Opportunity Recognition and Innovation in Uganda: The Moderating Role of Pluriactivity

Abstract

This study develops a moderation model to examine the role of pluriactivity on the relationship between opportunity recognition and innovation by entrepreneurs in a developing country setting. Drawing upon the perspectives of the componential theory of innovation, this study argues that the impacts of opportunity recognition oninnovation depend on the number of businesses owned by the entrepreneur. The hypothesis is tested with data from a survey among five hundred seventy (570) Ugandan entrepreneurs. The results reveal that pluriactivity negatively moderates the relationship between opportunity recognition and innovation. Specifically, entrepreneurs are more likely to realize an innovation from opportunities that they perceive when they run a single firm. This implies that while resource orchestration across a number of firms within a portfolio may be a strategy to reduce risk, it omits the benefits of persistence, learning and innovation when a singular enterprises is faced with challenges.