Social Influence and Saving Behavior among Micro and Small Enterprise Owners in Kampala, Uganda: A Moderated Mediation Model of Financial Literacy and Self-Control



This research uses cross-sectional data from 430 micro and small enterprise owners in Kampala, Uganda, to examine the indirect effect of financial literacy on the relationship between social influence and savings behavior. In addition, the study examines the moderating effect of self-control on the relationship between financial literacy and savings behavior, in addition to its moderating role in the relationship between social influence and saving behavior. Finally, it studies the moderating effect of self on the indirect effect of financial literacy on the relationship between social influence and saving behavior. The study is motivated by social cognitive and social capital theories. For the analysis of data, Process Macro is used. Results show that social influence significantly predicts savings behavior, and financial literacy partially mediates by this relationship. Furthermore, self-control moderates the relationship between social influence and savings behavior and also the relationship between financial literacy and savings behavior. Lastly, self-control has a conditional impact on the indirect relationship between social influence and savings actions through financial literacy. Such results add new knowledge to literature and theory.


Social influence, financial literacy saving behavior, moderated mediation

Full Text:



Abebe, G., Tekle, & ManoY. (2016). Changing Saving and Investment Behavior: the Impact of Financial Literacy Training and Reminders on Micro-business CSAE Working Paper Series 2016-08. University of Oxford: Centre for the Study of African Economies,.

Aiken, L. S., West, S. G., & Reno, R. R. (1991). Multiple regression: Testing and interpreting interactions. sage.

Ameliawati, M., & Setiyani, R. (2018). The influence of financial attitude, financial socialization, and financial experience to financial management behavior with financial literacy as the mediation variable. KnE Social Sciences, 811-832.

Ariffin, M. R., Sulong, Z., & Abdullah, A. (2017). Students’ Perception towards Financial Literacy and Saving Behavior. World Applied Sciences Journal, 35(10), 2194-2201.

Arinaitwe, A., & Mwesigwa, R. (2015). Improving credit accessibility among SME’s in Uganda. Global Journal of Commerce and Management Perspective.

Arnone, W. J. (2004). Educating Pension Plan Participants, Pension Research Council Working Paper. Philadelphia: The Wharton School,University of Pennsylvania.

Atandi, F., Bwisa, H., & Sakwa, M. (2017). Improving Savings Mobilization of Micro and Small Enterprises through Entrepreneurial Financial Literacy International Journal of Academic Research in Business and Social Sciences, 7(2), 386-403.

Atkinson, A., & Messy, F. A. (2012). Measuring financial literacy.

Awais, M., Laber, M. F., Rasheed, N., & Khursheed, A. (2016). Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions: Empirical Evidence from Pakistan. International Journal of Economics and Financial Issues,, 6(1), 73-79.

Balatti, J. (2007). Financial literacy and social networks-what's the connection?

Balatti, J., Black, S., & Falk, I. (2006). Reframing adult literacy and numeracy: A social capital perspective. Adelaide.

Bandura, A. (1977). Self-efficacy: toward a unifying theory of behavioral change. Psychological review, 84(2), 191.

Bandura, A. (1989). Human agency in social cognitive theory. 44(9), 1175. . American psychologist, 44(9), 1175.

Bandura, A. (2005). The evolution of social cognitive theory. Great minds in management, 9-35.

Baron, R. M., & Kenny, D. A. (1986). “The moderator-mediator variable distinction in social psychological research: conceptual, strategic and statistical considerations”, . Journal of Personality and Social Psychology, 51(6), 1173-1182.

Bernheim, B. D., Ray, D., & Yeltekin, S. (2015). Poverty and Self‐Control. Econometrica 83(5), 1877-1911.

Brounen, D., Koedijk, K. G., & Pownall, R. A. (2016). Household financial planning and savings behavior. Journal of International Money and Finance, 69, 95-107.

Calderone, M., Mulaj, F., Sadhu, S., & Sarr, L. (2013). Does financial education affect saving behavior? Evidence from a randomized experiment among low-income clients of branchless banking in India. Financial Literacy and Education Trust Fund. Russia.

Carpena, F., Cole, S., Shapiro, J., & Zia, B. (2011). Unpacking the causal chain of financial literacy Policy Research Working Paper 5798.

Chowa, G. A., & Despard, M. R. (2014). The influence of parental financial socialization on youth’s financial behavior: Evidence from Ghana. Journal of Family and Economic Issues, 35(3), 376-389.

