Effects of entrepreneurial networking on sustainable growth of small enterprises – the mediating role of innovation

Abstract

Purpose

This research examined the effects of entrepreneurial networking, operationalised as network isomorphism and network social capital, on the sustainable growth of small enterprises and the role of innovation in the hypothesised relationship.

Design/methodology/approach

The study employed a survey design and the questionnaire method to collect data from 319 small enterprises which were selected via quota sampling from the membership lists of the Association of Ghana Industries and the Ghana Enterprises Agency. Data were analysed using the covariance-based structural equation modelling (CV SEM-Amos) technique.

Findings

The study found that most small enterprises participate in business networks, followed by social and political networks. Entrepreneurial networking has a significant positive influence on the sustainable growth of small enterprises, and the influence is strongly mediated by innovation. Compared with network isomorphism, the value derived from social networks has a higher significant effect on sustainable enterprise growth.

Practical implications

Small enterprises that tap into valuable network resources to drive internal innovation should experience sustainable growth, whereas those that do not leverage the power of entrepreneurial networking miss the opportunity to access critical resources for innovation and sustainable enterprise growth.

Originality/value

The paper extends beyond the resource-based view by integrating institutional and network-based theories to offer a unique “entrepreneurial network model.” By testing the model, the empirical findings provide unique comprehensive insights into network isomorphism and network social capital as entrepreneurial mechanisms which facilitate access to network resources for innovations and sustainable growth of small enterprises.

Citation

Mensah, I., Boohene, R. and Mensah, M.S.B. (2024), "Effects of entrepreneurial networking on sustainable growth of small enterprises – the mediating role of innovation", Benchmarking: An International Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BIJ-04-2024-0276