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Advances in Social Sciences Research Journal – Vol. 8, No. 10
Publication Date: October 25, 2021
DOI:10.14738/assrj.810.10826. Chebii, P., Nassiuma, B. K., Masinde, J., & Sergon, D. (2021). Livelihood Improvement through Entrepreneur Characteristics and
Innovative Strategies: An Empirical Study of Entrepreneurs in Western Kenya. Advances in Social Sciences Research Journal, 8(10).
40-51.
Services for Science and Education – United Kingdom
Livelihood Improvement through Entrepreneur Characteristics
and Innovative Strategies: An Empirical Study of Entrepreneurs
in Western Kenya
Pamela Chebii
Moi University School of Business and Economics
Bernard Kibeti Nassiuma
Moi University School of Business and Economics
Jamin Masinde
Moi University School of Arts and Social Sciences
David Sergon
Moi University School of Business and Economics
ABSTRACT
Purpose − This study aimed at improving an understanding of the mediating role of
innovation in the relationship between entrepreneur characteristics and livelihood
improvement. The study was empirical, based on primary data from the micro and
small enterprises in the western region of Kenya. Design/methodology−The study
adopted a quantitative approach, self-administered questionnaires were used to
gather data from 382 Micro and Small Enterprises (MSEs) owners in Western Kenya,
comprising Uasin Gishu and Bungoma Counties. The study examined the direct and
indirect effects on livelihood improvement. A simple random sampling technique
was used to select respondents for data collection. For statistical analysis, bivariate
regression and multiple regression techniques were utilized with SPSS version 26
being the tool. The sopel test assisted in analyzing the effect of innovation as a
mediator between entrepreneur characteristics and livelihood improvement.
Findings−The results reveal a statistically significant relationship between the
entrepreneur characteristics and livelihood improvement under the mediating role
of innovation. Practical implications−These findings provide useful insights for
MSEs, seeking to be competitive and responsive to the changing entrepreneurial
landscape by successfully introducing innovations. The study encourages an
innovative culture among the MSEs owners which is likely to facilitate the
introduction, adoption, and diffusion of innovations that can in turn, result in the
achievement of livelihood improvement. Originality/value−The study contributes
to the existing literature by enhancing an understanding of the mediating role of
innovation in the relationship between entrepreneur characteristics and livelihood
improvement in the MSEs sector of a developing context.
Keywords: MSEs, innovation, mediation, entrepreneur characteristics, improved
livelihood, western Kenya.
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Advances in Social Sciences Research Journal (ASSRJ) Vol. 8, Issue 10, October-2021
Services for Science and Education – United Kingdom
this sector is seen as a central pillar for creating job opportunities, the elevation of invention,
overcoming struggle, and a vigorous economy (Etuk, Etuk & Michael, 2014). When jobs are
created then the livelihoods are also improved. Entrepreneur characteristics and livelihood
improvement can therefore be studied in the MSEs.
Entrepreneur characteristics: Need for Achievement
This study considers entrepreneurial characteristics as being part of entrepreneurial
personality traits. The traits considered in this study include; the need for achievement, self- efficacy, locus of control, and innovation. Ahmed & Ghani (2020) found that the Need for
Achievement (NACH) is significantly related to entrepreneur behaviour. According to
McClelland (1961), the need for achievement and entrepreneur behaviour are related to each
other. Further, NACH theory proposes the prediction of entrepreneur behaviour according to
Ahmed & Ghani (2020). McClelland’s theory of needs states that the Need for achievement is
the willingness to succeed and to achieve success concerning a set of norms (Stephen et al.,
2011). The NACH has been described also as a willingness to perform well, not for the sake of
social recognition, but the internal feeling of private accomplishment (Perry et al., 1986).
Moreover, the need for achievement influences a person to pursue entrepreneurial activities to
gain more achievement satisfaction (Stewart et al., 2003, p. 29; Carraher et al., 2010). This
research considered this internal feeling of private achievement as an entrepreneurial
characteristic that would drive the entrepreneurial livelihood improvement.
Entrepreneur characteristics: Internal Locus of Control
Entrepreneurial traits including internal and external locus of control (LOC) can predict
personality behavior (Holt, Clark, and Kreuter, 2001). A study was done by Baum & Locke
(2004) who distinguished between internal and external LOC in which scholars emphasized the
importance of investigating personality traits found to have a relationship with entrepreneurial
tasks. The internal locus of control (LOC) as an entrepreneur characteristic was thus considered
suitable for this study because of a number of reasons fronted by other researchers. Persons
with an internal locus of control believe that they can influence outcomes through their ability,
effort, or skills, rather than external forces controlling these outcomes, (Kerr, Kerr & Xu, 2018).
According to Caliendo et al. (2009) traits such as locus of control can be more directly
extrapolated onto decision-making in the professional field. While Dawwas and AL-Haddad
(2018), found that increasing the levels of an internal LOC increased innovativeness level in an
individual. In their comparative study between entrepreneurs and employees, Dawwas and AL- Haddad (2018) found that while the majority of employees were found to have an external LOC
and low innovativeness, the employees who were found to have an internal LOC had a high level
of innovativeness. This study therefore took the internal LOC as one of the entrepreneur
characteristics.
Entrepreneur characteristics: Entrepreneur Self-efficacy
Entrepreneur self-efficacy can also be taken as a predictor of behaviors associated with
innovation (Barakat et al., 2014), which is an entrepreneurial characteristic. Self-efficacy
describes a person’s “belief that they can perform tasks and fulfill roles, and is directly related
to expectations, goals and motivation” (Cassar & Friedman, 2009). Chen et al. (1998) define
entrepreneurial self-efficacy, which this research considers as one of the entrepreneur
characteristics as a composite toward five tasks: innovation, risk-taking, marketing,
management, and financial control. According to Kerr, Kerr & Xu (2018), in new venture