Local firm participation, road infrastructure quality, and the moderating role of government regulation in Uganda

Abstract

Purpose There is a paucity of empirical knowledge on the effect of local firm participation on road infrastructure quality and the moderating role of government regulation. This study investigates these relationships in the Ugandan context. Design/methodology/approach This study employed an explanatory research design to examine cause-and-effect relationships using a quantitative approach. Data were collected from a simple random sample of 241 construction contractors in Kampala District, Uganda, targeting senior managers due to their decision-making roles. Structured questionnaires with a five-point Likert scale were administered. Data analysis was conducted using SPSS version 27, with reliability assessed using Cronbach's Alpha and relationships examined using Pearson correlation and regression analyses. Findings Results show that local firm participation significantly improves road infrastructure quality, with government regulations strongly influencing this relationship. Enhancing training and knowledge sharing strengthens local firms' human capital, technology, and financial capacity. Effective regulatory frameworks, especially in licensing and compliance, improve contractor performance, expedite approvals, and enhance overall infrastructure quality. Originality/value This study is one of the first to examine how government regulations moderate the relationship between local firm participation and the road infrastructure quality in the context of a developing country. This study adopts the contractors' viewpoints, offering practical insights from project implementers, unlike the previous studies that have assessed road quality from the users' perspectives. The study also integrates the affirmative and public interest theories to provide a novel theoretical lens for understanding how regulatory frameworks shape infrastructure outcomes in Uganda and similar developing countries.