Quantitative Methodological Approach in Measuring Entrepreneurial Capabilities
DOI:
https://doi.org/10.26437/ajar.v11i1.874Keywords:
Capabilities. cultural. econometric. entrepreneurial. TanzaniaAbstract
Purpose: The paper seeks to develop and validate a comprehensive framework for measuring entrepreneurial capabilities across business contexts and organisational scales.
Design/Methodology/Approach: Cross-sectional research involved 254 owners of SMEs from Sukuma and Chagga ethnic groups. The snowball sampling procedure was first adopted to obtain the list of the Sukuma and Chagga owners of SMEs. Then, proportionate stratified sampling was adopted to select a final subject. Data were gathered using a questionnaire, where factor analysis was performed to reduce the number of predictors. A logit model was thereafter performed to establish the influence of predictors on entrepreneurial capabilities. Further, using the Whitney U test, a comparison of ways to preserve drivers of entrepreneurial capabilities between the Sukuma and Chagga owners of SMEs was performed.
Findings: Factor analysis reduced 52 predictors into six variables, which were further subjected to a logit model. The findings indicated that social factors, beliefs, norms, attitudes, and values were statistically significant while perception was insignificant. The difference in ways to preserve socio-cultural determinants between the Sukuma and Chagga was statistically significant, and the effect size was very high.
Research Limitation: The research was limited by the use of the logit model and the Man Whitney U test. Other econometric models, such as multiple linear regression, Tobit, Probit, etc., should be considered in the future.
Practical implications: The approach will help researchers and academicians to quantify socio-cultural studies and perform factor analysis step by step to reduce variables for further analysis using econometric models.
Social Implication: This approach will have social implications. Social scientists will be able to forecast the effect of social variables on certain variables under study, thus enabling the setting of priorities during intervention.
Originality: This research fills a significant gap in entrepreneurship literature by providing a validated, comprehensive framework for measuring entrepreneurial capabilities across different contexts and scales.
References
Anderson, J. A. (1982). Logistic regression. Handbook of Statistics. North-Holland, New York. pp169-191.
Akanle, K. B. & Akanle, A. O. (2024). Entrepreneurship in Nigeria: An Appraisal of Selected Issues and Applicable Legal Framework. East African Journal of Law, Policy and Globalization (Est Af. JLP&G), 2(1), 1-26.
Al-Shammari, M. & Aziz, W. A. (2024). Innovation, Entrepreneurship, and Economic Growth: A Proposed Framework. International Journal of Scientific Research and Innovative Studies, 3(1), 21-27.
Bengesi, K. M. K. (2013). Strategic entrepreneurial response of small and medium enterprises. Dissertation for Award of PhD Degree at University of Pretoria, South Africa. 340pp.
Boldureanu, G., Stoian, C. L., Bercu, A. M., Sandu, C. B. & Boldureanu, D. (2024). Entrepreneurship Development in European Union-Challenges and Opportunities for Young People. European Journal of Sustainable Development, 13(2), 79-99. Doi: 10.14207/ejsd.2024.v13n2p79.
Chen, J., Carlson, B. E. & Del Ganio, A. D. (2002). Evidence for strengthening of the tropical general circulation in the 1990s. Science, 295, 838–841. https://doi.org/10.1126/science.1065835.
Cochran, W. G. (1977). Sampling techniques (3rd ed.). John Wiley and Sons, New York. 96pp.
Cohen, J. W. (1988). Statistical power analysis for the behavioral sciences (2nd edn). Lawrence Erlbaum Associates, Hillsdale, New Jersey. 590pp.
Emerson, R. W. (2023). Mann-Whitney U test and t-test. Journal of Visual Impairment and Blindness (JVIB), 117(1). https://doi.org/10.1177/0145482X221150592.
Field, A. (2013). Discovering Statistics using IBM SPSS (4th Ed). Sage Publications, London. 908pp.
Garud, R., Gehman, J., & Giuliani, A. (2014). Contextualizing entrepreneurial innovation: a narrative perspective. Res. Policy, 43 (7), 1177–1188.
