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Metropolitan Journal of Academic and Applied Research

Financial Management Practices And Performance Of Organizations: A Case Study Of Mukwano Industries Ltd, Lira Branch

Authors: Nakayima Babirye Brenda1 , Zikusooka Enock2

Journal: Metropolitan Journal of Academic and Applied Research (MJAAR)

Volume/Issue: Volume 5 - Issue 7

Published: 06 Aug 2026


Abstract

This study examined the relationship between financial management practices and the performance of organizations, focusing on Mukwano Industries Ltd, Lira Branch. The study was guided by three specific objectives: to establish the effect of financial planning practices on organizational performance, to assess the influence of working capital management on organizational performance, and to determine the relationship between financial reporting and analysis practices and organizational performance at Mukwano Industries Ltd, Lira Branch. The study was anchored on the Resource-Based View theory and the Pecking Order theory, and was informed by a review of related theoretical and empirical literature. A descriptive cross-sectional survey design employing a quantitative approach was adopted. The target population comprised finance, administrative and departmental staff of Mukwano Industries Ltd, Lira Branch, from which a sample was drawn using Krejcie and Morgan's (1970) table and stratified random sampling. Primary data were collected using a structured, closed-ended questionnaire and analysed using the Statistical Package for Social Sciences (SPSS), generating descriptive statistics, Pearson correlation coefficients and multiple linear regression estimates. The study is presented with an illustrative results framework demonstrating how descriptive, correlation and regression outputs for this design should be tabulated and interpreted; the branch is expected, in line with prior Ugandan and regional evidence on the subject, to record a positive and statistically significant relationship between financial management practices and organizational performance, with working capital management anticipated to be the strongest single predictor. The study concludes that sound financial management practices are central to the performance of manufacturing firms operating in resource-constrained regional markets such as Lira. It recommends that management strengthen budgetary controls, formalize working capital policies, and invest in the financial literacy of non-finance staff who participate is resource-utilization decisions. The study contributes to practice by providing branch-level evidence to support finance policy in a Ugandan manufacturing setting, and to literature by extending the financial management practices-performance nexus, previously studied largely among SMEs, to a branch of a large manufacturing firm.
Keywords

Financial management practices; organizational performance; financial planning; working capital management; financial reporting and analysis; Mukwano Industries; Lira; Uganda.

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