RUAHA CATHOLIC UNIVERSITY

The challenges in the business environment and the increase in competition have made women food vendors focus greatly on improving their business performance to attain business survival and develop their innovation abilities to meet their desire for success. This study therefore evaluates the mediating effect of product/service innovation on the relationship between entrepreneurial training and the business performance of women food vendors in Ilala Municipality, Tanzania. The study employed an explanatory research design with Partial Least Squares Structural Equation Modelling (PLS-SEM) as a statistical method for testing hypotheses. Multistage sampling procedures using stratified, purposive, and systematic random sampling were used to select a sample size of 302 women food vendors. Data collection was done using research questionnaires. The findings revealed that entrepreneurial training has a significant and positive effect on product/service innovation. The findings also revealed that product innovation has a positive and significant effect on business performance. Moreover, the findings revealed that product/service innovation mediates the relationship between entrepreneurial training and business performance. The findings provide significant insights for women's food vendors, managers, policymakers, and researchers to further understand the mediating role of product/service innovation on the relationship between entrepreneurial training and business performance of women's food vendors. Thus, it is imperative for women to be encouraged to attend and improve their entrepreneurial skills and product/service innovation, which may increase business performance.

Business Performance, Entrepreneurial Training, Product Innovation, Food Vendor, Service Innovation