Grzelak, M., Owczarek, P., Stoica, R.-M., Voicu, D. and Vilău, R. (2024). Application of Logistic Regression to Analyze the Economic Efficiency of Vehicle Operation in Terms of the Financial Security of Enterprises. Logistics, 8(2), 46, 1-14. https://doi.org/ 10.3390/logistics8020046.
Haule, E., Nduku, E. & Wambiya, P. (2023). Strategies for Cultivating Entrepreneurial Culture to Prepare Undergraduates for Self-Employment in Northern Tanzania. Journal of Research Innovation and Implications in Education, 7(4), 106 – 116. https://doi.org/10.59765/ngiq59er.
Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrika 39: 31-36.
Kim, S. & Davidson, A. (2024). Entrepreneurship in South Africa Townships: Ecosystem Challenges and Recommendations for the Path Forward. Aspen Network of Development Entrepreneurs, Aspen Institute. South Africa. https://andeglobal.org/wp-content/uploads/2024/02/Entrepreneurship-in-the-South-African-Townships-28022024.pdf.
Koomson, I., Zhang, P. & Prakash, K. (2024). Entrepreneurship and subjective wellbeing in China: Exploring linkages and potential channels. Journal of Business Venturing Insights, 21(2024), 1-10. https://doi.org/10.1016/j.jbvi.2024.e00449.
Lerner, J., Liu, J., Moscona, J. & Yang, D. Y. (2024). Harvard School of Business. Working paper 24-061. https://www.hbs.edu/ris/Publication%20Files/24-061_20f5ee6c-0965-4270-9aec-7771e2197c57.pdf.
Li, G. & Qin, Y. (2024). An Exploration of the Application of Principal Component Analysis in Big Data Processing. Applied Mathematics and Nonlinear Science, 9(1), 1-24. https://doi.org/10.2478/amns-2024-0664.
Majenga, A. K., Namabira, J. & Justin, E. K. (2024). Comparative Analysis between Kilolo and Iringa Districts Voluntary Financial Saving Groups. International Journal of Management, Accounting and Economics, 11(9), 1220-1242. DOI: https://doi.org/10.5281/zenodo.13764719.
Majenga, A. K., Namabira, J. & Justine, E. K. (2024). Promoting Rural Entrepreneurship in Tanzania through Empowering Voluntary Financial Saving Groups: Practices and Challenges. African Journal of Applied Research, 10(1), 275-294. https://doi.org/10.26437/ajar.30.06.2024.17.
Makuya, V. & Mfumbilwa, . E. E. (2024). Perceived university entrepreneurship support services and entrepreneurial intentions: experiences from the University of Dodoma’s graduates. African Business Management Journal, 2(1), 15-39. https://doi.org/10.58548/2024abmj21.1530.
Mashenene, R. G. (2019). Entrepreneurial Capabilities between the Chagga and Sukuma Owned Small and Medium Enterprises in Tanzania: A Comparative Study. African Journal of Applied Research, 5(1), 12-32. DOI: http://doi.org/10.26437/ajar.05.01.2019.02.
Mashenene, R. G. (2016). Socio-cultural Determinants of Entrepreneurial Capabilities among the Chagga and Sukuma Owned Small and Medium Enterprises in Tanzania. Thesis for Award of PhD Degree at Sokoine University of Agriculture, Morogoro, Tanzania. 274pp.
Mashenene, R. G., Lyimo-Macha, J. G. & Donge, L. (2014). Socio-Cultural Determinants of Entrepreneurial Capabilities among the Chagga and Sukuma Small and Medium Enterprises in Tanzania. Journal of Economics and Sustainable Development 5(17): 90–103.
Mehrabinezhad, A., Teshnehlab, M., & Sharifi, A. (2024). A comparative study to examine principal component analysis and kernel principal component analysis-based weighting layer for convolutional neural networks. Computer Methods in Biomechanics and Biomedical Engineering: Imaging & Visualization, 12(1), 1-12. https://doi.org/10.1080/21681163.2024.2379526.
