Compliance with Quality Standards, Firm Ethical Orientation, and Usage of Locally Made Products in Uganda

Abstract

This paper aimed to establish the influence of ethical orientation of the firm on
the usage of locally made products as well as to test the mediation role of
compliance with quality standards between ethical orientation and usage of
locally made products in Uganda. The study adopted a cross-sectional survey
design with a quantitative deductive approach. The study population consisted
of manufacturing firms that are members of the Uganda Manufacturing
Association (UMA). A sample of 165 manufacturing firms that had introduced a
new product on the market in the last 5 years was selected. Data was collected
via a survey questionnaire and analyzed using Smart PLS 4, relying on the
variance-based Structural Equation Modelling (Partial Least Square).. Results
of the study indicated that ethical orientation, compliance with quality
standards, and usage of local products are positively and significantly related.
In addition, compliance with quality standards partially mediates between
ethical orientation and the usage of local products. These results provide new
insights into the role of the ethical orientation of firms and compliance with
quality standards towards increased usage of locally made products in Uganda.