Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Mediating Role of Innovation on Access to Finance and Business Performance of Women Entrepreneurs

Rahmat Magajiya Aliyu, Tunku Salha Binti Tunku Ahmad, Norshahrizan Binti Nordin

http://dx.doi.org/10.6007/IJARBSS/v9-i3/5644

Open access

This research examines the innovation as a mediator on Access to Finance (AF) and Business Performance (BP) of women entrepreneurs in Nigeria using Innovation (I) as a mediator in order to improve the performance of Women which at the long-run contribute positively towards the increase of Nigeria GDP. Data required for the study was collected from the Women Micro, Small and Medium Enterprises (MSME’s) operating in the North-Western Nigeria using a survey design using a systematic random and stratified disproportionate sampling. A designed questionnaire has been distributed across the target population of 576 through self-administration. In order to evaluation the proposed data, the study has adopted the Partial Least Squares-Structural Equation Modelling (PLS-SEM). The findings revealed that AF and Innovation are important strategic for the performance of women MSMEs in Nigeria. The findings also revealed that women MSME performance depends on the degree of AF of the business performance. However, innovation was found to mediate on Access to Finance and Business Performance of Women Entrepreneurs. The results of the study will provide important insights to women owner/managers of MSMEs, policy makers and researchers to further understand the influence of AF and Innovation on women MSME performance. Women MSMEs should also be encouraged to improve their AF and I which may increase their performances.

Abubakar, K. M. (2013). Capital Access Strategies and Enterprise Growth: A Study of Selected Indigenous Women Entrepreneurs in Sokoto Metropolis, Nigeria. Sokoto Journal of Management Studies, 4(1), 25-38.
Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173.
Bouri, A., Breij, M., Diop, M., Kempner, R., Klinger, B., & Stevenson, K. (2011). Report on support to SMEs in developing countries through financial intermediaries. Dalberg, November.
Camisón, C., & Villar-López, A. (2014). Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of business research, 67(1), 2891-2902.
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295-336.
Cohen, J. (1988). Statistical power analysis for the behavioural sciences.
Covin, J. G., & Miller, D. (2014). International entrepreneurial orientation: Conceptual considerations, research themes, measurement issues, and future research directions. Entrepreneurship Theory and Practice, 38(1), 11-44.
Fornell, C. and Larcker, D.F. (1981), “Evaluating structural equation models with unobservable variables and measurement error”, Journal of Marketing Research, Vol. 18 No. 1, pp. 39- 50.
Fornell, C. and Larcker, D.F. (1981), “Evaluating structural equation models with unobservable variables and measurement error”, Journal of Marketing Research, Vol. 18 No. 1, pp. 39- 50.
Fowowe, B. (2017). Access to finance and firm performance: Evidence from African countries. Review of Development Finance, 7(1), 6-17.
Gorondutse, A. H., Ali, R. A., Abubakar, A., & Naalah, M. N. I. (2017). The effect of working capital management on SMEs profitability in Malaysia. Polish Journal of Management Studies, 16.
Gorondutse, A.H., Ibrahim, G., Abdullwahab, H.I. and Naalah, M.N.I., 2018. Founder’s Syndrome and Firm Performance of Small and Medium Scale Enterprises in Nigeria. Journal of Health Management and Informatics, 5(1), pp.1-8.
Hair, J., Hollingsworth, C. L., Randolph, A. B., & Chong, A. Y. L. (2017). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management & Data Systems, 117(3), 442-458.
Aliyu, R. M., Ahmad, T, S., and Nordin, N. (2018) The effects of Market Orientation and Training on business performance of women: The Mediating role of Innovation. International Journal of Social Science and Economic Research, 3(11), 6451-6467.
Halim, H. A., Ahmad, N. H., Ramayah, T., & Hanifah, H. (2014). The growth of innovative performance among SMEs: Leveraging on organisational culture and innovative human capital. Journal of Small Business and Entrepreneurship Development, 2(1), 107-125.
Harelimana, J. B. (2017). Role of Access to Finance for the Performance of Small and Medium Enterprises in Muhoza Sector, Rwanda. Account and Financial Management Journal, 2(01), 559-567.
Hayes, A. F. (2009). Beyond Baron and Kenny: Statistical mediation analysis in the new millennium. Communication monographs, 76(4), 408-420.
Helm, R., Mauroner, O., & Dowling, M. (2010). Innovation as mediator between entrepreneurial orientation and spin-off venture performance. International Journal of Entrepreneurship and Small Business, 11(4), 472-491.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2016). Testing measurement invariance of composites using partial least squares. International Marketing Review, 33(3), 405-431.
Huhtala, J. P., Sihvonen, A., Frösén, J., Jaakkola, M., & Tikkanen, H. (2014). Market orientation, innovation capability and business performance: Insights from the global financial crisis. Baltic Journal of Management, 9(2), 134-152.
Ibrahim, N., Mahmood, R., & Bakar, M. (2016). Linking strategic improvisation and entrepreneurial self-efficacy to corporate entrepreneur

In-Text Citation: (Aliyu, Ahmad, & Nordin, 2019)
To Cite this Article: Aliyu, R. M., Ahmad, T. S. B. T., & Nordin, N. B. (2019). The Mediating Role of Innovation on Access to Finance and Business Performance of Women Entrepreneurs. International Journal of Academic Research in Business and Social Sciences, 9(3), 147–159.