Dangol, J., & Maharjan, S. (2018). Parental and Peer Influence on the Saving Behavior of the Youth. International Research Journal of Management Science, 3, 42-63.

Delafrooz, N., & Paim, L. H. (2011). Determinants of saving behavior and financial problem among employees in Malaysia Australian Journal of Basic and Applied Sciences, 5(7), 222-228.

Dinc, M. S., & Budic, S. (2016). The impact of personal attitude, subjective norm, and perceived behavioural control on entrepreneurial intentions of women. Eurasian Journal of Business and Economics, 9(17), 23-35.

Duarte, L., & Oliveira, S. D. (2017). Social capital and savings behavior of the poor: evidence from the field. (PhD).

Esiebugie, U. (2018). Financial Literacy and Performance of Small and Medium Scale Enterprises in Benue State , Nigeria, 2(04), 65–79.

Franzoi, S. L. (2006). Social psychology (4th ed ed.). New York: McGraw-Hill.

Fujita, K., & Han, H. A. (2009). Moving beyond deliberative control of impulses: The effect of construal levels on evaluative associations in self-control conflicts Psychological Science, 20(7), 799-804.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (seventh edition ed.). Upper Saddle River, New Jersey Prentice Hall.

Hanachi, P. (2005). Development of a questionnaire for assessing factors predicting blood donation among university students: a pilot study.

Hayes, A. F. (2018). Partial, conditional, and moderated mediation: Quantification, inference, and interpretation. Communication Monographs, 85(1), 4-40.

Heale, R., & Twycross, A. (2015). Validity and reliability in quantitative research. vol. 0, no. 0, 66-67. Evidence-Based Nursing, 0, 66-67.

Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household financial management: The connection between knowledge and behavior. Fed. Res. Bull, 89, 309-322.

Homan, A. M. (2016). The influence of parental financial teaching on saving and borrowing behavior. University of Groningen.

Huat, S. A. M. Y. E. T., & Geetha, C. (2010). Financial Behavior amongst Undergraduate Students with and Without Financial Education : A Case among University Malaysia Sabah Undergraduates. 1, 210–224.

Jamal, A. A. A., Ramlan, W. K., Karim, M. A., & Osman, Z. (2015). The effects of social influence and financial literacy on savings behavior: A study on students of higher learning institutions in Kota Kinabalu, Sabah. International Journal of Business and Social Science, 6(11), 110-119.

Jose, E. P. (2008). Welcome to the Moderation/Mediation Help Centre, Version 2.0. Wellington: Victoria University of Wellington.

Kampumure, A. C. (2015). Social Capital, Networks, and Knowledge Transfer The Academy of Management Review, 30(1), 146-165.

Khatun, M. (2018). Effect of Financial Literacy and Parental Socialization on Students Savings Behavior of Bangladesh. International Journal of Scientific and Research Publications (IJSRP), 8. doi: 10.29322/IJSRP.8.12.2018.p8440

Kim, J., Eys, M., Robertson-Wilson, J., Dunn, E., & Rellinger, K. (2019). Subjective norms matter for physical activity intentions more than previously thought: Reconsidering measurement and analytical approaches. Psychology of Sport and Exercise, 43, 359-367.

Kim, J. H., & Park, E. Y. (2015). Mediating effect of self-control in relation to depression, stress, and activities of daily living in community residents with stroke. Journal of physical therapy science, 27(8), 2585-2589.

Kostakis, I. (2012). Households’ saving behavior in Greece corresponding countermeasures in financial crisis International Journal of Economic Practices and Theories, 2(4), 253- 265.

Lajuni, N., Abdullah, N., Bujang, I., & Yacob, Y. (2018). Examining the Predictive Power of Financial Literacy and Theory of Planned Behavior on Intention to Change Financial Behavior. 7(3), 60-66.

Lindner, C., Nagy, G., & Retelsdorf, J. (2015). The dimensionality of the Brief Self-Control Scale-an evaluation of unidimensional and multidimensional applications. Personality and Individual Differences, 86, 465-473.

Lown, J., Kim, J., Gutter, M., & Hunt, A. (2015). Self-efficacy and savings among middle and low income households. Journal of Family and Economic Issues, 36(4), 491-502.

Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy. Theory and evidence Journal of economic literature, 52(1), 5-44.

MacKinnon, D. (2012). Introduction to statistical mediation analysis: . Routledge.

Mobarake, R. K., Juhari, R., Yaacob, S. N., & Esmaeili, N. S. (2017). The moderating role of self-control in the relationship between peer affiliation and adolescents antisocial behavior in Tehran, Iran Asian Social Science, 10(9), 71.

