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 onthe usage of locally made products as well as to test the mediation role ofcompliance with quality standards between ethical orientation and usage oflocally made products in Uganda. The study adopted a cross-sectional surveydesign with a quantitative deductive approach. The study population consistedof manufacturing firms that are members of the Uganda ManufacturingAssociation (UMA). A sample of 165 manufacturing firms that had introduced anew product on the market in the last 5 years was selected. Data was collectedvia a survey questionnaire and analyzed using Smart PLS 4, relying on thevariance-based Structural Equation Modelling (Partial Least Square).. Resultsof the study indicated that ethical orientation, compliance with qualitystandards, and usage of local products are positively and significantly related.In addition, compliance with quality standards partially mediates betweenethical orientation and the usage of local products. These results provide newinsights into the role of the ethical orientation of firms and compliance withquality standards towards increased usage of locally made products in Uganda.