MJAMR

Corporate Governance, Product Innovation, Customer Satisfaction and Shareholder’s Value. A Case Study of Selected Construction Firms in Kampala

Alex Irumba, Victor Mugabi


Abstract

The study examined the relationship between corporate governance, product innovation, customer satisfaction and shareholder value among construction firms in Kampala. This study was a cross-sectional design with a quantitative research approach. It was conducted across a total of 66 construction firms in Kampala from a total of 78. Primary data used in the study was obtained from R&D manager, marketing manager, managing director and finance manager using a structured questionnaire. This study used Content Validity Index (CVI) and expert judgment to check instrument validity while pretesting and Cronbach Alpha coefficient tested reliability. Data was sorted, edited, cleaned and later entered in Statistical Package for Social Scientists (SPSS. v.25) for analysis. Both frequency tables and inferential statistics were used to interpret results. Testing of mediation was carried out with the help of a Med-Graph system. The study found that corporate governance and shareholder’s value are positively correlated. A positive relationship was established between corporate governance and customer satisfaction. It was obtained that there exists a positive relationship between product innovation and customer satisfaction. There was a positive relationship between product innovation and shareholder’s value. Customer satisfaction was noted to partially mediate the relationship between corporate governance and shareholder value. On the other hand, customer satisfaction was a full mediator in the relationship between product innovation and shareholder value. This study concludes corporate governance, product innovation and customer satisfaction cannot be taken for granted as far as boosting shareholder value is concerned. This research recommends; improving corporate governance; research.miu.ac.ug/publications 237 METROPOLITAN JOURNAL OF SOCIAL AND EDUCATIONAL RESEARCH ISSN: 1813-4270 Vol. 2 Issue 4, July - 2023, Pages: 237-252 intensifying product innovation; and prioritize customer satisfaction as one of the major core values.

Keywords

corporate governance product innovation customer satisfaction and
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Alex Irumba & Victor Mugabi (2023). Corporate Governance, Product Innovation, Customer Satisfaction and Shareholder’s Value. A Case Study of Selected Construction Firms in Kampala. Metropolitan Journal of Academic Multidisciplinary Research, 2(7). https://journals.miu.ac.ug/pages/article.php?article_id=1338

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