Mohammed, J., Alekam, E., Salniza, M., Salleh, B., & Sanuri, S. (2018). The Effect of Family, Peer, Behavior, Saving and Spending Behavior on Financial Literacy among Young Generation International Journal of Organizational Leadership, 7, 309-323.

Morgan, P. J., & Trinh, L. Q. (2019). Determinants and Impacts of Financial Literacy in Cambodia and Viet Nam Journal of Risk and Financial Management, 12(1), 19.

Nepomuceno, M. V., & Laroche, M. (2017). When materialists intend to resist consumption: The moderating role of self-control and long-term orientation Journal of Business Ethics, 143(3), 467-483.

Ningsih, R. S., Widiyanto, W., & Sudarma, K. (2018). The Effect of Family Environment and School Environment Towards Savings Behavior Through Self Control in High School Students in Purwodadi City, Grobogan Regency. Journal of Economic Education, 7(1), 52-59.

Norvilitis, J. M., & MacLean, M. G. (2010). The role of parents in college students’ financial behaviors and attitudes. Journal of Economic Psychology, 31(1), 55-63.

Okello, C. B. G., Ntayi, J. M., Munene, J. C., & Nkote, N. I. (2016). Social capital: mediator of financial literacy and financial inclusion in rural Uganda. Review of International Business and Strategy, 26(2), 291-312.

Palamida, E. (2016). Determinants of entrepreneurial intentions: The interrelated role of background, situational and psychological factors. (PhD), Newcastle University.

Rios-Aguilar, C., & Deil-Amen, R. (2012). Beyond getting in and fitting in: An examination of social networks and professionally relevant social capital among Latina/o university students Journal of Hispanic Higher Education, 11(2), 179-196.

Sabri, M. F., & MacDonald, M. (2010). Savings Behavior and Financial Problems among College Students: The Role of Financial Literacy in Malaysia. Cross-Cultural Communication, 6(3), 103.

Sang, L., ZatulKaramah, A. U., Mail, R., Jamal, A. A. A., Osman, Z., & Mohidin, R. (2014). An Investigation of the Level and Determinants of Financial Literacy among Different Groups in Sabah (Doctoral), Universiti Malaysia Sabah.

Satsios, N., & Hadjidakis, S. (2018). Applying the Theory of Planned Behaviour (TPB) in Saving Behavior of Pomak Households International Journal of Financial Research, 9(2), 122-133.

Schagen, S., & Lines, A. (1996). Financial literacy in adult life A report to the Natwest Group Charitable Trust (pp. 36-45): NFER.

Sebstad, J., Cohen, M., & Stack, K. (2006). Assessing the outcomes of financial education. Washington, DC.

Sharu, H., & Guyo, W. (2015). Factors influencing growth of youth owned small and medium enterprises in Nairobi County, Kenya International Journal of Science and Research,, 4(4), 973-987.

Strömbäck, C., Lind, T., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2017). Does self-control predict financial behavior and financial well-being? . Journal of Behavioral and Experimental Finance, 14, 30-38.

Topa, G., Hernández, M., & Zappalà, S. (2018). Financial Management behavior among young adults: The role of Need for Cognitive Closure in a three-wave moderated mediation model. Frontiers in Psychology, 9, 2419.

Turyahikayo, E. (2015). Challenges faced by small and medium enterprises in raising finance in Uganda. International Journal of Public Administration and Management Research, 3(2), 21-33.

Vitell, S. J., Bing, M. N., Davison, H. K., Ammeter, A. P., Garner, B. L., & Novicevic, M. M. (2009). Religiosity and moral identity: The mediating role of self-control Journal of Business Ethics, 88(4), 601-613.

Xiao, J. J., & Porto, N. (2017). Financial education and financial satisfaction: Financial literacy, behavior, and capability as mediators. International Journal of Bank Marketing, 35(5), 805-817.

Yi, C. Y., Gentzler, A. L., Ramsey, M. A., & Root, A. E. (2016). Linking maternal socialization of positive emotions to children’s behavioral problems: The moderating role of self-control. Journal of Child and Family Studies, 25(5), 1550-1558.

Younas, W., Javed, T., Kalimuthu, K. R., Farooq, M., Khalil-ur-Rehman, F., & Raju, V. (2019). Impact of Self-Control, Financial Literacy and Financial Behavior on Financial Well-Being The Journal of Social Sciences Research, 5(1), 211-218.


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.