Effect of Process Innovation on the Performance of Women-owned Food Processing Micro and Small Enterprises in Tanzania

Abstract

This study examined the effect of process innovation on the performance of women-led food processing Micro and Small Enterprises (MSEs) in Tanzania. The study also explores the mediating role of innovative performance in explaining the relationship between process innovation and performance, using the cross-sectional research design. The study used a structured questionnaire to collect data from 297 participants from four regions. Data was analyzed with the help of the Smart PLS version 3.0 Software, using the Structural equation Modelling (SEM). Based on the findings, the study concluded that the performance of women entrepreneurs is associated with process innovation. However, the mediation effect of innovative performance was non-existent. The study therefore recommended that women need to use modern technology to enhance the performance in their micro and small business enterprises.