Personality characteristics influencing food processing innovativeness in Arusha, Tanzania

Abstract

In Tanzania, Arusha Region is one of the hubs of numerous food processing firms, and despite the intentional efforts by the government in insuring that the manufacturing sector becomes innovative, the food processing sub-sector still lags behind. The specific objectives of this study were to determine the relationship between socio-economic characteristics of firm owners/managers and economic factors of food processing firms; and examine the influence of socio-economic factors of firm owners/managers on innovativeness. The Upper Echelon Theory was used to guide this study. A cross-section survey research design was used. The study involved 224 respondents selected through proportionate stratified sampling in Arusha City and Arusha District Council. Data were analyzed using ordered logistic regression and Pearson correlation using Smart PLS software version 4. Sex had significant positive effect on innovativeness (coefficient = 0.8177, p = 0.006); older age (above 60 years) demonstrated a significant positive effect on innovativeness (coefficient =2.5497, p = 0.001). Being a widow/widower had a significant negative effect on innovativeness (coefficient = -2.0171, p = 0.018). Education had no significant influence on innovativeness. Firms being in the registration process with quality authority had a significant positive effect on innovativeness (coefficient = 1.1468, p = 0.001). It is concluded that personality characteristics influences firm innovativeness. Also, a firm being in the process of being registered with quality regulatory authority and the number of employees the firms had significantly influenced firm innovativeness, it is concluded that the innovativeness of a firm depends not only on the personality of the firm owner/manager, but it is also a function of a number of components which are related. Education did not have significant influence on firm innovativeness; it is concluded that innovativeness is not a function of intelligence, but entrepreneurial skills and knowledge such as importance of quality regulation, backed by willingness and desire to have relevant support system/team. Food processing firms should ensure they balance growth on all the units to maintain their stability and survival. Education policy makers should ensure that education provided is based on entrepreneurial skills and knowledge that will enable graduates to have innovative behavior to support them compete in the market at all angles. This paper is unique because it is the first in Tanzania to study about the subject matter and has revealed interesting results about firm innovativeness. It has also provided insights on the triggers of innovation in low tech firms in developing nations.