Mungai, E. N. (2013). Socio-cultural Factors and Entrepreneurial Intentions of Undergraduate Students in Public Universities in Kenya. Dissertation for Award of PhD Degree at University of Nairobi). 175pp.
Musah Donkoh, I., Vu, H. M., & Nwachukwu, C. (2021). Entrepreneurial Orientation And Small And Medium Enterprises Profitability In Ghana. Management Research & Practice, 13(1).
Namwata, B. M. L., Kikula, I. S. & Kopoka, P. A. (2015). Access of urban farmers to land, water and inputs for urban agriculture in Dodoma municipality, Tanzania. Journal of African Studies and Development, 7(1), 31 - 40.
Nkegbe, W. K. (2024). A logit model approach to the examination of parents’ willingness to contribute towards the cost of senior high school education: The case of parents in Tamale, Ghana. Social Sciences and Humanities Open, 9(2024) 100832, 1-7. https://doi.org/10.1016/j.ssaho.2024.100832.
Nyange, T. M., Sikira, A. N., & Lyimo-Macha, J. G. (2016). Gender Based Violence and Legal Aid Services Interventions among Rural Women in Morogoro Rural and Kongwa Districts, Tanzania. International Journal of Asian Social Science 6(8), 446-461.
Okoye, K., & Hosseini, S. (2024). Mann–Whitney U Test and Kruskal–Wallis H Test Statistics in R. In: R Programming. Springer, Singapore. https://doi.org/10.1007/978-981-97-3385-9_11.
Pallant, J. (2016). SPSS Survival Manual. A Step by Step Guide to Data Analysis using IBM SPSS. 6th Edition. McGraw Hill Education, England. 377pp.
Saab, G., Jamhour, T., El-Hayek, M.-M. and Yaacoub, H.K. (2024). The Logit Model: A Prediction of Future Economic Events. Journal of Mathematical Finance, 14, 124–129. https://doi.org/10.4236/jmf.2024.141006.
Saunders, M., Lewis, P. & Thornhill, A. (2007). Research Methods for Business Students 4th ed. Prentice Hall, London. 211pp.
Schumpeter, J. A. (1943). The Theory of Economic Development. Havard University Press.
Somwethee, P. & Aujirapongpan, S. (2023). The Influence of Entrepreneurial Capability and Innovation Capability on Sustainable Organization Performance: Evidence of Community Enterprise in Thailand. Journal of Open Innovation Technology Market and Complexity, 9(1), 1-12. DOI: 10.1016/j.joitmc.2023.100082.
Tundui, H. P. (2012). Gender and Small Business Growth in Tanzania: The Role of Habitus. University of Groningen, Groningen, the Netherlands. 254pp.
United Republic of Tanzania (2003). Small and Medium Enterprise Development Policy 2003. Ministry of Trade and Industry, Dar Es Salaam, Tanzania. 35pp.
Wachira, P. M. (2024). Entrepreneurial Capabilities and Performance of Small and Medium Enterprises in Kenya. Thesis for the Award of PhD at Jomo Kenyatta University of Agriculture and Technology, Kenya.
Weldehawartiat, G. T., Mergiaw, M. B., Berhanu, M. H. & Friedrich, C. (2024) Measuring entrepreneurial orientation of Bahir Dar University students. Cogent Business & Management, 11:1, 2376912, DOI: 10.1080/23311975.2024.2376912.
World Health Organization (WHO) (2005). Johns Hopkins Bloomberg School of Public Health. Decision-Making Tool for Family Planning Clients and Providers. WHO, Baltimore, (Md), INFO and Geneva. 232pp.
Downloads
Published
How to Cite
Issue
Section
Categories
License
Copyright (c) 2025 AFRICAN JOURNAL OF APPLIED RESEARCH
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
By submitting and publishing your articles in the African Journal of Applied Research, you agree to transfer the copyright of the Article from the authors to the Journal ( African Journal of Applied Research).
