Psychological Ownership and Risk Governance: The Mediating Role of Collectivist Orientation

Abstract

The purpose of this paper is to report on the results of a study carried out to examine the mediating effect of collectivist orientation in the relationship between psychological ownership and risk governance in Financial Institutions (FIs) in Uganda. The study was based on cross-sectional survey data. Closed ended questionnaires were distributed to 112 Risk Managers in financial institutions in Uganda. Data obtained were analyzed using SPSS and SmartPLS version 3.3.0. The results generated from the study show that both psychological ownership and collectivist orientation positively and significantly influence risk governance. Results further indicate that collectivist orientation partially mediates the relationship between psychological ownership and risk governance of FIs. This study only focused on risk governance in FIs, it is highly possible that the results may not be equally applicable to risks in other sectors. Secondly, our study used a cross sectional and quantitative research design, which means that changes in behavior over time may affect the study findings. The study offers initial evidence on the relationship between psychological ownership and risk
governance using evidence from a developing economy. In addition, earlier literature has not tested the mediation effect of collectivist orientation in the relationship between psychological ownership and risk governance in FIs.

Keywords: Psychological Ownership, Collectivist Orientation, Risk Governance, Stewardship Theory, Financial Institutions.