Does Self-Control Moderate the Relationship between Social Influence and Savings Behavior among Small Business Owners?

Abstract

This study examined whether self-control moderates the association linking social influence to saving behavior among small business owners. Using a standardized questionnaire, the study utilized a cross-sectional design to collect data from 402 micro and small business owners based in Kampala City. Process macro was used to analyze the interactive impact of self-control and social influence on saving behavior. The findings showed a significant interactive effect of self-control and social influence on saving behavior in Kampala, Uganda. Also, the results showed that the social impact on micro and small business owners' saving actions, at any degree of self-control, has a significant impact. These findings provide the literature and theory in behavioral finance with valuable insights. The study employed a cross-sectional design, rejecting a longitudinal analysis. Furthermore, we focused on Kampala City, leaving out other Ugandan cities. For those with low self-control, the government can implement deliberate government policies that impose savings in national social security funds and scale up the percentage of social security system savings for all individuals with strong self-control. The study points to the moderating effect of self-control on the link between social influence and saving behavior.