FINANCIAL LITERACY AND ORGANIZATIONAL PERFORMANCE IN THE HOTEL INDUSTRY IN GULU CITY, UGANDA
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Date
2026-10
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Gulu University
Abstract
This study examined the relationship between financial literacy and organizational performance in hotels in Gulu City, Uganda, with particular emphasis on the moderating effect of leadership styles. Specifically, the study assessed the levels of financial literacy and organizational performance, established the relationship between financial literacy and organizational performance, and examined the moderating effect of leadership styles on this relationship. A cross-sectional research design was adopted to collect data from respondents in selected hotels in Gulu City. The study examined financial skills, financial knowledge, financial behaviour, organizational performance, and leadership styles. Data were analysed using descriptive statistics, correlation, and regression analysis. The findings indicated a significant positive relationship between financial literacy and organizational performance (r = 0.581, p < 0.001). Regression analysis showed that financial literacy explained 47.2% of the variation in organizational performance (R² = 0.472). Financial skills, knowledge, and behaviour were associated with improved budgeting, resource management, financial accountability, and operational efficiency. Organizational performance was reflected in revenue growth, operational efficiency, and customer satisfaction. Leadership practices were also associated with employee performance, teamwork, discipline, and service delivery. The study concluded that financial literacy is an important factor associated with organizational performance in the hotel industry. It recommends continuous financial literacy training, adoption of appropriate financial management systems, promotion of sound financial practices, and effective leadership approaches to enhance hotel performance in Gulu City, Uganda.