Influence of Indulgence on Entrepreneurial Opportunity Exploitation among Small and Medium Enterprises Owners in Tanzania: Mediating Effect of Innovativeness

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Date

2023-06

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Tanzania Institute of Accountancy

Abstract

The purpose of this study was to examine the direct and indirect influence of indulgence on entrepreneurial opportunity exploitation among small and medium enterprise owners in Tanzania. The specific objectives were to examine the influence of indulgence on entrepreneurial opportunity exploitation and to examine the mediating effect of innovativeness on the relationship between indulgence and entrepreneurial opportunity exploitation. The study employed an explanatory research design in which 370 small and medium enterprise owners were studied using a cross-section survey questionnaire. Partial least square structural equation modelling was used to test the hypotheses for the direct and indirect effects of indulgence on entrepreneurial opportunity exploitation. Empirical results indicated that indulgence has a positive and significant direct influence on entrepreneurial opportunity exploitation among small and medium enterprise owners. Also, mediation effects indicated that innovativeness had positive and significant indirect effects on the relationship between indulgence and entrepreneurial opportunity exploitation. Theoretically, the study implies that innovativeness is the mechanism through which indulgence influences entrepreneurial opportunity exploitation. Moreover, the study implies that indulgent values influence SME owners’ behaviour toward entrepreneurial opportunity exploitation. Policymakers should incorporate indulgent values and innovativeness characteristics when formulating business policies and strategies that aim at promoting entrepreneurial opportunity exploitation.

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Cultural values, innovativeness, entrepreneurship, opportunity exploitation. DOI: https://dx.doi.org/10.4314/ajasss.v5i1.3

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