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Social capital: mediator of social intermediation and financial services access

Nixon Kamukama (Department of Accounting, Makerere University Business School, Kampala, Uganda)
Bazinzi Natamba (Department of Accounting, Makerere University Business School, Kampala, Uganda)

International Journal of Commerce and Management

ISSN: 1056-9219

Article publication date: 30 August 2013

784

Abstract

Purpose

The paper examined the mediating effect of social capital in the relationship between social intermediation and financial services in Ugandan micro finance industry. The purpose of this paper is to establish the role of social capital in the relationship between social intermediation and financial services access.

Design/methodology/approach

The paper adopted the MedGraph program, Sobel tests and Kenny and Baron approach to test for mediation effects.

Findings

It is clear that the true drivers of access to financial services in the micro finance industry are social intermediation and social capital. However, social capital exhibits partial form of mediation in the relationship between social intermediation and access to financial services.

Research limitations/implications

A single research methodological approach was employed in the study. Owing to limitations associated therein, future research through interviews could be undertaken to triangulate.

Practical implications

Since social capital is found to be a causal chain in the relation between social intermediation and financial serves access in this study, managers in the micro finance industry should endeavor to reinforce agents of social capital (i.e. trust and social networks) since the lending relationships between the micro‐finance operators and marginalized communities are driven by social collateral.

Originality/value

This is the first study that focuses on testing the mediating effect of social capital in the relationship between social intermediation and financial services access in the Ugandan microfinance industry.

Keywords

Citation

Kamukama, N. and Natamba, B. (2013), "Social capital: mediator of social intermediation and financial services access", International Journal of Commerce and Management, Vol. 23 No. 3, pp. 204-215. https://doi.org/10.1108/IJCoMA-02-2012-0013

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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