Limited, 2022) Kasoga, Pendo Shukrani; Tegambwage, Amani GrationDesign/methodology/approach – A sample of 268 individual investors in the Tanzanian stock market was obtained through questionnaires. The data were analyzed using structural equation modeling. Findings – The findings show that self-control, optimism and deliberative thinking are significantly and positively related to FMB and investment decisions. The findings also confirmed the mediating role of FMB in the influence of self-control, optimism and deliberative thinking on investment decisions among Tanzanian individual investors. These findings imply that people with good self-control, optimistic and deliberative thinking are more likely to save money, have better FMB and prefer to make investment decisions. Research limitations/implications – The study deals with individual investors. Future research could examine the effects of psychological traits on investment decisions by adding or modifying the items of particular constructs and studying institutional investors. Practical implications – Individual investors can use the information to study and evaluate their financial behavior and stock investment decisions. This research can be used by security firms to better understand investor behavior, forecast future market trends and advice investors. Individual investors require psychological features to manage their behavior in various aspects, ranging from affective behavior to cognition, which are relevant for investing decisions. Originality/value – Few studies have examined the influence of self-control, optimism and deliberative thinking on the investment decisions of individual investors. The unique empirical analysis developed in this paper is that it examines the mediation mechanisms of FMB with respect to self-control, optimism and deliberative thinking and investment decisions among individual investors in the Tanzanian stock market.Item Psychological traits and investment decisions: the mediation mechanism of financial management behavior – evidence from the Tanzanian stock market(Emerald Publishing Group, 2022) Kasoga, Pendo Shukrani; Tegambwage, Amani GrationThe purpose of the paper is to examine the financial management behavior (FMB) mediation mechanism in self-control, optimism, deliberative thinking and investment decisions in the Tanzanian stock market. Design/methodology/approach – A sample of 268 individual investors in the Tanzanian stock market was obtained through questionnaires. The data were analyzed using structural equation modeling. The findings show that self-control, optimism and deliberative thinking are significantly and positively related to FMB and investment decisions. The findings also confirmed the mediating role of FMB in the influence of self-control, optimism and deliberative thinking on investment decisions among Tanzanian individual investors. These findings imply that people with good self-control, optimistic and deliberative thinking are more likely to save money, have better FMB and prefer to make investment decisions. The study deals with individual investors. Future research could examine the effects of psychological traits on investment decisions by adding or modifying the items of particular constructs and studying institutional investors. Practical implications – Individual investors can use the information to study and evaluate their financial behavior and stock investment decisions. This research can be used by security firms to better understand investor behavior, forecast future market trends and advice investors. Individual investors require psychological features to manage their behavior in various aspects, ranging from affective behavior to cognition, which are relevant for investing decisions. Few studies have examined the influence of self-control, optimism and deliberative thinking on the investment decisions of individual investors. The unique empirical analysis developed in this paper is that it examines the mediation mechanisms of FMB with respect to self-control, optimism and deliberative thinking and investment decisions among individual investors in the Tanzanian stock market.Item Relationship quality and customer loyalty in the Tanzanian microfinance sector(Springer Nature, 2022) Tegambwage, Amani Gration; Kasoga, Pendo ShukraniThe study examines the mediating effects of relationship quality (RQ) on the link between its antecedents and loyalty as well as the impacts of individual antecedents of RQ on the two marketing of services outcomes, namely RQ and loyalty. A questionnaire derived from previous studies was completed by 424 microfinance institutions (MFIs) borrowers in Tanzania. Structural equation modeling (SEM) assessed the influence of the five individual antecedents of RQ, namely trust, commitment, satisfaction, communication, and conflict handling on RQ and loyalty, and the mediating effects of RQ between its antecedents and loyalty. All five individual antecedents were significant predictors of RQ, with conflict handling playing the biggest role. In addition, trust, communication, commitment, and conflict handling were significant predictors of customer loyalty, with trust exerting the strongest influence, while satisfaction had an insignificant influence. Moreover, RQ mediates the relationship between loyalty and trust, commitment, communication, and conflict handling, but cannot mediate the link between satisfaction and loyalty. The study contributes to the conceptualization of RQ and its consequences in the nascent field of microfinance services research. Building borrower loyalty to MFI requires an understanding and enhancement of trust, commitment, communication, and conflict handling. However, greater emphasis should be placed on trust because of its superior influence on borrower loyalty to MFI.