Managerial Competences and Financial performance of MFIs in Uganda

The study investigated the relationship between Managerial Competences and Financial performance of Microfinance Institutions (MFIs) in Uganda while examining the mediating effect of competitive advantage and stakeholder management's moderating effect therein. Following a post-positivist research philosophy, the study adopted a Sequential Explanatory mixed methods approach (QUAN-Qual). Pearson correlation analysis was performed to test the associations between managerial competences, competitive advantage and financial performance. Using hierarchical regression, it was confirmed that competitive advantage partially mediates the relationship between managerial competences and financial performance of MFIs in Uganda. The study also found a partial moderation effect of stakeholder management in the relationship between managerial competences and financial performance. The study concludes that MFIs can only benefit if they appreciate the competences of management in their recruitment and retention processes and strategy as well as nourish their competitive strategies and refine their strategic direction, thus improving financial performance.