Mediating Role of Process Innovation on the Relationship Between Entrepreneurial Training and Business Performance of Women Food Vendors in Ilala Municipality, Tanzania

Abstract

This study was aimed to investigate the mediating role of process innovation on the relationship between entrepreneurial training and the business performance of women food vendors in Ilala Municipality, Tanzania. Understanding this relationship is important since entrepreneurship is regarded as a crucial aspect of economic development in general and within informal economies that theory of innovation, the study used a quantitative method to analyse data from 349 women food vendors, using partial least squares structural equation modelling (PLS-SEM). The results indicate that entrepreneurial training has a positive impact on process innov = 0.327, p < 0.001). The mediation analysis demonstrates that training has a statistically significant indirect effect on performance through process innovation ( 0.001), suggesting that mediation accounts for 43% of the total effect. These findings suggest that there is a value in developing more targeted training programs related to process innovation projects, as well as support for better business performance. Ultimately, it is critical for decision makers and trade practitioners involved in development to co-design skills programs pertaining to capacity building and innovation that are geared toward building up informal economy development and sustainability. In this respect, this study recommends the incorporation of entrepreneurial training blended with process innovation to realize measurable business performance. Future research might examine the longer-term effects of such interventions beyond This study and considers the use of digital tools in creating an environment of innovation for women entrepreneurs.