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

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.