Innovativeness, Opportunity Recognition and Procurement Participation of Smes in the Construction Industry in Wakiso District, Uganda.
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Date
2025-06-19
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Makerere University Business School
Abstract
The researcher carried out a study on innovativeness, opportunity recognition, and procurement participation among Small and Medium Enterprises within Uganda’s construction sector. This was specific to 5 objectives that include; relationship between Innovativeness and opportunity recognition, relationship between opportunity recognition and procurement participation, relationship between Innovativeness and procurement participation, mediation effect of opportunity recognition in the relationship between Innovativeness and procurement participation, and finally to determine the Joint effect of Innovativeness and opportunity recognition on procurement participation. The study used a cross-section survey research design. Out of 351 sample size, 320 managed to fill and return the questionnaires given to them. This resulted in a response rate of 91.2 percent. Findings for innovativeness and opportunity recognition indicates (r =.308**, p<.01), opportunity recognition and procurement participation (r =.179**, p<.01), innovativeness and procurement participation (r =.274**, p<.01). Opportunity recognition marginally mediates the relationship between innovativeness and procurement participation, with a statistically insignificant effect (Z = 1.754, p = .079). The joint contribution of innovativeness and opportunity recognition reveals adjusted r square (.085), with innovativeness emerging as the stronger predictor (Beta = .242). However, the relatively lower contribution of opportunity recognition (Beta = .105) suggests a need for SMEs to better leverage this capability. The study concludes that: Innovativeness significantly enhances opportunity recognition and procurement participation. Opportunity recognition moderately impacts procurement participation and serves a limited mediating role in its relationship with innovativeness. Innovativeness, more than opportunity recognition, drives procurement participation. The study recommends SMEs should prioritize innovation strategies aligned with procurement requirements to enhance competitiveness. Policymakers should support SMEs through capacity-building programs that integrate market intelligence with innovation practices. Future interventions should foster transformational leadership to cultivate a culture of proactive opportunity recognition.
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This is a master's thesis.
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Julius, M. (2025). Innovativeness, Opportunity Recognition and Procurement Participation of Smes in the Construction Industry in Wakiso District, Uganda. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.