The effects of owner-managers' behavioural patterns on investment decisions among small-scale recycling firms in Tanzania

Abstract

Owner-managers make decisions on behalf of their firms. This study used cross-sectional data toinvestigate how owner-manager's behavioural factors influence investment decisions in terms of choice of recycling investments, share of recycling investment in the portfolio, and level of diversification in the waste recycling sector. Three analytical techniques were employed to analyse the data: the multivariate probit model to explore the effects of owner-manager's behavioural factors on the choice of specific waste recycling investments, multiple linear regression analysis to determine their influence on waste recycling investment share, and an ordered logistic regression model to study their effects on levels of diversification within the recycling investment portfolio. The results indicate that investors’ attitudes and subjective norms significantly affect both their choice of specific waste recycling investments and the level of diversification within the
recycling investment portfolio, while perceived behavioural control significantly affects the decision on waste recycling investment share. The research did not find evidence that attitude and subjective norms affect investment share nor that perceived behavioural control affects investment
choice and the level of diversification. These findings highlight the importance of considering owner-manager's behavioural factors in promoting sustainable and effective investment strategies in the waste recycling sector. Policymakers should develop programs to enhance positive attitudes toward waste recycling investments. Additionally, training programs for owner-managers should focus on increasing perceived behavioural control by improving access to resources and skills. Furthermore, social influence campaigns could be leveraged to strengthen the subjective norms supporting waste recycling investments.